<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>tex99_1-2492.txt
<DESCRIPTION>EX-99.1
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                            KINROSS GOLD CORPORATION




                         RENEWAL ANNUAL INFORMATION FORM


                      FOR THE YEAR ENDED DECEMBER 31, 2003






                               DATED APRIL 30 2004

<PAGE>


                                TABLE OF CONTENTS
                                                                            PAGE


CAUTIONARY STATEMENT...........................................................1

RISK FACTORS...................................................................1

DIVIDEND POLICY................................................................9

BUSINESS OF KINROSS...........................................................10

DIRECTORS AND OFFICERS........................................................96

PRINCIPAL SHAREHOLDERS OF KINROSS............................................109

MARKET PRICE FOR KINROSS COMMON SHARES.......................................110

KINROSS SELECTED FINANCIAL DATA..............................................110

KINROSS MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
  CONDITION AND RESULTS OF OPERATIONS........................................119

THE CROWN MERGER.............................................................155

AGREEMENTS RELATING TO THE MERGER............................................156

BUSINESS OF CROWN............................................................164

CROWN SELECTED HISTORICAL FINANCIAL INFORMATION..............................172

MARKET FOR SECURITIES........................................................173

DESCRIPTION OF SECURITIES....................................................173

GLOSSARY OF TECHNICAL TERMS USED IN THIS DOCUMENT............................175

ADDITIONAL INFORMATION.......................................................191

INDEX TO FINANCIAL STATEMENTS................................................192

<PAGE>

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                              CAUTIONARY STATEMENT

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This Annual Information Form of Kinross Gold Corporation ("Kinross") contains
"forward-looking statements." Forward-looking statements include, but are not
limited to, statements with respect to the future price of gold and silver, the
estimation of mineral reserves and resources, the realization of mineral reserve
estimates, the timing and amount of estimated future production, costs of
production, capital expenditures, costs and timing of the development of new
deposits, success of exploration activities, permitting time lines, currency
fluctuations, requirements for additional capital, government regulation of
mining operations, environmental risks, unanticipated reclamation expenses,
title disputes or claims and limitations on insurance coverage. In certain
cases, forward-looking statements can be identified by the use of words such as
"plans," "expects," or "does not expect," "is expected," "budget," "scheduled,"
"estimates," "forecasts," "intends," "anticipates," or "does not anticipate," or
"believes," or variations of such words and phrases or state that certain
actions, events or results "may," "could," "would," "might," or "will be taken,"
"occur" or "be achieved." Forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual results,
performance or achievements of Kinross to be materially different from any
future results, performance or achievements expressed or implied by the
forward-looking statements. In addition to the factors Kinross currently
believes to be material, which are identified under "Risk Factors," other
factors not currently viewed as material could cause actual results to differ
materially from those described in the forward-looking statements include, among
others, risks related to the integration of acquisitions; risks related to joint
venture operations; actual results of current exploration activities; actual
results of current reclamation activities; conclusions of economic evaluations;
changes in project parameters as plans continue to be refined; failure of plant,
equipment or processes to operate as anticipated; accidents, labor disputes and
other risks of the mining industry; and unanticipated delays. In addition, there
may be other factors not currently anticipated or that may have a greater effect
than expected that could cause actions, events or results not to be as
anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements which speak only as of the date of this Annual Information Form.
Kinross does not undertake any obligation to update or revise these
forward-looking statements.

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                                  RISK FACTORS

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       An investment in the Kinross common shares involves certain risks. In
addition to considering the other information in this Annual Information Form,
you should consider carefully the following factors in deciding whether to
invest in securities of Kinross. If any of these risks occur, or if other risks
not currently anticipated or fully appreciated occur, the business and prospects
of Kinross could be materially adversely affected, which could have an adverse
effect on the trading price for its shares.

KINROSS' MINERAL EXPLORATION AND MINING OPERATIONS INVOLVE SIGNIFICANT RISKS,
INCLUDING THE DIFFICULT NATURE OF ESTABLISHING THE EXISTENCE OF ECONOMIC
MINERALIZATION, SIGNIFICANT UP-FRONT CAPITAL REQUIREMENTS, VARIABILITY IN
DEPOSITS, AND OTHERS THAT MAY RESTRICT KINROSS' ABILITY TO RECEIVE AN ADEQUATE
RETURN ON ITS CAPITAL IN THE FUTURE.

       The exploration and development of mineral deposits involves significant
financial and other risks over an extended period of time, which even a
combination of careful evaluation, experience, and knowledge may not eliminate.
Few mining properties that are explored are ultimately developed into producing
mines. Major expenses are required to establish reserves by drilling and to
construct mining and processing facilities. Large amounts of capital are
frequently required to purchase necessary equipment. Delays due to equipment
malfunction or inadequacy may adversely affect Kinross' results of operations.
It is impossible to ensure that the current or proposed exploration programs on
properties in which Kinross has an interest will result in profitable commercial
mining operations.

                                      -1-
<PAGE>

       Whether a gold deposit will be commercially viable depends on a number of
factors, including the particular attributes of the deposit, such as its size
and grade, costs and efficiency of the recovery methods that can be employed,
proximity to infrastructure, financing costs and governmental regulations,
including regulations relating to prices, taxes, royalties, infrastructure, land
use, importing and exporting of gold, and environmental protection. The effect
of these factors cannot be accurately predicted, but the combination of these
factors may result in Kinross not receiving an adequate return on its invested
capital.

KINROSS IS SUBJECT TO RISKS CAUSED BY VARIOUS EXTERNAL FACTORS, INCLUDING LEGAL
LIABILITY CREATED BY ITS OPERATIONS.

       The operations of Kinross are subject to the hazards and risks normally
incident to exploration, development, and production of gold, any of which could
result in damage to life or property, environmental damage and possible legal
liability for such damage. The activities of Kinross may be subject to prolonged
disruptions due to weather conditions depending on the location of operations in
which Kinross has interests. Hazards, such as unusual or unexpected formations,
faults and other geologic structures, rock bursts, pressures, cave-ins,
flooding, or other conditions may be encountered in the exploration, mining, and
removal of material.

CHANGES TO THE EXTENSIVE FOREIGN REGULATORY AND ENVIRONMENTAL RULES AND
REGULATIONS TO WHICH KINROSS IS SUBJECT COULD HAVE A MATERIAL ADVERSE EFFECT ON
KINROSS' FUTURE OPERATIONS.

       Kinross' mining and processing operations and exploration activities in
the Americas, Russia, Australia, Africa, and other countries and regions are
subject to various laws and regulations governing the protection of the
environment, exploration, development, production, exports, taxes, labor
standards, occupational health, waste disposal, toxic substances, mine safety,
and other matters. The legal and political circumstances outside of the United
States cause these risks to be different from, and in many cases, greater than,
comparable risks associated with operations within the United States. New laws
and regulations, amendments to existing laws and regulations, or more stringent
implementation of existing laws and regulations could have a material adverse
impact on Kinross, increase costs, cause a reduction in levels of production
and/or delay or prevent the development of new mining properties. Compliance
with these laws and regulations requires significant expenditures and increases
the mine development and operating costs of Kinross. Changes in regulations and
laws could adversely affect Kinross' operations or substantially increase the
costs associated with those operations.

CHANGES TO THE EXTENSIVE UNITED STATES REGULATORY AND ENVIRONMENTAL RULES AND
REGULATIONS TO WHICH KINROSS IS SUBJECT COULD HAVE A MATERIAL ADVERSE EFFECT ON
KINROSS' FUTURE OPERATIONS.

       Kinross' exploration programs in the United States are subject to
federal, state, and local environmental regulations. Some of Kinross' mining
claims are on United States public lands. The United States Forest Service (the
"USFS") and Bureau of Land Management (the "BLM") extensively regulate mining
operations conducted on public lands. Most operations involving the exploration
for minerals are subject to laws and regulations relating to exploration
procedures, safety precautions, employee health and safety, air quality
standards, pollution of stream and fresh water sources, odor, noise, dust, and
other environmental protection controls adopted by federal, state, and local
governmental authorities as well as the rights of adjoining property owners. In
addition, in order to conduct mining operations on Kinross' properties, it will
be required to obtain performance bonds related to environmental permit
compliance. These bonds may take the form of cash deposits or, if available,
could be provided by outside insurance policies. Kinross may be required to
prepare and present to federal, state, or local authorities' data pertaining to
the effect or impact that any proposed exploration or mining activity may have
upon the environment. All requirements imposed by any such authorities may be
costly and time-consuming and may delay commencement or continuation of
exploration or production operations.

KINROSS IS SUBJECT TO RISKS AND EXPENSES RELATED TO RECLAMATION COSTS AND
RELATED LIABILITIES. INCREASES IN THESE COSTS OVER CURRENT ESTIMATES COULD HAVE
A MATERIAL ADVERSE EFFECT ON KINROSS.

       Kinross is generally required to submit for government approval a
reclamation plan and to pay for the reclamation of its mine sites upon the
completion of mining activities. Kinross estimates its share of reclamation
closure obligations as of December 31, 2003, at $146.3 million based on
information currently available. In addition, Kinross spent $19.3 million in
2003 and plans reclamation spending of approximately $19.2 million in 2004 as
part of its current closure plans and to get as many closure projects as
possible to post-closure monitoring

                                      -2-
<PAGE>

by the end of 2005. Any increases over the current estimates of these costs
could have a material adverse effect on Kinross.

KINROSS IS SUBJECT TO RISKS RELATED TO ENVIRONMENTAL LIABILITY, INCLUDING
LIABILITY FOR ENVIRONMENTAL DAMAGES CAUSED BY MINING ACTIVITIES PRIOR TO
OWNERSHIP BY KINROSS. THE PAYMENT OF SUCH LIABILITIES WOULD REDUCE FUNDS
OTHERWISE AVAILABLE AND COULD HAVE A MATERIAL ADVERSE EFFECT ON KINROSS.

       Mining, like many other extractive natural resource industries, is
subject to potential risks and liabilities associated with pollution of the
environment and the disposal of waste products occurring as a result of mineral
exploration and production. Environmental liability may result from mining
activities conducted by others prior to the ownership of a property by Kinross.
The payment of such liabilities would reduce funds otherwise available and could
have a material adverse effect on Kinross. Should Kinross be unable to fund
fully the cost of remedying an environmental problem, Kinross might be required
to suspend operations or enter into interim compliance measures pending
completion of the required remedy, which could have a material adverse effect on
the operations and business of Kinross.

KINROSS' OPERATIONS COULD BE ADVERSELY AFFECTED BY CHANGES IN MINING LAWS
RELATED TO ROYALTIES, NET PROFITS INTERESTS, LAND AND MINERAL OWNERSHIP AND
SIMILAR MATTERS.

       Bills proposing major changes to the mining laws of the United States
have been considered by Congress. If these bills, which may include royalty fees
or net profits interests, are enacted in the future, they could have a
significant effect on the ownership and operation of patented and unpatented
mining claims in the United States, including claims that Kinross owns or holds.
Any amendment to current laws and regulations governing operations and
activities of mining companies, or more stringent implementation thereof, could
have a material adverse impact on Kinross' financial condition and results of
operation.

CERTAIN CHARACTERISTICS OR MANAGEMENT DECISIONS OF KINROSS MAY NEGATIVELY AFFECT
UNITED STATES SHAREHOLDERS TO A GREATER EXTENT THAN THEY DO SHAREHOLDERS OF
OTHER NATIONALITIES.

       The Kinross common shares that will be distributed to the former Crown
shareholders in the merger are shares of a Canadian corporation. Various United
States tax provisions apply only to foreign corporations or apply differently to
foreign corporations than they do to domestic corporations. The differences that
are currently material to United States' residents who hold Kinross common
shares are described in the section of this Annual Information Form entitled
"Tax Consequences." Other provisions may adversely affect U.S. holders of the
Kinross common shares in the future. As the managers of a Canadian company with
global operations and a substantial non-U.S. shareholder base, management of
Kinross may conduct its operations in a manner that does not maximize the value
of such operations either after tax or in United States dollars, or even the
value of the Kinross common shares.

FLUCTUATIONS IN UNITED STATES AND CANADIAN EXCHANGE RATES MAY NEGATIVELY AFFECT
THE PRICE OF KINROSS' COMMON SHARES IN UNITED STATES DOLLARS.

       Fluctuations in the exchange rate between Canadian and United States
dollars may affect the United States dollar value of the Kinross common shares
in ways that are different than changes in the Canadian dollar value of Kinross
common shares.

THE BUSINESS OF KINROSS IS ADVERSELY AFFECTED BY THE LACK OF INFRASTRUCTURE.

       Mining, processing, development, and exploration activities depend, to
one degree or another, on adequate infrastructure. Reliable roads, bridges,
power sources, and water supply are important determinants which affect capital
and operating costs. Unusual or infrequent weather phenomena, sabotage,
terrorism, government, or other interference in the maintenance or provision of
such infrastructure could adversely affect Kinross' operations, financial
condition, and results of operations.

THE RESERVE AND RESOURCE FIGURES OF KINROSS AND CROWN ARE ONLY ESTIMATES AND ARE
SUBJECT TO REVISION BASED ON DEVELOPING INFORMATION. A SIGNIFICANT REDUCTION IN
THESE RESERVES AND RESOURCES OR IN THEIR ESTIMATES COULD NEGATIVELY AFFECT THE
PRICE OF KINROSS' STOCK.

                                      -3-
<PAGE>

       The figures for reserves and resources presented herein, including the
anticipated tonnages and grades that will be achieved or the indicated level of
recovery that will be realized, are estimates. Market fluctuations in the price
of gold or increases in the costs to recover gold at Kinross' mines may render
the mining of ore reserves uneconomical and materially harm Kinross' results of
operations. Moreover, various short-term operating factors may cause a mining
operation to be unprofitable in any particular accounting period.

       Proven and probable reserves at Kinross' mines and development projects
and probable reserves at the Buckhorn Mountain Project were calculated based
upon a gold price of $325 and $350 per ounce, respectively, and measured and
indicated resources for Kinross were calculated based upon a gold price of $350
per ounce. Prolonged declines in the market price of gold may render reserves
containing relatively lower grades of gold mineralization uneconomic to exploit
and could reduce materially Kinross' reserves and resources. Should such
reductions occur, material write downs of Kinross' investment in mining
properties or the discontinuation of development or production might be
required, and there could be material delays in the development of new projects,
increased net losses and reduced cash flow. The estimates of mineral reserves
and resources attributable to a specific property are based on accepted
engineering and evaluation principles. The estimated amount of contained gold in
proven and probable reserves does not necessarily represent an estimate of a
fair market value of the evaluated properties.

       There are numerous uncertainties inherent in estimating quantities of
mineral reserves and resources. The estimates in this Annual Information Form
are based on various assumptions relating to gold prices and exchange rates
during the expected life of production, mineralization of the area to be mined,
the projected cost of mining, and the results of additional planned development
work. Actual future production rates and amounts, revenues, taxes, operating
expenses, environmental and regulatory compliance expenditures, development
expenditures, and recovery rates may vary substantially from those assumed in
the estimates. Any significant change in these assumptions, including changes
that result from variances between projected and actual results, could result in
material downward revision to current estimates.

THE MINERAL RESOURCES OF KINROSS MAY NOT BE ECONOMICALLY DEVELOPABLE, IN WHICH
CASE KINROSS MAY NEVER RECOVER ITS EXPENDITURES FOR EXPLORATION AND/OR
DEVELOPMENT.

       Mineral resources that are not mineral reserves do not have demonstrated
economic viability. Due to the uncertainty of inferred mineral resources, these
mineral resources may never be upgraded to proven and probable mineral reserves.

IF KINROSS DOES NOT DEVELOP ADDITIONAL MINERAL RESERVES, IT MAY NOT BE ABLE TO
SUSTAIN FUTURE OPERATIONS WHICH COULD HAVE A MATERIAL ADVERSE EFFECT ON ITS
FUTURE OPERATIONS.

       Because mines have limited lives, Kinross must continually replace and
expand its mineral reserves as its mines produce gold. The life-of-mine
estimates included in this Annual Information Form for each of Kinross' material
properties may prove incorrect. Kinross' ability to maintain or increase its
annual production of gold will significantly depend on its ability to bring new
mines into production and to expand mineral reserves at existing mines.

THE OPERATIONS OF KINROSS OUTSIDE OF NORTH AMERICA MAY BE ADVERSELY AFFECTED BY
CHANGING POLITICAL, LEGAL, AND ECONOMIC CONDITIONS.

       Kinross has mining and exploration operations in South America, Russia,
Australia, and Africa and such operations are exposed to various levels of
political, economic, and other risks and uncertainties. These risks and
uncertainties vary from country to country and include, but are not limited to,
terrorism; hostage taking; military repression; extreme fluctuations in currency
exchange rates; high rates of inflation; labor unrest; the risks of war or civil
unrest; expropriation and nationalization; renegotiation or nullification of
existing concessions, licenses, permits and contracts; illegal mining; changes
in taxation policies; restrictions on foreign exchange and repatriation; and
changing political conditions, currency controls, and governmental regulations
that favor or require the awarding of contracts to local contractors or require
foreign contractors to employ citizens of, or purchase supplies from, a
particular jurisdiction.

       Future political and economic conditions in these countries may result in
these governments adopting different policies respecting foreign development and
ownership of mineral resources. Any changes in policy may

                                      -4-
<PAGE>

result in changes in laws affecting ownership of assets, foreign investment,
taxation, rates of exchange, gold sales, environmental protection, labor
relations, price controls, repatriation of income, and return of capital, which
may affect both the ability of Kinross to undertake exploration and development
activities in respect of future properties in the manner currently contemplated,
as well as its ability to continue to explore, develop, and operate those
properties to which it has rights relating to exploration, development, and
operations. A future government of these countries may adopt substantially
different policies, which might extend to, as an example, expropriation of
assets.

THERE ARE SIGNIFICANT CURRENCY AND TAX RISKS RELATED TO KINROSS' RUSSIAN
OPERATIONS, WHICH COULD ADVERSELY AFFECT KINROSS' RUSSIAN OPERATIONS.

       Kinross is subject to the considerations and risks of operating in the
Russian Federation. The Russian economy continues to display characteristics of
an emerging market. These characteristics include, but are not limited to, a
currency that is not freely convertible outside of the country and extensive
currency controls. The prospects for future economic stability in the Russian
Federation are largely dependent upon the effectiveness of economic measures
undertaken by the government, together with legal, regulatory, and political
developments.

       Russian laws, licenses, and permits have been in a state of change and
new laws may be given retroactive effect. It is also not unusual in the context
of dispute resolution in Russia for parties to use the uncertainty in the
Russian legal environment as leverage in business negotiations. In addition,
Russian tax legislation is subject to varying interpretations and constant
change. Further, Kinross' interpretation of tax legislation as applied to its
transactions and activities may not coincide with that of Russian tax
authorities. As a result, transactions may be challenged by tax authorities and
Kinross' Russian operations may be assessed, which could result in significant
additional taxes, penalties and interest. The periods remain open to review by
the tax authorities for three years. See "Business of Kinross--Legal
Proceedings--Russia".

ZIMBABWE AND BRAZIL SUFFER FROM SIGNIFICANT ECONOMIC INSTABILITY WHICH COULD
ADVERSELY AFFECT KINROSS' OPERATIONS IN THOSE COUNTRIES.

       Kinross is subject to risks relating to an uncertain or unpredictable
political and economic environment in Zimbabwe and Brazil. In the short term,
significant economic instability in these regions is expected to negatively
impact the business environment and may lead to long-term negative changes in
the approaches taken with respect to ownership of natural resources by foreign
companies. In the case of Zimbabwe, in 2001, Kinross recorded a writedown of
$11.8 million relating to Kinross' inability to manage this operation because of
political turmoil creating inflationary pressure within Zimbabwe, difficulty in
accessing foreign currency to pay for imported goods and services, and civil
unrest. Due to Kinross' continuing inability to control distributions from the
operations in Zimbabwe, Kinross stopped reporting mining production in 2003.

KINROSS REQUIRES THE ISSUANCE AND RENEWAL OF LICENSES AND PERMITS IN ORDER TO
CONDUCT ITS OPERATIONS, AND FAILURE TO RECEIVE THESE LICENSES MAY RESULT IN
DELAYS IN DEVELOPMENT OR CESSATION OF CERTAIN OPERATIONS.

       The operations of Kinross require licenses and permits from various
governmental authorities to exploit its properties, which will include the
Buckhorn Mountain Project subsequent to the proposed merger with Crown Resources
Corporation, and the process for obtaining licenses and permits from
governmental authorities often takes an extended period of time and is subject
to numerous delays and uncertainties. Such licenses and permits are subject to
change in various circumstances. Kinross may be unable to timely obtain or
maintain in the future all necessary licenses and permits that may be required
to explore and develop its properties, commence construction or operation of
mining facilities and properties under exploration or development or to maintain
continued operations that economically justify the cost.

THE SUCCESS OF KINROSS IS DEPENDENT ON GOLD PRICES OVER WHICH IT HAS NO CONTROL.

       The profitability of Kinross' operations are significantly affected by
changes in the market price of gold. Gold prices fluctuate on a daily basis and
are affected by numerous factors beyond the control of Kinross. The supply and
demand for gold, the level of interest rates, the rate of inflation, investment
decisions by large holders of gold, including governmental reserves, and
stability of exchange rates can all cause significant fluctuations in gold
prices. Such external economic factors are in turn influenced by changes in
international investment patterns and monetary systems and political
developments. The price of gold has fluctuated widely and future serious price
declines could cause continued commercial production to be impractical.
Depending on the price of gold, cash flow

                                      -5-
<PAGE>

from mining operations may not be sufficient to cover costs of production and
capital expenditures. If, as a result of a decline in gold prices, revenues from
metal sales were to fall below cash operating costs, production may be
discontinued.

KINROSS HAS A HISTORY OF LOSSES, AND THE SUCCESS OF KINROSS WILL REQUIRE
PROFITABLE OPERATIONS IN THE FUTURE, WHICH CANNOT BE ASSURED.

       Kinross had net losses of $30.9 million and $36.3 million for 2002 and
2001, respectively. Kinross' ability to operate profitably in the future
continues to depend on the success of its principal mines and on the price of
gold.

THE TITLE TO PROPERTIES OF KINROSS MAY BE UNCERTAIN AND SUBJECT TO RISKS.

       The validity of mining claims which constitute most of Kinross' property
holdings in the Americas, Russia, Australia, and Africa may, in certain cases,
be uncertain and is subject to being contested. Kinross' titles, particularly
title to undeveloped properties, may be defective.

       Certain of Kinross' United States mineral rights consist of unpatented
mining claims. Unpatented mining claims and mill sites are unique property
interests, and are generally considered to be subject to greater title risk than
other real property interests because the validity of unpatented mining claims
is often uncertain and is always subject to challenges of third parties or
contests by the United States government. The validity of an unpatented mining
claim, in terms of both its location and its maintenance, is dependent on strict
compliance with a complex body of United States federal and state statutory and
decisional law. In addition, there are few public records that definitively
control the issues of validity and ownership of unpatented mining claims. The
General Mining Law of the United States includes provisions for obtaining a
patent, which is essentially equivalent to fee title, for an unpatented mining
claim upon compliance with certain statutory requirements (including the
discovery of a valuable mineral deposit). However, a Congressional moratorium
against the filing of new applications for a mineral patent is currently in
effect.

NUMEROUS OTHER COMPANIES COMPETE IN THE MINING INDUSTRY, MANY OF WHICH HAVE
GREATER RESOURCES AND TECHNICAL CAPACITY THAN KINROSS AND, AS A RESULT, KINROSS
MAY BE UNABLE TO EFFECTIVELY COMPETE IN ITS INDUSTRY, WHICH COULD HAVE A
MATERIAL ADVERSE EFFECT ON KINROSS' FUTURE OPERATIONS.

       The mineral exploration and mining business is competitive in all of its
phases. Kinross competes with numerous other companies and individuals,
including competitors with greater financial, technical and other resources than
Kinross, in the search for and the acquisition of attractive mineral properties.
The ability of Kinross to acquire properties in the future will depend not only
on its ability to develop its present properties, but also on its ability to
select and acquire suitable producing properties or prospects for mineral
exploration. Kinross may be unable to compete successfully with its competitors
in acquiring such properties or prospects on terms it considers acceptable, if
at all.

KINROSS MAY REQUIRE ADDITIONAL CAPITAL THAT MAY NOT BE AVAILABLE.

       The mining, processing, development, and exploration of Kinross'
properties may require substantial additional financing. Failure to obtain
sufficient financing may result in delaying or indefinite postponement of
exploration, development or production on any or all of Kinross' properties, or
even a loss of property interest. Additional capital or other types of financing
may not be available if needed or, if available, the terms of such financing may
be unfavorable to Kinross.

KINROSS' INSURANCE MAY NOT COVER THE RISKS TO WHICH ITS BUSINESS IS EXPOSED.

       Kinross' business is subject to a number of risks and hazards generally,
including adverse environmental conditions, industrial accidents, labor
disputes, adverse property ownership claims, unusual or unexpected geological
conditions, ground or slope failures, cave-ins, changes in the regulatory
environment and natural phenomena such as inclement weather conditions, floods
and earthquakes. Such occurrences could result in damage to mineral properties
or production facilities, personal injury or death, environmental damage to
Kinross' properties or the properties of others, delays in mining, monetary
losses and legal liability.

                                      -6-
<PAGE>

       Kinross' insurance does not cover all the potential risks associated with
a mining company's operations. Kinross may also be unable to maintain insurance
to cover insurable risks at economically feasible premiums, and insurance
coverage may not be available in the future or may not be adequate to cover any
resulting liability. Moreover, insurance against risks such as the validity and
ownership of unpatented mining claims and mill sites and environmental pollution
or other hazards as a result of exploration and production is not generally
available to Kinross or to other companies in the mining industry on acceptable
terms. Kinross might also become subject to liability for pollution or other
hazards for which it is uninsured or for which it elects not to insure because
of premium costs or other reasons. Losses from these events may cause Kinross to
incur significant costs that could have a material adverse effect upon its
financial condition and results of operations.

THE OPERATIONS OF KINROSS IN VARIOUS COUNTRIES ARE SUBJECT TO CURRENCY RISK.

       Currency fluctuations may affect the revenues which Kinross will realize
from its operations since gold is sold in the world market in United States
dollars. The costs of Kinross are incurred principally in Canadian dollars,
United States dollars, Russian rubles, Chilean pesos, Brazilian reals, and
Zimbabwean dollars. The appreciation of non-U.S. dollar currencies against the
U.S. dollar can increase the cost of gold production in U.S. dollar terms. From
time to time, Kinross transacts currency hedging to reduce the risk associated
with currency fluctuations. Currency hedging involves risks and may require
margin activities. Sudden fluctuations in currencies could result in margin
calls that could have an adverse effect on Kinross' financial position. While
the Russian ruble, Chilean peso, Brazilian real, and the Zimbabwean dollar are
currently convertible into Canadian and United States dollars, they may not
always be convertible in the future. See "Kinross Management's Discussion and
Analysis of Financial Condition and Results of Operations--Risk
Analysis--Disclosure About Market Risks" for a detailed discussion of examples
of the impact on Kinross' earnings of currency fluctuation and Canadian dollar
hedging for 2004.

KINROSS MAY NOT BE ABLE TO CONTROL THE DECISIONS AND STRATEGY OF JOINT VENTURES
TO WHICH IT IS A PARTY.

       Some of the mines in which Kinross owns interests are operated through
joint ventures with other mining companies and are subject to the risks normally
associated with the conduct of joint ventures. The existence or occurrence of
one or more of the following circumstances and events could have a material
adverse impact on Kinross' profitability or the viability of its interests held
through joint ventures, which could have a material adverse impact on Kinross'
results of operations and financial condition:

       -  inability to exert influence over strategic decisions made in respect
          of joint venture properties;
       -  disagreement with partners on how to develop and operate mines
          efficiently;
       -  inability of partners to meet their obligations to the joint venture
          or third parties; and
       -  litigation between partners regarding joint venture matters.

THE FAILURE OF KINROSS TO PAY ROYALTIES WOULD ADVERSELY AFFECT ITS BUSINESS AND
OPERATIONS.

       Kinross' mining properties are subject to various royalty and land
payment agreements. Failure by Kinross to meet its payment obligations under
these agreements could result in the loss of related property interests.

THE COMMODITY HEDGING ACTIVITIES OF KINROSS MAY HAVE AN ADVERSE EFFECT ON ITS
RESULTS OF OPERATIONS.

       Kinross has historically reduced its exposure to gold price fluctuations
by engaging in hedging activities. In 2002, Kinross changed its hedging strategy
and discontinued its hedging activities for gold. If Kinross were to resume its
hedging activities, it may be unable to achieve realized prices for gold
produced in excess of average market prices. Hedging may not adequately protect
against declines in the price of gold. Hedging may prevent Kinross from
benefiting fully from gold price increases. Hedging may require margin
activities. Sudden fluctuations in the price of gold could result in margin
calls that could have an adverse effect on the financial position of Kinross.
See "Kinross Management's Discussion and Analysis of Financial Condition and
Results of Operations--Risk Analysis--Gold Price" for a detailed discussion of
Kinross' hedging activities.

THE BUSINESS OF KINROSS IS DEPENDENT ON GOOD LABOR AND EMPLOYMENT RELATIONS.

       Production at Kinross' mines is dependent upon the efforts of employees
of Kinross. Relations between Kinross and its employees may be impacted by
changes in labor relations which may be introduced by, among others, employee
groups, unions, and the relevant governmental authorities in whose jurisdictions
Kinross carries

                                      -7-
<PAGE>

on business. Adverse changes in such legislation or in the relationship between
Kinross with its employees may have a material adverse effect on Kinross'
business, results of operations, and financial condition.

LIMITATIONS ON THE RIGHTS OF KINROSS' FOREIGN SUBSIDIARIES COULD ADVERSELY
AFFECT ITS ABILITY TO OPERATE EFFICIENTLY.

       Kinross conducts operations through foreign subsidiaries and joint
ventures, and a substantial part of its assets are held in such entities.
Accordingly, any limitation on the transfer of cash or other assets between the
parent corporation and such entities, or among such entities, could restrict
Kinross' ability to fund its operations efficiently. Any such limitations, or
the perception that such limitations may exist now or in the future, could have
a material adverse impact on Kinross' valuation and stock price. Other than its
operations in Zimbabwe, Kinross is not currently subject to any limitations on
the transfer of cash or assets that adversely affect its operations.

THE RESULTS OF KINROSS' OPERATIONS COULD BE ADVERSELY AFFECTED BY ITS
ACQUISITION STRATEGY.

       As part of Kinross' business strategy, it has sought, and will continue
to seek, new mining and development opportunities in the mining industry. In
pursuit of such opportunities, Kinross may fail to select appropriate
acquisition candidates or to negotiate acceptable arrangements, including
arrangements to finance acquisitions or integrate the acquired businesses and
their personnel. Kinross may be unable to complete any acquisition or business
arrangement that it pursues on favorable terms. Any acquisitions or business
arrangements completed may not ultimately benefit Kinross' business.

CHANGES IN THE MARKET PRICE OF KINROSS COMMON SHARES MAY BE UNRELATED TO ITS
RESULTS OF OPERATIONS AND COULD HAVE AN ADVERSE IMPACT ON KINROSS.

       The Kinross common shares are listed on the Toronto Stock Exchange
("TSX") and New York Stock Exchange ("NYSE"). The price of the Kinross common
shares is likely to be significantly affected by short-term changes in gold
price or in its financial condition or results of operations as reflected in its
quarterly earnings reports. Other factors unrelated to the performance of
Kinross that may have an effect on the price of the Kinross common shares
include the following: a reduction in analytical coverage by investment banks
with research capabilities; a drop in trading volume and general market interest
in the securities of Kinross may affect an investor's ability to trade
significant numbers of Kinross common shares; and a substantial decline in the
price of the Kinross common shares that persists for a significant period of
time could cause the Kinross common shares to be delisted from the NYSE, further
reducing market liquidity.

       As a result of any of these factors, the market price of the common
shares at any given point in time may not accurately reflect Kinross' long-term
value. Securities class action litigation often has been brought against
companies following periods of volatility in the market price of their
securities. Kinross may in the future be the target of similar litigation.
Securities litigation could result in substantial costs and damages and divert
management's attention and resources.

KINROSS HAS NOT PAID DIVIDENDS IN THE PAST AND DOES NOT ANTICIPATE DOING SO IN
THE FUTURE.

       No dividends on the common shares have been paid by Kinross to date.
Kinross anticipates that it will retain all future earnings and other cash
resources for the future operation and development of its business. Kinross does
not intend to declare or pay any cash dividends in the foreseeable future.
Payment of any future dividends will be at the discretion of Kinross' board of
directors, after taking into account many factors, including Kinross' operating
results, financial condition, and current and anticipated cash needs.

THE LOSS OF KEY EXECUTIVES COULD ADVERSELY AFFECT KINROSS.

       Kinross has a relatively small executive management team. See "Management
of Kinross--Officers".

       In the event that the services of one or a number of these executives
were no longer available, Kinross and its business could be adversely affected.
Kinross does not carry key-man life insurance with respect to its executives.
Other than severance agreements, described under "Management--Executive
Compensation--Employment Contracts", Kinross does not have employment agreements
with its executive officers.

                                      -8-
<PAGE>

KINROSS IS SUBJECT TO CERTAIN LEGAL PROCEEDINGS.

       Kinross is a party to the legal proceedings described under the caption
"Business of Kinross--Legal Proceedings". If decided adversely to Kinross, these
legal proceedings, or others that could be brought against Kinross in the
future, could have a material adverse effect on Kinross' financial condition or
prospects.

IT MAY BE DIFFICULT TO ENFORCE A UNITED STATES JUDGMENT AGAINST THE OFFICERS AND
DIRECTORS OF KINROSS OR THE EXPERTS NAMED IN THIS ANNUAL INFORMATION FORM OR TO
ASSERT UNITED STATES SECURITIES LAWS CLAIMS IN CANADA.

       Substantially all of the executive officers and directors of Kinross and
its independent accountants are nonresidents of the United States, and a
substantial portion of Kinross' assets are located outside the United States.
These executives and accountants reside in Canada, making it difficult or
impossible to effect service upon them in the United States. As a result, it may
be difficult for U.S. residents to effect service in the United States or
enforce a judgment obtained in the United States against Kinross or any such
persons. Execution by United States courts of any judgment obtained against
Kinross or its officers or directors in United States courts would be limited to
the assets of Kinross or such persons, as the case may be, located in the United
States. Additionally, it may be difficult for U.S. residents to assert civil
liabilities under United States securities laws in original actions instituted
in Canada.

--------------------------------------------------------------------------------

                                 DIVIDEND POLICY

--------------------------------------------------------------------------------

       No dividends on the Kinross common shares have been paid by Kinross to
date. For the foreseeable future, it is anticipated that Kinross will use
earnings, if any, to finance its growth and that dividends will not be paid to
shareholders, other than dividends payable to the holder of the Kinross
preferred shares in accordance with their terms. Pursuant to Kinross' syndicated
credit facility, Kinross is required to obtain consent from the lenders prior to
declaring any common share dividend.

--------------------------------------------------------------------------------

                               BUSINESS OF KINROSS

--------------------------------------------------------------------------------

GENERAL DEVELOPMENT OF THE BUSINESS

OVERVIEW

       Kinross is principally engaged in the mining and processing of gold and,
as a by-product, silver ore and the exploration for, and the acquisition of,
gold bearing properties primarily in the Americas and Russia. The principal
products of Kinross are gold and silver produced in the form of dore that is
shipped to refineries for final processing.

       Kinross is the continuing corporation resulting from the May 1993
amalgamation under the Business Corporations Act (Ontario) of CMP Resources Ltd.
("CMP Resources"), Plexus Resources Corporation ("Plexus Resources"), and
1021105 Ontario Corp ("1021105"). Kinross' registered and principal offices are
located at Suite 5200, Scotia Plaza, 40 King Street West, Toronto, Ontario, M5H
3Y2.

       Kinross' long-term financial objective is growth in cash flow and a
return to sustained earnings per share through successful exploration,
acquisitions, and development of existing and acquired properties. Mine
operating plans focus on maximizing the pre-tax cash flow return on investment
over the life of the business unit.

       Kinross' operations and reserves are impacted by changes in metal prices.
Over the past three years, gold has averaged approximately $315 per ounce and
was $417 per ounce on the last trading day of 2003. Gold traded above $390 per
ounce during much of 2003 and has continued to do so in 2004. Kinross used a
forecast of $325 per ounce at the end of 2003 and $300 at the end of 2002 to
estimate reserves and $350 per ounce and $325 per ounce, respectively, to assess
mining assets for impairment

                                      -9-
<PAGE>

       Kinross' share of proven and probable reserves as at December 31, 2003,
was 14.1 million ounces of gold and 38.6 million ounces of silver. These
estimates have been calculated using industry standard methodology and the
appropriate cut-off grade assuming a gold price of $325 per ounce.

       A critical goal for Kinross is the creation of value through the
investment in quality projects and the consummation of accretive acquisitions.
Kinross more than doubled its exploration and business development expenditures
in 2003, increasing them to $24.3 million compared to $11.6 million in 2002.
Kinross expects to continue this effort, with $20 million budgeted for
exploration and business development during 2004. In addition, capital
expenditures were $73.4 million in 2003 as compared to $22.6 million in 2002 and
$30.4 million in 2001. Planned capital expenditures are estimated at $165
million in 2004. This capital expenditure program is the largest in Kinross'
history, and it is anticipated that it will be funded from cash flow from
operating activities.

RECENT DEVELOPMENTS

       On January 31, 2003, Kinross completed its combination with TVX Gold Inc.
("TVX") and Echo Bay Mines Ltd. ("Echo Bay"). This combination was effected by
way of a plan of arrangement under the Canada Business Corporations Act. TVX
amalgamated with a wholly-owned subsidiary of Kinross and each holder of a TVX
common share received 2.1667 Kinross common shares. Shareholders of Echo Bay,
other than Kinross, received 0.1733 of a Kinross common shares for each Echo Bay
common share. Kinross issued 177.8 million common shares with a fair value of
$1,269.8 million with respect to the combination with TVX and Echo Bay. The
exchange ratios reflect the one-for-three consolidation of Kinross common shares
that was effective January 31, 2003, immediately prior to the combination. In a
concurrent transaction, TVX acquired Newmont Mining Corporation's ("Newmont")
50% non-controlling interest in the TVX Newmont Americas Joint Venture for an
aggregate purchase price of $180 million. These acquisitions are being accounted
for using the purchase method of accounting. See "Kinross Management's
Discussion and Analysis of Financial Condition and Results of
Operations--Material Events".

       On August 28, 2003, Kinross issued 23.0 million common shares for gross
proceeds of CDN $213 million. The net proceeds of the offering were used to
redeem Kinross' outstanding 5.5% convertible unsecured subordinated debentures.
The principal amount of the convertible debentures was CDN $195.6 million. The
convertible debentures were redeemed on September 29, 2003.

       On November 20, 2003, Kinross announced that it had executed a definitive
acquisition agreement with Crown Resources Corporation ("Crown") whereby Kinross
will acquire Crown and its wholly-owned Buckhorn gold deposit located in north
central Washington State, approximately 67 kilometers by road from Kinross'
Kettle River gold milling facility. On December 16, 2003, Crown reported total
proven and probable reserves, at a gold price of $350 per ounce, for the
Buckhorn Mountain Project of 2.79 million tonnes grading 11.05 grams of gold per
tonne containing 991,300 ounces of gold.

       The current operating plan for the Buckhorn Mountain Project contemplates
the development of an underground mine and the shipping of ore to the Kettle
River mill. This development strategy addresses the major environmental issues
identified during prior permitting efforts. Kinross has a strong environmental
record and believes that by working diligently with federal, state, and local
agencies as well as other stakeholders, the permitting process, initiated by
Crown, can be successfully completed in a timely manner.

       Kinross has agreed to issue 0.2911 of a common share of Kinross for each
outstanding common share of Crown. The total common shares to be issued by
Kinross is approximately 13.6 million. A registration statement covering the
issuance of the common shares has been filed with the U.S. Securities and
Exchange Commission. It is anticipated that the acquisition of Crown will be
completed following the effectiveness of the registration statement and the
approval of the transaction by the Crown shareholders. See "The Crown Merger",
"Agreements Relating to the Merger" and "Business of Crown".

       On December 4, 2003, Kinross and Bema Gold Corporation ("Bema") announced
that their respective boards of directors approved the recommencement of gold
operations at the Refugio heap leach mine located near Copiapo, Chile. The
project is expected to begin producing gold from the expanded operations in the
fourth quarter of 2004. Compania Minera Maricunga ("CMM") owns the Refugio mine
and is owned 50% by Kinross, as operator, and 50% by Bema. The Refugio mine had
been placed on care and maintenance in May 2001 due to low gold prices and has
produced declining amounts of gold from residual leaching of existing heaps
since that time.

                                      -10-
<PAGE>

During the past year, a 56,000 meter drill program was successful in expanding
reserves to justify a greater than 25% expansion of daily throughput compared to
historic production levels. Initially, the Verde pits are scheduled to produce
40,000 tons of ore per day, which will be crushed and placed on the leach pads.
Subsequently, the new Pancho pit, expected to be mined at 35,000 tons of ore per
day, will extend the mine-life to approximately ten years at an assumed gold
price of $350 per ounce. Life-of-mine annual gold production is expected to
range from 230,000 to 260,000 ounces on a 100% basis, at total cash costs
averaging approximately $225 per ounce. At $350 per ounce, the proven and
probable reserves attributable to Kinross' interest are estimated at 62 million
tonnes at a grade of 0.86 grams per tonne for 1.7 million ounces of gold.
Kinross' 50% share of purchase commitments to reopen Refugio at December 31,
2003, was $5.4 million.

       As a result of the development of the Emmanuel Creek deposit and the
reopening the Kettle River mill, Kinross achieved commercial production of the
first of its recent development projects in January 2004. As of March 31, 2004,
approximately 106,000 tons of ore, grading approximately 0.27 ounces of gold per
ton, has been delivered to the mill from the Emanuel Creek zone at the K2 mine.
Kinross is currently mining the second level of primary stopes with the first
secondary stope projected to come on line in May 2004. There are no material
purchase commitments regarding Kettle River at December 31, 2003.

SIGNIFICANT ACQUISITIONS

See "Recent Developments" above, the "Crown Merger" and "Kinross Management's
Discussion and Analysis of Financial Condition and Results of Operations -
Material Events."

HISTORY

       Following Kinross' amalgamation in May 1993 with CMP Resources, Plexus
Resources and 1021105, Kinross and Falconbridge Amalco Inc. ("Falconbridge
Amalco"), a corporation that was formed upon the amalgamation of Falconbridge
Gold Corporation and FGC Acquisition Inc., amalgamated on December 31, 1993, by
way of arrangement.

       On June 1, 1998, a wholly-owned subsidiary of Kinross merged with Kinam
Gold Inc. ("Kinam"), formerly Amax Gold Inc. (unless otherwise indicated herein,
the term "Kinam" means Kinam and its subsidiaries). Concurrent with the merger,
Cyprus Amax Minerals Company ("Cyprus Amax") contributed $135.0 million to
Kinross in exchange for 11.7 million Kinross common shares and 2.9 million
common share purchase warrants (the "Amax Recapitalization") and 12.7 million
Kinross common shares were issued pursuant to a public offering (the "Amax
Equity Financing"). As a result of the acquisition of Kinam, the Amax
Recapitalization and the Amax Equity Financing, Kinross issued 55 million common
shares, representing approximately 56.4% of the common shares outstanding after
the merger, in addition to the common share purchase warrants to acquire 2.9
million Kinross common shares issued to Cyprus Amax, which subsequently expired
unexercised. The purchase price for Kinross of the Kinam merger was $337.9
million. Kinam owned various mining properties including the Fort Knox mine near
Fairbanks, Alaska, a 50% interest in the Refugio mine in Chile and a 50%
interest in the Kubaka mine located in the Russian Far East.

       Kinross filed articles of amalgamation on December 29, 2000, in
connection with the amalgamation of Kinross with La Teko Resources Inc.

       In 2001, Kinross embarked on a strategy to reduce long-term debt and the
costs associated with the outstanding convertible preferred shares of Kinam (the
"Kinam Preferred Shares"). The benefit to future consolidated results was a
reduction of interest expense, a reduced accrual of the dividends on the Kinam
Preferred Shares and lower non-cash charges such as depreciation, depletion and
amortization due to a negative purchase price discrepancy resulting from the
transaction being applied to the carrying value of property, plant and
equipment, since the Kinam Preferred Shares were trading at a discount to their
carrying value for financial reporting purposes. During 2001, Kinross repaid
$46.5 million of long-term debt and acquired 945,400 Kinam Preferred Shares with
a carrying value of $48.9 million in exchange for 8.1 million Kinross common
shares valued at $23.2 million. The $25.7 million difference in value associated
with this transaction was applied against the carrying value of certain
property, plant and equipment.

       Kinross completed an equity offering in February 2002, pursuant to which
7.7 million Kinross common shares were issued for net proceeds of $18.5 million.
The majority of funds raised were used for a $16.00 per share

                                      -11-
<PAGE>

cash tender offer for the Kinam Preferred Shares. 670,722 Kinam Preferred Shares
were tendered having a book value of $36.6 million and were purchased by Kinross
for $10.7 million ($11.4 million including costs of the tender offer). The $25.2
million difference in value associated with this transaction was applied against
the carrying value of a portion of Kinam's property, plant and equipment.

       On June 10, 2002, Kinross, TVX, and Echo Bay entered into a combination
agreement, for the purpose of combining the ownership of their respective
businesses. The combination was effected by way of a plan of arrangement under
the Canada Business Corporations Act on January 31, 2003.

       Also on June 10, 2002, TVX and a subsidiary of TVX entered into
agreements with a subsidiary of Newmont pursuant to which TVX acquired Newmont's
50% non-controlling interest in the TVX Newmont Americas joint venture ("TVX
Newmont J/V") for an aggregate purchase price of $180.0 million.

       On July 1, 2002, Kinross entered into an agreement with a wholly owned
subsidiary of Placer Dome Inc. ("Placer Dome"), Placer Dome (CLA) Limited
("Placer CLA"), to form a joint venture that combined the two companies'
respective gold mining operations in the Porcupine district in Ontario, Canada
(the "Porcupine Joint Venture"). Placer CLA owns a 51% interest and Kinross owns
a 49% interest in the Porcupine Joint Venture, which is operated by a Placer CLA
affiliate. Placer CLA contributed the Dome mine and mill and Kinross contributed
the Hoyle Pond, Pamour and Nighthawk Lake mines as well as the Bell Creek mill.
Capital and operating costs are shared in proportion to each party's ownership
interest.

       On December 5, 2002, Kinross completed a public offering and issued 16.6
million Kinross common shares and 25.0 million common shares purchase warrants
for total proceeds of $97.7 million. Three common share purchase warrants can be
exercised on or before December 5, 2007, for one Kinross common share at an
exercise price of CDN $15.00.

CORPORATE STRUCTURE

       Each of Kinross' operations is a separate business unit managed by its
general manager, who in turn, reports to the Chief Operating Officer.
Exploration activities, corporate financing, tax planning, additional technical
support services, hedging and acquisition strategies are managed centrally.
Kinross' risk management programs are subject to overview by its Audit Committee
and the board of directors.

       A significant portion of Kinross' business is carried on through
subsidiaries. A chart showing the names of the significant subsidiaries of
Kinross and their respective jurisdictions of incorporation is set out below.
All subsidiaries are 100% owned unless otherwise noted. Unless otherwise
indicated herein, the term "Kinross" includes, collectively, all of the
subsidiaries of Kinross.



                                      -12-
<PAGE>

ORGANIZATION CHART






                                    [PICTURE]







                                      -13-
<PAGE>

NARRATIVE DESCRIPTION OF THE BUSINESS

       Kinross is principally engaged in the exploration for, and acquisition,
development and operation of, gold-bearing properties. The material properties
of Kinross are as follows:

<TABLE>
<CAPTION>

                                                                            Property
       Property                                    Location                Ownership
       --------                                    --------                ---------
<S>    <C>                            <C>                                     <C>
       Fort Knox Mine(1)............  Fairbanks, Alaska, United States        100%(2)
       Porcupine Joint Venture(3)...  Timmins, Ontario, Canada                 49%
       Kubaka Mine(4)...............  Magadan Oblast, far east Russia          98.1%(5)
       La Coipa(6)..................  Chile                                    50%
       Crixas(7)....................  Brazil                                   50%
       Paracatu (Brasilia)(8).......  Brazil                                   49%
       Musselwhite(9)...............  Ontario, Canada                          31.9%
       Round Mountain(10)...........  Nevada, United States                    50%
</TABLE>

-------------------------

(1)    The True North property is subject to various net smelter return
       royalties, ranging from 3.5% to 5%. The Ryan Lode project is subject to
       various net smelter return royalties ranging from 3% to 5% and annual
       rental payments of $150,000.
(2)    Kinross holds a 100% interest in the properties forming part of the Fort
       Knox mine except for the Gil property in which Kinross holds an 80%
       interest.
(3)    The Porcupine Joint Venture was formed pursuant to an agreement with
       Placer CLA dated July 1, 2002. It owns and operates interests in two
       mining properties: the Hoyle Pond mine and the Dome mine. The Hoyle Pond
       mine is subject to two tonnage based royalties for which no expenses were
       accrued in 2003. A 2% net smelter royalty is payable on production from
       the Preston, Paymaster and Vedron properties.
(4)    The Kubaka mine is subject to royalty and production based taxes which
       amounted to 6.0% in 2003.
(5)    In February 2003, Kinross increased its interest in the Kubaka Mine to
       98.1% from 54.7%.
(6)    No royalties are applicable on gold and silver produced but an annual
       preferred dividend of $1.8 million is payable.
(7)    The Crixas mine is subject to a mining tax of 1% or net sales and a
       profits tax of 3% of net sales.
(8)    The Paracatu (Brasilia) mine is subject to a royalty 0.33% of net sales,
       a mining tax of 1% of net sales and a profits tax of 3% of net sales.
(9)    The Musselwhite mine is subject to a 5% net profits royalty and a 3.75%
       net profits royalty. Nothing was paid on these royalties in 2003.
(10)   The Round Mountain mine is subject to a net smelter returns royalty
       ranging from 3.53% to 6.35%. During 2003, this royalty averaged 4.54%.
       Production is also subject to a gross revenue royalty of 3.0%.

       In addition, Kinross holds a 100% interest in the Blanket mine, situated
in Zimbabwe, Africa, a 100% interest in the Kettle River mine in Washington,
United States, a 100% interest in the Lupin mine in Nunavut Territory, Canada, a
50% interest in the New Britannia mine in Manitoba, Canada, a 50% interest in
the Refugio mine, situated in Chile, and other mining properties in various
stages of exploration, development, reclamation, and closure.


                                      -14-
<PAGE>

OPERATIONS

       Kinross' share of production in 2003 was derived from the mines in Canada
(23%), the United States (47%), Russia (10%), and South America (20%).





                                    [PICTURE]





GOLD EQUIVALENT PRODUCTION (OUNCES)

       The following table summarizes production by Kinross in the last three
years:

<TABLE>
<CAPTION>

                                                                      Years ended December 31,
                                                               -------------------------------------
                                                                   2003         2002         2001
<S>                                                              <C>           <C>         <C>
Attributable gold equivalent production - ounces..........       1,620,410     888,634     944,803

Gold sales - ounces (excluding equity accounted ounces)...       1,541,575     848,513     907,149
</TABLE>

       Included in attributable gold equivalent production is silver production
converted into gold production using a ratio of the average spot market prices
of gold and silver for the three comparative years. The ratios were 74.79:1 in
2003, 67.24:1 in 2002, and 62.00:1 in 2001.

                                      -15-
<PAGE>

       The following table sets forth the gold equivalent production
attributable to Kinross' interest in each of its operating assets during the
last three years:

                                              YEARS ENDED DECEMBER 31,
                                     ---------------------------------------
                                        2003            2002          2001
                                        ----            ----          ----

PRIMARY OPERATIONS:
Fort Knox .....................        391,831        410,519        411,221
Round Mountain (1)(4) .........        364,271              -              -
Porcupine Joint Venture (2) ...        223,960        189,464        156,581
Kubaka (3) ....................        164,006        220,972        237,162
Paracatu (Brasilia) (1)(5) ....         91,176              -              -
La Coipa (1)(4) ...............        144,125              -              -
Crixas (1)(4) .................         86,698              -              -
Musselwhite (1)(6) ............         64,978              -              -
New Britannia (1)(4) ..........         31,627              -              -
Lupin (9) .....................         56,008              -              -
                                     ---------      ---------      ---------
  Subtotal ....................      1,618,680        820,955        804,964
                                     ---------      ---------      ---------

OTHER OPERATIONS:
Refugio (4) ...................              -         13,047         67,211
Blanket (8) ...................              -         41,612         39,592
Denton-Rawhide (7) ............          1,730         11,162         17,713
Andacollo (7) .................              -          1,858         11,718
Hayden Hill ...................              -              -          3,605
Guanaco .......................              -              -          1,887
                                     ---------      ---------      ---------
  Subtotal ....................          1,730              -          1,718
                                     ---------      ---------      ---------
  Total .......................      1,620,410        888,634        944,803
                                     =========      =========      =========

--------------------------

(1)    Production data is for the eleven months from February to December, 2003.
(2)    2003 production reflects Kinross' 49% ownership interest in the Porcupine
       Joint Venture. 2001 and 2002 production reflects Kinross' 100% ownership
       interest in the Hoyle Pond mine to June 30, 2002, and the 49% interest in
       the Porcupine Joint Venture thereafter.
(3)    Represents Kinross' 54.7% ownership interest to February 28, 2003, and
       its 98.1% thereafter.
(4)    Represents Kinross' 50% ownership interest.
(5)    Represents Kinross' 49% ownership interest.
(6)    Represents Kinross' 31.9% ownership interest.
(7)    Includes proportionate share of Denton-Rawhide and Andacollo production,
       attributable to the ownership interest in Pacific Rim Mining Corp.
       (formerly Dayton Mining Corporation) through December 2003, when the
       ownership interest in Pacific Rim was sold.
(8)    Because of the economic and political conditions and the negative impact
       of inflationary pressures in Zimbabwe, the Blanket mine was written off
       in 2001. Kinross commenced cost accounting for this investment in 2002
       and ceased reporting its production in 2003.
(9)    Production data is for the period January 31, 2003, to August, 2003, when
       mining operations were suspended.

CALCULATION OF TOTAL CASH COSTS AND REALIZED REVENUE AND RECONCILIATION TO THE
STATEMENT OF OPERATIONS

       Total cash costs and realized revenue are furnished to provide additional
information and are non-GAAP measures. These measures are intended to provide
investors with information about the cash generating capabilities (realized
revenue, net of total cash costs per ounce) of the mining operations. Kinross
uses this information for the same purpose and for assessing the performance of
its mining operations. Mining operations are a capital intensive business and
the calculation of total cash costs does not include these substantial amounts,
but is reconciled to total operating costs for each mine. Capital expenditures
require the use of cash in prior and current periods and are discussed
throughout the Kinross management's discussion and analysis and are included in
the segment information note to the consolidated financial statements (Note 19).
Total cash costs and realized revenue should not be considered in isolation as a
substitute for measures of performance prepared in accordance with generally
accepted accounting principles and are not necessarily indicative of operating
profit from operations or costs as determined under generally accepted
accounting principles.

                                      -16-

<PAGE>

<TABLE>
<CAPTION>

TOTAL CASH COSTS AND REALIZED REVENUE

                                                                     YEARS ENDED DECEMBER 31,
                                                            -------------------------------------------
                                                                2003           2002           2001
                                                                ----           ----           ----
<S>                                                          <C>            <C>            <C>
(IN MILLIONS EXCEPT UNIT COSTS)
CASH COSTS
  Operating expense per financial statements.............    $     387.3    $    174.8     $     180.7
  Operating costs for attributable production............            0.4          13.4             7.4
  Site restoration cost accruals.........................           (9.4)         (3.0)           (1.9)
  Change in bullion inventory............................           (2.5)         (2.0)            1.5
  Operating costs not related to gold production                   (16.4)         (4.4)           (5.2)
                                                             -----------    ----------     -----------
Total cash costs.........................................    $     359.4    $    178.8     $     182.5
                                                             ===========    ==========     ===========

  Gold equivalent production-ounces......................      1,620,410       888,634         944,803
Total cash costs per equivalent ounce of gold............    $       222    $      201     $       193

REALIZED REVENUE
  Mining revenue per financial statement.................    $     571.9    $    261.0     $     270.1
  Silver revenue.........................................          (22.0)         (1.4)           (1.3)
                                                             -----------    -----------    -----------
                                                             $     549.9    $    259.6     $     268.8
                                                             ===========    ==========     ===========

  Gold ounces sold.......................................      1,541,575       848,513         907,149

Total realized revenue per ounce.........................    $       357    $      306     $       296
</TABLE>

        The above non-GAAP measures have been calculated on a consistent basis
in each period. For reasons of comparability, cash costs, production costs and
realized revenue do not include certain items such as property write-downs which
are included under GAAP in the determination of net earnings or loss.

        Total cash costs is calculated in accordance with "The Gold Industry
Production Cost Standard." Total cash costs and realized revenue may not be
comparable to similarly titled measures of other companies.




                                      -17-

<PAGE>

RECONCILIATION TO SEGMENTED INFORMATION

        Total cash costs used by management to assess the cash generating
ability of individual operations as well as to compare with other precious metal
producers. This measure is reconciled in the following table to operating
expenses for calculation of total cash costs per ounce. This measure provides
additional information on the cash cost of production and is congruous to
information included in the segmented information note to the financial
statements (Note 19).

<TABLE>
<CAPTION>
                                                                   ROUND            HOYLE/
                                                   FORT KNOX      MOUNTAIN        PORCUPINE        KUBAKA
                                                   ---------      --------        ---------        ------
<S>                                              <C>             <C>             <C>            <C>
FOR THE YEAR ENDED DECEMBER 31, 2003:
Total cash costs:
  Operating expense per financial statements     $       92.9    $       76.7    $       53.4   $       30.6
  Operating costs for non-consolidated
    production..............................               --              --              --             --
  Site restoration costs....................             (2.5)           (1.8)           (1.6)          (0.5)
  Change in bullion inventory...............              4.8            (1.6)           (1.5)           0.3
  Management fees...........................               --              --              --            1.6
  Operating costs not related to gold
    production..............................               --              --            (2.9)            --
                                                 ------------    ------------    ------------   ------------
                                                 $       95.2    $       73.3    $       47.4   $       32.0
                                                 ============    ============    ============   ============

Equivalent gold ounces produced.............          391,831         364,271         223,960        164,006

Total cash costs per ounce..................     $        243    $        201    $        211   $        194

Royalties...................................     $        1.0    $       12.5    $        0.1   $        3.7

FOR THE YEAR ENDED DECEMBER 31, 2002:
Total cash costs(1):
  Operating expense per financial statements     $       99.2    $         --    $       38.6   $       28.6
  Operating costs for non-consolidated
    production..............................               --              --              --             --
  Site restoration costs....................             (1.0)             --            (1.5)          (0.8)
  Change in bullion inventory...............             (2.9)             --             1.5           (0.1)
  Management fees...........................               --              --              --            1.6
  Operating costs not related to gold
    production..............................               --              --            (0.6)            --
                                                 ------------    ------------    ------------   ------------
Total cash costs of production..............     $       95.3    $         --    $       38.0   $       29.3
                                                 ============    ============    ============   ============

Equivalent gold ounces produced.............          410,519              --         189,464        220,972
                                                 ============    ============    ============   ============

Total cash costs per ounce..................     $        232    $         --    $        201   $        133

FOR THE YEAR ENDED DECEMBER 31, 2001:

Total cash costs(1):
  Operating expense per financial statements     $       82.9    $         --    $       29.1   $       34.1
  Operating costs for non-consolidated
    production..............................               --              --              --             --
  Site restoration costs....................             (1.2)             --            (0.2)          (0.4)
  Change in bullion inventory...............              3.3              --             0.7           (1.6)
  Management fees...........................               --              --              --            2.5
  Operating costs not related to gold
    production..............................               --              --            (1.1)          (1.5)
                                                 ------------    ------------    ------------   ------------
Total cash costs of production..............     $       85.0    $         --    $       28.5   $       33.1
                                                 ============    ============    ============   ============

Equivalent gold ounces produced.............          411,221              --         156,581        237,162
                                                 ============    ============    ============   ============

Total cash costs per ounce..................     $        207    $         --    $        182   $        140
</TABLE>

-------------------------

(1)     Total cash costs is furnished to provide additional information and is a
        non-GAAP measure. This measure should not be considered in isolation as
        a substitute for a measure of performance prepared in accordance with
        generally accepted accounting principles and is not necessarily
        indicative of operating profit or cost from operations as determined
        under generally accepted accounting principles. There are no differences
        computing total cash costs under U.S. GAAP. Therefore, total cash costs
        per ounce computed in accordance with U.S. GAAP are unchanged from the
        Canadian GAAP amounts. For a further discussion of this non-GAAP
        measure, please refer to the discussion under "Calculation of Total Cash
        Costs and Realized Revenue and Reconciliation to the Statement of
        Operations," above.

                                      -18-

<PAGE>

<TABLE>
<CAPTION>
                                                                          EXPLORATION
  PARACATU                                                                    AND          CORPORATE
 (BRASILIA)       LA COIPA       CRIXAS      MUSSELWHITE      E-CRETE     ACQUISITIONS      AND OTHER        TOTAL
 ----------       --------       ------      -----------      -------     ------------      ---------        -----

<S>             <C>           <C>           <C>            <C>           <C>              <C>             <C>
$       19.9    $       34.9  $       10.5  $       16.5   $       2.4   $          --    $       49.5    $      387.3
        --              --            --              --            --              --             0.4             0.4
        (0.8)           (0.6)         (0.2)         (0.4)           --              --            (1.0)           (9.4)
        (0.4)           (0.6)         (0.8)          0.8            --              --            (3.5)           (2.5)
          --              --            --            --            --              --              --             1.6
        (1.1)             --            --          (0.2)         (2.4)             --           (11.4)          (18.0)
------------    ------------  ------------  ------------   -----------   -------------    ------------    ------------
$       17.6    $       33.7  $        9.5  $       16.7   $        --   $          --    $       34.0    $      359.4
============    ============  ============  ============   ===========   =============    ============    ============

      91,176         144,125        86,698        64,978            --              --          89,365       1,620,410

$        193    $        234  $        109  $        257   $        --   $          --    $        380    $        222

$        0.4    $         --  $        0.3  $         --   $        --   $          --    $         --    $       18.0



$         --    $         --  $         --  $         --   $       3.2   $          --    $        1.3    $      174.8
          --              --            --            --            --              --             3.3            13.4
          --              --            --            --            --              --              --            (3.3)
          --              --            --            --            --              --              --            (2.0)
          --              --            --            --            --              --              --             1.7
          --              --            --            --          (3.2)             --            (0.9)           (5.8)
------------    ------------  ------------  ------------   -----------   -------------    ------------    ------------
$         --    $         --  $         --  $         --   $        --   $          --    $        3.7    $      178.8
============    ============  ============  ============   ===========   =============    ============    ============

          --              --            --            --            --              --          13,020         888,634
============    ============  ============  ============   ===========   =============    ============    ============

$         --    $         --  $         --  $         --   $        --   $          --    $        284    $        201



$         --    $         --  $         --  $         --   $       2.6   $          --    $        3.4    $      180.7
          --              --            --            --            --              --             7.4             7.4
          --              --            --            --            --              --              --            (1.9)
          --              --            --            --            --              --              --             1.5
          --              --            --            --            --              --              --             2.7
          --              --            --            --          (2.6)             --            (2.4)           (7.9)
------------    ------------  ------------  ------------   -----------   -------------    ------------    ------------
$         --    $         --  $         --  $         --   $        --   $          --    $        8.4    $      182.5
============    ============  ============  ============   ===========   =============    ============    ============

          --              --            --            --            --              --          33,036         944,803
============    ============  ============  ============   ===========   =============    ============    ============

$         --    $        --   $         --  $         --   $        --   $          --    $        263    $        193
</TABLE>

                                      -19-

<PAGE>

MARKETING

        Gold is a metal that is traded on world markets, with benchmark prices
generally based on the London market (London fix). Gold has two principal uses:
product fabrication and bullion investment. Fabricated gold has a wide variety
of end uses, including jewelry manufacture (the largest fabrication component),
electronics, dentistry, industrial and decorative uses, medals, medallions, and
official coins. Gold bullion is held primarily as a store of value and a
safeguard against the collapse of paper assets denominated in fiat currencies.
Kinross sells all of its refined gold to banks, bullion dealers, and refiners.
In 2003, sales to five customers totaled $127.4 million, $118.9 million, $96.2
million, $46.8 million, and $43.3 million, respectively. In 2002, sales to five
customers totaled $52.1 million, $41.3 million, $35.7 million, $34.1 million,
and $27.4 million, respectively. In 2001, sales to four customers totaled $46.5
million, $43.3 million, $32.0 million, and $26.8 million, respectively. Due to
the size of the bullion market and the above ground inventory of bullion,
activities by Kinross will generally not influence gold prices. Kinross believes
that the loss of any of these customers would have no material adverse impact on
Kinross because of the active worldwide market for gold.

        The following table sets forth for the years indicated the high and low
London Bullion Market afternoon fixing prices for gold:

                        YEAR           HIGH          LOW
                        ----           ----          ---
                        1998         $313.15       $273.40
                        1999         $325.50       $252.80
                        2000         $312.70       $263.80
                        2001         $293.25       $255.95
                        2002         $349.30       $277.75
                        2003         $416.25       $319.90
                        2004(1)      $427.25       $390.50

-------------------------

(1)     Information presented through April 16, 2004.



                                      -20-

<PAGE>

MINERAL RESERVES AND MINERAL RESOURCES

        The following tables set forth the estimated mineral reserves and
mineral resources attributable to the interests held by Kinross for each of its
properties which contain mineral reserves:

<TABLE>
<CAPTION>
                                     MINERAL RESERVE AND RESOURCE STATEMENT
                              ESTIMATED AT AN ASSUMED GOLD PRICE OF $325 PER OUNCE
                                 PROVEN AND PROBABLE MINERAL RESERVES(1,3,5,6,7)
                              KINROSS GOLD CORPORATION'S SHARE AT DECEMBER 31, 2003

-----------------------------------------------------------------------------------------------------------------------
                                   Kinross           PROVEN                  PROBABLE           PROVEN AND PROBABLE

                                   Interest  Tonnes   Grade   Ounces  Tonnes  Grade   Ounces   Tonnes   Grade   Ounces

Property                 Location    (%)     (000s)   (gpt)   (000s)  (000s)  (gpt)   (000s)   (000s)   (gpt)   (000s)
-----------------------------------------------------------------------------------------------------------------------
                                                         GOLD
NORTH AMERICA
-----------------------------------------------------------------------------------------------------------------------
<S>                                 <C>       <C>       <C>    <C>    <C>       <C>    <C>     <C>       <C>     <C>
  Fort Knox and area
    (14)                USA         100.0%    54,913    0.83   1,464  48,026    0.96   1,481   102,939   0.89    2,945
-----------------------------------------------------------------------------------------------------------------------
  Round Mountain and    USA          50.0%    59,660    0.57   1,099  35,393    0.66     751    95,053   0.61    1,850
    area(15)
-----------------------------------------------------------------------------------------------------------------------
  Porcupine Joint       Canada       49.0%     9,129    1.39     409  18,033    1.86   1,080    27,162   1.70    1,489
    Venture(9,13)
-----------------------------------------------------------------------------------------------------------------------
  Aquarius(10)          Canada      100.0%         -       -       -  15,017    2.16   1,042    15,017   2.16    1,042
-----------------------------------------------------------------------------------------------------------------------
  Musselwhite(13)       Canada       31.9%     2,366    5.63     428   1,231    5.81     230     3,596   5.69      658
-----------------------------------------------------------------------------------------------------------------------
  Lupin                 Canada      100.0%       310    7.37      73     248   10.25      82       558   8.64      155
-----------------------------------------------------------------------------------------------------------------------
  New Britannia         Canada       50.0%        33    4.80       5     167    5.07      27       200   4.98       32
-----------------------------------------------------------------------------------------------------------------------
  Kettle River          USA         100.0%       405   12.22     159      75    9.09      22       480  11.73      181
-----------------------------------------------------------------------------------------------------------------------
SUBTOTAL                                     126,815    0.89   3,636 118,190    1.24   4,715   245,005   1.06    8,350
-----------------------------------------------------------------------------------------------------------------------
SOUTH AMERICA
-----------------------------------------------------------------------------------------------------------------------
  Paracatu
  (Brasilia)(11)        Brazil       49.0%   163,971    0.42   2,225  31,829    0.38     388   195,800   0.42    2,613
-----------------------------------------------------------------------------------------------------------------------
  La Coipa(13,16)       Chile        50.0%    11,358    1.20     440   4,327    1.04     145    15,685   1.16      584
-----------------------------------------------------------------------------------------------------------------------
  Refugio               Chile        50.0%    39,747    0.89   1,138   9,819    0.78     248    49,566   0.87    1,386
-----------------------------------------------------------------------------------------------------------------------
  Crixas (12)           Brazil       50.0%     1,569    6.39     323     577    7.92     147     2,146   6.81      470
-----------------------------------------------------------------------------------------------------------------------
SUBTOTAL                                     216,644    0.59   4,125  46,551    0.62     927   263,195   0.60    5,052
-----------------------------------------------------------------------------------------------------------------------
ASIA
-----------------------------------------------------------------------------------------------------------------------
  Kubaka and area(17,18)Russia       98.1%       903    3.92     114     720   12.80     296     1,623   7.86      410
-----------------------------------------------------------------------------------------------------------------------
SUBTOTAL                                         903    3.92     114     720   12.80     296     1,623   7.86      410
-----------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------
TOTAL GOLD (EXC. BLANKET)                    344,362    0.71   7,874 165,461    1.12   5,938   509,823   0.84   13,812
-----------------------------------------------------------------------------------------------------------------------

AFRICA
-----------------------------------------------------------------------------------------------------------------------
  Blanket(19)           Zimbabwe    100.0%     1,300    3.71     155   1,221    4.18     164     2,521   3.94      319
-----------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------
TOTAL GOLD (INC. BLANKET)                    345,662    0.72   8,029 166,682    1.14   6,102   512,344   0.86   14,131
-----------------------------------------------------------------------------------------------------------------------

                                                        SILVER
SOUTH AMERICA
-----------------------------------------------------------------------------------------------------------------------
  La Coipa(13,16)       Chile        50.0%    11,358    69.5  25,384   4,327    89.5  12,454    15,685   75.0   37,837
-----------------------------------------------------------------------------------------------------------------------
SUBTOTAL                                      11,358    69.5  25,384   4,327    89.5  12,454    15,685   75.0   37,837
-----------------------------------------------------------------------------------------------------------------------
ASIA
-----------------------------------------------------------------------------------------------------------------------
  Kubaka and area(17,18)Russia       98.1%       903    10.8     313     720    19.1     442     1,623   14.5      755
-----------------------------------------------------------------------------------------------------------------------
SUBTOTAL                                         903    10.8     313     720    19.1     442     1,623   14.5      755
-----------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------
TOTAL SILVER                                  12,260    65.2  25,696   5,047    79.5  12,896    17,307   69.4   38,592
-----------------------------------------------------------------------------------------------------------------------
NOTE: TOTALS MAY NOT ADD, DUE TO ROUNDING.
</TABLE>

                                      -21-

<PAGE>

CAUTIONARY NOTE TO UNITED STATES INVESTORS CONCERNING ESTIMATES OF MEASURED AND
INDICATED RESOURCES

       THIS SECTION USES THE TERMS "MEASURED" AND "INDICATED" RESOURCES. UNITED
STATES INVESTORS ARE ADVISED THAT WHILE THOSE TERMS ARE RECOGNIZED AND REQUIRED
BY CANADIAN REGULATIONS, THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION
DOES NOT RECOGNIZE THEM. UNITED STATES INVESTORS ARE CAUTIONED NOT TO ASSUME
THAT ALL OR ANY PART OF MINERAL DEPOSITS IN THESE CATEGORIES WILL EVER BE
CONVERTED INTO PROVEN AND PROBABLE RESERVES.

<TABLE>
<CAPTION>
                                           MINERAL RESERVE AND RESOURCE STATEMENT
                 MEASURED AND INDICATED MINERAL RESOURCES (EXCLUDES PROVEN AND PROBABLE RESERVES)(2,3,4,6,7,8)
                                         ESTIMATED AT A GOLD PRICE OF $350 PER OUNCE
                                   KINROSS GOLD CORPORATION'S SHARE AT DECEMBER 31, 2003

-----------------------------------------------------------------------------------------------------------------------
                                               Kinross     MEASURED        INDICATED        MEASURED AND INDICATED

                                              Interest   Tonnes  Grade   Tonnes   Grade       Tonnes          Grade

Property                           Location      (%)     (000s)  (gpt)   (000s)   (gpt)       (000s)          (gpt)
-----------------------------------------------------------------------------------------------------------------------
                                                         GOLD
<S>                                              <C>     <C>      <C>     <C>      <C>            <C>            <C>
NORTH AMERICA
-----------------------------------------------------------------------------------------------------------------------

Fort Knox and area(14)           USA             100.0%       -       -    1,141    1.12            1,141         1.12
-----------------------------------------------------------------------------------------------------------------------
Round Mountain and area(15)      USA              50.0%   7,662    0.43    8,258    0.62           15,920         0.53
-----------------------------------------------------------------------------------------------------------------------
Porcupine Joint Venture(9,13)    Canada           49.0%      39    1.55      536    0.68              576         0.74
-----------------------------------------------------------------------------------------------------------------------
Aquarius(10)                     Canada          100.0%       -       -        -       -                -            -
-----------------------------------------------------------------------------------------------------------------------
Musselwhite(13)                  Canada           31.9%     696    8.80      612    7.63            1,308         8.25
-----------------------------------------------------------------------------------------------------------------------
Lupin                            Canada          100.0%       -       -      305    8.29              305         8.29
-----------------------------------------------------------------------------------------------------------------------
New Britannia                    Canada           50.0%      95    4.42      954    5.31            1,049         5.23
-----------------------------------------------------------------------------------------------------------------------
Kettle River                     USA             100.0%       -       -      126    9.36              126         9.36
-----------------------------------------------------------------------------------------------------------------------
George-Goose Lake(10)            Canada          100.0%       -       -    2,553   12.26            2,553        12.26
-----------------------------------------------------------------------------------------------------------------------
Delamar                          USA             100.0%     610    0.61    1,762    1.69            2,372         1.42
-----------------------------------------------------------------------------------------------------------------------
SUBTOTAL                                                  9,102    1.13   16,247    3.35           25,349         2.56
-----------------------------------------------------------------------------------------------------------------------
SOUTH AMERICA
-----------------------------------------------------------------------------------------------------------------------
Paracatu (Brasilia)(11)          Brazil           49.0%       -       -   76,627    0.39           76,627         0.39
-----------------------------------------------------------------------------------------------------------------------
La Coipa(13,16)                  Chile            50.0%     223    0.53      131    0.59              353         0.57
-----------------------------------------------------------------------------------------------------------------------
Refugio                          Chile            50.0%   6,753    1.15    2,210    1.06            8,962         1.13
-----------------------------------------------------------------------------------------------------------------------
Crixas(12)                       Brazil           50.0%      76    1.51        -       -               76         1.51
-----------------------------------------------------------------------------------------------------------------------
Gurupi(10)                       Brazil          100.0%       -       -   60,385    1.39           60,385         1.39
-----------------------------------------------------------------------------------------------------------------------
SUBTOTAL                                                  7,051    1.14  139,352    0.84          146,403         0.85
-----------------------------------------------------------------------------------------------------------------------
ASIA
-----------------------------------------------------------------------------------------------------------------------
Kubaka and area(17,18)           Russia           98.1%       -       -        -       -                -            -
-----------------------------------------------------------------------------------------------------------------------
SUBTOTAL                                                      -       -        -       -                -            -
-----------------------------------------------------------------------------------------------------------------------
AUSTRALIA
-----------------------------------------------------------------------------------------------------------------------
Norseman(10)                     Australia       100.0%       -       -      850    2.67              850         2.67
-----------------------------------------------------------------------------------------------------------------------
SUBTOTAL                                                      -       -      850    2.67              850         2.67
-----------------------------------------------------------------------------------------------------------------------
TOTAL GOLD (EXC. BLANKET)                                16,154    1.13  156,448    1.11          172,602         1.11
-----------------------------------------------------------------------------------------------------------------------

AFRICA
-----------------------------------------------------------------------------------------------------------------------
Blanket(19)                      Zimbabwe        100.0%       -       -      584    4.39              584         4.39
-----------------------------------------------------------------------------------------------------------------------
SUBTOTAL                                                      -       -      584    4.39              584         4.39
-----------------------------------------------------------------------------------------------------------------------
TOTAL GOLD (INC. BLANKET)                                16,154    1.13  157,032    1.12          173,186         1.12
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      -22-

<PAGE>

<TABLE>
<CAPTION>

-----------------------------------------------------------------------------------------------------------------------
                                                        SILVER
-----------------------------------------------------------------------------------------------------------------------
NORTH AMERICA
-----------------------------------------------------------------------------------------------------------------------
<S>                                                        <C>       <C>    <C>       <C>      <C>      <C>       <C>
Delamar                                USA                 100.0%    610    64.8      1,762    39.5     2,372     46.0
-----------------------------------------------------------------------------------------------------------------------
SUBTOTAL                                                             610    64.8      1,762    39.5     2,372     46.0
-----------------------------------------------------------------------------------------------------------------------
SOUTH AMERICA
-----------------------------------------------------------------------------------------------------------------------
La Coipa(13,16)                        Chile                50.0%    223    36.1        131    32.8       353     34.8
-----------------------------------------------------------------------------------------------------------------------
SUBTOTAL                                                             223    36.1        131    32.8       353     34.8
-----------------------------------------------------------------------------------------------------------------------
ASIA
-----------------------------------------------------------------------------------------------------------------------
Kubaka and area(17,18)                 Russia               98.1%      -       -          -       -         -        -
-----------------------------------------------------------------------------------------------------------------------
SUBTOTAL                                                               -       -          -       -         -        -
-----------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------
TOTAL SILVER                                                         833    57.1      1,893    39.0     2,725     44.5
-----------------------------------------------------------------------------------------------------------------------
NOTE: TOTALS MAY NOT ADD, DUE TO ROUNDING.
</TABLE>

--------------------------
(1)    Unless otherwise noted, Kinross' reserves are estimated using appropriate
       cut-off grades derived from an estimated gold price of $325 per ounce,
       and a silver price of $4.75 per ounce. Reserves are estimated using
       current and/or projected process recoveries, operating costs, and mine
       plans that are unique to each property and include estimated allowances
       for dilution (waste) and mining (extraction) losses. Reserve estimates do
       not include processing losses. Reserve estimates include amounts
       contained in stockpiled material, but do not include estimated amounts
       included in material placed on leach pads or gold or silver in inventory.
(2)    Unless otherwise noted, Kinross' resources are estimated using
       appropriate cut-off grades derived from an estimated gold price of $350
       per ounce, and a silver price of $4.75 per ounce.
(3)    Kinross' reserves and resources as at December 31, 2003, are classified
       in accordance with the Canadian Institute of Mining Metallurgy and
       Petroleum's "CIM Standards on Mineral Resources and Reserves, Definition
       and Guidelines" as per Canadian Securities Administrator's National
       Instrument 43-101 ("the Instrument") requirements.
(4)    CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING ESTIMATES OF MEASURED,
       INDICATED AND INFERRED RESOURCES. U.S. Investors are advised that use of
       the terms "measured resource," "indicated resource," and "inferred
       resource" are recognized and required by Canadian Securities regulations.
       These terms are not recognized by the U.S. Securities and Exchange
       Commission. U.S. INVESTORS ARE CAUTIONED NOT TO ASSUME THAT ALL OR ANY
       PART OF MINERAL DEPOSITS IN THESE CATEGORIES WILL EVER BE CONVERTED INTO
       RESERVES.
(5)    The mineral reserves presented herein comply with the reserve categories
       of Industry Guide 7 applied in the United States by the Securities and
       Exchange Commission.
(6)    Individuals supervising the preparation of Kinross' reserve and resource
       estimates for the material properties of Kinross presented in this
       disclosure are listed in a separate table and meet the definition of a
       "qualified person" as described by the Instrument.
(7)    Kinross' normal data verification procedures have been used in
       collecting, compiling, interpreting, and processing the data used to
       estimate reserves and resources. Independent data verification has not
       been performed.
(8)    Resources, unlike reserves, do not have demonstrated economic viability.
(9)    Includes the undeveloped Pamour deposit, which is subject to permitting
       from Canadian authorities. The permits necessary to commence mining of
       the mineral reserves contained in the existing Pamour pit, north of
       highway 101, referred to as the phase one mine plan, have been maintained
       in good standing and require administrative reactivation. Additional
       permits are required to mine south of highway 101, which is outside the
       phase one mine plan. There is a high level of assurance that the project
       will receive all required permits for development.
(10)   Undeveloped property, development assumes successful permitting allowing
       mining operations to be
(11)   Operated by Rio Tinto plc.
(12)   Operated by AngloGold Ltd.
(13)   Operated by Placer Dome Inc.
(14)   Includes mineral reserves from the undeveloped Gil and Ryan Lode
       deposits, both are part of the Fort Knox and area. Kinross holds a 100%
       interest in the properties forming the Fort Knox and area except for the
       Gil property in which Kinross holds an 80% interest.
(15)   Includes mineral reserves and resources from the undeveloped Gold Hill
       deposit, development is dependent on successful permitting.
(16)   Includes mineral reserves and resources from the undeveloped Puren Norte
       deposit, development is dependent on successful permitting.
(17)   Includes mineral reserves from the Birkachan deposit. Open pit mining at
       Birkachan has been approved, underground mining remains to be permitted
       by Russian authorities.
(18)   Includes mineral reserves and resources from the undeveloped Tsokol
       deposit, development is dependent on successful permitting.
(19)   Reserves and resources have been presented with and without the Blanket
       mine located in Zimbabwe, Africa. Due to economic and political
       conditions and the negative impact of inflationary pressures in Zimbabwe,
       the Blanket mine was written off for financial reporting purposes in
       2001. Kinross continues operations at the mine, but is not currently
       reporting production.

                                      -23-
<PAGE>

       The following table summarizes the assumptions used in calculating
mineral resources and reserves, including average process recovery, cut off
grade assumptions, the foreign exchange rate into U.S. dollars, total cost per
ounce, and reserve drill spacing.

<TABLE>
<CAPTION>

          PROPERTY             AVERAGE         AVERAGE          FOREIGN          UNIT          RESERVE DRILL SPACING
                                                                                            ---------------------------
                               PROCESS      GOLD CUTOFF      EXCHANGE RATES      COST         PROVEN        PROBABLE

                            RECOVERY (%)   GRADE(S) (GPT)     (PER U.S. $)   (U.S. $/TONNE)    (M)            (M)
-----------------------------------------------------------------------------------------------------------------------
<S>                            <C>          <C>                  <C>                 <C>        <C>            <C>
GOLD
Fort Knox and area                 85.6%    0.41 to 0.55              N/A             $5.25      36.6           48.8
Round Mountain and area       16% to 85%    0.21 to 0.34              N/A             $3.02      15.2           30.5
Porcupine Joint Venture       88% to 92%    0.69 to 7.18             1.45            $11.30       7.6           48.8
Aquarius                           95.0%            0.50             1.41            $13.50      25.0           25.0
Musselwhite                        95.2%            3.45             1.45            $35.74      50.0           50.0
Lupin                              93.0%            6.55             1.45            $52.30       4.5           22.9
New Britannia                      94.5%            4.15             1.45            $49.32      15.2           61.0
Kettle River                       90.0%            7.03              N/A            $52.18      22.9           22.9
Paracatu (Brasilia)                80.4%            0.30             3.20             $2.03     100.0          150.0
La Coipa                           80.8%    0.45 to 0.92           750.00            $11.84      25.0           50.0
Refugio                        48 to 67%    0.38 to 0.56           710.00             $4.53      30.0           60.0
Crixas                         92 to 95%    2.31 to 5.82             3.10            $33.15      25.0           50.0
Kubaka and area                    97.5%    1.58 to 7.75              N/A            $61.80       6.1           40.0
Blanket                            89.0%            3.00         2,750.00            $28.75       7.5           50.0
SILVER
La Coipa                           62.5%    28.0 to 58.4           750.00             11.84      25.0           50.0
</TABLE>




                                      -24-

<PAGE>

Reserve reconciliation is shown in the following table:

<TABLE>
<CAPTION>

                              2002 PRO-FORMA
                                 RESERVES         PRODUCTION                          2003 RESERVES
                              @$U.S. 300/OZ       DEPLETION       RESERVE GROWTH      @$U.S. 325/OZ
MINING OPERATION             (OZS AU X 1,000)  (OZS AU X 1,000)  (OZS. AU X 1,000)  (OZS AU X 1,000)
-----------------------------------------------------------------------------------------------------
<S>                                <C>                <C>               <C>               <C>
Fort Knox                          2,678              (431)             698               2,945
Kubaka                               156              (137)             391                 410
Refugio                              706                 0              679               1,386
Round Mountain                     1,875              (436)             410               1,850
Kettle River                           4                 0              177                 181
Lupin                                332               (60)            (117)                155
New Britannia                        158               (37)             (89)                 32
Porcupine Joint Venture            1,485              (252)             256                1489
Musselwhite                          667               (91)              82                 658
La Coipa                             645               (63)               2                 584
Crixas                               478               (99)              90                 470
Paracatu (Brasilia)                2,500              (120)             233                2613
Aquarius                           1,189                 0             (147)              1,042
Blanket                              280               (38)              77                 319
                             ------------------------------------------------------------------------
TOTAL                             13,153            (1,764)           2,742              14,131
                             ========================================================================
</TABLE>

       The following table reflects proven reserves attributable to Kinross'
ownership interest in the indicated mines contained in stockpiles:

<TABLE>
<CAPTION>

       ---------------------------- ------------ ------------ ------------- ----------- ------------
                                                   KINROSS                    PROVEN
                                                  INTEREST       TONNES       GRADE       OUNCES
                PROPERTY             LOCATION        (%)         (000S)       (GPT)       (000S)
       ---------------------------- ------------ ------------ ------------- ----------- ------------
<S>                                 <C>             <C>         <C>            <C>           <C>
       ---------------------------- ------------ ------------ ------------- ----------- ------------
       GOLD
       ---------------------------- ------------ ------------ ------------- ----------- ------------
       Fort Knox                    USA             100.0%      18,307         0.51          298
       ---------------------------- ------------ ------------ ------------- ----------- ------------
       True North                   USA             100.0%         825         0.87           23
       ---------------------------- ------------ ------------ ------------- ----------- ------------
       Round Mountain               USA              50.0%      38,430         0.45          562
       ---------------------------- ------------ ------------ ------------- ----------- ------------
       Porcupine Joint Venture      Canada           49.0%       6,553         0.96          202
       ---------------------------- ------------ ------------ ------------- ----------- ------------
       Kubaka                       Russia           98.1%         857         2.80           78
       ---------------------------- ------------ ------------ ------------- ----------- ------------
       La Coipa                     Chile            50.0%       3,813         0.73           89
       ---------------------------- ------------ ------------ ------------- ----------- ------------

       ---------------------------- ------------ ------------ ------------- ----------- ------------
       SILVER
       ---------------------------- ------------ ------------ ------------- ----------- ------------
       Kubaka                       Russia           98.1%         857        10.0           275
       ---------------------------- ------------ ------------ ------------- ----------- ------------
       La Coipa                     Chile            50.0%       3,813        47.2         5,787
       ---------------------------- ------------ ------------ ------------- ----------- ------------
</TABLE>

                                      -25-

<PAGE>

                         MINERAL RESERVES AND RESOURCES
                                QUALIFIED PERSONS

         The following table identifies the "qualified persons," as defined in
accordance with the Canadian Institute of Mining, Metallurgy and Petroleum's
"CIM Standards on Mineral Resources and Reserves Definition and Guidelines," for
the reserves and resource estimates with respect to the material properties in
which Kinross holds an interest.

------------------------- ------------------- -------------- -------------------
        Property          Qualified Person       Company         Qualification
------------------------- ------------------- -------------- -------------------
Fort Knox                 R.Cooper            Kinross        P.Eng
Round Mountain            R.Cooper            Kinross        P.Eng
Porcupine Joint Venture   R.Cooper            Kinross        P.Eng
Musselwhite               R Cooper            Kinross        P.Eng
Paracatu (Brasilia)       M.Sharrat           RTZ            Geologist
La Coipa                  R.Cooper            Kinross        P.Eng
Crixas                    W.Yamaoka           AngloGold      Geologist CREA
Kubaka                    R.Cooper            Kinross        P.Eng
------------------------- ------------------- -------------- -------------------

MATERIAL PROPERTIES

FORT KNOX MINE AND AREA, ALASKA

         Kinross is the owner of the Fort Knox mine located in Fairbanks North
Star Borough, Alaska. The Fort Knox mine includes the main Fort Knox open pit
mine, mill, and tailings storage facility, the True North open pit mine, which
commenced production in 2001, the Ryan Lode project and an 80% ownership
interest in the Gil property that is subject to a joint venture agreement with
Teryl Resources Corp ("Teryl"). Kinross' ownership interest in the Fort Knox
mine was acquired as a result of the acquisition of Kinam on June 1, 1998. The
Fort Knox property has been pledged as security against the syndicated credit
facility which supports, inter alia, $25.5 million of industrial revenue bonds
outstanding as at December 31, 2003.

PROPERTY DESCRIPTION AND LOCATION

         FORT KNOX OPEN PIT

         The Fort Knox open pit mine, mill and mineral claims cover
approximately 20,463 hectares located 40 kilometers northeast of the City of
Fairbanks, Alaska. Kinross owns 1,168 State of Alaska mining claims covering an
area of approximately 19,962 hectares, an additional 501 hectares of mineral
rights comprised of an Upland Mineral Lease issued by the State of Alaska, a
Millsite Lease, and one unpatented federal lode mining claim. The Upland Mineral
Lease expires in 2014 and may be renewed for a period not to exceed 55 years.
Mineral reserves at the Fort Knox mine are situated on 505 hectares of land that
are covered by a State of Alaska Millsite Lease that expires in 2014, and may be
renewed for a period not to exceed 55 years.

         The State of Alaska Millsite Lease carries a 3% production royalty,
based on net income and recovery of the initial capital investment. Mineral
production from State mining claims is subject to a Mine License Tax, following
a three-year grace period after production commences. The license tax ranges
from 3% to 7% of taxable income. There has been no production from State claims
situated outside the boundaries of the Millsite Lease at the Fort Knox mine. The
unpatented federal lode claim is owned by Kinross and is not currently subject
to any royalty provisions. There were no royalties paid in 2003 or 2002.

         All requisite permits have been obtained for mining and continued
development of the Fort Knox open pit mine and are in good standing. Kinross is
in compliance with the Fort Knox permits in all material respects.

         TRUE NORTH OPEN PIT

         The True North open pit mine mineral claims cover approximately 3,804
hectares, located 43 kilometers northeast of the City of Fairbanks, Alaska.
Kinross owns 104 State of Alaska mining claims, covering 1,619 hectares which
are subject to a State production royalty tax of 3%. Mineral reserves are
situated on two groups of State claims that Kinross has leased from private
individuals. Mineral production to date has been from one of the

                                      -26-
<PAGE>

leased claim blocks. Mineral leases have been executed with third parties for an
additional 138 State mining claims that cover approximately 2,185 hectares.
Leased claims are subject to net smelter return royalties ranging from 3.5% to
5%. Kinross paid royalties of $1.0 million in 2003 and $0.6 million in 2002.

         All requisite permits have been obtained for mining of the True North
open pit mine which consists of the Hindenburg, Shepard, Zeppelin, Central and
East Pit zones. These permits are in good standing. Kinross is currently in
compliance with the True North permits in all material respects.

         RYAN LODE PROJECT

         The Ryan Lode project mineral claims cover approximately 500 hectares
located 10 kilometers west of the City of Fairbanks, Alaska. The claim block
consists of 50 State of Alaska mining claims, ten patented federal mining claims
and five unpatented federal mining claims, which are either leased from third
parties or held by Kinross. All production from the State of Alaska mining
claims is subject to the State of Alaska Mine License Tax following a three-year
tax grace period after production commences. The State of Alaska Mine License
tax is graduated from 3% to 7% of taxable income. In addition to the State of
Alaska Mine License Tax, the leased claims are subject to net smelter royalties
of 5%, and annual rental payments of $150,000. The annual rental payments are
not deductible when computing the net smelter return royalties. Kinross paid
$150,000 of annual rental payments in each of 2003 and 2002.

         GIL PROPERTY

         The Gil property mineral claims cover approximately 2,700 hectares
located contiguous to the Fort Knox claim block. The claim block consists of 167
State of Alaska mining claims and is subject to a joint venture agreement
between Kinross and Teryl. Kinross' ownership interest in the Gil claim block is
80%. All production from the State of Alaska mining claims is subject to the
State of Alaska Mine License Tax following a three-year tax grace period after
production commences. The State of Alaska Mine License tax is graduated from 3%
to 7% of taxable income. Kinross continues to actively explore the Gil claims.

ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY

         The Fort Knox mine is situated in close proximity to the City of
Fairbanks, which is a major population, service and supply center for the
interior region of Alaska. Services, supplies, fuel and electricity are
available in Fairbanks in ample quantities to support the local and regional
needs, along with the mining and processing operations of Kinross.

         Access to the Fort Knox mine from Fairbanks, Alaska is by 34 kilometers
of paved highway and eight kilometers of unpaved road. The True North mine is
located 18 kilometers west of the Fort Knox property and is accessible by an
unpaved road. The Ryan Lode project is located 65 kilometers from the Fort Knox
property and is accessible by 54 kilometers of paved road and 11 kilometers of
unpaved roads. The area has a sub-arctic climate, with long cold winters and
short summers. Winter low temperatures drop to the range of -40 to-48 Celsius
(-40 to -55 degrees Fahrenheit), while in the summer, highs may occasionally
exceed 32 degrees Celsius (90 degrees Fahrenheit). The annual rainfall in
Fairbanks is approximately 30 centimeters.

         The area topography consists of rounded ridges with gentle side slopes.
Vegetation includes spruce, birch and willow trees and various shrubs, grasses
and mosses. The elevation ranges from 1,000 to 1,600 meters.

         The Fort Knox milling operation obtains its process water from a fresh
water reservoir located within the permitted property area. The tailings storage
area on site has adequate capacity for the remaining mine life of the Fort Knox
and the True North mines. Power is provided to the mine by Golden Valley
Electric Association's power grid serving the area over a distribution line paid
for by Kinross.

HISTORY

         An Italian prospector named Felix Pedro discovered gold in the
Fairbanks mining district in 1902. Between 1902 and 1993 more than 8.0 million
ounces of predominately placer gold were mined in the district. In 1984 a
geologist discovered visible gold in granitic hosted quartz veins on the Fort
Knox property. Between 1987 and 1991, a number of companies conducted extensive
exploration work on the Fort Knox, True North and Gil

                                      -27-
<PAGE>

properties. In 1991, Kinam entered into a joint venture agreement with Teryl to
explore the Gil property. In 1992, Kinam acquired ownership of the Fort Knox
property. Construction of the Fort Knox mine and mill operations began in 1995
and were completed in 1997. Commercial production at Fort Knox was achieved on
March 1, 1997. Construction of the mine was completed at a capital cost of
approximately $373 million, which included approximately $28 million of
capitalized interest. After acquiring ownership of the True North property in
1999, Kinross completed pre-production capital expenditures, primarily
permitting and the building of a haulage road to the Fort Knox mill. Commercial
production at True North was achieved on April 1, 2001. Pre-production capital
expenditures for True North were approximately $29.6 million.

GEOLOGY AND MINERALIZATION

         Kinross' mining and exploration properties are located within the
Fairbanks mining district, a southwest - northeast trending belt of lode and
placer gold deposits that comprise one of the largest gold producing areas in
the state of Alaska.

         The Fairbanks district is situated in the northwestern part of a
geologic formation called the Yukon - Tanana Uplands. The Yukon - Tanana Uplands
consists of a thick sequence of metamorphic rocks that range from Precambrian to
upper Paleozoic in age. The dominant rock unit in the district is the Fairbanks
Schist, a geologic unit comprised mostly of gray to brown fine-grained micaceous
schist and micaceous quartzite. Interlayered with the Fairbanks Schist is the
Cleary Sequence, a varied assemblage of metamorphic lithologies. In the northern
part of the district high-grade metamorphic rocks of the Chatanika terrane have
been identified.

         Several intrusive bodies of different ages penetrate the Yukon-Tanana
Uplands. They generally range from ultramafic to felsic in composition, and can
be distinguished from older intrusive rocks by their lack of metamorphic
textures.

         The mineral deposits are partially situated in a structurally complex
zone that has a northeast elongated orientation that parallels a fault called
the Eldorado Fault. It is characterized by a series of folds, shear zones,
breccias, and occasional low angle faults. These structures, which were
important to the localization of gold mineralization, show a dominant
strike-slip movement.

         The Fort Knox gold deposit is hosted by a granitic intrusive body
affecting the Yukon-Tanana Uplands. The surface exposure of the intrusive stock
is elongated and measures approximately 1,067 meters in the east-west direction
and 610 meters north-south.

         Gold occurs in and along the margins of pegmatites, quartz veins and
veinlets, quartz-filled deformation zones (shear zones), and fractures within
the granite. Fractures that predated the mineralization provided the conduits
for the deposition of gold. The stockwork veins strike predominantly east-west
and dip randomly. Vein density decreases with depth. Shear zones generally
strike northwest to southeast and dip moderately to the southwest.

         There appear to be two distinct zones of gold distribution within the
deposit: the inner zone, which is characterized by good continuity over
considerable distances; and an outer zone, where the mineralization has shown
itself to be less predictable. It appears that the differences in the continuity
of the mineralization may be due to grain size changes and different phases
within the stock.

         Mineralization in the quartz-filled shear zones is distributed
relatively evenly, and individual gold grains are generally less than 100
microns in size. In contrast, the stockwork veins have gold particle size and
distribution that are more erratic. Overall, the mineralized zone has a very low
sulfide content.

         The True North gold deposits lies within a metamorphic unit called
Chatanika terrane, constituted of marbles that are erosional remnants, schists
of various composition, phyllites and quartzites. The gold mineralization is
hosted in felsic schists and is frequently accompanied by carbon and carbonate
alteration in sheared or otherwise structurally prepared zones. The gold is very
fine grained, and is closely associated with pyrite, arsenopyrite, and stibnite
in the unoxidized zones. It occurs in quartz veins, and in altered and
brecciated rocks adjacent to breccia bodies. There appears to be a direct
relationship between veining and gold content, as weakly veined rocks generally
carry lower gold values.

                                      -28-
<PAGE>

EXPLORATION

         The gold exploration procedures that have been utilized at the Fort
Knox and True North projects include: reconnaissance and detailed geologic
mapping; soil and rock chip sampling to determine the presence of gold
mineralization, or associated (trace) elements; trenching of soil anomalies to
create exposures of bedrock; drilling, geochemical and assay determinations for
gold and associated elements.

         Two types of drilling methods have been used, diamond core and reverse
circulation (RC). Drilling is always completed by independent drilling
contractors under the supervision of Kinross personnel. Sampling of the drill
holes is done by the staff of the drill contractors, under close supervision of
Kinross or contract geologists. Geochemical and assay determinations for gold
and associated elements are undertaken by independent commercial laboratories.
Historically, Kinross has utilized the services of two firms - ALS Chemex
Laboratories and Bondar-Clegg (now owned by the ALS Chemex group). Check assay
work during 2003 was switched to American Assay Laboratories, Inc. after
Bondar-Clegg was acquired by the ALS Chemex group.

         Kinross' regional exploration within the Fairbanks district totaled
$2.4 million during 2003. Planned exploration spending for 2004 is $1.6 million.

DRILLING, SAMPLE AND ANALYSIS, AND SECURITY OF SAMPLES

         Drilling is the principal tool utilized to explore for and define
mineral deposits in the Fairbanks mining district. Two types of drilling are
utilized during exploration and development programs at the various properties,
core and reverse circulation drilling.

         Core drilling is the process of obtaining continuous cylindrical
samples of rock from drill holes by means of annular shaped rock cutting bits
rotated by a bore-hole drilling machine. Core drilling, also referred to as
diamond drilling, is commonly used to collect undisturbed and continuous samples
from either complete drill holes or intervals of holes that are of particular
interest for the purposes of detailed and comprehensive sampling, for
geotechnical and rock strength tests, or because alternative drilling methods
may be incapable of providing appropriate geological or geotechnical data.

         Reverse circulation is a method of rotary drilling whereby the drilling
medium is circulated to the drill bit face from the surface and the drill
cuttings that are ground up by the drill bit cutting face are removed from the
drill hole by the drilling medium (water, foam or other drilling muds and
additives, or air) inside the drill rods. Reverse circulation drilling is a
generally accepted method that is commonly used in mineral exploration and
development drilling programs throughout the world.

         Comprehensive drilling programs have been carried out at both the Fort
Knox and True North deposits. The Fort Knox deposit has been defined by 594
drill holes (201 core holes and 393 reverse circulation holes totaling 375,230
feet), which have provided 75,046 nominal 1.52-meter long samples. The True
North deposit has been defined by 1,353 drill holes (totaling 352,660 feet),
which provided 70,532 nominal 1.52-meter long samples.

         Core samples and reverse circulation drill cuttings are collected from
each drill hole and are geologically logged. Reverse circulation rotary drill
cuttings are collected at one and a half meter intervals by a geologist or
helper at each drill site. Each core interval and reverse circulation rotary
cutting sample is submitted to an independent assay laboratory for geochemical
analysis, and the subsequent geochemical data is entered, together with
information about the host rock, into the project database. In an effort to
collect the most representative sample possible, 83.1 millimeter (83 millimeter
prior to 1998) diameter core holes have been drilled at the Fort Knox and Ryan
Lode deposits, while 64 millimeter core holes are drilled at True North and Gil.
Core samples are regularly photographed and then logged and sampled in one and a
half meter intervals. Data is entered on the logs in a digital format. Special
emphasis is placed on shear and vein orientations, as well as mineralization and
oxidation. A representative sample is retained for later use and the remainder
of each interval is submitted for assay.

         Drill samples are labeled and placed in bags at the drill site and
prepared for transport to commercial laboratories for preparation and assay. All
samples are either delivered to the preparation facility by Kinross personnel,
or are picked up at a Kinross facility by employees of the laboratory.

                                      -29-
<PAGE>

         Duplicate samples are collected from every tenth sample and a check
assay is performed and compared to the original assay. As a form of quality
control, the inclusion of "blank" (unmineralized) samples within each sample
shipment is part of the standard procedure.

         A pulp sample of known grade is also submitted to the laboratory. The
sample frequency is twice per core hole, and every 30 meters for reverse
circulation holes. These standards are prepared both in-house and by outside
laboratories over the different exploration seasons, and they represent
different ranges of gold grades. For samples with fire assays greater than 0.3
grams per tonne, the samples are resubmitted to the laboratory for a cyanide
soluble assay. The purpose of this procedure is to determine mill recovery
rates.

         Kinross employs, as a standard operating procedure, a very detailed
analysis program for determining if a particular reverse circulation drill
sample is representative of the rock within the drill hole. This program
includes weighing the samples to determine if the sample is under weight
(indicating loss of material in the sampled interval). The presence of unusually
high sample weights is often an important indicator of sample contamination in a
drill hole. All assay data from mineralized intervals are analyzed by two
computer programs (developed by MRDI, an independent mining consulting firm) to
determine if there is a predictable repetition (cyclicity) to high grade
intervals, or (decay) of assays immediately adjacent to and below high grade
intervals, possibly indicating contamination of certain assay values. Any holes
suspected of down hole contamination on the basis of these three criteria are
examined in cross-sections. Based on how the area compared to adjacent holes, a
decision is made as to whether or not the data is to be rejected. If any samples
are determined from these procedures to be suspicious, that data is rejected and
is excluded from the database used to estimate mineral resources.

         Any mineralized drill hole interval that has a calculated recovery
greater than 100% is closely scrutinized and may be rejected. This is the
primary (but not only) method for determining contamination at the Fort Knox
deposit, but it is a less effective method for the True North deposit, where
cyclicity and decay are more effective tools.

         The nature of the mineralization and host rock at the Fort Knox deposit
requires that particular care be given to the collection of drill hole samples,
especially for reverse circulation holes, that penetrate the water table within
the deposit. The reasonableness of Kinross' methods in drilling this part of the
deposit has been validated by the results of mining in several of these areas of
the deposit. These techniques are now also used as standard practice at all of
Kinross' properties in the Fairbanks mining district, including the True North
mine.


                                      -30-
<PAGE>

MINERAL RESERVE AND RESOURCE ESTIMATES

         The following table sets forth the estimated proven and probable
reserves for the Fort Knox mine and area as at December 31, 2003, and 2002:

<TABLE>
<CAPTION>

                              2003 (AT A                                2002 (AT A
                            GOLD PRICE OF                             GOLD PRICE OF
                            U.S. $325 PER                             U.S. $300 PER
                               OUNCE)                                    OUNCE)
               ---------------------------------------    --------------------------------------
                              AVERAGE        GOLD                        AVERAGE       GOLD
                  TONNES       GRADE       CONTENT          TONNES        GRADE       CONTENT
                  ------       -----       -------          ------        -----       -------
                 (000'S)       (GPT)      (000'S OZ)        (000'S)       (GPT)     (000'S OZ)
<S>              <C>            <C>          <C>            <C>           <C>         <C>
Proven(1)         54,913        0.83         1,464          58,414        0.84        1,571
Probable          48,026        0.96         1,481          38,744        0.89        1,107
                 -------        ----         -----          ------        ----        -----
Total            102,939        0.89         2,945          97,158        0.86        2,678
                 =======        ====         =====          ======        ====        =====
</TABLE>

---------------------------

(1)      Includes 19,132,000 tonnes of stockpiled material at December 31, 2003,
         with an average grade of 0.53 gpt or 321,000 ounces of proven reserves.

         In addition to estimated proven and probable reserves, as at December
31, 2003, the Fort Knox mine and area has an estimated 1.141 million tonnes of
measured and indicated resources at an average grade of 1.12 grams of gold per
tonne at a gold price of U.S. $350 per ounce. UNITED STATES INVESTORS ARE
ADVISED THAT THE TERMS "MEASURED RESOURCES" AND "INDICATED RESOURCES" ARE
RECOGNIZED BY CANADIAN REGULATIONS BUT NOT BY THE UNITED STATES SECURITIES AND
EXCHANGE COMMISSION. UNITED STATES INVESTORS ARE CAUTIONED NOT TO ASSUME THAT
ALL OR ANY PART OF MINERAL DEPOSITS IN THESE CATEGORIES WILL EVER BE CONVERTED
INTO PROVEN AND PROBABLE RESERVES.

MINING AND MILLING OPERATIONS

         The Fort Knox and True North deposits are mined by conventional open
pit methods. Ore from the Fort Knox and True North mines is processed at
Kinross' carbon-in-pulp mill located near the Fort Knox mine. The mill processes
ore on a 24 hours per day, 365 days per year schedule.

         The Fort Knox mill has a daily capacity of between 32,658 to 45,359
tonnes per day. An average of 36,400 tonnes per day is scheduled to be processed
in 2004, with True North providing 8% of the mill feed. Mill feed is first
crushed to minus 20 centimeters in the primary crusher located near the Fort
Knox pit and conveyed 800 meters to a coarse-ore stockpile located near the
mill. The crushed material is conveyed to a semi-autogenous (SAG) mill, which
operates in closed circuit with two ball mills and a bank of cyclones for
sizing. A portion of the cyclone underflow is screened and then directed to a
gravity recovery circuit. Because the True North mineralization has a much finer
gold particle size than the Fort Knox mineralization, the gravity circuit is not
a significant factor in recovering True North reserves.

         Correctly sized material flows into a high rate thickener and then into
leach tanks where cyanide is used to dissolve the gold. Activated carbon is used
in the carbon-in-pulp circuit to absorb the gold from the cyanide solution.
Carbon particles loaded with gold are removed from the slurry by screening and
are transferred to the gold recovery circuit where the gold is stripped from the
carbon by a solution, plated onto a cathode by electrowinning, and melted into
dore bars for shipment to a refiner. Mill tailings are detoxified and
transferred into the tailings impoundment below the mill.

         Gold recoveries at the Fort Knox mill have historically ranged from 87%
to more than 90% since production began in 1996. With the commencement of feed
from the True North mine in 2001, it has been necessary to add lead nitrate to
the process, and make modest increases to the cyanide and lime concentrations to
maintain mill recovery rates.

         Kinross estimates the net present value of future cash outflows for
site restoration costs at Fort Knox and True North under CICA Handbook section
3063, which is effective for years beginning January 1, 2004, at $18.9

                                      -31-
<PAGE>

million. Kinross has posted $14.6 million of letters of credit to various
regulatory agencies in connection with its closure obligation at Fort Knox and
True North.

         FORT KNOX OPEN PIT

         The mine production rate varies between 94,000 and 130,000 tonnes per
day of total material. Mining is carried out on a year round basis, seven days a
week. Standard drilling and blasting techniques are used, and the blast holes
are sampled and assayed for production grade control purposes. Broken rock is
loaded with a shovel or a wheel loader into haul trucks. Depending on the grade
control results, the mined material is delivered to either the primary crusher,
low-grade stockpiles, or to waste rock dumps.

         In 1996 a 1.3 million short ton slope failure developed in the central
south wall above the granite-schist contact. The slide has been stabilized.
Ground water was believed to be a contributing factor to the failure, and a
dewatering program is planned before mining this zone.

         The mine currently has 19 dewatering wells, which produce approximately
650 gallons per minute. In 2004, two additional wells will be drilled.

         Stripping of Phase-6 is scheduled to begin in 2004 on the 2200 bench.
Before sustained mill feed rates from Phase-6 can be reached in mid 2006 on the
1460 bench, 55 million short tons of waste rock will be mined, at an average
rate of 60,000 short tons per day. Six additional haul trucks and a loader will
be added to the mining fleets in order to accomplish the stripping.

         Typically, upper Phase-6 benches average 4,700 feet in length, with a
mining face width of between 150 and 500 feet. Haul road access to the Phase
will be from the northeastern end. Subdividing the Phase would reduce the
stripping load, but due to the bench geometry and access limitations, this has
not been considered.

         TRUE NORTH OPEN PIT

         Production rates for the True North open pit mine vary between 18,100
and 36,300 tonnes per day of material, seven days a week. Standard drilling and
blasting techniques are used and the blast holes are sampled and assayed for
grade control purposes. Broken rock is loaded with a shovel or a wheel loader
into 77-tonne haul trucks. Mined material is delivered either to the stockpiles
or to waste rock dumps.

         From the stockpile, mill feed is reloaded into 77-tonne capacity trucks
for the 20.9 kilometer long trip to the Fort Knox mill at 8,437 tonnes per day.
The material is directed dumped into the primary crusher.

         Mining at True North was temporarily suspended during the first quarter
of 2004 in order to use the mining equipment at the Fort Knox pit. It is
anticipated that mining operations at True North will recommence during the
fourth quarter of 2004 and continue into 2005.

         The current True North mining permit does not allow water discharge or
mining below the water table. All the pits were designed to meet these criteria
based on Kinross' current estimation of the groundwater surface. As mining
progresses, refinements in the water table location may allow changes in the pit
designs.

         As the mine is a side hill excavation, waste rock is placed either in
access roads or in dumps adjacent to the excavations. Because much of the
deposit is located on north and northwest facing slopes, discontinuous
permafrost is present in the mining area. Work in the permafrost areas must be
done during the winter months because bulldozing becomes very difficult once the
surface layers thaw. Access roads can be placed across permafrost areas but
waste dumps cannot.

SUMMARY OF PRODUCTION AND FINANCIAL DATA

         The following table summarizes certain gold production, operating and
financial data relating to Kinross' 100% owned Fort Knox mine for the three
years ended December 31, 2003:

                                      -32-
<PAGE>

<TABLE>
<CAPTION>
                                                                                YEARS ENDED DECEMBER 31,
                                                                      -------------------------------------------
                                                                            2003          2002          2001
                                                                            ----          ----          ----
SELECTED PRODUCTION AND OPERATING INFORMATION:
<S>                                                                     <C>           <C>            <C>
Tonnes mined (000's)..............................................        39,213.9      32,699.0       31,212.9
Tonnes of ore processed (000's)...................................        13,684.6      13,842.9       14,209.1
Gold grade (gpt)..................................................            1.07         1.09           1.05
Average gold recovery (%).........................................             83            84             86
Gold equivalent production........................................        391,831       410,519        411,221
Number of employees...............................................            402           388            361

SELECTED FINANCIAL INFORMATION (IN MILLIONS EXCEPT UNIT COSTS):

Revenue...........................................................      $    136.3    $    131.6     $    109.0
                                                                        ----------    ----------     ----------
Cost of production................................................            95.2          95.3           85.0
Inventory change/other............................................            (4.8)          2.9           (3.3)
Site restoration cost accruals....................................             2.5           1.0            1.2
Depreciation, depletion and amortization..........................            35.9          54.9           42.9
Interest..........................................................             1.2           1.5            3.6
Exploration.......................................................             2.4           1.6            0.5
                                                                        ----------    ----------     ----------
                                                                             132.4         157.2          129.9
                                                                        ----------    ----------     ----------
Net earnings (loss)...............................................      $      3.9    $    (25.6)    $    (20.9)
                                                                        ==========    ==========     ==========

OTHER FINANCIAL INFORMATION:

Capital expenditures (millions)...................................      $    26.5     $     15.0     $     20.2
Unit costs:
  Total cash costs per gold equivalent ounce produced.............      $     243     $     232      $     207
  Total cash costs per tonne milled...............................      $       7     $       7      $       6
  Total production cost per gold equivalent ounce.................      $     341     $     343      $     314
</TABLE>

         Total cash costs is a non-GAAP measure. For further information on this
non-GAAP measure, please refer to the disclosure under "Calculation of Total
Cash Costs and Realized Revenue and Reconciliation to the Statement of
Operations," above.

         For further information on the 2003, 2002, and 2001, results, refer to
the disclosure included under "Kinross Management's Discussion and Analysis of
Financial Condition and Results of
Operations--Financial/Operations--Operations--Mine Operations--Fort Knox Mine
(100% ownership and operator); USA."

PRODUCTION FORECAST, LIFE OF MINE, AND CAPITAL EXPENDITURES

         The life of mine plan prepared by Kinross provides for completion of
mining at True North in 2005. From that point onwards, production will be
derived entirely from the Fort Knox deposit until 2010 when the feed will
originate predominantly from the low grade stockpile material.

         Capital expenditures at the Fort Knox operations in 2003 were $26.5
million compared to $15.0 million during 2002. The majority of the capital
expenditures was directed towards equipment purchases and rebuilds, the drilling
of pit de-watering wells, and exploration. Capital expenditures for 2004 are
planned to be $39.0 million, including mining equipment, development, a tailings
dam lift, pit de-watering wells, and exploration. The majority of the increase
in capital expenditures in 2003 was due to equipment purchases and rebuilds.

         During 2003, exploration was conducted within the Fort Knox pit, on the
Gil project and at Ryan Lode. Results from the Fort Knox in-pit work confirmed
sufficient continuity of the mineralized zones to justify a major pit wall
layback at an assumed gold price of $325 per ounce. This major layback is
comprised of a three-year, approximately $60 million capital expenditure
project, mostly in the form of stripping to liberate ore to prolong the economic
life of the Fort Knox mine.

                                      -33-
<PAGE>






                                    [PICTURE]







--------------------------------------------------------------------------------

FAIRBANKS GOLD MINING, INC.      FORT KNOX MINE       FORT KNOX MINE

A SUBSIDIARY OF KINROSS GOLD CORPORATION              GENERAL ARRANGEMENT

--------------------------------------------------------------------------------


                                      -34-

<PAGE>

                            TRUE NORTH PROPERTY MAP








                                 [PICTURE]






                                      -35-

<PAGE>

THE PORCUPINE JOINT VENTURE

GENERAL

        Kinross and Placer CLA entered into an asset exchange agreement (the
"Asset Exchange Agreement") and a joint venture agreement, both dated as of July
1, 2002, for the purpose of forming a joint venture that combined the two
companies' respective gold mining operations in the Porcupine district in the
Timmins area, Ontario, Canada (the "Porcupine Joint Venture"). Placer CLA owns a
51% participating interest and Kinross owns a 49% participating interest in the
Porcupine Joint Venture. The joint venture is managed by Placer CLA. The
Porcupine Joint Venture incorporates Placer CLA's Dome mine and mill, Kinross'
Hoyle Pond, Pamour and Nighthawk Lake mines and the Bell Creek mill.

THE ASSET EXCHANGE AGREEMENT

        Pursuant to the Asset Exchange Agreement which was entered into as a
step in implementing the Porcupine Joint Venture, Placer CLA transferred to
Kinross an undivided 49% interest in all of Placer's assets owned, used or
thereafter acquired by Placer CLA or its affiliates and located within a 100
kilometer radius of Placer CLA's Dome mill in or near Timmins, Ontario (the
"Development Area") and used in the gold mining, milling and exploration
business and operations carried on by Placer CLA or its affiliates. Kinross in
turn transferred to Placer CLA an undivided 51% interest in all of Kinross'
assets owned, used or thereafter acquired by Kinross or its affiliates and
located within the Development Area and used in the gold mining, milling and
exploration business and operations carried on by Kinross or its affiliates. Any
interest that Kinross may acquire in and to the project within the Development
Area commonly known as the Aquarius Project is excluded from the Porcupine Joint
Venture pending agreement between the parties to include it.

        Under the Asset Exchange Agreement, Kinross has also transferred all of
its contracts relating to its Timmins operations to Placer CLA, and Placer CLA
assumed such contracts as manager of the Porcupine Joint Venture for the benefit
of both parties and the exclusive use of the Porcupine Joint Venture. Placer
CLA's contracts relating to its Timmins operations remain in the name of Placer
CLA, which will hold such contracts as manager of the Porcupine Joint Venture
for the benefit of both parties and the exclusive use of the Porcupine Joint
Venture.

THE PORCUPINE JOINT VENTURE AGREEMENT

        In connection with the Asset Exchange Agreement, Kinross and Placer CLA
entered into a joint venture agreement. The Porcupine Joint Venture Agreement
provides that the purpose of the Porcupine Joint Venture is to engage in
operations relating to the mining, milling, exploration and development of the
properties subject to the Porcupine Joint Venture, and to perform any other
activity necessary, appropriate or incidental to the foregoing.

        The term of the Porcupine Joint Venture is from July 1, 2002, and until
so long thereafter as ores and mineral resources are produced from the assets
forming part of the Porcupine Joint Venture and all reclamation obligations,
liabilities or responsibilities under applicable laws or instruments of title
relating to operations under the Porcupine Joint Venture have ceased or been
satisfied, to a maximum of 99 years, unless the Porcupine Joint Venture is
earlier terminated pursuant to the terms of the Porcupine Joint Venture
agreement.

        Each of Kinross and Placer CLA is obligated to contribute funds from
time to time to the Porcupine Joint Venture in proportion to their respective
participating interests, pursuant to adopted programs and budgets.

        Under the Porcupine Joint Venture a party's participating interest may
be reduced upon the election by such party not to contribute to an adopted
program and budget for the Porcupine Joint Venture, or in the event of a default
by such party in making its agreed upon contribution to an adopted program and
budget.

        In addition, if a party's participating interest is reduced to less than
10%, the other party may elect that the first party be vested with a 2% net
smelter returns royalty on ores and minerals mined from the properties subject
to the Porcupine Joint Venture and the first party shall be deemed to have
transferred its remaining participating interest to the other party.

PORCUPINE JOINT VENTURE OPERATIONS

                                      -36-

<PAGE>

        The Porcupine Joint Venture operations consist of the Dome underground
and open pit mine and mill, the Hoyle Pond underground mine and the Bell Creek
mill and tailings storage facility which is presently on care and maintenance
with all processing taking place at the Dome mill. In addition, the Porcupine
Joint Venture operations consist of a number of former producing mines, most
notably the Pamour and Nighthawk Lake mines. The only producing mines forming
part of the Porcupine Joint Venture in Timmins at present are the Dome mine and
the Hoyle Pond mine.

PROPERTY DESCRIPTION AND LOCATION

        HOYLE POND UNDERGROUND MINE AND BELL CREEK MILL

        The Hoyle Pond underground mine and mineral claims and the Bell Creek
mill are located in Hoyle Township in Timmins, Ontario on 4,065 hectares of
patented land, land leased from the province and one private lease. The leases
expire at various times from September 2004 to January 2025. Subject to the
satisfaction of conditions, the leases can be renewed for additional terms of 10
to 21 years. The private lease is for a term of 20 years and is in good standing
until May 31, 2005. There are also two contiguous staked mining claims covering
32 hectares located in Whitney Township south of Hoyle Township.

        There are various royalties on the Hoyle Pond underground mine land
package. The only royalty requiring payment at present is a tonnage-based
royalty on the private lease. Royalty payments were insignificant in 2003 and
2002.

        All requisite permits have been obtained for the mining and continued
development of the Hoyle Pond underground mine and the Bell Creek mill and are
in good standing and the Porcupine Joint Venture is in compliance with Hoyle
Pond and Bell Creek permits in all material respects.

        DOME MINE AND MILL

        The Dome underground and open pit mine and mill are located within the
city limits of Timmins, Ontario, on an area that covers over 5,004 hectares of
staked and patented mining claims held or under option, including the Preston
property that lies to the south and east, immediately adjacent to the Dome
property and the Paymaster property that lies to the west of the Dome open pit.

        The Dome open-pit and underground mines, claims, mining and surface
rights are registered in the name of Placer Dome Canada Limited ("Placer
Canada") (51%) and Kinross (49%). The Preston property includes 19 mining
claims. The Paymaster property includes 26 contiguous mining claims.

        A 2% net smelter royalty is payable on production from the Preston,
Paymaster and Vedron properties. No other royalties are payable on the Dome
property.

        All requisite permits have been obtained for the mining and continued
development of the Dome underground and open pit mine and mill and are in good
standing; the Porcupine Joint Venture is in compliance with such permits in all
material respects.

        PAMOUR AND NIGHTHAWK LAKE MINES

        The Pamour open pit and Nighthawk Lake underground mines and mineral
claims are located in Timmins, Ontario on 7,783 hectares. The Pamour mine is
located north of Highway 101 and the Pamour mine site is approximately 19
kilometers east of the downtown core of Timmins and 43 kilometers west of
Highway 11. The Pamour mine is also approximately two kilometers south of and
contiguous with the Hoyle Pond mine. The Nighthawk Lake mine is approximately 17
kilometers southeast of the Hoyle Pond mine. There has been no production at
these mines since their acquisition in 1999.

        A Pamour open pit feasibility study was finalized in late 2003 and
permitting work was initiated. The necessary permits required to commence mining
of the mineral reserves contained in the existing Pamour pit, north of Highway
101, referred to as the phase one mine plan, have been maintained in good
standing and require only administrative reactivation. Demolition of the old
Pamour headframe and associated infrastructure was completed

                                      -37-
<PAGE>

in preparation for the development of the open pit operations. Saleable
production is expected to commence in 2005.

        The Porcupine Joint Venture will require additional permit approvals to
mine south of Highway 101, which is outside of the phase one mine plan. The
government agencies that will be involved in the additional permitting process
include the City of Timmins, the Matagami River Conservation Authority, the
Ontario Ministries of Northern Development and Mines, Natural Resources,
Environment and Transportation, the Federal Department of Fisheries and Oceans
and Environment Canada.

        The key element in the development of the expanded open pit outside of
the phase one mine plan will be the relocation of Highway 101. The proposed
relocation will involve constructing a causeway over a portion of a small lake,
the Three Nations Lake, and will therefore have a direct effect on a nearby fish
habitat. This highway has been relocated several times during the production
history of the mine. As a fishery resource will be involved in the project
planning, the Canadian Environmental Assessment Act process will be the guiding
legislation. Kinross believes there is a high level of assurance that the
project will receive all required approvals for development.

ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY

        Access to the Hoyle Pond mine is via a five kilometer all weather gravel
road north of Highway 101. Services are generally acquired from vendors in the
Timmins area. Adequate process water is available from the clear water pond at
the tailings, while make up water and potable water comes from underground
supply.

        The existing Dome mill consists of three stages of crushing, rod/ball
and primary ball grinding, gravity recovery, cyanide leach, carbon-in-pulp,
carbon elution, solution electrowinning and direct smelting. Tailings are pumped
to a tailings basin where the solids settle out and a portion of the solution is
recycled to the mill. Excess effluent is seasonally treated and discharged.

        As part of the Pamour project, the mill will be upgraded in 2004 with
the installation of a large rod mill in series with the existing primary ball
mill to provide additional grinding capacity for the harder Pamour ores. Three
leach tanks will be installed to provide longer leach retention time, and a new
carbon elution and regeneration circuit will be installed, together with an
upgrade to the process control network. This expansion will allow processing of
11,000 tonnes per day at a 95% mill utilization rate, making the mill more
efficient and flexible for processing ores from the Dome, Holye Pond, Pamour,
and other orebodies.

        Access to the Dome mine is by paved road from the town of South
Porcupine, six kilometers east of Timmins on Highway 101. Rail freight service
is available from the Falconbridge -- Kidd Creek metallurgical site eight
kilometers east of the mine.

        The dominant surface material in the Dome mine area is glacial till
overlain by glaciolacustrine silts and clays. Mine waste and tailings cover some
areas closer to the mine.

        The Pamour mine is located two kilometers south of the Hoyle Pond mine
and is accessible by an unpaved road. The Nighthawk lake mine is located 17
kilometers southeast of the Hoyle Pond mine and accessible by 10 kilometers of
paved roads and seven kilometers of unpaved roads.

        The area climate consists of cold winters and hot summers. Temperatures
range from below -40 degrees Celsius (-40 degrees Fahrenheit) to above +30
degrees Celsius (+95 degrees Fahrenheit). Mean precipitation is approximately 80
centimeters annually.

        The topography of the area is typical of the Canadian Shield and
consists of an irregular surface with moderate relief. The topographic highs are
the result of bedrock outcrops and are surrounded by low lying areas of poorly
drained wetlands. Vegetation includes spruce, pine, poplar and birch trees and
various shrubs, grasses and mosses. The elevation ranges from 200 meters to 300
meters.

HISTORY

        Land was first staked in the vicinity of the present day Pamour mine in
1910. Limited production was achieved from 1911 to 1914. The property remained
idle from 1914 to 1923. Between 1923 and 1935 several

                                      -38-
<PAGE>

mining syndicates carried out exploration work. In 1935 and 1936 the Pamour No.
3 shaft was sunk and a 650 tonnes per day mill was constructed. In 1938 the mill
capacity was increased to 1,300 tonnes per day by installing new equipment.
During the 1950's mill throughput averaged 1,500 tonnes per day. In 1972, the
mill was expanded to treat 2,275 tonnes per day as production from the nearby
Aunor mine was processed at the Pamour mill. Open pit mining at the Pamour mine
began in 1976 and continued until 1999.

        Approximately 4.0 million ounces of gold were produced from the Pamour
mine from 1936 to 1997. There has been no production at the Pamour mine since
Kinross acquired it in 1999.

        The Hoyle Pond discovery hole was drilled by Texas Gulf in 1980. The
deposit was explored in 1980 to 1982. The deposit was developed by ramp in 1983
and 1984. The first year of mining in 1985 yielded 64,400 tonnes at an average
grade of 13.0 grams per tonnes of gold. The mine has been in continuous
production since then and was acquired by Kinross pursuant to the amalgamation
with Falconbridge Amalco in 1993. Since 1993, Kinross has conducted exploration
programs and underground development has added significant additional
mineralization. From 1994 to 1999 Kinross sunk an 815 meter shaft and developed
a second ramp to access underground workings. The Bell Creek mill has gone
through a series of expansions with current capacity of 1,500 tonnes per day.
The head grade for the Hoyle Pond mine is the highest of any of the significant
past, or present producing mines in Timmins.

        The Dome deposit was discovered in 1909. Operations commenced in 1910,
producing 214 ounces of gold. Mining has been continuous at Dome since 1910. In
1984, the mill capacity was increased from 2,000 to 3,000 tonnes per day. Part
of the extension included a new vertical shaft, the No. 8 shaft which was sunk
from the surface to a depth of 1,667 meters. In 1988, due to a skipping
accident, No. 8 shaft was not producing and, therefore, open pit mining was
commenced. From 1992 to 1996, Placer CLA produced from the Paymaster property.
In 1995, an expansion of the operations, which included an enlarged open pit and
an increase in milling capacity, was completed. As a result, full production
from the expanded open pit was achieved and mine production increased from a
nominal rate of 3,400 tonnes per day in 1994 to 9,100 tonnes per day in 1995. In
1997, the Preston property was purchased and the Dome open pit was expanded into
the Preston land holdings. Mining of open pit ore from the Preston property was
completed in 2000.

        From its beginning in 1909 to December 31, 2003, the Dome mine has
produced 15,116,739 ounces of gold, making it the second largest gold producer
of the Timmins camp.

GEOLOGY AND MINERALIZATION

        REGIONAL

        All of the properties comprising the Porcupine Joint Venture lie within
the Porcupine Gold Camp (the "PGC"). The PGC, located in the Archean Abitibi
greenstone belt, has been the most productive gold-producing field in North
America. Total historic production is in excess of 62 million ounces of gold.
This production has come from quartz-carbonate lode systems hosted within low
temperature metamorphic rocks (greenschist facies). Lodes are found in a
corridor up to 10 kilometers wide parallel to the 200 kilometers long Destor
Porcupine Fault. At the regional scale, gold deposits are spatially associated
with regional fault zones. At the camp scale, gold deposits generally occur
within five kilometers of, but not in, the regional faults.

        HOYLE POND

        The Hoyle Pond Main Zone and 1060 Zone deposits, both of which are in
production, occur on opposite limbs of an open, northeast plunging
fold-structure (anticline), hosted within sheared and metamorphosed basalts rich
in pyroxenes. The 7 Vein system occurs as a series of stacked, flat to gently
northeast dipping veins at the nose of the anticline structure. Mineralization
occurs as coarse, free gold in white to grey-white quartz veins with variable
ankerite, tourmaline, pyrite and local arsenopyrite. Alteration halos are
generally narrow, consisting of mainly grey zones (carbon, carbonate, sericite,
cubic pyrite) in the Hoyle Pond system, and carbonate-sericite, with fuchsite,
pyrite, arsenopyrite and trace chalcopyrite, sphalerite within the 1060
structure.

        The Hoyle Pond Main Zone includes a series of generally northeast
striking, linked quartz vein zones (at least 11 veins of economic significance)
folded on a small scale with moderate west trending and northeast plunging

                                      -39-
<PAGE>

fold axis. The 1060 Zone consists of at least five main vein structures (B1, B2,
and B3 Zones, A Zone and Porphyry Zone) with orientations ranging from north to
northeast with generally subvertical dips.

        PAMOUR MINE

        The Pamour mine is located approximately one kilometer north of the
Destor Porcupine Fault Zone. Volcanic rocks occupy the area north of the mine
and include interlayered mafic to ultramafic units. Sedimentary rocks including
greywackes, argillites, and conglomerates are found to the south. Gold
mineralization is hosted by both volcanic and sedimentary rocks and related to
both individual quartz veins and vein swarms, which trend mainly east-west.
Volcanic-hosted ore bodies include shallow north-dipping single vein structures
within mafic volcanics, as well as irregular shaped vein swarms along various
lithologic contacts within the volcanic sequence. Sedimentary hosted ore bodies
include irregular shaped vein swarms along the unconformity as well as narrow,
steep south-dipping veins in greywacke further to the south.

        NIGHTHAWK LAKE MINE

        The Nighthawk Lake mine is located along the Nighthawk Lake Break, a
branch fault of the Destor Porcupine Fault Zone. Rocks in the vicinity of the
Nighthawk Lake mine consist of mafic to felsic volcanics with intrusions of
albitite and syenite. Gold mineralization occurs both within the volcanic rocks
and intrusives, and generally shows a close spatial association with strong
carbonate alteration, brecciation, quartz veining and pyrite or arsenopyrite.
Based on past work, orebodies at the mine have been subdivided into six main
zones including the Main Zone, No. 1 Zone, No. 4 Zone, Ramp Zone, "A" Zone and
Deadman Island Zone.

        DOME MINE

        The Dome mine lies on the south limb of the Porcupine syncline in an
area where the Archean Metavolcanics are overlain by the metasedimentary rocks.

        Gold mineralization is found in a number of different rock types and in
association with a number of different structural settings. Mineralization in
the district is commonly associated with the northeasterly plunge of the
Porcupine syncline.

        At the mine site, the local sequence of north dipping metavolcanics and
metasedimentary rocks have been folded to form a northeasterly plunging
structure, referred to as "Greenstone Nose." Sediments consisting of
conglomerates, slates and greywackes are draped around this structure and form
the "Sedimentary Trough" on the south side.

        Immediately south of the "Sedimentary Trough" lies an east-west
striking, highly strained zone in which magnesium rich, carbonatized rock
occurs. This highly altered zone corresponds to the trace of the ductile Dome
Fault interpreted to represent a branch off the main Destor-Porcupine Fault. To
the west, the Dome Fault Zone passes between two major porphyritic intrusive
bodies--the Paymaster and the Preston Porphyries. To the east, lenses of
porphyry, similar compositionally to the main porphyry bodies, occur within the
Dome Fault Zone. To the south of the Dome Fault Zone are the "Southern
Greenstones," a south-dipping sequence of basalts consisting of massive and
pillowed flows.

        Mineralization occurs mainly in association with structurally controlled
quartz and quartz-ankerite veins. Principal orebodies can be classified into
three main types: Long narrow veins in shear zones parallel to the stratigraphic
trend; swarms of en-echelon veins and stockworks of veins; and disseminated
mineralization, in which the gold is associated with pyrite and/or pyrrhotite
and little or no vein material is present.

        At the Paymaster property, historic mining operations extracted ore from
ankerite veins in mafic units and quartz veins in porphyry. The majority of
mineralization being targeted by current exploration is hosted by carbonated and
sulphidic greenstone adjacent to and within flexures in the mafic/ultramafic
contact (36 Zone).

EXPLORATION

        Kinross' regional exploration within the Timmins camp totaled $2.5
million during 2003. Kinross' share of the planned exploration spending for 2004
is $2.5 million.

                                      -40-
<PAGE>

DRILLING, SAMPLE AND ANALYSIS, AND SECURITY OF SAMPLES

        Kinross collects both exploration and production samples at its
operations in Timmins. Samples are collected using industry standard sample
collection procedures that are well understood by the geological personnel
collecting the samples in the field.

        Kinross conducted both surface and underground diamond core drilling
operations during 2003. For resource estimation purposes, drilling spacing
ranges from a low of 8.0 meters to a high of 25.0 meters. Typically, drill holes
are sampled honoring geological contacts while maintaining a standard 1.5 meter
sample length wherever possible. Typically the core is not split prior to assay
unless the hole is an exploration hole targeting new mineralization.

        Underground, sampling is conducted on a daily basis throughout the
active working faces. Chip samples, muck samples and sludge samples are
collected to provide daily grade control and to reconcile actual production to
the estimated reserves. At the Hoyle Pond mine, ore development headings are
typically sampled on 2 to 5 meter intervals using both chip samples and muck
samples. Production stoping areas are typically sampled at 5 meter intervals
wherever practical and stope muck is sampled at a frequency of 1 muck sample for
every 20 to 40 tonnes of ore.

        At the Dome mine, ore development is sampled at 2 to 3 meter intervals
using both chip samples and muck samples. Cut and fill stopes are sampled at a
rate of one sample for every 30 tonnes and long-hole and bulk mining zones are
sampled at a rate of one sample for every 60 tonnes.

        Open pit samples are collected from blasthole cuttings on an approximate
10 meter sample spacing. In ore zones, a single sample is collected from each
hole, representing approximately 450 tonnes of ore. In waste, the sample
frequency is reduced with one sample collected from every four holes.

        Since the inception of the Porcupine Joint Venture until December 31,
2002, samples were analyzed at the Bell Creek lab, the Dome mine lab and at
independent assay labs. Prior to the completion of the Porcupine Joint Venture,
Kinross' analytical work was carried out at the Bell Creek lab with some
exploration samples sent to an independent lab for analysis.

        Since December 31, 2002, Kinross' analytical work is completed at the
Dome mine lab with the Bell Creek lab placed on care and maintenance. At the
Dome mine lab, all gold analyses are completed using conventional fire assay
with an AA finish. Samples with visible gold are assayed using either a
gravimetric finish or pulp metallic assay. Each assay tray at the Dome mine lab
includes at least one standard, one check and one standard. The Dome mine lab
processes all surface and underground production and exploration samples. Check
assays are completed at the Dome mine lab or at external laboratories. All
multi-element analytical work is completed at external laboratories.

MINERAL RESERVE AND RESOURCE ESTIMATES

        The following table sets forth the estimated proven and probable
reserves for Kinross' 49% interest in the Porcupine Joint Venture as at December
31, 2003, and 2002:

<TABLE>
<CAPTION>
                              2003 (AT A                               2002 (AT A
                            GOLD PRICE OF                            GOLD PRICE OF
                            U.S. $325 PER                            U.S. $300 PER
                               OUNCE)                                   OUNCE)
               ---------------------------------------    --------------------------------------
                              AVERAGE        GOLD                       AVERAGE       GOLD
                  TONNES       GRADE       CONTENT          TONNES       GRADE      CONTENT
                  ------       -----       -------          ------       -----      -------
                 (000's)       (gpt)     (000's oz)         (000's)      (gpt)     (000's oz)

<S>               <C>          <C>          <C>             <C>           <C>        <C>
Proven(1)          9,129       1.39           409            7,995        1.39         357
Probable          18,033       1.86         1,080           20,855        1.68       1,128
                  ------       ----         -----           ------        ----       -----
Total             27,162       1.70         1,489           28,850        1.60       1,485
                  ======       ====         =====           ======        ====       =====
</TABLE>

-------------------------

(1)     Includes 6,553,000 tons of stockpiled material at December 31, 2003,
        with an average grade of 0.96 gpt or 202,000 ounces of proven reserves.

                                      -41-
<PAGE>

        In addition to proven and probable reserves, as at December 31, 2003,
the Porcupine Joint Venture has an estimated 0.58 million tonnes of measured and
indicated resources at an average grade of 0.74 grams of gold per tonne at an
assumed gold price of U.S. $350 per ounce. UNITED STATES INVESTORS ARE ADVISED
THAT THE TERMS "MEASURED RESOURCES" AND "INDICATED RESOURCES" ARE RECOGNIZED BY
CANADIAN REGULATIONS BUT NOT BY THE UNITED STATES SECURITIES AND EXCHANGE
COMMISSION. UNITED STATES INVESTORS ARE CAUTIONED NOT TO ASSUME THAT ALL OR ANY
PART OF MINERAL DEPOSITS IN THESE CATEGORIES WILL EVER BE CONVERTED INTO PROVEN
AND PROBABLE RESERVES.

MINING AND MILLING OPERATIONS

        The Hoyle Pond operations consist of an underground mine serviced by two
declines and one shaft. The underground operations are comprised of 17 main
levels, with the shallowest at 40 meters below surface and the deepest at 720
meters below surface. The Hoyle Pond ramp extends down to the 280 meter level
and services the Hoyle Pond and seven vein zones. The 1060 ramp, which services
the 1060 Zone, extends to the 900 meter level. Total production (ore and waste)
is transported to the loading pocket by means of an ore/waste pass system and
hoisted to surface in 6.5 tonne skips. The surface infrastructure consists of
administration buildings, maintenance, compressed air, paste fill plant, and
hoisting facilities.

        The mineralized zones at Hoyle Pond are narrow high-grade veins, dipping
from 30 to 90 degrees. Mining methods used are cut and fill, shrinkage, panel
and long-hole methods. The percentage of ore production by mining method for
2003 is 34% long-hole, 31% cut and fill, and 23% shrinkage. The balance of
production is made up by other development such as drifting (7%) and raising
(2%).

        The mining of the Hoyle Pond crown pillar will require significant
infrastructure including the installation of circular steel sheet pile cells,
steel sheet pile walls, and dams to isolate the adjacent Falconbridge tailings
management area, berms to separate the pit from the Hoyle Pond complex,
relocation of the Hoyle Pond mine water settling ponds, relocation of the
tailings management area utility and access road, and installation of
underground bulkheads to isolate the Hoyle Pond underground workings from the
pit. The Hoyle Pond crown pillar will be mined by conventional open-pit methods
in 2004.

        The Dome underground mine had its final year of full production in 2003
after 93 years of operation that began in 1910. Attempts to extend the mine life
are being evaluated with on-going exploration of areas within and peripheral to
the mine.

        The Dome open pit is being mined in three stages. Development of the
final stage commenced in the summer of 1998. Mining is conducted using
conventional open pit mining methods. All mining is carried out on 9.1 meter
benches. Pit wall inter-ramp angles vary but average 52 degrees. Haulage ramp
gradients are set to 10%. Conventional open pit mining equipment is used. The
mining fleet includes diesel powered drills, electric cable shovels, 136 tonne
haulage trucks, front-end loaders, dozers and support equipment.

        Reserve estimates for the open pit include allowances for the presence
of mined-out underground workings. Open pit mining costs reflect the specialized
drilling, blasting and backfilling that is required to ensure that open pit
mining can proceed safely through these underground workings. Overburden
encountered in the upper portions of the open pit is stockpiled for use in
reclamation. Rock dumps are contoured and re-vegetated on an ongoing basis as
part of normal open pit operations. Open pit mineral reserves are scheduled to
be depleted in 2004. Stockpiled ore is expected to sustain mill operations until
2007.

        The Pamour mine and mill are currently shutdown. The Pamour open pit
feasibility study was completed in 2003 and permitting work initiated.
Demolition of existing infrastructure at Pamour that will not be used in the new
mining operations has been completed. Construction of the haul road and major
infrastructure will be completed during 2004 and 2005. Stripping will begin in
late 2004 and full-scale ore mining will be achieved in 2005. Mining will be by
a conventional open pit method. Much of the equipment required for the Pamour
operation will be relocated from the Dome open pit. The initial capital costs
include the cost of equipment not available from the Dome operation as well as
rebuild costs of some of the older units.

                                      -42-
<PAGE>

        Ore from the Hoyle Pond mine was historically (prior to the Porcupine
Joint Venture) milled at the nearby Bell Creek mill, which is also owned by
Kinross (and is part of the Porcupine Joint Venture). Bell Creek is currently
under care and maintenance, and all ore mined at Hoyle Pond is transported via
over-the-road trucks to the Dome mill. Currently there is no plan to reactivate
the Bell Creek mill.

        All ore mined by the Porcupine Joint Venture is milled at the Dome mill.
Currently, the Dome mine and the Hoyle Pond mine provide feed to this mill. In
the future, the mill will be expanded to also accommodate production from the
Pamour mine, which is slated for production in 2005.

        Gold is recovered at the Dome mill using a combination of gravity
concentration and cyanidation techniques. The flowsheet consists of primary
crushing, secondary crushing, rod/ball mill grinding, gravity concentration,
cyanide leaching, carbon-in-pulp gold recovery, stripping, electrowinning and
refining. The mill has a capacity of 12,000 tonnes per day and currently
processes over 11,500 tonnes of ore per day.

        Kinross' share of the net present value of future cash outflows for site
restoration costs at the Porcupine Joint Venture under CICA Handbook section
3063, which is effective for fiscal years beginning January 1, 2004, are
estimated to be $9.9 million at December 31, 2003. Kinross has posted letters of
credit totaling $3.2 million for site restoration obligations with the
provincial government in connection with its share of closure obligations.


                                      -43-
<PAGE>

SUMMARY OF PRODUCTION AND FINANCIAL DATA

        The following table summarizes certain gold production, operating and
financial data relating to Kinross' 49% ownership interest in the Porcupine
Joint Venture for year ended December 31, 2003, and the six months ended
December 31, 2002. Results prior to June 30, 2002, pertain to the 100% owned
Hoyle Pond mine:

<TABLE>
<CAPTION>
                                                                                   YEARS ENDED DECEMBER 31,
                                                                        ---------------------------------------------
                                                                             2003            2002            2001
                                                                             ----            ----            ----
<S>                                                                       <C>              <C>            <C>
SELECTED PRODUCTION AND OPERATING INFORMATION:

Tonnes mined (000's)(1).............................................        33,995.0         10,821.9         635.8
Tonnes of ore processed (000's)(1)..................................         4,130.0          2,390.7         443.9
Gold grade (gpt)....................................................            3.73             5.00         12.40
Average gold recovery (%)...........................................              92               91            88
Gold equivalent production(3).......................................         223,960          189,464       156,581
Number of employees(2)..............................................             773              756           379

SELECTED FINANCIAL INFORMATION (IN MILLIONS EXCEPT UNIT COSTS)(III):

Revenue.............................................................      $     83.0       $     58.2     $    41.7
Cost of production..................................................            47.4             38.0          28.5
Inventory change/other..............................................             1.5             (1.5)         (0.7)
Site restoration cost accruals......................................             1.6              1.5           0.2
Depreciation, depletion and amortization............................            24.1             16.4          13.2
Care and maintenance................................................             2.9              0.6           0.9
Exploration.........................................................             2.5              1.9           0.3
                                                                          ----------       ----------     ---------
                                                                                80.0             56.9          42.4
                                                                          ----------       ----------     ---------
Net earnings (loss).................................................      $      3.0       $      1.3     $    (0.7)
                                                                          ==========       ==========     =========

OTHER FINANCIAL INFORMATION:

Capital expenditures (millions)(3)..................................      $      8.3       $      6.7     $     7.9
Unit costs:
  Total cash costs per gold equivalent ounce produced...............      $      211       $      201     $     182
  Total cash costs per tonne milled.................................      $       23       $       32     $      64
  Total production cost per gold equivalent ounce...................      $      326       $      295     $     268
</TABLE>

-------------------------

(1)     Tonnes mined and ore processed includes 100% of mine production.
(2)     Number of employees includes all employees and contractors on site.
(3)     2003 and 2002 gold equivalent production, selected financial information
        and capital expenditures are 49% of the results of the Porcupine Joint
        Venture commencing July 1, 2002. Prior results are 100% interest in the
        Hoyle Pond Mine.

                                      -44-
<PAGE>

        Total cash costs is a non-GAAP measure. For further information on this
non-GAAP measure, please refer to the disclosure under "Calculation of Total
Cash Costs and Realized Revenue and Reconciliation to the Statements of
Operation," above.

        For further information on the 2003, 2002, and 2001, results, refer to
the disclosure included under "Kinross Management's Discussion and Analysis of
Financial Condition and Results of
Operations--Financial/Operations--Operations--Mine Operations--Porcupine Joint
Venture (49% interest, Placer Dome 51%, operator), Canada."

PRODUCTION FORECAST, LIFE OF MINE, AND CAPITAL EXPENDITURES

        The proven and probable reserves are sufficient for ten years of
production. There is significant potential for additional reserves and resources
in the current property position controlled by the joint venture. Permitting
activities on the Pamour mine are underway.

        Kinross' share of capital expenditures at the Porcupine Joint Venture
operations in 2003 were $8.3 million compared to $6.7 million during 2002. The
capital expenditures for 2003 included expenditures on the tailings dam lift and
the development of the Pamour project. The majority of the increase in capital
expenditures in 2003 was due to the advancement of the Pamour project. Capital
expenditures in 2004 are planned to be $28.7 million for Kinross' share of the
Pamour project and Hoyle Pond development.






                                      -45-
<PAGE>

PORCUPINE JOINT VENTURE PROPERTY POSITION







                                 [PICTURE]








                                      -46-
<PAGE>

KUBAKA MINE, RUSSIAN FEDERATION

        Kinross owns a 98.1% interest in the Omolon Gold Mining, Inc.
("Omolon"), a Russian joint stock company. Omolon is operated under a
contractual agreement whereby a wholly-owned subsidiary of Kinross, Kinam
Magadon Gold Corporation, is the operator and manager. The major assets of the
joint stock company are the Kubaka mine and the Birkachan exploration project
located in the Russian Far East. The majority of Kinross' prior 54.7% ownership
interest in the Kubaka mine was acquired in connection with the acquisition of
Kinam on June 1, 1998.

        On December 3, 2002, Kinross entered into purchase agreements with four
of the five Russian shareholders of Omolon. The four shareholders agreed to
tender their shares in Omolon and Omolon agreed to pay $44.7 million, including
certain transaction costs, for these shares. These transactions closed as at
February 28, 2003, increasing Kinross' interest in Omolon to 98.1% from 54.7%.

PROPERTY DESCRIPTION AND LOCATION

        The Kubaka open pit mine, infrastructure and mining concession covers
approximately 897 hectares located 320 kilometers south of the Arctic Circle and
938 kilometers northeast of the major port city of Magadan. The Kubaka pit
operated for six years from 1997 to 2002, producing slightly more than 430,000
ounces of gold annually.

        Currently, the Kubaka Project consists of mineralized stockpiles and two
small underground projects. The stockpiles, the Kubaka underground mining
operations, and the Tsokol deposit are located on the original land allotment
for the Kubaka project.

        Omolon holds the license from the Russian government to operate the
Kubaka mine (the "Kubaka License"). The Kubaka License terminates in 2011,
subject to extension of up to an additional two years. The Kubaka License
establishes certain production requirements for the Kubaka mine and requires the
payment of a 3% royalty on the total value of the gold extracted. In 2003, the
Kubaka mine was subject to total royalty and production based taxes of 6.0%.
Kinross' proportionate share of royalties and production based taxes were $4.8
million in 2003.

        The Birkachan exploration project covers approximately 515 hectares and
is located 28 kilometers north of the Kubaka operations. The Birkachan project
is not included in the Kubaka land allotment. A separate license has been
granted to Omolon allowing exploration and mining activities on the Birkachan
project. Initial production at the Birkachan project has commenced and is
expected to continue through 2005.

        All requisite permits have been obtained for the mining and continued
operation of the Kubaka open pit mine and Birkachan and are in good standing.
Kinross is in compliance with the Kubaka and Birkachan permits in all material
respects.

ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY

        Access to the Kubaka mine is by air from Magadan or by a 362-kilometer
winter road from Omsukchan, and a 576-kilometer all weather road from Magadan to
Omsukchan. The winter road is generally open from mid-December until April and
is primarily used to ship the materials and supplies necessary for the next
year's production.

        The Birkachan project is located 28-kilometers north of the Kubaka
project site. Winter access to the Birkachan project is by two routes; a 53
kilometer exploration trail from the Omolon winter road, or an alternate 45
kilometer route which has ecological sensitivities along the river but is far
superior especially for heavier equipment. Helicopter access is required during
spring thaw, fall freeze-up and summer high water periods. During the dryer
periods in the summer months, access to the site is by 4 x 4 vehicles.

        The climate at Kubaka is characterized by long cold winters, lasting six
months or more. Summers vary between rainy and cool to very warm and dry. Snow
has fallen in all 12 months of the year. The mine operates in Arctic conditions.
Daylight varies from four to 20 hours per day. Temperatures range from below -52
degrees

                                      -47-
<PAGE>

Celsius (-60 degrees Fahrenheit) to above 32 degrees Celsius (90 degrees
Fahrenheit). Mean precipitation is approximately 40 centimeters annually.

        The area is mountainous with some rugged topography. The slopes have
gentle concavity with a steepness of between 10 and 30 degrees. The site is
situated in permafrost. The natural vegetation at the site consists of moss, low
shrubs and small larch trees. In the valley bottom the ground surface is
hummocky and grass covered. The elevation ranges from 500 to 932 meters.

        Water utilized in the mill for processing the ore is obtained from four
sources: fresh water from a well 650 meters south of the mill complex, fresh
water from the Dukat tailings dam immediately south of the mill, reclaimed water
from the tailings dam facility, and waste water from the sewage treatment plant.

        Electrical power at Kubaka is generated at site with seven 3516
Caterpillar diesel generators, each producing 1,500 kilowatts. Generally, four
of the generators are utilized in the summer and five in the winter, providing
power for the crusher and mill complex, office, and maintenance shop. Three G72M
diesel generators, each producing 800 kilowatts, provide power for the man camp.
Typically only one of these is utilized at any time, with two on standby.

HISTORY

        The Kubaka Deposit was discovered in 1979 during a geological survey
conducted by the Russian State Geological Exploratory Expedition. While
conducting a group geological survey between 1983 and 1987, preliminary data on
the parameters and morphology of the orebodies and on the scales of
mineralization was obtained. Between 1986 and 1992, the Central Ore Zone and
Northern Ore Zones were explored in detail and confirmed the economic merit of
developing the project.

        In 1987, a small open pit was operated with the ore being processed at
the Karamken and Omsukchan processing plants. In 1992, an 80,000 tonne per year
pilot process plant was constructed at the site and utilized a gravity/flotation
process.

        In 1992, the comprehensive ore reserves of the Northern Ore Zones passed
State approval of reserves and were transferred to the Evensk stock society for
industrial development. Ore recovery began in 1993, with the ore processed at
the Karamken processing plant.

        In 1992, ore reserves for the Kubaka Deposit were calculated and passed
State approval on July 19, 1993. In 1993, bidding was opened for commercial
development rights to the mineral resources of the Kubaka and Evenskoye
deposits. Omolon, a joint stock organization including five Russian partners and
Cyprus Amax won the bid and was issued the mining license for the Kubaka
deposit.

        Construction of the mine and milling complex commenced in 1994 and was
completed at a total capital cost of approximately $242 million. This amount
included certain financing costs, working capital and approximately $14 million
in capitalized interest. Commercial production was achieved at Kubaka on June 1,
1997. The mine and mill have continued operations since then except for a short
period in September 1998.

GEOLOGY AND MINERALIZATION

        The Kubaka gold deposit is located in an area of highly weathered
Paleozoic volcanic rocks resting on a Precambrian crystalline basement. The
Kubaka ore deposit is an epithermal quartz-adularia vein system hosted by
volcanic rocks and their sedimentary derivatives. Kubaka is older than, but
otherwise very similar to, volcanic hosted epithermal gold deposits found in the
North American Western Cordillera.

        The ore body is located in a caldera represented by a crest like
depression about 2.5 kilometers in width and 4.2 kilometers in length. The
strata are complex and consist of sedimentary tuffs from the mid to late
Devonian in age. Tuffs and sandy tuff units are the main traps for the gold
mineralization. These are a few meters to tens of meters thick. The gold bearing
fluids utilized the ignimbrites for conduits and are 40 to 60 meters thick.

                                      -48-
<PAGE>

        The mineralization at Kubaka extends over a strike length of 3.5
kilometers with the underground mining operation having a strike length of 2
kilometers. The Birkachan project has a strike length of 2.5 kilometers and is
open along strike both to the northeast and the southwest.

        Commercial grade mineralization is found in three steeply dipping veins:
North, Central, and Zokol. The main Kubaka vein is steeply dipping and outcrops
at the surface. The vein consists of massive to finely banded quartz. Gold and
silver (electrum and other minerals) occurs in quartz. The gold to silver ratio
is approximately one to one.

EXPLORATION

        Kinross will focus its exploration activities to identify resources that
can be quickly converted into reserves and provide mill feed for the Kubaka
processing plant in 2004. Exploration expenditures in 2003 were $1.3 million.
Planned exploration expenditures in 2004 are $2.5 million.

DRILLING, SAMPLE AND ANALYSIS AND SECURITY OF SAMPLES

        The project area has been explored using reverse circulation and diamond
core drilling, with the majority being diamond core drilling. The resource at
Kubaka has been drilled on 20-meter sections, and in areas of complex geology or
high grade, drill density is increased to 10-meter sections. The majority of the
diamond drill holes are drilled at right angles to the vein (typically dipping
70 to 75 degrees). All of the exploration and reverse circulation infill data is
included in the geologic model.

        Sample recovery for all the sampling methods is high. Very little water
has been encountered in both the diamond drilling and reverse circulation
drilling.

        Samples are delivered to the assay department under direct control of
the geology department. All information is checked and verified by the
geological staff prior to entry into the geological database that is used to
create the resource models.

        The local geologists and the technical services departments of Kinross
have developed the geological models. The reconciliation of the Kubaka geology
models with mining to date indicates a good correlation between the resource
model and production.

        Drill and other exploration samples collected for use for geological
modeling and resource estimation are under the direct supervision of the
geological department and delivered to the assay laboratory under secure
conditions. 10% to 15% of all samples are resubmitted to the site laboratory as
check samples. This includes all exploration, infill, and production samples.
Also, check samples are sent to labs in the United States, Canada, and Irkutsk.

        Over the last four years systematic but wide spaced exploration drilling
at the Birkachan gold prospect has partially identified a mineral deposit with
narrow high grade structures. Detailed drilling in the central Mezinitz valley
has outlined several near surface subparallel zones with potential for an open
pit. The low-grade mineralized zone hosting the higher-grade structures remains
open in two directions and the overall potential to expand the resource appears
to be good.

MINERAL RESERVE ESTIMATES

        The following table sets forth the estimated proven and probable
reserves for the Kubaka mine as at December 31, 2003, and 2002, and represents
Kinross' 98.1% interest at December 31, 2003 and its 54.7% at December 31,2002:

                                      -49-
<PAGE>

<TABLE>
<CAPTION>

                              2003 (AT A                                2002 (AT A
                            GOLD PRICE OF                             GOLD PRICE OF
                            U.S. $325 PER                             U.S. $300 PER
                               OUNCE)                                    OUNCE)
               ---------------------------------------    --------------------------------------
                              AVERAGE        GOLD                        AVERAGE       GOLD
                  TONNES       GRADE       CONTENT          TONNES        GRADE       CONTENT
                  ------       -----       -------          ------        -----       -------
                  (000'S)      (GPT)     (000'S OZ)         (000'S)        (GPT)     (000'S OZ)
<S>                <C>          <C>             <C>           <C>          <C>            <C>
Proven(2)            903        3.92            114           920          4.46           132
Probable             720       12.80            296            33         22.62            24
                   -----       -----            ---           ---         -----           ---
Total              1,623        7.86            410           953          5.09           156
                   =====        ====            ===           ===          ====           ===
</TABLE>

-------------------------

(1)     Reflects Kinross' 54.7% interest at December 31, 2002.
(2)     Includes 857,000 tonnes of stockpiled material at December 31, 2003,
        with an average grade of 2.80 gpt or 78,000 ounces of proven gold
        reserves and 857,000 tonnes of stockpiled material at December 31, 2003,
        with an average grade of 10 gpt or 275,000 ounces of proven silver
        reserves.

        As at December 31, 2003, the Kubaka deposit did not host any measured
and indicated resources at an assumed gold price of U.S. $350 per ounce.

MINING AND MILLING OPERATIONS

        Open pit mining ended in October 2002. Kinross commenced processing the
low-grade stockpiles and, during 2003, supplemented this with underground ore
from the North High Wall, Center Zone, and North Vein.

        The underground projects represent extensions of the Kubaka ore zone
that could not be recovered through open pit mining. They will be mined with
conventional shrinkage and long-hole mining methods. These three underground
mining areas have ore mining widths ranging from one meter to six meters and
contain grades in excess of 10 grams per tonne.

        The Center Zone is located in the bottom of the pit and is accessed with
a spiral ramp. The ore is mined with a long-hole mining method. The North Vein
is accessed from an existing drift and is mined utilizing a shrink stoping
method. The North High Wall underground mining operation was completed in the
first quarter of 2004.

        The mineralized stockpiles will be depleted in the first quarter 2005.
The Kubaka underground operations (the Central Zone, and the North Vein), will
be exhausted by December 2004.

        The mineralized stockpiles are located varying distances from the
crusher yard. Slightly less than half the mill feed for 2004 will come from
stockpile 6, located 1.1 kilometers from the crusher yard. The remaining feed
derived from stockpiles is located 1.9 kilometers from the crusher yard, in
stockpile 3. Both of these stockpiles will be transported to the crusher yard
with existing equipment at site. The stockpiles are frozen and require blasting
to loosen the material for processing.

        The Birkachan deposit is located 28 kilometers north of the Kubaka mill.
It was discovered by drilling in 1999 as follow-up to regional stream sediment
and soil geochemistry surveys. It forms a complex of epithermal veins and
veinlet swarms in faulted Devonian volcanics similar to Kubaka. The surrounding
alteration and low grade mineralization can be traced for almost 3 kilometers
along the axis of the Mezinitz valley. To date, six different veins or zones
have been identified in over 80,000 meters of diamond drilling. Vein 5 and zone
4 have been drilled on 50 meter centers and, locally, 25 meter centers. This
mineralization is exploitable by open pit mining methods and contains an
estimated 299,000 tonnes of 10.70 grams per tonne gold in the probable reserve
category. Preliminary metallurgical testwork indicates the gold is recoverable
in the Kubaka mill circuit.

        Kinross is conducting further drilling and exploration activities in
order to determine whether or not additional mineralization exists that could be
exploited by an underground mine.

        To date, a 70 person camp, a maintenance shop, and a fuel and explosive
storage have been set up on site. Prestripping has started and it is expected
that stockpiling of ore will commence in the spring of 2004. Test pitting and
environmental permits have been received.

        Open pit operations are expected to continue for 12 - 15 months after
which an underground access ramp is being planned. Trade-off studies to review
lower grade cutoffs to potentially expand the pit resource are underway.

                                      -50-
<PAGE>

        The processing facility at Kubaka is a standard carbon-in-pulp milling
process. The mill processes ore on a 24 hour per day, 365 day per year schedule.
The stockpiled ore is loaded into and crushed in the jaw crusher and conveyed to
a crushed ore stockpile. The crushed ore is reclaimed and ground in a
semi-autogenous grinding mill followed by a ball mill. The ground ore is
thickened, and then leached in a cyanidation circuit. The grind thickener
overflow flows through a carbon column circuit to recover any gold leached in
the grinding circuit. The cyanidation circuit has four stages of leaching,
followed by a six stage carbon-in-pulp circuit. The loaded carbon from the
carbon circuits is stripped of the gold and silver in a pressure stripping
circuit. Gold and silver are then recovered in electrowinning cells and smelted
to produce dore bullion. As at December 31, 2003, the mill had processed 882,800
tonnes resulting in 164,006 recovered gold ounces.

        The Kubaka operations maintain the highest standards of environmental
compliance and monitoring. An environmental engineer supported by staff in the
Magadan office and in the Kinross Corporate Environmental Department, conducts
various daily, weekly, and monthly monitoring activities in and around the
project site to assure environmental compliance.

        Reclamation activities started in the second year of production, 1998.
Areas are actively reclaimed and seeded as mining progresses. Through 2003, 60
hectares had been fully reclaimed and an additional 51.4 hectares have been
partially reclaimed (top soil is placed, but it has not been seeded). In 2004,
the plan is to fully reclaim an additional 30 hectares. The net present value of
future cash outflows for site restoration costs at the Kubaka mine under CICA
Handbook section 3063, which is effective for fiscal years beginning January 1,
2004, are estimated to be $5.2 million at December 31, 2003. There is no
requirement to post financial assurance in Russian currently.

        The underground project returns an operating profit over the duration of
the project life.






                                      -51-
<PAGE>

SUMMARY OF PRODUCTION AND FINANCIAL DATA

        The following table summarizes certain gold production, operating and
financial data relating to Kinross' 98.1% ownership interest (net of
non-controlling interest) in the Kubaka mine for the 10 months ended December
31, 2003. Prior to February 28, 2003, Kinross owned 54.7% of the Kubaka mine.

<TABLE>
<CAPTION>
                                                                               YEARS ENDED DECEMBER 31,
                                                                       ----------------------------------------
                                                                           2003        2002          2001
                                                                           ----        ----          ----
<S>                                                                      <C>          <C>          <C>
SELECTED PRODUCTION AND OPERATING INFORMATION

Tonnes mined (000's)(1)............................................        141.4      6,227.5       9,938.9
Tonnes of ore processed (000's)(1).................................        882.8        849.9         889.3
Gold grade (gpt)...................................................         6.42        14.93         15.28
Average gold recovery (%)..........................................           97           98            98
Gold equivalent production(3)......................................      164,006      220,972       237,162
Number of employees(2).............................................          451          374           466

SELECTED FINANCIAL INFORMATION (IN MILLIONS EXCEPT UNIT COSTS):(4)

Revenue............................................................      $  61.0      $  71.5      $   71.3
                                                                         -------      -------      --------
Cost of production.................................................         32.0         29.3          33.1
Inventory change/other.............................................         (1.9)        (1.5)          1.0
Site restoration cost accruals.....................................          0.5          0.8           0.4
Depreciation, depletion and amortization...........................         16.7         20.1          24.0
Interest...........................................................          0.2          0.3           2.0
Foreign exchange gain..............................................         (0.8)          --            --
Exploration........................................................          1.3          1.2           2.1
                                                                         -------      -------      --------
                                                                            48.0         50.2          62.6
                                                                         -------      -------      --------
Earnings before taxes..............................................         13.0         21.3           8.7
Income and mining taxes............................................          3.6          6.2           4.3
Non-controlling interest...........................................          0.2           --            --
                                                                         -------      -------      --------
Net earnings.......................................................      $   9.2      $  15.1      $    4.4
                                                                         =======      =======      ========

OTHER FINANCIAL INFORMATION:

Capital expenditures (millions)(4).................................      $   1.7      $   0.1      $    0.4
Unit costs:
  Total cash costs per gold equivalent ounce produced..............      $   194      $   133      $    140
  Total cash costs per tonne milled................................      $    43      $    63      $     68
  Total production cost per gold equivalent ounce..................      $   300      $   227      $    242
</TABLE>

------------------------

(1)     Tonnes mined and ore processed includes 100% of mine production.
(2)     Number of employees includes all employees and contractors on site.
(3)     Gold equivalent production is 98.1% of mine production for the 10 months
        ended December 31, 2003, and 54.7% of mine production for the periods
        prior to February 28, 2003.
(4)     Selected financial information and capital expenditures are 100% of the
        results of the Kubaka mine commencing March 1, 2003. Prior results are
        54.7% of the Kubaka mine.

        Total cash costs is a non-GAAP measure. For further information on this
non-GAAP measures, please refer to the disclosure under "Calculation of Total
Cash Costs and Realized Revenue and Reconciliation to the Statement of
Operations," above.

        For further information on the 2003, 2002, and 2001, results, refer to
the disclosure included under "Kinross Management's Discussion and Analysis of
Financial Condition and Results of
Operations--Financial/Operations--Operations--Mine Operations--Kubaka (98.1%
ownership and operator), Russia."

                                      -52-
<PAGE>

PRODUCTION FORECAST, LIFE OF MINE, AND CAPITAL EXPENDITURES

        It is anticipated that the production attributable to Kinross' 98.1%
interest in Kubaka during 2004 will be 132,042 gold equivalent ounces, with a
total cost per ton of $69, at an estimated mill recovery of 96%. Total estimated
production over the remaining life of mine, extending into 2009, is 423,000 of
gold equivalent ounces.

        Kinross' share of capital expenditures at the Kubaka operations in 2003
was $1.7 million compared to $0.1 million during 2002. The majority of the
increase in capital expenditures in 2003 was due to equipment purchases for
underground mining. Kinross plans to spend $11.2 million in 2004 on capital
expenditures, principally to develop the Birkachan test pit and commence
underground exploration and development of the Tsokol vein.

KUBAKA SITE PLAN





                               [PICTURE OMITTED}






                                      -53-
<PAGE>

LA COIPA MINE

        Kinross owns a 50% interest in the La Coipa mine through a joint venture
with Placer Dome. Placer Dome is the operator of the mine. Kinross acquired the
La Coipa mine in connection with its acquisition of TVX in January 2003.

PROPERTY DESCRIPTION AND LOCATION

        The La Coipa mine is located in the Atacama Region of northern Chile,
approximately 1,000 kilometers north of Santiago and 140 kilometers northwest of
the community of Copiapo, Chile. The mine is operated by a Chilean contractual
company, Compania Minera Mantos de Oro ("MDO"), a joint venture between a
wholly-owned subsidiary of Placer Dome (50%) and Kinross (50%). There are three
known deposits remaining within the government-approved La Coipa mining area:
Coipa Norte and Brecha Norte are currently being mined by open pit methods, and
Can-Can is planned for exploitation beginning in 2005. MDO is actively exploring
in the district.

        The La Coipa mine consists of approximately 7,500 hectares of mineral
claims, of which the principal ones are Indagua, Marta, Escondida, Candelaria,
Eduardo, and Chimberos.

        MDO has obtained a series of permits that allow exploration and mining
activities to proceed in the La Coipa area. No other permits need to be
obtained. MDO's land position includes 57 exploitation concessions covering
14,827 hectares and 38 exploration permits covering 6,600 hectares.

        The exploration permits are valid for a two-year period from the date
they are declared in force and can be renewed once for another two-year period.
Thereafter the size of the exploration permit area must be reduced by half. MDO
can elect to apply for mining concessions in areas where exploration concessions
are held.

        The exploitation or mining concessions can be held indefinitely as long
as the annual fees are paid to keep the permits in good standing. The
exploitation permits covering the La Coipa area give MDO the right to extract
the ore and to sell the final products into the open market.

        The corporate income tax rate is forecast at 17% in 2004 and subsequent
years. Depreciation and amortization of capital costs is allowed as a deduction
in the calculation of taxable income. Corporate taxes are estimated at $1.9
million in 2004 with respect to Kinross' interest. An annual fee of $55,000 is
also assessed to maintain the mining claims in good standing.

        No royalties are applicable on gold and silver produced from the mine,
but an annual preferred dividend of $1.8 million is payable. The joint venture
partners receive disbursements from the operation via common dividends from MDO.
A 35% withholding tax is applicable on all dividends disbursed to foreign
shareholders, less the corporate income tax already paid.

ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY

        The La Coipa mine is located approximately 1,000 kilometers north of
Santiago in Copiapo Province in the Atacama Region of the Chilean Andes. Access
is by a 140 kilometer road of which 30 kilometers are paved, from the regional
center of Copiapo, which is served daily by commercial airline from Santiago.
The nearest port, Caldera is 80 kilometers west of Copiapo. The mine is
connected to the national power grid system.

        The mine lies in the Domeyko Cordillera at an elevation of between 3,800
and 4,400 meters, the plant site being at 3,815 meters. Current and future
mining operations are at elevations ranging from 4,040 meters to 4,390 meters.

        The climate is considered pre-arid Mediterranean, subject to low
temperatures, strong winds and some snow during the winter. Despite the adverse
climate, mining operations are performed year-round without interruption.
Temperatures range from a high of 25 degrees Celsius (77 degrees Fahrenheit) to
a low of -10 degrees Celsius (14 degrees Fahrenheit). Water is scarce in the
area, but the Salar de Mericunga provides sufficient water to fulfill industrial
needs through an approximately 40 kilometer pipeline. Vegetation is sparse.

                                      -54-
<PAGE>

HISTORY

        The earliest written information about La Coipa as a precious metal
prospect dates back almost a century, when a small underground copper-silver
mine was in operation about 2 kilometers southeast of the present day
operations. Regional resources have been sporadically exploited since then, but
the La Coipa area itself did not receive any attention from exploration
geologists until the late 1970s.

        TVX acquired an initial indirect 49% interest in the La Coipa mine in
June 1988 from companies controlled by Eike Batista, Roberto Hagemann Gerstmann
and Jozsef Ambrus, which at the time held the remaining 51% interest. Pursuant
to the La Coipa acquisition agreement dated January 25, 1989, Placer Dome
acquired a 50% indirect interest in the La Coipa mine from both TVX and
companies controlled by Messrs. Batista, Gerstmann and Ambrus, pro rata as to
their respective interests in the La Coipa mine. The La Coipa acquisition
agreement also provided for the future operation of the La Coipa mine and the
respective responsibilities of the joint venture parties. As a result of this
transaction, TVX's indirect interest in the La Coipa mine was reduced to 24.5%
and the indirect interests of Messrs. Batista, Gerstmann and Ambrus was reduced
to 25.5%. Between 1989 and 1994, TVX increased its ownership in the La Coipa
mine to 50%.

        Kinross acquired TVX's ownership in La Coipa on January 31, 2003, on
completion of the business combination of Kinross, TVX, and Echo Bay.

GEOLOGY AND MINERALIZATION

        The La Coipa mine is located in the northern Chilean volcanic belt known
as the Maricunga belt. It hosts a series of deposits of economic interest,
including Esperanza, Lobo-Marte, El Hueso, and La Pepa.

        The La Coipa and surrounding deposits form part of a precious metal
epithermal system. Three main mineralized zones are found at La Coipa. They are
Ladera-Farellon and Coipa Norte, about three kilometers apart, and the Chimberos
deposit approximately 25 kilometers northeast of the 15,000 tonnes per day
plant.

        The eastern portion of Coipa Norte and Ladera-Farellon show high gold
grades associated with advanced argillic alteration (alunite -- kaolinite --
dickite, quartz) semi-tabular forms and ore hosted mainly in the
triassic-sedimentary rocks. Ladera-Farellon and western Coipa Norte have high
silver-to-gold ratios, mushroom-like shapes and are hosted in the tertiary
pyroclastic unit.

        The most common precious metal-bearing minerals are cerargyrite, several
other silver halide complexes, native silver, electrum and native gold as free
particles in the size range of 0.5 to 50 microns. Mercury is common in all the
deposits and occurs as calomel.

        All the known reserves at La Coipa are found in oxidized zones. Both
Ladera-Farellon and the silver orebody in Coipa Norte are located in the western
and upper portions of the mineralized zones. At Coipa Norte, the silver orebody
outcrops are closely associated with pervasively silicified rocks. The presence
of bedded outflow material and geyserites suggest that this area has not been
subjected to significant erosion.

EXPLORATION

        Exploration work in the La Coipa district started in the late 1800s and
has been ongoing since, although the property ownership has changed a number of
times. Modern exploration techniques have been implemented starting in the late
1970s to early 1980s. They included geological mapping, geochemistry, channel
sampling, drilling and 800 meters of underground development.

        Kinross' share of exploration expenditures totaled $0.9 million during
2003. Kinross' share of the planned exploration spending for 2004 is $0.8
million.

DRILLING, SAMPLE AND ANALYSIS AND SECURITY OF SAMPLES

        Various drilling methods and sampling protocols have been used at La
Coipa. Diamond drill holes completed during the exploration phase were
systematically sampled in 2 meter intervals. Half the core was sent for

                                      -55-
<PAGE>

assaying and the other half stored in a warehouse near the camp. Reverse
circulation holes for both exploration and in-pit drilling are sampled in 2
meter long "runs." All drill chips are also stored in the same location as the
core.

        Since 1984, a total of 97,225 meters in 2,002 holes has been completed
in the La Coipa mining area. Most of the exploration drilling was completed with
reverse circulation holes. All exploration holes are surveyed by the mining
surveyors. These holes have also been down-hole surveyed at about 20 meter
intervals. Most of the exploration holes are inclined holes.

        Drill core is delivered to the exploration storage building located by
the camp at the mine complex. A geologist completes a written log for the hole
that includes geological and geotechnical information. The geological data
include identification of specific geological formations, color, alterations,
presence and visual estimate of sulphide and oxide minerals, nature of fracture
filling and a detailed geological description of the core that includes textural
and lithologic characteristics, contact styles and mineralization. Geotechnical
data are also recorded. Structures are described with measurements to determine
top, bottom, orientations and dip angles.

        Standards are inserted by the mine laboratory. Duplicate analyses are
done from time to time at independent labs, including pulp duplicates of
selected samples.

        The lab carefully monitors MDO's performance in all aspects of sample
preparation and assaying for exploration activities, the mine, the plant and the
refinery. Analyses are performed at the mine laboratory, with some exploration
samples sent to an outside laboratory. The La Coipa lab performs numerous
control checks when the drill or blast hole samples are received for preparation
and analysis. The lab department uses a set of quality assurance and quality
control protocols to monitor its own performance.




                                      -56-
<PAGE>

MINERAL RESERVES AND RESOURCE ESTIMATES

        The following table sets forth the estimated proven and probable
reserves for the La Coipa mine as at December 31, 2003, and 2002, and represents
Kinross' 50% interest:

<TABLE>
<CAPTION>
                               2003 (AT A                                   2002 (AT A
                             GOLD PRICE OF                                 GOLD PRICE OF
                             U.S. $325 PER                                 U.S. $300 PER
                                 OUNCE)                                       OUNCE)
               ------------------------------------------    ------------------------------------------
                                  GOLD          SILVER                         GOLD          SILVER
                  TONNES         GRADE          GRADE           TONNES         GRADE         GRADE
                  ------         -----          -----           ------         -----         -----
                (MILLIONS)       (GPT)          (GPT)         (MILLIONS)       (GPT)         (GPT)
<S>                <C>            <C>            <C>             <C>           <C>            <C>
Proven(1)          11.4           1.20           69.5            14.0          1.15           58.3
Probable            4.3           1.04           89.5              3.8         1.05           47.4
                   ----           ----           ----            ----          ----           ----
Total              15.7           1.16           75.0            17.8          1.13           56.0
                   ====           ====           ====            ====          ====           ====

<CAPTION>

                      2003 (AT A GOLD PRICE OF         2002 (AT A GOLD PRICE OF
                        U.S. $325 PER OUNCE)             U.S. $300 PER OUNCE)
                    ------------------------------    ----------------------------
                         GOLD          SILVER             GOLD          SILVER
                       CONTENT         CONTENT           CONTENT       CONTENT
                       -------         -------           -------       -------
                      (000'S OZ)     (000'S OZ)        (000'S OZ)     (000'S OZ)
<S>                      <C>            <C>                <C>          <C>
Proven                   440            25,384             518          26,295
Probable                 145            12,454             127           5,743
                         ---            ------             ---          ------
Total                    584            37,837             645          32,038
                         ===            ======             ===          ======
</TABLE>

-------------------------

(1)     Includes 3,813,000 tonnes stockpiled at December 31, 2003, with an
        average grade of 2.80 gpt or 89,000 ounces of proven gold reserves and
        3,813,000 tonnes stockpiled with an average grade of 47.2 gpt or
        5,787,000 ounces of proven silver reserves.

        In addition to proven and probable reserves, as at December 31, 2003,
the La Coipa mine has an estimated 0.353 million tonnes of measured and
indicated resources at an average grade of 0.57 grams of gold per tonne and 34.8
grams of silver per tonne at a gold price of U.S. $350 per ounce and a silver
price of U.S. $4.75 per ounce. UNITED STATES INVESTORS ARE ADVISED THAT THE
TERMS "MEASURED RESOURCES" AND "INDICATED RESOURCES" ARE RECOGNIZED BY CANADIAN
REGULATIONS BUT NOT BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION.
UNITED STATES INVESTORS ARE CAUTIONED NOT TO ASSUME THAT ALL OR ANY PART OF
MINERAL DEPOSITS IN THESE CATEGORIES WILL EVER BE CONVERTED INTO PROVEN AND
PROBABLE RESERVES.

MINING AND PROCESSING

        The La Coipa mine currently operates two conventional open pits: Coipa
Norte, and Brecha Norte. A third pit, Can-Can, is scheduled to commence in 2005.

        The current pits are mined on 10 meter benches with the final highwall
developed in a double-bench configuration.

        The decision was made during 1997 to develop the Chimberos high-grade
silver deposit and work commenced in the fourth quarter of 1997. Milling of the
Chimberos ore commenced in July, 1998 and was completed in August, 1999.
Following the completion of the milling of the Chimberos ore in August, 1999,
production came from the reserves at La Coipa. In 2001, production from the
Ladera-Farellon open pit ceased and mining activities focused on the Coipa Norte
open pit which is to provide the majority of mill feed until 2007.

        In the milling process, ore is crushed, then ground in a circuit
incorporating a semi-autogenous mill with a pebble crusher and two ball mills. A
new crushing system installed in October, 1999 allows throughput of up to 17,000
tonnes per day. The ground ore is leached, then filtered and washed to separate
out the tailings, and the solution is passed through a Merrill-Crowe plant. The
precipitate is then sent to the refinery.

                                      -57-
<PAGE>

        Process plant gold and silver recoveries are forecast at approximately
80% and 60%, respectively. This compares to actual average recovery of 82.8% for
gold and 63% for silver over the past three years.

        Water and power supplies are critical infrastructure aspects of the La
Coipa mine. Water requirements for the 15,000 tonnes per day plant are 100
liters per second and are obtained from underground springs which feed the Salar
de Maricunga, a saltwater lake 38 kilometers from the mine site. The water is
pumped via a pipeline built by MDO from the springs to the plant site. Power for
the 15,000 tonnes per day plant is supplied by the National Power grid from a
tie-in approximately 88 kilometers from La Coipa. MDO has built a substation at
Carrera Pinto which ties the line from the mine site into the grid.

        The dore produced at the mine is shipped to refineries in the United
States and England, with gold and silver credited to MDO metal accounts. The
gold and silver are sold into world markets at spot prices.

        The La Coipa mine received an ISO 14001 certification in July 2002 and
there are comprehensive procedures in place in the event of a safety or
environmental incident. The most significant environmental issue at the mine is
mercury contamination of the Campamento Aquifer. A processing plant incident in
1995 resulted in mercury-contaminated tailings being discharged at the tailings
site. Mercury-contaminated water has been detected in the aquifer since that
time. The mercury concentration in the water is adversely affected by the low
aquifer flow rates, estimated at 10 liters per second to 15 liters per second,
but low flow rates also reduce the rate of impact. This compares with 1,500
liters per second in the aquifer that serves as the source of water for the
mine.

        As a remedial measure, MDO installed a fence of wells to intercept and
divert uncontaminated water through a pipeline around the problem area. Other
wells were also installed below the tailings area to collect contaminated water,
which was then pumped to the process plant for recycling. These measures were
not entirely successful, and so a water treatment plant was constructed further
downstream in 1999. The aquifer water is intercepted and passed through a resin
filter at the treatment plant where mercury is removed. It is not known how long
the plant, which is effective in removing mercury contamination, will have to
operate after mine closure.

        Kinross' share of the net present value of future cash outflows for site
restoration costs at La Coipa under CICA Handbook section 3063, which is
effective for fiscal years beginning January 1, 2004, are estimated at $5.2
million at December 31, 2003. This includes costs to demolish and remove plant
site buildings, secure the pit area and prevent a safety hazard to the public,
and operate the water treatment facility for up to 20 years. Because of the lack
of vegetation in the area no major revegetation or resloping activities are
currently proposed. Small-scale experimentation with growing plants in the arid
climate is currently underway, and further field-testing is planned prior to
closure. There is no requirement to post financial assurance to secure site
restoration costs in Chile at present.


                                      -58-
<PAGE>

SUMMARY OF PRODUCTION AND FINANCIAL DATA

        The following table summarizes certain gold production, operating and
financial data relating to Kinross' 50% ownership interest in the La Coipa mine
for the eleven months ended December 31, 2003. Information for the years ended
December 31, 2003, 2002, and 2001, is included for comparative purposes.

<TABLE>
<CAPTION>
                                                             KINROSS
                                                             -------
                                                              SHARE                YEARS ENDED DECEMBER 31
                                                              -----                -----------------------
                                                               2003           2003          2002           2001
                                                               ----           ----          ----           ----

SELECTED PRODUCTION AND OPERATING INFORMATION:
<S>                                                         <C>            <C>            <C>            <C>
Tonnes mined (000's)(1)...............................       34,866.0      38,329.0        31,734.0       34,001.0
Tonnes of ore processed (000's)(1)....................        5,928.0       6,415.0         6,343.0        6,347.0
Gold grade (gpt)......................................           1.20          1.20            1.10           0.70
Silver grade (gpt)....................................          65.36         65.00           58.25          90.12
Average gold recovery (%).............................             84            84              85             82
Average silver recovery (%)...........................             61            61              61             66
Production (ounces)(3)
  Gold................................................         92,961        99,637          95,989         58,424
  Silver..............................................      3,793,568      4,066,554      3,594,763      6,059,869
  Gold equivalent.....................................        144,125       154,518         149,284        155,915
Number of employees(2)................................            704           704             736            705

SELECTED FINANCIAL INFORMATION
(IN MILLIONS EXCEPT UNIT COSTS):(3)

Revenue...............................................      $    51.6     $    53.0      $     46.3     $     41.4
                                                            ---------     ---------      ---------      ----------
Cost of production....................................           33.7          36.2            33.7           32.7
Inventory change/other................................            0.6          (1.0)          (0.1)           (0.6)
Site restoration cost accruals........................            0.6           0.6             0.5            0.5
Depreciation, depletion and amortization..............            8.9           9.2            12.2           15.8
Mining property write-down............................             --            --              --           13.0
Loss on sale of assets                                            0.1           0.1              --             --
Interest..............................................            0.1           0.1             0.2            0.3
Foreign exchange loss (gain)..........................            1.1           1.1           (0.5)            0.6
Exploration...........................................            0.9           0.9             0.7            0.3
                                                            ---------     ---------      ---------      ----------
                                                                 46.0          47.2            46.7           62.6
                                                            ---------     ---------      ---------      ----------
Earnings (loss) before the undernoted.................            5.6           5.8           (0.4)          (21.2)
Income taxes..........................................            3.6           3.4             0.8             --
                                                            ---------     ---------      ---------      ----------
Net earnings (loss)...................................      $     2.0     $     2.4      $    (1.2)     $    (21.2)
                                                            =========     =========      =========      ==========

OTHER FINANCIAL INFORMATION:

Capital expenditures (millions)(3)....................      $     0.5     $     0.5      $      0.9     $      6.0
Unit costs:
  Total cash costs per equivalent ounce produced......      $     234     $     234      $      226     $      210
  Total cash costs per tonne milled...................      $      11     $      11      $       11     $       10
  Total production cost per gold equivalent ounce.....      $     300     $     298      $      311     $      314
</TABLE>

-------------------------

(1)     Tonnes mined and ore processed includes 100% of mine production.
(2)     Number of employees includes all employees and contractors on site.
(3)     Production, selected financial information and capital expenditures are
        50% of the results of the La Coipa mine for the periods indicated.

        Total cash costs is a non-GAAP measure. For further information on this
non-GAAP measures, please refer to the disclosure under "Calculation of Total
Cash Costs and Realized Revenue and Reconciliation to the Statement of
Operations," above.

        For further information on the 2003 results, refer to the disclosure
included under "Kinross Management's Discussion and Analysis of Financial
Condition and Results of Operations--Financial/Operations--Operations--Mine
Operations--La Coipa (50% ownership, Placer Dome 50%, operator), Chile."

                                      -59-
<PAGE>

PRODUCTION FORECAST, LIFE OF MINE, AND CAPITAL EXPENDITURES

        The proven and probable reserves are sufficient for six years of
production. The mine is scheduled to cease production in 2008 if additional
reserves are not found; however, Kinross believes there is significant potential
for additional reserves and resources near the present mine site.

        Kinross' share of capital expenditures at the La Coipa mine in 2003 was
$0.5 million compared to $nil during 2002. The increase was due to the
completion of the TVX business combination on January 31, 2003. Kinross expects
to spend $1.4 million for its share of capital expenditures in 2004.





                                    [PICTURE]





                                      -60-
<PAGE>

CRIXAS MINE

        The Crixas mine is owned by Mineracao Serra Grande, S.A. ("MSG"), which
in turn is 50% owned by Newinco Comercio e Participacoes Limitada, a Brazilian
corporation wholly owned by Kinross, and 50% by Brazilian affiliates of
AngloGold. Kinross acquired the Crixas mine in its combination with TVX in
January 2003.

PROPERTY DESCRIPTION AND LOCATION

        The Crixas mine is situated in central Goias State, Brazil,
approximately 250 kilometers northwest of Goiania, the state capital, and three
kilometers from the town of Crixas. The Crixas mine constitutes two currently
operating underground gold mines accessed by decline, Mina III and Mina Nova;
three orebodies that have been accessed by underground development, Corpo SUL,
Corpo IV, and Corpo V; and two orebodies under evaluation, Forquilha and
Palmeiras. The maximum production capacity of the mining complex is 740,000 ore
tonnes treated per year, constrained by the single ball mill in the grinding
circuit.

        MSG has interests in mineral rights covering a total area of 15,488
hectares. These interests include two mining leases covering a combined area of
6,482 hectares, 19 exploration licenses over an area of 14,944 hectares. Mining
licenses are renewable annually and have no expiry date. Generally, exploration
licenses are valid for three years, extendable for additional two years.

        The Crixas mine is exposed to potential environmental liabilities
related to the tailings storage area; waste rock storage on surface; industrial
plant site; site water management; and mining lease MM2286/35 (area of
historical mining by local miners or Garimpeiros). Preventive measures have been
taken to limit any potential environmental liabilities.

        With regards to the MM2286/35 mining lease, there is an area where
approximately 100 Garimpeiros are currently conducting small scale mining
operations. This mining is illegal under Brazilian law, and has been ongoing for
many years. Mercury has been used to recover gold, and there is mercury
contamination in this area. These conditions existed when MSG purchased the
mining rights. MSG has prepared a thorough report documenting the existing
conditions in the area of the Garimpeiros. Current agreements state that MSG is
not responsible for the rehabilitation of the existing contamination. The cost
of rehabilitation has not been studied.

        MSG's mining operation at Crixas is subject to a mining tax equal to 1%
of net sales and a tax on profit equal to the greater of: (a) 34% of actual
profit and (b) 3% of net sales. MSG is currently paying tax at a rate of 3% of
net sales from 2000 to 2004, when it will begin paying tax of 34% of profits.

ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY

        Access to the area is by a paved road which links the town of Crixas and
the Belem-Brasilia highway 120 kilometers to the southeast. There is an airstrip
suitable for small aircraft outside the town of Crixas.

        In the area of the Crixas mine, the topography is slightly undulated
with vegetation close to savannah type (cerrado) with medium to small trees. The
elevation of the mine office is 385 meters.

        The climate is characterized by two well defined seasons; the rainy
season with heavy precipitation and the dry season with low humidity values. The
rainy season is from October to March, with the remaining months hot and dry.
Annual rainfall is approximately 150 centimeters. Operations run year round,
with minimal disruptions due to weather.

        Domestic water for the mine is supplied from wells. These wells also
supply the small amount of process make up water that is required. Due to the
high amount of annual rainfall, water recycling practices, and system of water
holding tanks on surface and underground, very little make up water is needed
for the process plant or the underground mines. Electrical power is supplied to
the site by a 135 kilometer power line connected to the national grid.

                                      -61-
<PAGE>

        The mine has established surface areas for tailings disposal, waste
disposal and for mineral processing. These are all sufficient to meet the future
needs as defined by the life of mine plan. In the case of the tailings storage,
the impoundment dam will be raised an additional five vertical meters.

HISTORY

        In January 1991, TVX acquired all of the issued and outstanding shares
of two wholly-owned subsidiaries of Inco Limited ("Inco") which held certain
gold exploration, development and mining interests. This transaction included a
50% interest in Mineracao Serra Grande S.A., which owns the Crixas mine in
Brazil.

        Inco first began geological, geochemical and geophysical reconnaissance
work in the Crixas region in 1973. Detailed geological mapping and ground
magnetic surveys were completed and diamond drilling was conducted from 1973 to
1976. In 1976, Inco discovered gold mineralization below a group of excavations
known as the Mina III Old Workings and began concentrating its effort in that
area.

        Subsequently, Inco decided to seek a partner to help fund further
exploration and development and, in April 1983, Kennecott Corporation signed an
option agreement to earn a 50% interest in the project. This agreement required
the submission of a feasibility study and the commitment to spend $21 million.
In 1986, Kennecott Corporation sold its participation in the project to an
affiliate of Anglo American, which continued underground development and
exploration and completed a feasibility study in 1987.

        On October 16, 1987, the decision was made to proceed with the
development of a mine and associated processing facilities having an annual
throughput of 400,000 tonnes at a total capital cost of $73 million. Mining
started in 1987 with ore being stockpiled on the surface. Development was
largely completed by the end of 1989, enabling successful testing of the
metallurgical circuit to take place through the fourth quarter of 1989. Initial
dore bullion associated with this testing was poured on November 14, 1989.
Initial gold sales from the project occurred in January 1990.

        In 1995, the annual site throughput was increased from 450,000 to
485,000 tonnes. The maximum annual throughput has subsequently been increased to
740,000 tonnes by feeding finer material to the ball mill.

        Kinross acquired TVX's ownership in Crixas on January 31, 2003, on
completion of the business combination of Kinross, TVX, and Echo Bay.

GEOLOGY AND MINERALIZATION

        The Crixas property is situated in the Crixas greenstone belt in the
State of Goias in central Brazil. It is located in a well-preserved tract of
Archean terrain composed of three slightly arcuate strips or belts of
volcano-sedimentary rocks trending in an approximately north-south direction.
They are intruded by granitic rocks and, in places, are partially covered by
younger rocks.

        The Mina III gold deposit occurs within folded metavolcanic and
metasedimentary rocks of Archean age. The metamorphism in the area has been
described as upper greenschist facies which indicate conditions of medium
temperature. These rocks are well foliated and are largely constituted of
chlorite, biotite, graphite, carbonate and feldspar plus minor chloritoid and
garnet. Although uniformly foliated, the schists do not commonly exhibit joints
or shear fractures.

        The Mina III deposit is a stratabound deposit. Mineralization occurs
within three stratagraphic horizons referred to as the Upper, Intermediate and
Lower Ore Zones. The ore grade portions of the three horizons are markedly
elongated in a west-northwest direction and are stacked vertically above one
another. About 60 meters of barren rock separate each ore zone from the next
overlying zone.

        The Upper Zone ore is geologically complex and includes massive
sulphide, chloritoid-garnet with lesser amounts of arsenopyrite, pyrrhotite and
magnetite and sericite, a quartz-sericite schist with minor disseminated
arsenopyrite and pyrrhotite. The Intermediate Zone ore is very similar to the
Upper Zone and is sandwiched within a dolomite unit. This zone is less
continuous than the other zones. The Lower Zone ore is associated with a very
persistent metachert horizon which has been traced by drilling for 1,800 meters
down plunge. Gold mineralization occurs within the metachert, at the footwall of
the chert and in the foot and hangingwall of the graphite schists.

                                      -62-
<PAGE>

        The Mina Nova orebody lies two kilometers north of Mina III and occurs
as a series of elongate tabular bodies, horizontal in the east and dipping in
the west. Mineralization occurs as disseminated sulphides, predominantly
Pyrrhotite, hosted in graphitic schist. Abundant quartz mineralization occurs at
the base of the mineralized sequences. The hangingwall is well defined and
marked by a sharp increase in the percentage of arsenopyrite present. The basal
quartz mineralization carries fine grained free gold and during the mining
process this unit is preferentially mined as dilution over the hangingwall.
Minor quartz carbonate veining occurs with pyrrhotite and indicates areas of
elevated grade.

EXPLORATION

        Kinross' share of exploration expenditures totaled $0.5 million during
2003. Kinross' share of the planned exploration spending for 2004 is $0.5
million.

DRILLING, SAMPLE AND ANALYSIS AND SECURITY OF SAMPLES

        The sampling methodology at Crixas is dependent on the particular
orebody being investigated and has a direct influence on the classification
category applied to the resources and reserves. There are three primary sources
of information, surface and underground diamond drilling and underground chip
sampling.

        The surface drilling is used, primarily, for exploration and delineation
of the orebody at depth. Underground drilling is used for improving confidence
in the location and form of the orebody and for definition of inferred and
indicated resources. The chip sampling is used, along with the drilling results,
for calculation of grade of the measured and indicated resources and for
locating the hangingwall and footwall contacts for mining.

        Surface drilling is carried out by conventional diamond core drilling.
Drill samples are taken at 1 meter intervals with a 20% variance in sample
length to take account of significant geological contacts. The average recovery
is quite high, at in excess of 95%. Given the competency of the rock and the
general ground conditions it is unlikely that there would be significant core
loss when drilling in the vicinity of the orebody.

        Surface drilling is carried out at 25 to 50 meters spaced intervals
along drill lines spaced approximately 100 meters apart. Drilling is generally
carried out with orientations to the east-southeast in order to provide the best
intersection with the orebodies. Downhole surveys are carried out at 15 meters
intervals using Sperry Sun and Tropari instruments. All core is sawn in half
with one half provided for assay and the remaining half retained for data
verification work.

        Core is obtained from underground drilling and is used for sampling of
indicated panels in order to bring them into the measured category. As with the
surface drilling, the sampling is carried out at one-meter intervals. The whole
core sample is crushed for sampling and therefore detailed geological logging is
necessary prior to crushing.

        At the Upper Zone in Mina III, the drilling is carried out in a 360
degree fan pattern in order to define the lateral extent of the discontinuous
orebodies. Drill sections are spaced at 15 to 20 meter intervals along
development drives. The mineralization in the Lower Zone tends to be more
continuous and drilling is carried out on drill lines 30 meters apart. Drilling
is carried out from development drives parallel to the plunge direction.

        The majority of the underground sampling is carried out using what is
referred to as channel sampling. The method would more accurately be described
as chip sampling. Chip samples are collected on two-meter intervals along
development drives and in raises developed through the orebody between levels.
Samples are collected in one-meter intervals starting approximately one-meter in
the footwall. The footwall can generally be defined visually in the drives and
stopes and the quartz orebodies, in particular, are easily identifiable. The
sampling is carried out along the circumference of the drive outline after the
rock face has been washed down and the sample line located by the survey.

        Sampling occurs across the dip of the orebody and, where the full
thickness of the orebody is not exposed, short diamond holes are drilled
horizontally into the hangingwall and/or footwall to provide a full
intersection.

                                      -63-
<PAGE>

        All sample preparation and analysis is carried out at the laboratory
facilities situated at the Crixas mine. The laboratory at Crixas is responsible
for analysis of all samples originating from the metallurgical plant, tailings
and underground sampling (drilling and channel samples). Exploration samples are
analyzed by an independent laboratory. Samples from the various sources are kept
separate and analyzed in separate batches and, in some cases, dedicated
equipment is reserved for particular sample types. Quality checks are carried
out internally and externally at other laboratories in Brazil.

MINERAL RESERVE AND RESOURCE ESTIMATES

        The following table sets forth the estimated proven and probable
reserves for the Crixas mine as at December 31, 2003, and 2002, and represents
Kinross' 50% interest:

<TABLE>
<CAPTION>
                              2003 (AT A                               2002 (AT A
                            GOLD PRICE OF                            GOLD PRICE OF
                            U.S. $325 PER                            U.S. $300 PER
                               OUNCE)                                   OUNCE)
               ---------------------------------------    --------------------------------------
                              AVERAGE        GOLD                       AVERAGE       GOLD
                  TONNES       GRADE       CONTENT          TONNES       GRADE      CONTENT
                  ------       -----       -------          ------       -----      -------
                 (000's)       (gpt)     (000's oz)         (000's)      (gpt)     (000's oz)
<S>               <C>          <C>          <C>             <C>           <C>         <C>
Proven           1,569         6.39         323             1,392        7.64         342
Probable           577         7.92         147               526        8.04         136
                 -----         ----         ---             -----        ----         ---
Total            2,146         6.81         470             1,918        7.75         478
                 =====         ====         ===             =====        ====         ===
</TABLE>

        In addition to proven and probably reserves, as at December 31, 2003,
the Crixas mine has an estimated 76,000 tonnes of measured and indicated
resources at an average grade of 1.51 grams of gold per tonne at a gold price of
U.S. $350 per ounce. UNITED STATES INVESTORS ARE ADVISED THAT THE TERMS
"MEASURED RESOURCES" AND "INDICATED RESOURCES" ARE RECOGNIZED BY CANADIAN
REGULATIONS BUT NOT BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION.
UNITED STATES INVESTORS ARE CAUTIONED NOT TO ASSUME THAT ALL OR ANY PART OF
MINERAL DEPOSITS IN THESE CATEGORIES WILL EVER BE CONVERTED INTO PROVEN AND
PROBABLE RESERVES.

MINING AND PROCESSING

        The Crixas mine is an underground operation accessed from the surface by
means of a decline ramp. The mining methods used are primarily mechanized
cut-and-fill and room-and-pillar with some slusher mucking. Ore is transported
to surface by 25 tonne trucks. The life of mine plan is based on a combined
production rate of 735,000 tonnes per year. For 2004, Mina III will contribute
456,000 tonnes (63%) and Mina Nova 270,000 tonnes (37%). Both mines operate 24
hours per day, 7 days per week, with a total of 341 operating days scheduled per
year. At the Mina III deposit, the overall mining sequence has been from the
top, downward. The main ramp has been advanced down to 550 meters level, while
levels 350 to 450 meters represent the current mining horizon.

        The mining methods used at Crixas are mechanized cut and fill and room
and pillar.

        The ore is processed at an on-site mill which has a 725,000 tonnes per
annum capacity. The mill operates 362 days per year and uses the Merrill-Crowe
zinc precipitation process to recover gold.

        Mill tailings are deposited in a tailings area located in a natural
valley approximately two kilometers from the plant. A second dam, located down
the valley, acts as an overflow catchment area during periods of high rainfall.
Decanted solutions from the tailings area are recirculated as mill process
makeup water.

        At the Mina III deposit, mine dewatering requirements average 80 cubic
meters per hour, increasing to 170 cubic meters per hour during backfilling. The
main sump on the 150 meter level is equipped with three 112 kilowatt slurry
pumps in series, capable of a total of 220 cubic meters per hour. Each main
level has a sump and 93 kilowatt slurry pump to deliver water to the main sump.
The main sump delivers water to one of the thickeners in the mill, used to
clarify the water. Water from the thickener is recycled to the mine.

                                      -64-
<PAGE>

        The Mina Nova is a relatively shallow mine, and there is a river flowing
over it (Rio Vermelho). For this reason the geomechanical design of the mine is
being carefully engineered and monitored. No instability has been detected.
Hydrogeologic studies have been undertaken at Mina III and Mina Nova to
characterize the permeability of the rock. The hydraulic transmissibility is
very low due to the presence of schist type rocks.

        In Brazil, electricity is predominantly (90%) sourced from
hydro-electric power. Low rainfalls in recent years caused serious energy
shortfalls. In response to this shortfall, the Crixas mine secured alternative
electricity supplies from rented generators and buying power on the market.
Rainfall has been above normal in 2004 and the cost and availability of
electricity has returned to normal levels.

        MSG sells the refined gold from the Crixas mine at spot prices and
provides a dividend to Kinross.

        The net present value of future cash outflows for site restoration costs
for Kinross' 50% ownership interest in Crixas under CICA Handbook section 3063,
which is effective for fiscal years beginning January 1, 2004, was $1.2 million
at December 31, 2003. Currently in Brazil there are no laws requiring the
posting of a reclamation bond or other financial assurance.






                                      -65-
<PAGE>

SUMMARY OF PRODUCTION AND FINANCIAL DATA

        The following table summarizes certain gold production, operating and
financial data relating to Kinross' 50% ownership interest in the Crixas mine
for the eleven months ended December 31, 2003. Information for the years ended
December 31, 2003, 2002, and 2001, is included for comparative purposes.

<TABLE>
<CAPTION>
                                                            KINROSS
                                                            -------
                                                             SHARE                YEARS ENDED DECEMBER 31,
                                                             -----                ------------------------
                                                             2003            2003           2002            2001
                                                             ----            ----           ----            ----
<S>                                                        <C>             <C>             <C>            <C>
SELECTED PRODUCTION AND OPERATING INFORMATION:

Tonnes mined (000's)(1)...............................        684.1           747.5          743.0          740.3
Tonnes of ore processed (000's)(1)....................        684.1           747.5          743.0          740.3
Gold grade (gpt)......................................         8.20            8.20           8.20           8.50
Average gold recovery (%).............................           96              96             96             95
Gold equivalent production(3).........................       86,698          94,746         93,660         96,157
Number of employees(2)................................          644             644            625            652

SELECTED FINANCIAL INFORMATION
(IN MILLIONS EXCEPT UNIT COSTS):(3)

Revenue...............................................     $   32.7        $   35.2        $  30.7        $  27.5
                                                           --------        --------        -------        -------
Cost of production....................................          9.5            10.3            8.2           10.6
Inventory change/other................................          0.8             0.7            0.2            0.1
Site restoration cost accruals........................          0.2             0.2            0.1            0.3
Depreciation, depletion and amortization..............          9.1             9.4            4.7            4.7
Loss on sale of assets................................          0.3             0.4            0.1             --
Interest..............................................           --              --            0.2            0.5
Foreign exchange (gain) loss..........................         (0.1            (0.2)           0.6            0.6
Exploration...........................................          0.5             0.5            0.5            0.3
                                                           --------        --------        -------        -------
                                                               20.3            21.3           14.6           17.1
                                                           --------        --------        -------        -------
Earnings before the undernoted........................         12.4            13.9           16.1           10.4
Income taxes..........................................          0.5             0.8            1.5            1.4
                                                           --------        --------        -------        -------
Net earnings..........................................     $   11.9        $   13.1        $  14.6        $   9.0
                                                           ========        ========        =======        =======

OTHER FINANCIAL INFORMATION:

Capital expenditures (millions)(3)....................     $    3.2        $    3.3        $   1.8        $   3.3
Unit costs:
  Total cash costs per equivalent ounce produced......     $    109        $    109        $    88        $   110
  Total cash costs per tonne milled...................     $     28        $     28        $    22        $    29
  Total production cost per gold equivalent ounce.....     $    217        $    210        $   139        $   162
</TABLE>

--------------------------

(1)     Tonnes mined and ore processed includes 100% of mine production.
(2)     Number of employees includes all employees and contractors on site.
(3)     Gold equivalent production, selected financial information and capital
        expenditures are 50% of the results of the Crixas mine for the periods
        indicated.

        Total cash costs is a non-GAAP measure. For further information on this
non-GAAP measure, please refer to the disclosure under "Calculation of Total
Cash Costs and Realized Revenue and Reconciliation to the Statement of
Operations," above.

        For further information on the 2003 results, refer to the disclosure
included under "Kinross Management's Discussion and Analysis of Financial
Condition and Results of Operations--Financial/Operations--Operations--Mine
Operations--Crixas (50% ownership, Anglo Gold 50%, operator), Brazil."

PRODUCTION FORECAST, LIFE OF MINE, AND CAPITAL EXPENDITURES

        The life of mine plan based on proven and probable mineral reserves
indicates a remaining mine life into 2007.

                                      -66-
<PAGE>

        Kinross' share of capital expenditures at the Crixas mine in 2003 was
$3.2 million compared to $nil during 2002. The increase was due to the
completion of the TVX business combination on January 31, 2003. Kinross' planned
expenditures for 2004 are $3.3 million.






                               [PICTURE OMITTED}







                                      -67-
<PAGE>

PARACATU (BRASILIA) MINE

        The Paracatu (Brasilia) mine is held by Rio Paracatu Mineracao S.A.
("RPM"), which is 49% owned by Kinross and 51% owned by a subsidiary of Rio
Tinto. The mine is operated by Rio Tinto. Kinross acquired its interest in the
Paracatu (Brasilia) mine in its combination with TVX in January 2003.

PROPERTY DESCRIPTION AND LOCATION

        The large scale open pit mine is located less than two kilometers north
of Paracatu City, situated in the northwest part of Minas Gerais State, 230
kilometers from Brasilia, the capital of Brazil, on the paved highway connecting
Paracatu (Brasilia) with Belo Horizonte, the state capital of Minas Gerais.

        The mine site is comprised of an open pit mine, a mineral processing
plant, tailings storage facilities and related surface infrastructure, currently
operating at approximately 20 million tonnes per year. No waste stripping is
required, nor is drilling and blasting employed in the mine, as the weathered
ore is ripped by bulldozers prior to excavation. The open pit benching operation
measures approximately four kilometers by two kilometers, and it is located on a
gently sloping hillside. The elevation of the open pit and industrial plant area
ranges from approximately 720 to 820 meters.

        RPM holds two mining licenses covering the area (approximately 1,253
hectares) of the open pit mine. RPM also holds two exploration permits in the
immediate mine area know as "Alvara de Pesquisa." Generally, these permits are
valid for three years, extendable for an additional two years.

        RPM must pay a third party royalty of 0.33% of net sales to a
landholder.

        The Paracatu (Brasilia) mine is exposed to limited environmental
liabilities related to the following: site water management; main tailings
storage area; sulphide tailings storage area; industrial plant site; and
airborne dust. Environmental liabilities are being minimized through good
management practices.

        RPM's mining operations at Paracatu (Brasilia) are subject to a mining
tax equal to 1% of net sales and a tax on profit equal to the greater of: (a)
34% of actual profit; and (b) 3% of net sales.

ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY

        Access to the Paracatu (Brasilia) mine is by paved road, as the mine is
located next to the city of Paracatu, which lies on the main highway between Rio
de Janeiro and Brasilia, the national capital. There is also an airstrip
suitable for small aircraft in the city of Paracatu.

        The local terrain is dominated by low rolling hills, largely cleared,
and supporting mixed agriculture of dairy and beef cattle farming and intensive
irrigated cropping, primarily soya beans.

        The average rainfall varies between 1,800 and 2,000 millimeters per year
occurring in a distinct wet season between October and March.

        Most of the labor force resides in the city of Paracatu.

        Domestic water for the mine is obtained from the city of Paracatu,
delivered by truck. Process water is recycled from the tailings pond. Some make
up water is drawn from two rivers during the rainy season, as needed, to ensure
that the water level in the tailings pond is sufficient for the dry part of the
year. These are the Sao Domingos and Sao Pedro rivers. The mine also has access
to artesian wells as an emergency water supply.

        The mine is connected to the national power grid, which relies mainly on
hydroelectric generation. Electricity is supplied in a free market with
consumers able to select their supplier of choice. RPM obtains electricity from
Centrais Electricias Minas Gerias. Some power supply outages have been
experienced during the rainy season due to water getting into high voltage
equipment, but these have not had a significant impact on production. The mine
has a small emergency power capability, used for critical process equipment that
cannot be suddenly stopped such as thickeners and CIL tanks.

                                      -68-
<PAGE>

HISTORY

        Paracatu's (Brasilia) history is intimately linked to the Portuguese
bandeirantes expeditions prospecting for gold in the interior of Brazil. They
arrived in the region in 1722 after the discovery of gold-bearing alluvial fans.
The extractive activity had its peak during the second half of the 18th century,
when not only the alluvial deposits where mined but also the oxidized ore
outcropping on the top of Morro do Ouro Hill (or "Hill of Gold"), at the time
called Morro da Cruz das Almas; also in this period there were mining activities
on the alluvial terraces along Rico river. With the gold occurrences becoming
lean, production declined sharply during the first decade of the 19th century.
From this period "garimpagem" was practiced by Paracatu inhabitants only for
their subsistence. Various prospectors studied the region but did not turn the
extraction economically viable due to the low grade of gold in the ore.

        Beginning in 1970, Paracatu (Brasilia) attracted some attention from the
mineral exploration companies that were interested mainly in lead and zinc. The
interest in the gold of Morro do Ouro was secondary, as the majority of the
companies were not attracted by the gold grade, which was considered to be
uneconomic.

        In 1980, Rio Tinto Zinc (currently Rio Tinto plc.) that operated in
Brazil under the name of Riofinex do Brasil, joined with Billiton in a
partnership. Billiton owned the Morro do Ouro area but had no interest in
investing in the area. In 1984 Billiton sold the balance of its shares to
Riofinex, and Riofinex became the sole controller of the prospective area. At
the end of 1984, based on the data from hundreds of deep shafts (up to a 25
meter depth) and 44 drill holes, a reserve of 97.5 million tonnes at 0.587 grams
per tonne of gold was estimated. This estimate only included the superficial
oxidized ore, currently categorized as type CT. In spite of the low gold grade
of the ore, the geologists responsible for exploration (namely, Antonio Zini and
Rubes Forlin) believed that these exploration results could generate a
profitable business, and in 1985 this was confirmed by financial viability
studies. Total investment up to that time was $7.3 million including ground
acquisition costs, exploration costs, and the cost of feasibility studies.

        The holding company approved the initiation of a mining project at a
capital cost of approximately $65 million, on the condition that a Brazilian
partner could be secured for the venture. At the end of 1985, RTZ Mineracao (now
Rio Tinto Brasil), arranged with Autram Mineracao e Participacoes S.A. (now TVX
Participacoes S.A.) to joint venture the project through a new company, RPM,
with Rio Tinto Brasil having a 51% interest and TVX Participacoes S.A. a 49%
interest.

        The mine began production in October, 1987, treating oxidized ore. The
first bar of gold was produced in December, 1987. Ore milled in the following
year was 6.1 million tonnes averaging 0.652 grams per tonne of gold. In 1993 the
milling rate reached 13 million tonnes per year. Mill throughput in 2000 was
19.7 million tonnes averaging 0.467 grams per tonne of gold.

        Until 1997 the mill was fed exclusively with oxide ore. Since 1998
primary sulphide mineralization has also been fed to the mill, without any drop
in grade, though that has required a series of investments in the beneficiation
and metallurgical circuits.

        Kinross acquired TVX's ownership in the Paracatu (Brasilia) mine on
January 31, 2003, on completion of the business combination of Kinross, TVX, and
Echo Bay.

EXPLORATION

        Kinross did not incur any exploration expenditures in 2003 nor are any
planned for 2004.

GEOLOGY AND MINERALIZATION

        The host rock comprising the Morro do Ouro deposit lies within a
sandstone-shale succession of sedimentary rocks known as the Paracatu Formation.
These rocks are part of the central Brazilian shield, are Proterozoic in age and
form part of a marine sequence containing carbonates, shales, and sandstone.

        The portion of the Paracatu Formation of economic interest is a very
well laminated, dark grey phyllite with thin lenses of carbonate and lenses or
single crystals of sulphides, and contains a thin but persistent band of

                                      -69-
<PAGE>

quartzite and other thinner and less consistent sandstone horizons. Quartz is
present as variably-sized occurrences up to 0.5 meters in size, called boudins.
Gold is present as the native metal, alloyed with minor amounts of silver, and
tends to occur around the quartz boudins particularly where the boudins are
marked by layers of iron carbonates and/or pyrrhotite. The weathered 40 meter
thick phyllite package was the object of the mining plan to the end of 1997 and
has been subdivided from top to bottom into ore types C, T, B1 and B2.
Underlying the B1 ore the mineralization extends for approximately 30 meters
more, hosted in a layer of partially weathered phyllite with visible sulphide
(total sulphur exceeds one per cent) and high graphitic content. The grade of
this lower phyllite layer, known as type B2 ore, is similar to the remainder of
the orebody.

        The mineralization appears to be cut off to the north by a major fault
which trends east-northeast. The offset and true morphology of this fault are
not clearly understood but it is used as a hard boundary for the resource
estimation and it is assumed that the upthrow is to the north which would
indicate that the orebody on the north of the fault has been eroded. The western
boundary of the mineralization is also currently defined by a fault. Once again
the morphology of this fault is poorly understood and it is assumed that
downthrow occurs to the west. The western boundary fault strikes to the
north-northwest and is believed to follow a linear topographic low feature to
the west of the river valley, which forms the limit of the current mining
operation.

DRILLING, SAMPLE AND ANALYSIS AND SECURITY OF SAMPLES

        In the 1970's the area was prospected extensively for lead and zinc and
in 1984 Rio Tinto took over the Billiton share of the exploration license over
the Morro do Ouro area. By the end of 1984 a reserve had been delineated based
on 44 drill holes and 458 surface pits (25 meter maximum depth). This reserve
was stated to be 97.5 million tonnes at 0.59 grams per tonne of gold and was
exclusively composed of C and T type ore.

        Various drilling and pitting campaigns have been carried out over the
years on a grid spacing of between 50 meters and 400 meters. To date, the total
sampling consists of 1,129 drill holes 31,473 meters of drilling and 29,767
one-meter samples. In 1989, a reverse circulation drill campaign was carried out
with 67 holes drilled on a 400 meter by 200 meter grid. The results of this
drilling exhibited a 25-30% drop in grade when compared to the diamond core
drilling campaigns. However, the data from these reverse circulation rotary
holes is currently retained in the drillhole database and is used for the
resource calculations. Until 1993 drilling was restricted to the oxide capping,
but since 1993 drilling has been extended into the fresh sulphide material of
the B2 horizon. The orebody is now effectively covered with a 100 meter grid of
drillholes. Definition of fault boundaries has led to a better understanding of
the boundaries of the deposit and future drilling is planned to deepen existing
holes rather than drill any new areas around the periphery of the orebody.
Currently, some 50% of the drilling do not intersect the full thickness of the
orebody. The plan calls for drilling some 2,000 meters a year and it is
estimated that at least 13,000 meters of additional drilling are required to
complete all holes in the orebody footwall.

        The current understanding is that the orebody boundaries are defined
laterally. The exception to this is in the west of the deposit on the western
side of the Corrego Rico river valley where a series of deep drillholes are
planned to test the down dip extension of the orebody. It is believed that the
orebody may be up to 160 meters deep in this area. The river currently forms the
western boundary of the mining operation.

        Since the initial exploration campaign, virtually all sampling has been
carried out by diamond drilling. The majority of this has been through core
drilling with only a restricted reverse circulation rotary campaign in 1989.
Prior to 1999 all holes were drilled with a 51 x 6 inch diameter barrel.
However, since 1999 the core size has been reduced to 3 inches.

        Core recovery is high, with a consistent recovery of greater than 95%.
Prior to crushing, the core is photographed and logged.

        Density measurements have been collected from the deposit at various
times from feasibility through to current production.

        During evaluation drilling, samples of core are taken from one-meter
intervals, weighed, and specific gravity is determined using the water
displacement method.

        Assaying is carried out on 50 gram aliquots. A total of six separate
assays for gold are carried out from each 1 meter sample pulp. A sulphur assay
value is calculated for each sample. Additional elements assayed are

                                      -70-
<PAGE>

arsenic, copper, lead, zinc, manganese, cadmium and silver. The last two
elements are not assayed as a matter of course.

        Interlaboratory check assay exercises are carried out between the RPM
internal laboratory and the laboratory at Lakefield Research in Canada.
Additional check assay work is carried out at the Phalabwora mine laboratory in
South Africa. For these checks the coarse reject is sent to the external
facilities to allow preparation of an independently produced pulp.

MINERAL RESERVE AND RESOURCE ESTIMATES

        The following table sets forth the estimated proven and probable
reserves for the Paracatu (Brasilia) mine as at December 31, 2003, and 2002, and
represents Kinross' 49% interest:

<TABLE>
<CAPTION>
                              2003 (AT A                               2002 (AT A
                            GOLD PRICE OF                            GOLD PRICE OF
                            U.S. $325 PER                            U.S. $300 PER
                               OUNCE)                                   OUNCE)
               -------------------------------------------------------------------------------
                              AVERAGE        GOLD                       AVERAGE       GOLD
                  TONNES       GRADE       CONTENT          TONNES       GRADE      CONTENT
                  ------       -----       -------          ------       -----      -------
                (MILLIONS)     (GPT)     (000'S OZ)       (MILLIONS)     (GPT)     (000'S OZ)
<S>                <C>         <C>           <C>             <C>          <C>         <C>
Proven             164.0       0.42          2,225           156.4        0.43        2,163
Probable            31.8       0.38            388            24.4        0.43          337
                   -----       ----          -----           -----        ----        -----
Total              195.8       0.42          2,613           180.9        0.43        2,500
                   =====       ====          =====           =====        ====        =====
</TABLE>

        In addition to proven and probable reserves, as at December 31, 2003,
the Paracatu (Brasilia) mine has an estimated 76.63 million tonnes of measured
and indicated resources at an average grade of 0.39 grams of gold per tonne.
UNITED STATES INVESTORS ARE ADVISED THAT THE TERMS "MEASURED RESOURCES" AND
"INDICATED RESOURCES" ARE RECOGNIZED BY CANADIAN REGULATIONS BUT NOT BY THE
UNITED STATES SECURITIES AND EXCHANGE COMMISSION. UNITED STATES INVESTORS ARE
CAUTIONED NOT TO ASSUME THAT ALL OR ANY PART OF MINERAL DEPOSITS IN THESE
CATEGORIES WILL EVER BE CONVERTED INTO PROVEN AND PROBABLE RESERVES.

MINING AND MILLING OPERATIONS

        The Paracatu (Brasilia) mine is a high tonnage low-grade open pit
operation. The mine is unusual in that the entire pit is either free dug or
utilizes ripping and dozing with no drilling and blasting. Weathering has led to
the development of an oxidized mantle over the sulphide mineralization with
thickness varying from 20 to 40 meters. The economic viability of this low-grade
orebody has been partly derived from the soft rock and free gold in the
weathered mantle. Also, the mine is situated on a gently sloping hillside and
there are no waste stripping requirements.

        The ore, which is mined from the surface and requires no drilling or
stripping, and minimal blasting, is loaded by front-end loaders into 85 and 100
tonne trucks which transport the ore to the crushers. Exploration started in
1999 to evaluate extensions of the orebody both laterally and at depth. The mill
and mine operate 24 hours per day, 7 days per week. The nominal plant throughput
is 1.6 million tonnes per month. An ore stockpile of approximately 10 days
production is maintained near the processing plant. Its main purpose is to
ensure uninterrupted mill feed in the rainy season when some delays may be
experienced in the pit during extreme rainfall. During the dry season the
stockpile can be used if the pit becomes too dusty. RPM is committed to
controlling dust levels on site and in the city.

        Ore is crushed and ground prior to introduction into a flotation
circuit. The concentrate is treated by gravimetric methods first and the coarser
gold is recovered. The concentrate reject from the gravimetric plant is then
treated by a conventional cyanidation and carbon-in-leach circuit developed by
Rio Tinto Zinc.

        The processing plant, subjected to several upgrades over the mine life,
currently processes 20 million tonnes per year. Significant repairs were
required to all mills in 2001 due to the development of extensive cracks in
welds directly associated with the processing of harder ore.

                                      -71-
<PAGE>

        Since start up, the mined grade has declined, but has stabilized since
the late-1990s near 0.43 grams per tonne of gold that is essentially reserve
grade. Despite the downward trend in grade, gold production has increased. This
is due to the fact that site production has significantly increased, more than
offsetting the reduction in grades. Also, the total metallurgical gold recovery
achieved each year has remained relatively steady, despite the decrease in
grades.

        Rio Tinto Brasil sells the gold from the Paracatu (Brasilia) mine at
spot prices.

        As at December 31, 2003, Kinross' share of the net present value of
future cash outflows for site restoration costs for Paracatu (Brasilia) under
CICA Handbook section 3063, which is effective for fiscal years beginning
January 1, 2004, was $7.3 million. The mine currently has many years of life
remaining, and the estimated cost will very likely be affected by variances in
the exchange rate.

        Currently in Brazil there are no laws requiring the posting of a
reclamation bond or other financial assurance.

        There is a plan to mine oxide ore only during the last year of
production. This will provide a cover for the main tailings pond, which will
then be drained. The closure plan involves placing a 1-meter thickness of cover
materials on the final pit floor, the top 0.8 of a meter being soil material.





                                      -72-
<PAGE>

SUMMARY OF PRODUCTION AND FINANCIAL DATA

        The following table summarizes certain gold production, operating and
financial data relating to Kinross' 49% ownership interest in the Paracatu
(Brasilia) mine for the eleven months ended December 31, 2003. Information for
the years ended December 31, 2003, 2002, and 2001, is included for comparative
purposes.

<TABLE>
<CAPTION>
                                                           KINROSS
                                                           -------
                                                            SHARE               YEARS ENDED DECEMBER 31,
                                                            -----               ------------------------
                                                             2003         2003           2002            2001
                                                             ----         ----           ----            ----
SELECTED PRODUCTION AND OPERATING INFORMATION:
<S>                                                       <C>           <C>            <C>            <C>
Tonnes mined (000's)(1).............................      17,263.0      18,613.0       18,400.0       16,500.0
Tonnes of ore processed (000's)(1)..................      16,891.4      18,411.0       18,400.0       16,500.0
Gold grade (gpt)....................................          0.40          0.44           0.48           0.45
Average gold recovery (%)...........................            77            77             79             78
Gold equivalent production(3).......................        91,176        98,326        110,035         91,588
Number of employees(2)..............................           696           696            724            644

SELECTED FINANCIAL INFORMATION
(IN MILLIONS EXCEPT UNIT COSTS):(3)

Revenue.............................................      $   33.6      $   37.0       $   35.3       $   27.1
                                                          --------      --------       --------       --------
Cost of production..................................          17.3          18.6           18.4           17.5
Inventory change/other..............................           0.4           0.8            (0.3)          0.4
Site restoration costs accruals.....................           0.8           0.9            1.0            1.1
Depreciation, depletion and amortization............           5.7           6.1            4.5            4.0
Care and maintenance................................           1.4           1.2             --             --
Interest............................................           0.1           0.1            0.1            0.6
Foreign exchange (gain) loss........................          (1.1          (1.2)          4.2             2.3
                                                          --------      --------       --------       --------
                                                              24.6          26.5           27.9           25.9
                                                          --------      --------       --------       --------
Earnings before the undernoted......................           9.0          10.5            7.4            1.2
Income taxes (recovery).............................           2.5           2.9            0.8           (0.2)
                                                          --------      --------       --------       --------
Net earnings........................................      $    6.5      $    7.6       $    6.6       $    1.4
                                                          ========      ========       ========       ========

OTHER FINANCIAL INFORMATION:

Capital expenditures (millions)(3)..................      $    5.2      $    5.3       $    2.7       $    2.0
Unit costs:
  Total cash costs per equivalent ounce produced....      $    193      $    189       $    167       $    191
  Total cash costs per tonne milled.................      $      2      $      2       $      2       $      2
  Total production cost per gold equivalent ounce...      $    261      $    260       $    217       $    247
</TABLE>

-------------------------

(1)     Tonnes mined and ore processed includes 100% of mine production.
(2)     Number of employees includes all employees and contractors on site.
(3)     Gold equivalent production, selected financial information and capital
        expenditures are 49% of the results of the Paracatu (Brasilia) mine for
        the periods indicated.

        Total cash costs is a non-GAAP measure. For further information on this
non-GAAP measure, please refer to the disclosure under "Calculation of Total
Cash Costs and Realized Revenue and Reconciliation to the Statement of
Operations," above.

        For further information on the 2003 results, refer to the disclosure
included under "Kinross Management's Discussion and Analysis of Financial
Condition and Results of Operations--Financial/Operations--Operations--Mine
Operations--Paracatu (Brasilia) (49% ownership, Rio Tinto 51%, operator),
Brazil."

                                      -73-
<PAGE>

PRODUCTION FORECAST, LIFE OF MINE, AND CAPITAL EXPENDITURES

        The Paracatu (Brasilia) mine currently has a nominal capacity of about
20 million tonnes per year with variations depending on the hardness of the ore,
as it affects grinding throughput. In general, ore hardness is expected to
increase over the remaining mine life as the pit is deepened. Under this
scenario, the current reserves will be exhausted by 2022.

        RPM is in the process of studying a major expansion project that would
potentially increase the future capacity to approximately 30 million tonnes per
year. If the expansion were implemented, the current reserves would be exhausted
by year 2016.

        Kinross' share of capital expenditures at the Paracatu (Brasilia) mine
in 2003 was $5.2 million compared to $nil during 2002. The increase was due to
the completion of the TVX business combination on January 31, 2003. Capital
expenditures in 2003 were mainly related to additions to the mining fleet and
work related to the tailings dam. Kinross plans to spend $13.1 million for its
share of capital expenditures in 2004 to expand the mine.





                               [PICTURE OMITTED}






                                      -74-
<PAGE>

MUSSELWHITE MINE

        The Musselwhite property is operated as an unincorporated joint venture
between Placer Canada (68.07%) and Kinross (31.93%). Each party is responsible
for funding the expenses incurred in any work program in proportion to its
participating interest in the joint venture. Placer Canada is designated as the
operator of the joint venture, and thus is responsible for preparing work
programs and carrying out and supervising all work to be performed under each
work program. The management committee is comprised of four members of whom two
are the nominees of Kinross. Decisions of the management committee require the
approval of nominees representing at least a majority interest in the joint
venture. Kinross acquired its interest in the Musselwhite Mine in its
combination with TVX in January 2003.

PROPERTY DESCRIPTION AND LOCATION

        The Musselwhite property is located in the Patricia Mining District of
northwestern Ontario, Canada. The mine lies in the Opapimiskan Lake area,
approximately 76 kilometers southeast of the First Nations community of Round
Lake (Weagamow), 130 kilometers north of the town of Pickle Lake, Ontario and
430 kilometers northwest of Thunder Bay, Ontario. The property consists of a
total of 617 claims. There is a core holding of 338 leased mining leases, of
which 96 claims are mining rights only, and 242 are mining and surface rights
leases. Surrounding this core holding are 279 contiguous unpatented mining
claims. The core holding and unpatented claims together span approximately 5,444
and 12,104 hectares, respectively, for a total of 17,548 hectares. The claims
have expiration dates ranging from January 13, 2005, to June 12, 2012.

        The mine has recently renewed an impact benefit agreement with local
First Nations groups. In the new agreement, restrictions on daily mill
throughput have been removed, and revenue sharing provisions have been
incorporated to help direct some of the mine's economic benefits directly into
local communities.

        As an unincorporated joint venture, the mine does not pay income taxes
directly, and Kinross and Placer Canada must pay taxes on a corporate level
based on their prorated shares of revenue. In Ontario, profits are taxed at the
federal and provincial levels. Federal taxes are levied on each partner's share
of the mine operations taxable income, which is net of direct operating
expenses, appropriate share of depreciation of capital and resource allowances,
and deductions for exploration and pre-production development. The net federal
tax rate is currently 28.12%, reducing to 22.12% by 2007. Ontario uses the
federal taxable income, with some minor adjustments to deductions and
allowances, and taxes this at rate of 11%, increasing to 12% in 2004. In
addition, Ontario levies a small capital tax on the paid-up capital of the mine
above $5 million. Ontario also levies a mining tax after deductions, including
processing allowances, at a 2002 rate of about 12%; this is scheduled to reduce
to 10% in 2004.

ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY

        Access to the property is by a 45 kilometer road from Provincial Highway
808 or by air from Pickle Lake.

        The topography of the project area is relatively flat, with granite
intrusions associated with regional highlands. Local relief, which ranges from 5
meters to 45 meters, can be attributed to glacial deposits in the form of
moraines, eskers and drumlins. Extensive, low-lying swampy areas surround
streams, ponds, and lakes on the property. The elevation of Opapimiskan Lake is
about 300 meters. The Opapimiskan Lake area lies within the northern coniferous
section of the boreal forest. A forest fire destroyed most of the area south of
Opapimiskan Lake in 1979. Vegetation is slowly returning but currently has no
economic value.

        The nearest permanent weather monitoring station is located in Pickle
Lake. Weather statistics for the period from 1951 to 1980 indicate a mean daily
temperature of -0.9 degrees Celsius (30 degrees Fahrenheit). Temperatures range
between a maximum of 40 degrees Celsius (105 degrees Fahrenheit) and a minimum
of -51 degrees Celsius (-60 degrees Fahrenheit). The mean annual rainfall is
recorded at 50.9 centimeters and the mean annual snowfall is 266 centimeters.

        Five First Nations and two non-First Nation communities, consisting of a
total of about 3,000 inhabitants, live within the vicinity of the Musselwhite
project.

                                      -75-
<PAGE>

        The major infrastructure consists of the airstrip, bunkhouses, mill
buildings, a tailings pond, a portal and conveyor adits and various pump
stations. Mining and milling are carried out at approximately 1.2 million tonnes
of ore per year. The mine is a fly in, fly out operation and power is provided
by a transmission line connected to the provincial power grid at Pickle Lake.

HISTORY

        In 1962, two Ontario prospectors, Harold and Allan Musselwhite,
discovered a gold-bearing quartz vein on the north shore of Lake Opapimiskan and
in 1973, they obtained sufficient financing to carry out exploration on a
relatively small scale. Exploration continued until 1980, during which time
several small zones of gold mineralization were discovered.

        In 1980, a major drilling program resulted in the discovery of the West
Anticline Zone (1 million tonnes averaging 7.5 grams of gold per tonne) and the
Camp Zone (400,000 tonnes at 6.9 grams per tonne). Underground exploration of
the West Anticline Zone was carried out from an adit in 1984 but structural
complexities affected the calculated resource grade and activity moved elsewhere
on the property. The East Bay Zones (formerly Snoppy Pond Zones) were found in
1985.

        In 1988 and 1989, a $17 million underground exploration program and a
feasibility study were carried out. Mine construction was postponed due to the
high cost of power and infrastructure.

        By the end of 1992, 12 zones of gold mineralization had been identified.
The main Musselwhite deposit is a long narrow band that starts near the surface
of Snoppy Pond, then plunges northwest to about 200 meters below surface at the
edge of Lake Opapimiskan, reaching about 400 meters below surface under the
lake.

        The 1993 work program focused on a new exploration strategy which was to
improve the tonnage rather than the grade of material, thereby creating a much
larger inventory of contained gold. In early 1993, this inventory amounted to
1.3 million ounces of gold.

        In 1993, diamond drilling, including barge drilling, and geological
compilations were carried out. As a result of this exploration work, TVX and
Placer Canada agreed to accelerate the underground exploration program for the
Musselwhite project to complete exploration and to advance the project to the
feasibility stage.

        The 1994 work program included infill surface drilling, dewatering the
underground workings, driving an access ramp to the T-Antiform Zone and
underground diamond drilling. Drifts and raises were positioned along the
mineralized zones to gather detailed geological and engineering information.
Construction of the ramp and related underground work were completed to enable
the detailed drilling and sampling necessary to upgrade the measured and
indicated resource estimate.

        Total costs for the 1995 program were approximately $15 million and
included the construction of a 45-kilometer all-weather road to the property and
a feasibility study which was completed in the first quarter of 1996 when a
production decision was made.

        Exploration work in 1997 identified additional resources. Of particular
interest was shallow-depth mineralization outlined at Snoppy Pond which was
included in the 1998 year-end reserve statement for the first time.

GEOLOGY AND MINERALIZATION

        The Musselwhite property ore zones are situated within the
Weagamow-North Caribou Greenstone Belt of the Superior geologic province. This
belt consists of a narrow swath of metavolcanic and metasedimentary supracrustal
assemblages that extend 160 kilometers in an overall northwest direction. The
belt is comprised of three linear segments, east-west, north-northwest, and
west-northwest. Another branch of the greenstone belt extends to the southwest
from the point where the west-northwest and north-northwest segments join. This
triple junction forms complex geometries and is the locus of outcropping iron
formation, known gold mineralization, and the Musselwhite mine. Gold bearing
mineralization is characteristically hosted in folded oxide-silicate facies
banded iron formations. The main deposits are developed as a series of
sub-vertical tabular bodies along the tightly-folded 15 to 18 degree
northwesterly plunging T-Antiform structure. Gold mineralization in the West
Anticline

                                      -76-
<PAGE>

zone occurs within quartz-pyrrhotite-albite- almandine veinlets and lenses which
parallel a secondary deformation axial planar cleavage, and as stratabound
disseminated mineralization. Other deposits are developed along the limbs and
subsidiary fold structures within the larger East Bay Synform and West
Anticline.

EXPLORATION

        Recent exploration has been focused on defining the extent of
mineralization down-plunge along the T-Antiform and in the nearby PQ Deeps zone
with diamond drilling. Drilling down plunge on the T-Antiform has demonstrated
that the structure continues beyond the northernmost drill holes, but gold
grades are uneconomic to the north of 11800N. The reduction in grade in this
area may be due to the increasing distance away from the longitudinal fault
zones that add to the permeability in the better mineralized portions of the
T-Antiform. However, based on the persistence of the T-Antiform structure, and
the presence of gold occurrences at the Kenpat zone (stratigraphically above the
down-plunge projection of the T-Antiform), there is good potential for the
discovery of additional mineralization further along the structure in the down
plunge direction.

        Mineralization in the PQ Deeps zone is currently being defined by deep
surface drilling beneath the ice of Opapimiskan Lake. Recent high-grade
intersections in the zone are encouraging and warrant further diamond drilling.

        Kinross' share of exploration expenditures totaled $2.1 million during
2003. Kinross' share of the planned exploration spending for 2004 is $1.2
million.

DRILLING, SAMPLE AND ANALYSIS AND SECURITY OF SAMPLES

        All exploration and definition drilling conducted on the property to
date has been diamond drilling. By the end of 2002, a total of 3,261 diamond
drill holes with an aggregate length of 495,033 meters had been completed at
Musselwhite. All drill hole collars are surveyed and most holes have been
surveyed using recognized down hole survey methods.

        Diamond drill core is sampled by rotating the core perpendicular to the
foliation and halving it longitudinally with a diamond saw into intervals
selected by the geologist during core logging. One half of the core is collected
in sample bags for analysis, and the other half is retained for a permanent
record. Samples are constrained by geology to aid in the interpretation of gold
distribution. A nominal sample length of 0.5 to 1.0 meters is used.

        Diamond drill core samples at Musselwhite have been prepared and
analyzed at a number of laboratories since exploration drilling began in 1974.
Currently, the samples are being prepared and analyzed at three different
laboratories: the mine lab and two independent labs in Thunder Bay, Ontario. All
of the assays completed on drill core have utilized a fire assay
pre-concentration method followed by an AA finish or gravimetric finish on a one
assay ton aliquot (approximately 30 grams). The gravimetric finish is employed
if the AA finish results are greater than 20 grams per tonne of gold.

        A large number of samples were analyzed to develop the specific gravity
of the host rocks and mineralization. Specific gravities range between 3.0 to
3.3 grams per cubic centimeter and generally result from measurements collected
using water displacement field measurements.

        The Geology Department at the Musselwhite mine uses a defined Quality
Assurance/Quality Control program to monitor accuracy and precision of all
results. Commercially prepared standards and blanks are routinely inserted into
the sample stream, both as part of the Geology Department's Quality
Assurance/Quality Control program and by the lab, as part of their own internal
system of checks.

        Sample contamination was monitored by inserting blank samples. Some
contamination issues were recognized during the equipment start-up phase and
remedial action was taken. The sample preparation protocols were altered and the
core intervals that may have been contaminated during this period were
re-sampled. Pulp and reject duplicate samples were inserted to monitor
analytical precision.

                                      -77-
<PAGE>

MINERAL RESERVE AND RESOURCE ESTIMATES

        The following table sets forth the estimated proven and probable
reserves for the Musselwhite mine as at December 31, 2003, and 2002, and
represents Kinross' 31.93% interest:

<TABLE>
<CAPTION>
                              2003 (AT A                               2002 (AT A
                            GOLD PRICE OF                            GOLD PRICE OF
                            U.S. $325 PER                            U.S. $300 PER
                               OUNCE)                                   OUNCE)
               -------------------------------------------------------------------------------
                              AVERAGE        GOLD                       AVERAGE       GOLD
                  TONNES       GRADE       CONTENT          TONNES       GRADE      CONTENT
                  ------       -----       -------          ------       -----      -------
                (MILLIONS)     (GPT)     (000'S OZ)       (MILLIONS)     (GPT)     (000'S OZ)
<S>                <C>         <C>           <C>             <C>          <C>         <C>
Proven             2.4         5.63          428             2.8          5.67        511
Probable           1.2         5.81          230             1.0          4.81        156
                   ---         ----          ---             ---          ----        ---
Total              3.6         5.69          658             3.8          5.44        667
                   ===         ====          ===             ===          ====        ===
</TABLE>

        In addition to proven and probable reserves, as at December 31, 2003,
the Musselwhite mine has an estimated 1.3 million tonnes of measured and
indicated resources at an average grade of 8.25 grams of gold per tonne. UNITED
STATES INVESTORS ARE ADVISED THAT THE TERMS "MEASURED RESOURCES" AND "INDICATED
RESOURCES" ARE RECOGNIZED BY CANADIAN REGULATIONS BUT NOT BY THE UNITED STATES
SECURITIES AND EXCHANGE COMMISSION. UNITED STATES INVESTORS ARE CAUTIONED NOT TO
ASSUME THAT ALL OR ANY PART OF MINERAL DEPOSITS IN THESE CATEGORIES WILL EVER BE
CONVERTED INTO PROVEN AND PROBABLE RESERVES.

MINING AND MILLING OPERATIONS

        The mining operations are accessed via a twin decline system extending
from surface. Men and material are transported via a 12.5% grade ramp. Emergency
access is via a 20% grade conveyor ramp extending from surface to the 460 meter
level.

        Ventilation is provided by twin 375 kilowatt fans. Fresh air travels to
the work face by means of a ventilation raise which ties into the conveyor ramp
at the 240 meter level and travels along it to the lower levels of the mine.
Exhaust air travels up the main access ramp to surface.

        Mining is conducted using sublevel blasthole stoping methods with waste
rock backfill. Sublevels are established at 25 meter intervals.

        The ore is drilled off using three-inch and four-inch production holes
using longhole drill rigs. Ore above the 200 meter level is direct hauled to
surface. Ore below the 200 meter level is hauled to the underground crusher.
Stopes are backfilled with either cemented or un-cemented rock backfill.

        Most of the ore production has and will continue to come from
underground sources, with some production from open pits at the beginning and
end of the mine life. The mine currently plans to produce approximately 75,000
ounces of gold attributable to Kinross' interest in 2004.

        The Musselwhite mill circuit uses a fairly standard approach with fine
crushing/rod milling/ball milling to prepare the ore to the correct size. For
the actual recovery of gold, gravity is used to scalp coarse gold from the ball
milling circuit into a intensive cyanide leach system. The gravity tails are
sent to conventional cyanide leaching which dissolves the remainder of the
recoverable gold. Carbon is used to recover gold from leaching and after the
stripping and electrowinning processes, a gold dore is produced. The dore bars
produced at the mine are shipped under contract to Johnson Matthey for refining.

        The 2004 operating budget calls for a mill throughput rate of 3,832
tonnes per day.

        The current mining fleet is essentially the original mine equipment. The
capital budget for Musselwhite includes costs for equipment replacement as
dictated by accumulated operating hours and suggested replacement schedules.

        Boart Longyear Inc. provides all production longhole drilling services
for the mine on a contract basis.

                                      -78-
<PAGE>

        The Musselwhite mine operates under Placer Canada's sustainability
policy, which commits the operation to a high standard of environmental
stewardship. Sustainability is an important issue for every department. This
involves protecting human health, reducing the impact of mining on the
ecosystem, and returning the site to a state compatible with a healthy
environment. Musselwhite has implemented a series of management systems for
maintenance, environmental activities and occupational health and safety.
Currently, operations at Musselwhite appear to be in compliance with applicable
corporate standards and environmental regulations.

        The closure plan involves progressive rehabilitation through an ongoing
program of grass seeding. This information will be a useful start in compiling a
chronological record of reclamation for use in the closure plan to be presented
to stakeholders at the end of the mine life. As at December 31, 2003, the net
present value of future cash outflows for Kinross' share of site restoration
costs at Musselwhite under CICA Handbook section 3063, which is effective for
fiscal years beginning January 1, 2004, are estimated at $1.6 million. Kinross
has posted $0.6 million of letters of credit for site restoration with the
province of Ontario.

        Musselwhite continues to evaluate options for its tailings management
practices to mitigate the risks associated with tailings and waste rock. One
option is a paste backfill/tailings disposal system; another is to produce a
sulphide flotation product that would reduce the amount of potential acid
generating material. The potential for acid rock drainage from the tailings is
taken into account in the closure plan. Stockpiled open-pit waste rock has low
potential for acid drainage and will be transported underground for use as
rockfill.

        At present, all tailings pass through a water treatment plant for
destruction of cyanide before discharge to the tailings pond. Additional
remediation occurs naturally in the tailings pond, polishing ponds, and
wetlands.

        Local First Nations communities monitor environmental issues through an
environmental working committee. First Nations issues are listened to,
documented, and addressed in this forum, and mine closure plans are periodically
reviewed and analyzed.





                                      -79-
<PAGE>

SUMMARY OF PRODUCTION AND FINANCIAL DATA

        The following table summarizes certain gold production and operating and
financial data relating to Kinross' 31.93% ownership interest in the Musselwhite
mine for the eleven months ended December 31, 2003. Information for the years
December 31, 2003, 2002, and 2001, is included for comparative purposes.

<TABLE>
<CAPTION>
                                                           KINROSS
                                                           -------
                                                            SHARE                 YEARS ENDED DECEMBER 31,
                                                            -----                 ------------------------
                                                            2003            2003           2002            2001
                                                            ----            ----           ----            ----
SELECTED PRODUCTION AND OPERATING INFORMATION:
<S>                                                       <C>            <C>             <C>           <C>
Tonnes mined (000's)(1).............................      1,228.7        1,330.3         1,156.9        1,290.2
Tonnes of ore processed (000's)(1)..................      1,228.7        1,330.9         1,156.9        1,290.2
Gold grade (gpt)....................................         5.40           5.45            5.90           5.90
Average gold recovery (%)...........................           96             96              95             95
Gold equivalent production(3).......................       64,978         71,028          66,879         74,577
Number of employees(2)..............................          418            418             374            485

SELECTED FINANCIAL INFORMATION
(IN MILLIONS EXCEPT UNIT COSTS):(3)

Revenue.............................................      $  22.6        $  25.9         $  21.4       $   20.1
                                                          -------        -------         -------       --------
Cost of production..................................         16.7           18.2            15.3           14.3
Inventory change/other..............................         (0.8)           0.2             0.3             --
Site restoration costs accruals.....................          0.4            0.4             0.2            0.2
Depreciation, depletion and amortization............          6.5            6.9             4.7            5.7
Care and maintenance................................          0.2            0.2              --             --
Foreign exchange (gain) loss........................         (0.5)          (0.5)            0.4             --
Exploration.........................................          2.1            2.2             0.8            0.5
                                                          -------        -------         -------       --------
                                                             24.6           27.6            21.7           20.7
                                                          -------        -------         -------       --------
Net loss............................................      $  (2.0)       $  (1.7)        $  (0.3)      $   (0.6)
                                                          =======        =======         =======       ========

OTHER FINANCIAL INFORMATION:

Capital expenditures (millions)(3)..................      $   2.7        $   2.8         $   3.7       $    4.0
Unit costs:
  Total cash costs per equivalent ounce produced....      $   257        $   256         $   228       $    192
  Total cash costs per tonne milled.................      $    42        $    43         $    41       $     35
  Total production cost per gold equivalent ounce...      $   363        $   359         $   302       $    271
</TABLE>

-------------------------

(1)     Tonnes mined and ore processed includes 100% of mine production.
(2)     Number of employees includes all employees and contractors on site.
(3)     Gold equivalent production, selected financial information and capital
        expenditures are 31.9% of the results of the Musselwhite mine for the
        periods indicated.

        Total cash costs is a non-GAAP measure. For further information on this
non-GAAP measure, please refer to the disclosure under "Calculation of Total
Cash Costs and Realized Revenue and Reconciliation to the Statement of
Operations," above.

        For further information on the 2003 results, refer to the disclosure
included under "Kinross Management's Discussion and Analysis of Financial
Condition and Results of Operations--Financial/Operations--Operations--Mine
Operations--Musselwhite (31.93% ownership, Placer Dome 68.07%, operator),
Canada."

                                      -80-

<PAGE>

PRODUCTION FORECAST, LIFE OF MINE, AND CAPITAL EXPENDITURES

        The Musselwhite mine has a projected mine life of 12 years at a mining
rate of 4,000 tonnes per day.

        Kinross' share of capital expenditures at the Musselwhite mine in 2003
were $2.7 million compared to $nil during 2002. The increase was due to the
completion of the TVX business combination on January 31, 2003. Planned
expenditures of Kinross for 2004 total $3.7 million.





                                   [PICTURE]





                                      -81-

<PAGE>

ROUND MOUNTAIN

        Kinross owns an undivided 50% interest in and operates the Round
Mountain gold mine. An affiliate of Barrick Gold Corporation owns the remaining
undivided 50% interest in the joint venture common operation. Kinross acquired
its interest in the Round Mountain in its combination with Echo Bay in January
2003.

PROPERTY DESCRIPTION AND LOCATION

        The Round Mountain gold mine is an open-pit mining operation located 60
miles north of Tonopah in Nye County, Nevada, U.S.A. The property position
consists of contiguous patented and unpatented mining claims covering
approximately 27,500 acres, while the active project boundary encompasses 7,263
acres. Kinross has received patents to convert mineable land to patented status.
Patented claims cover all of the current reserves in the mine pit.

        The Smoky Valley Common Operation controls the mineral and surface
rights of the mine through the ownership of 84 patented lode claims and 1,453
unpatented lode claims. The patented claims are held as private property and are
legally surveyed. All of the reserves are located on patented claims. The
unpatented claims are held under the 1872 Mining Law and are subject to normal
annual filing requirements and fees. The majority of the unpatented claims are
located on land administered by the Bureau of Land Management; the remainder are
located on land administered by the United States Forest Service.

        Round Mountain mine production is subject to a net smelter return
royalty ranging from 3.53% at gold prices of $320 per ounce or less to 6.35% at
gold prices of $440 per ounce or more. During 2003, this royalty averaged 4.5%.
Its production is also subject to a gross revenue royalty of 3.0%, reduced to
1.5% after $75.0 million has been paid. For the period from the date that the
royalty commenced through December 31, 2003, cumulative royalties of $33.1
million have been paid.

        The property is subject to no known environmental liabilities or
mitigative measures. All environmental permitting is up to date and in order.

        The Round Mountain gold mine is subject to the Nevada State and United
States federal employment taxes, business license tax, net proceeds of minerals
tax and properties sales and use tax.

ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY

        The mine site is accessed by State Highway 376, a paved two-lane paved
highway that connects U.S. Highway 6 in Tonopah to the south and U.S. Highway 50
to the north. The mine is located approximately 250 miles from the major
metropolitan areas of Las Vegas and Reno, Nevada. The mine is supported by the
local communities of Hadley and Carvers, which provide most of the housing for
mine personnel. Sierra Pacific Power Co. provides electrical power to the mine.
There are sufficient surface and water rights to support all current and
forecasted mining at the site.

        The mine area straddles the transition between the floor of the Big
Smoky Valley and the adjacent Toquima Range. Mine site elevations vary between
5,800 to 6,800 feet above sea level. Elevations in the Big Smoky Valley and
Toquima Range vary from 5,800 feet in the valley floor to 11,941 feet at the
summit of Mount Jefferson.

        The oblong open-pit mine is over a mile at its longest dimension and
currently more than 1,200 feet from the highest working level to the bottom of
the pit.

        The Round Mountain mine lies within an arid, high desert setting.
Average annual precipitation in the Big Smoky Valley is approximately five to
seven inches with most of that total falling during the winter months. Snow is
common at the valley floor, but rarely remains on the ground for more than a few
days. Local rainfall can be extreme and flash flood events are not uncommon in
the region. Temperature range can be extreme, with average daily fluctuations
exceeding 22 degrees Celsius (40 degrees Fahrenheit). Winter temperatures are
typically -12 to -7 degrees Celsius (10 to 20 degrees Fahrenheit) at night and 0
to 10 degrees Celsius (30 to 50 degrees Fahrenheit) during the day. Rarely
(typically less than 10 days per year), winter low temperatures can fall below
-18 degrees

                                      -82-

<PAGE>

Celsius (0 degrees Fahrenheit). Summer temperatures vary from 32 to 40 degrees
Celsius (40 to 55 degrees Fahrenheit) at night to 90 to 105 degrees Fahrenheit
during the day.

HISTORY

        The first gold production from the Round Mountain District occurred in
1906. Historic production from 1906 through 1969 based on United States Bureau
of Mines records was 346,376 ounces of gold and 362,355 ounces of silver. Actual
unreported production was probably significantly higher. Early important
companies actively mining in the district were the Round Mountain Mining Co.,
the Fairview Round Mountain Mining Co., the Round Mountain Daisy Mining Co., the
Round Mountain Sphinx Co., the Round Mountain Red Top Co., and the Round
Mountain Red Antelope Mining Co. At some point prior to 1929, Nevada Porphyry
Mines, Inc. consolidated many of the claims and controlled most of the district.
Nevada Porphyry Mines and the A. O. Smith Corp. investigated the bulk tonnage
potential of the property in 1929 and 1936 to 1937, respectively. In 1946
through 1962, the Yuba Consolidated, Fresnillo, and Consolidated Goldfields
developed and mined the placer deposits flanking Round Mountain and Stebbins
Hill.

        At some time between 1962 and 1969, the Ordrich Gold Resources Inc.
acquired control of the property from Nevada Porphyry Gold Mines. In 1969,
Copper Range Co. leased the property and developed a small reserve of 12 million
tons at a grade of 0.062 oz Au/ton. The Smoky Valley Common Operation was formed
in 1975 to operate the mine. This was initially a joint venture in which Copper
Range held a 50 percent interest and Felmont Oil Co. and Case Pomeroy Co. each
held a 25% interest.

        Commercial production commenced in 1977. In 1984, Homestake Mining
Company acquired the Felmont Oil interest in the operation and, in 1985, Echo
Bay acquired the Copper Range interest. Effective July 1, 2000, Homestake
increased its interest in the Round Mountain mine from 25% to 50% when it
acquired the Case Pomeroy interest. Effective December 14, 2001, Barrick Gold
Corporation completed a merger with Homestake Mining Company thereby acquiring
the Homestake interest in the mine.

        Since 1997, development drilling has continued and the reserve base has
been significantly expanded and refined. The production rate for 2003 averaged
266,249 tons per day.

        In 2003, total gold production attributable to Kinross' 50% interest was
364,271 ounces.

GEOLOGY AND MINERALIZATION

        The Round Mountain mine is located along the western flank of the
southern Toquima Range within the Great Basin sub-province of the Basin and
Range province of western North America. The Basin and Range physiographic
province is characterized by generally north-south trending block faulted
mountain ranges, separated by alluvium-filled valleys. The Great Basin
sub-province is specifically characterized by internal drainage. Topographic
relief varies across the Basin and Range, from 1,500 feet to in excess of 5,000
vertical feet.

        The geology of the Round Mountain mine consists of a thick sequence of
intracaldera Oligocene ash-flow tuffs and volcaniclastic rocks resting upon
pre-Tertiary basement rocks. The caldera margin is mostly buried but in the pit
area is well defined by a progressively steeper dipping arcuate contact between
the volcanic rocks and older basement rocks. The caldera margin and caldera
related structures provided the structural ground preparation for the
hydrothermal system. The primary host rocks for gold mineralization are the
volcanic rocks. A minor amount of ore occurs in the Paleozoic rocks along the
caldera margin.

        The Round Mountain Gold deposit is a large, epithermal, low-sulfidation,
volcanic-hosted, hot-springs type, precious metal deposit, located along the
margin of a buried volcanic caldera. The deposit genesis is intimately
associated with the Tertiary volcanism and caldera formation. Intra-caldera
collapse features and sympathetic faulting in the metasedimentary rocks provided
the major structural conduits for gold-bearing hydrothermal fluids. In the
volcanic units, these ascending fluids deposited gold along a broad
west-northwest trend.

        Gold mineralization at Round Mountain occurs as electrum in association
with quartz, adularia, pyrite and iron oxides. Shear zone fractures, veins and
disseminations within the more permeable units host the

                                      -83-

<PAGE>

<PAGE>

mineralization. Primary sulfide mineralization consists of electrum associated
with or internal to pyrite grains. In oxidized zones, gold occurs as electrum
associated with iron oxides, or as disseminations along fractures.

        Alteration of the volcanic units at Round Mountain can be characterized
as a continuum from fresh rock progressing through highly altered alteration
assemblages. There is a reasonable correlation between increasing gold grades
and increasing degrees of alteration.

        Ore zones within the metasediments are more subtle, largely defined by
secondary quartz overgrowths, pyrite, and adularia associated with narrow
northwest trending structures.

EXPLORATION

        Kinross' share of exploration expenditures totaled $2.1 million during
2003. Kinross' share of the exploration forecast for 2004 is $2.7 million.

DRILLING, SAMPLE AND ANALYSIS AND SECURITY OF SAMPLES

        The current drill database for the open pit reserve contains a total of
4,089 drill hole records, of which 3,812 were established using reverse
circulation drilling and 277 were drilled using diamond core methods. A separate
database is maintained for dump drilling which contains an additional 1,293
drill hole records.

        The majority of the drilling is vertical with angle holes used where
vertical structures are anticipated. All dump holes are drilled vertical.

        All holes are sampled on five-foot intervals and a "chipboard"
constructed for each drill hole with sample from each interval glued to a board
representing the complete hole.

        Sample data for the reserve model is derived primarily from
conventional, reverse circulation rotary and HQ size core drilling. Holes are
initially drilled on +200 foot centers defining deposit limits. In-fill drilling
is completed on centers of 140 foot or less to develop reportable reserves used
in mine planning.

        Reverse circulation drill cuttings are passed through a wet rotary
splitter to collect a 10 to 15 pound sample for each five-foot interval. A
sampling technique which uses flocculent to settle drill cuttings has been
employed to capture very fine-grained material and assure sample integrity. This
technique captures nearly 100% of the rock material generated during the
drilling process. Core samples are split with a rock saw in five-foot intervals,
with half the sample assayed, and the other half stored for reference.

        All samples collected from drill holes are prepared and assayed by the
Round Mountain mine assay laboratory. All assay laboratory chemists and
technicians are employees of Round Mountain Gold Corporation. The laboratory is
not certified by any standards association. A mine geologist or mine geologic
technician delivers the drill samples to the assay laboratory.

        The Round Mountain Deposit is noted for its coarse gold occurrences and
high nugget effect in assaying. In order to minimize the sampling variation, a
five-assay ton or 145.8 gram sample is used in the fire assay. To minimize
potential lead exposure of the laboratory staff, bismuth is used as the
collector of the gold and silver. After a 2-hour fusion, the samples are poured
into molds. The samples are slagged and are cupelled in the cupel room.
Following cupellation, the bead is smashed and parted with nitric acid, rinsed,
dried, and annealed. The fire assay is completed with a gravitimetric finish.

        The assay laboratory maintains an internal assay quality control
program. Laboratory supervisors routinely conduct quality inspections of sample
preparation, equipment calibration, and assaying procedures. The lab regularly
participates in round robin assays with other mine labs to check internal
procedures. Five percent of all pulps are screened to verify that the pulps meet
specification. Because of the large crucibles used in the five assay-ton fire
assay, only 11 samples are fired per oven. Of these, one of the samples is
either a blank (barren silica sand) or a certified standard that is inserted
randomly by the lab computer system. The blank is inserted prior to the
preparation stage. The standard is inserted following sample preparation. If the
assay results exceed limits for either the blank or the standard, the entire
batch is re-assayed.


                                      -84-
<PAGE>

        Assay results from blanks and standards are plotted and graphed daily.
These graphs are an integral tool used by the assayers and supervisors to
continuously monitor and improve lab procedures.

MINERAL RESERVE AND RESOURCE ESTIMATES

        The following table sets forth the estimated proven and probable
reserves for the Round Mountain mine as at December 31, 2003, and 2002,
reflecting Kinross' 50% interest:

<TABLE>
<CAPTION>
                                       2003 (AT A                                             2002 (AT A
                                      GOLD PRICE OF                                          GOLD PRICE OF
                                      U.S. $325 PER                                          U.S. $300 PER
                                         OUNCE)                                                  OUNCE)
                --------------------------------------------------------------------------------------------------------
                                         AVERAGE         GOLD                                   AVERAGE        GOLD
                      TONNES              GRADE         CONTENT              TONNES              GRADE        CONTENT
                      ------              -----         -------              ------              -----        -------
                    (MILLIONS)            (GPT)        (000'S OZ)          (MILLIONS)            (GPT)       (000'S OZ)
<S>                    <C>                <C>            <C>                  <C>                <C>             <C>
Proven(1)              59.7               0.57           1,099                42.9               0.59            815
Probable               35.4               0.66             751                44.2               0.75          1,060
                       ----               ----           -----                ----               ----          -----
Total                  95.1               0.61           1,850                87.1               0.67          1,875
                       ====               ====           =====                ====               ====          =====
</TABLE>
-------------------------
(1)     Includes 38,430,000 tonnes stockpiled at December 31, 2003, with an
        average grade of 0.45 gpt or 562,000 ounces of proven gold reserves.

        In addition to the estimated proven and probable reserves, as at
December 31, 2003, the Round Mountain mine has an estimated 15.9 million tonnes
of measured and indicated resources at an average grade of 0.53 grams of gold
per tonne at a gold price of U.S. $350 per ounce. UNITED STATES INVESTORS ARE
ADVISED THAT THE TERMS "MEASURED RESOURCES" AND "INDICATED RESOURCES" ARE
RECOGNIZED BY CANADIAN REGULATIONS BUT NOT BY THE UNITED STATES SECURITIES AND
EXCHANGE COMMISSION. UNITED STATES INVESTORS ARE CAUTIONED NOT TO ASSUME THAT
ALL OR ANY PART OF MINERAL DEPOSITS IN THESE CATEGORIES WILL EVER BE CONVERTED
INTO PROVEN AND PROBABLE RESERVES.

MINING AND MILLING OPERATIONS

        The Round Mountain mine currently operates a conventional open pit that
is approximately 8200 feet long in the north-west, south-east direction and 5000
feet wide (north-east to south-west). The mining is conducted on 35 foot benches
by electric shovels and front end loaders paired with 150, 190 and 240 ton haul
trucks.

        Blasthole patterns are drilled on centers that range from 16 to 30 feet.
Blasthole samples are collected and assayed and provide the control for ore
segregation. Based upon these assays, blasted pit ore is determined to be
run-of-mine dedicated pad ore, crushed reusable pad ore, or waste. Sulfide
material greater than or equal to 0.018 opt of gold is shipped directly to the
mill or mill stockpile. Run-of-mine ore is delivered the dedicated pad.
Re-usuable pad ore is crushed and placed on reusable leach pads and waste is
delivered directly to the waste dumps. Placer material encountered during normal
stripping operations is sent to the dedicated pad. High grade coarse gold
bearing ore is handled in one of three ways: 1) leached on the re-useable pad
and offloaded to the mill; 2) sent directly to the gravity plant with tails
reporting to the mill; or 3) sent directly to the mill or mill stockpile. Gold
particle size distribution of high-grade ore determines the processing method.

        The Round Mountain operation uses conventional open-pit mining methods
and recovers gold using four independent processing operations. These include
crushed ore leaching (reusable pad), run-of-mine ore leaching (dedicated pad),
milling and the gravity concentration circuit. Most of the ore is heap leached,
with higher grade oxidized ores crushed and placed on the reusable pad. Lower
grade ore, ore removed from the reusable leach pad and stockpiled ore that was
previously leached are placed on the dedicated pad.

        The reusable pad processed 19,434 tons of ore per day in 2003, compared
to 26,987 tons per day in 2002. Reusable pad volume varies with ore release,
which is determined by the phases of the pit being mined. Reusable pad
production increased in 2003 to 230,773 ounces from 242,808 ounces in 2002 due
to the processing of higher grade ores and higher recoveries.


                                      -85-
<PAGE>

        The dedicated pad processed 145,125 tons of ore per day in 2003,
compared to 135,222 tons per day in 2002. Production in 2003 from the dedicated
pad was 421,218 ounces, compared to 347,966 ounces in 2002, due to higher
recoveries.

        The mill processed 7,366 tons per day in 2003 producing 124,341 ounces,
compared to 10,067 tons per day in 2002 producing 153,946 ounces. The mill
facility achieved a recovery rate of 84.9% from both higher-grade oxide and
non-oxidized ores during 2003 by employing gravity concentration, fine grinding
and cyanide leaching.

        Ore and waste rock were mined at a rate of approximately 134,224 tons
per day in 2003 compared to 174,920 tons per day in 2002.

        The finished dore bullion is shipped to refineries in North America for
further processing as per the agreements of established contracts of the
participants of the Smoky Valley Common Operation. Once the dore bullion leaves
the mine site, marketing and sales are the responsibility and discretion of the
Joint Venture partners.

        The site Plan of Operations and Comprehensive Reclamation Plans filed
with the United States Department of the Interior, BLM and Nevada Division of
Environmental Protection (NDEP) have been approved for all current operational
facilities. Annual updates of the Reclamation Plan are prepared to adjust for
cost inflation and to take credit for concurrent reclamation activities and
submitted to the above listed agencies. The current reclamation cost estimate,
approved in December 2003 by the BLM, USFS and NDEP totals $36.8 million. The
net present value of these future cash outflows computed in accordance with CICA
Handbook section 3063, which is effective for fiscal years beginning January 1,
2004, was $26.5 million at December 31, 2003. Tentative plans for permanent
closure activities have been approved by the NDEP and BLM. Each participant in
the Common Operation is responsible for its own estimate of reclamation costs in
its own accounts. Kinross has posted letters of credit totaling $20.9 million in
support of its share of site restoration costs at December 31, 2003.


                                      -86-
<PAGE>

SUMMARY OF PRODUCTION AND FINANCIAL DATA

        The following table summarizes certain gold production, operating and
financial data relating to Kinross' 50% ownership interest in the Round Mountain
mine for the eleven months ended December 31, 2003. Information for the years
ended December 31, 2003, 2002, and 2001, is included for comparative purposes.

<TABLE>
<CAPTION>
                                                           KINROSS
                                                            SHARE                 YEARS ENDED DECEMBER 31,
                                                            2003            2003           2002            2001
                                                            ----            ----           ----            ----
SELECTED PRODUCTION AND OPERATING INFORMATION:
<S>                                                        <C>             <C>             <C>              <C>
Gold produced (ounces)(3)
   Heap leach--reusable pad............................    102,629         115,386         121,404          109,852
   Heap leach--dedicated pad...........................    191,770         210,609         173,983          184,875
   Milled..............................................     57,450          62,171          76,973           78,427
   Other(2)............................................      4,484           4,484           5,387              321
                                                          --------        --------        --------       ----------
   Total...............................................    356,333         392,650         377,747          373,475
                                                          ========        ========        ========       ==========

Equivalent gold ounces(3)(4)...........................    364,271         401,127         382,414          376,899

SELECTED FINANCIAL INFORMATION
(IN MILLIONS EXCEPT UNIT COSTS):(3)

Revenue................................................   $  132.7        $  144.6        $  114.3       $    105.5
                                                          --------        --------        --------       ----------
Cost of production.....................................       60.8            64.2            68.1             70.6
Royalties and production taxes.........................       12.5            13.5             9.3              7.6
Inventory change/other.................................        1.6             2.3             0.2              1.4
Site restoration costs accruals........................        1.8             2.5             3.4              3.4
Depreciation, depletion and amortization...............       33.7            36.2            21.6             20.6
Interest...............................................         --              --             0.3            (0.8)
Exploration............................................        2.1             2.1             1.0              0.7
                                                          --------        --------        --------       ----------
                                                             112.5           120.8           103.9            103.5
                                                          --------        --------        --------       ----------
Net earnings...........................................   $   20.2        $   23.8        $   10.4       $      2.0
                                                          ========        ========        ========       ==========

OTHER FINANCIAL INFORMATION:

Capital expenditures (millions)(3).....................   $    5.7        $    5.8        $    8.6       $     15.0

Production cost per ounce of gold produced
   Direct mining expense...............................   $    167        $    164        $    180       $      190
   Royalties and production taxes......................         34              34              25               20
                                                          --------        --------        --------       ----------
   Total cash cost.....................................        201             198             205              210
   Depreciation, depletion and amortization............         93              92              57               55
   Reclamation.........................................          5               6               9                9
                                                          --------        --------        --------       ----------
   Total production costs..............................   $    299        $    296        $    271       $      274
                                                          ========        ========        ========       ==========

OTHER INFORMATION:

Heap leach--reusable pad(1)
   Ore processed (tons/day)............................     19,045          19,704          26,987           23,601
   Total tons of ore processed.........................      6,285           7,113           9,742            8,520
   Grade (ounces per ton)..............................      0.043           0.043           0.043            0.035
   Average gold recovery rate (%)......................       67.0            69.5            61.3             77.4

Heap leach--dedicated pad(1)
   Ore processed (tons/day)............................    149,570         147,136         135,322          128,637
   Total tons of ore processed.........................     49,358          53,116          48,815           46,438
   Grade (ounces per ton)..............................      0.011           0.011           0.011            0.011
   Average gold recovery rate (%)......................        (5)             (5)             (5)              (5)

Milled(1)
   Ore processed (tons/day)............................      8,045           7,508          10,067           10,171
   Total tons of ore processed.........................      2,655           2,711           3,664            3,702
   Grade (ounces per ton)..............................      0.050           0.053           0.050            0.050
   Average gold recovery rate (%)......................       86.0            85.7            84.6             83.7

                                       (footnotes contained on following page)
</TABLE>


                                                        -87-
<PAGE>

-------------------------
(1)     Tons processed include 100% of mine production.
(2)     A high-grade occurrence was discovered in April 1992. A small gravity
        plant was constructed to recover these ounces.
(3)     Gold equivalent production, selected financial information and capital
        expenditures are 50% of the results of the Round Mountain mine for the
        periods indicated.
(4)     Equivalent gold production presented by Kinross includes silver
        production converted to gold production using the ratio of the average
        spot market prices (eleven months--2003: 74.60:1; 2003: 74.79:1; 2002:
        67.49:1; 2001: 62.00:1).
(5)     For dedicated leach pads, a gold recovery rate cannot be calculated
        until leaching is complete. Based on metallurgical test work completed
        during 1994 and 1995, the eventual recovery rate is estimated to be
        approximately 65%.

        Total cash costs is a non-GAAP measure. For further information on this
non-GAAP measure, please refer to the disclosure under "Calculation of Total
Cash Costs and Realized Revenue and Reconciliation to the Statement of
Operations," above.

        For further information on the 2003 results, refer to the disclosure
included under "Kinross Management's Discussion and Analysis of Financial
Condition and Results of Operations--Financial/Operations--Operations--Mine
Operations--Round Mountain (50% owner and operator), USA.

PRODUCTION, LIFE OF MINE, AND CAPITAL EXPENDITURES

        The planned average production rate (total tons moved) for 2004 is
240,860 tons per day. Of this, 189,300 tons per day are ore production. The
annual mining forecast for mill tons mined in 2004 is 1.4 million tons
containing 38,300 ounces. Dedicated pad feed mined from the pit are estimated to
be 18.5 million tons containing 231,200 ounces. Dedicated pad feed mined from
the offload material are estimated to be 38.1 million tons containing 393,300
ounces. Mined production for the Reusable pad in 2004 is estimated to be 7.0
millions tons containing 207,900 ounces.

        Mining at Round Mountain is expected to be complete during 2006
(assuming no additions to reserves), with completion of stockpile processing in
2008. The joint venture partners continue to support an aggressive exploration
program in the vicinity of the mine in order to add reserves and extend the mine
life.

        Kinross' share of estimated gold equivalent production for 2004 is
367,500 ounces at total cash costs of $223 per ounce.

        Kinross' share of capital expenditures at the Round Mountain mine in
2003 was $5.7 million compared to $nil during 2002. The increase was due to the
completion of the Echo Bay business combination on January 31, 2003. Pit
de-watering and dedicated leach pad construction accounted for the majority of
the capital expenditures in 2003. Kinross' share of planned capital expenditures
for 2004 is $8.1 million.


                                      -88-
<PAGE>









                                    [PICTURE]












                                      -89-
<PAGE>

ENVIRONMENTAL REGULATIONS

GENERAL

        Kinross' exploration activities and mining and processing operations are
subject to the federal, state, provincial, regional and local environmental laws
and regulations in the jurisdictions in which Kinross' facilities are located,
such as the Clean Air Act; the Clean Water Act; the Comprehensive Environmental
Response, Compensation and Liability Act; the Emergency Planning and Community
Right to Know Act; the Endangered Species Act; the Federal Land Policy and
Management Act; the National Environmental Policy Act; the Resource Conservation
and Recovery Act; and related state laws and their equivalent in other
jurisdictions. In all jurisdictions in which Kinross operates, environmental
licenses, permits and other regulatory approvals are required in order to engage
in exploration, mining and processing, and mine closure activities. Regulatory
approval of a detailed plan of operations and a comprehensive environmental
impact assessment is required prior to initiating mining or processing
activities or for any substantive change to previously approved plans. In all
jurisdictions in which Kinross operates, specific statutory and regulatory
requirements and standards must be met throughout the life of the mining or
processing operations in regard to air quality, water quality, fisheries and
wildlife protection, archaeological and cultural resources, solid and hazardous
waste management and disposal, the management and transportation of hazardous
chemicals, toxic substances, noise, community right-to-know, land use, and
reclamation. Kinross is currently in compliance in all material respects with
all applicable environmental laws and regulations.

PERMITTING--BUCKHORN PROJECT

        Development of the Buckhorn Mountain Project is subject to various
permitting requirements. A plan of operations has been submitted to the
governing agencies for the purpose of review of the project proposal and
preparation of environmental documents as required by law as a prerequisite to
any application for permits necessary for operation. The document builds in part
on the previous work developed by Battle Mountain Gold relating to the Buckhorn
Mountain Project (then known as the "Crown Jewel Project"). The plan of
operations is also based in part on studies performed during the environmental
review of the prior proposal. The current plan of operations proposes
underground mining operation rather than an open pit operation and includes the
incorporation of the existing and approved Kettle River Mill for the processing
of the ore. These changes greatly simplify the project description,
environmental concerns, and associated technical issues.

        In addition to receiving agency approval on the plan of operations, the
Buckhorn Mountain Project must comply with other federal, state, and local laws
and regulations. As part of the scoping process governmental agencies determine
what permits will be required for operation of the mine and which existing or
new environmental information will be necessary to review in order to determine
any mitigation measures which must be undertaken to address identified impacts.

        Securing the necessary environmental approvals is expected to take
approximately 18 months in total, and at a cost of approximately $1.5 million.
The costs include the third party contractor for the supplemental environmental
impact statement, additional technical studies (e.g., hydrology, geochemistry),
and general permitting costs.

        Although all required environmental permits are expected to be issued
for the Buckhorn Mountain Project, significant public opposition to the Project
could result in delays, increased costs, or the inability to obtain one or more
necessary permits. However, most of the sensitive environmental issues
associated with the previous Battle Mountain Gold proposed mine plan are not
part of the current proposal, reducing, but not eliminating, the risk of delays
resulting from public opposition to the Project.

CERCLA ACTION

        In 1998, Lassen Gold Mining Inc. (a subsidiary of Kinross) was
identified as a Potentially Responsible Party ("PRP") under the United States
Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"),
42 U.S.C. ss.ss.9601, et seq.; the Resource Conservation and Recovery Act, as
amended 42 U.S.C. ss.ss.6901, et seq.; and the California Hazardous Substances
Account Act, as amended, the California Health and Safety Code ss.ss. 25300 et
seq., in connection with the PRC Patterson Superfund Site. Kinross became a
member of the Patterson Environmental Trust that funded the site remediation.
The total paid to the Trust by Kinross was


                                      -90-
<PAGE>

$175,552. As more PRPs were identified and became contributors to the Trust or
participated in funding remediation separately, the amount of funds held by the
Trust exceeded the financial obligation. In 2001, in accordance with a Cash-Out
Settlement Agreement, Kinross was refunded $152,308. Kinross may receive a
supplemental distribution when settlement is reached with the additional PRPs
and from accrued interest in the Trust escrow account. All remediation and
restoration activities have been completed at the PRC Patterson Superfund site.
Kinross no longer has any liability associated with the site.

        Other than as disclosed above, Kinross is not a PRP in any other CERCLA
action.

LEGAL PROCEEDINGS

DERIVATIVE ACTION

        In October 1996, a shareholder derivative action was filed in the Court
of Chancery of Delaware on behalf of Kinam Gold Inc. ("Kinam") formerly Amax
Gold Inc. shareholder, entitled HARRY LEWIS V. MILTON H. WARD, ET AL., C.A. No.
15255-NC, against Cyprus Amax, Kinam's directors and Kinam as a nominal
defendant. The complaint alleges, among other things, that the defendants
engaged in self-dealing in connection with Kinam's entry in March 1996 into a
demand loan facility provided by Cyprus Amax. The complaint seeks, among other
things, a declaration that the demand loan facility is not entirely fair to
Kinam and damages in an unspecified amount. Kinross subsequently filed a motion
to dismiss the action with the court. On October 30, 2003, the Court of Chancery
of Delaware granted Kinam's motion to dismiss the complaint. The plaintiff
appealed this decision on November 30, 2003. Kinam believes that the complaint
is without merit and will continue to defend the matter as required. Kinross
cannot reasonably predict the outcome of this action and the amount of loss
cannot reasonably be estimated.

CLASS ACTION

        Kinross was named as a defendant in a class action complaint filed on or
about April 26, 2002, entitled ROBERT A. BROWN, ET AL. V. KINROSS GOLD U.S.A.,
INC., ET AL., Case No. CV-S-02-0605-KJD-RJJ, brought in the United States
District Court for the District of Nevada. Defendants named in the complaint are
Kinross, its subsidiaries, Kinross Gold U.S.A., Inc. and Kinam, and Robert M.
Buchan, president and C.E.O. of Kinross. The complaint is brought on behalf of
two potential classes, those who tendered their Kinam preferred stock into the
tender offer for the Kinam $3.75 Series B Preferred Stock made by Kinross Gold
U.S.A. and those who did not. Plaintiffs argue, among other things, that amounts
historically advanced by Kinross to Kinam should be treated as capital
contributions rather than loans, that the purchase of Kinam preferred stock from
institutional investors in July 2001 was a constructive redemption of the
preferred stock, an impermissible amendment to the conversion rights of the
preferred stock, or constituted the commencement of a tender offer, that Kinross
and its subsidiaries have intentionally taken actions for the purpose of
minimizing the value of the Kinam preferred stock, and that the amount offered
in the tender offer of $16.00 per share was not a fair valuation of the Kinam
preferred stock. The complaint alleges breach of contract based on the governing
provisions of the Kinam preferred stock, breach of fiduciary duties, violations
of the "best price" rule under Section 13(e) of the Securities Exchange Act of
1934, as amended (the "Exchange Act"), and the NYSE rules, violations of Section
10(b) and 14(e) of the Exchange Act, and Rules 10b-5 and 14c-6(a) hereunder,
common law fraud based on the acts taken and information provided in connection
with the tender offer, violation of Nevada's anti-racketeering law, and control
person liability under Section 20A of the Exchange Act. A second action seeking
certification as a class action and based on the same allegations was also filed
in the United States district Court for the District of Nevada on or about May
22, 2002. It names the same parties as defendants. This action has been
consolidated into the Brown case and the Brown plaintiffs have been designated
as lead plaintiffs. The plaintiffs seek damages ranging from $9.80 per share,
plus accrued dividends, to $39.25 per share of Kinam preferred stock or, in the
alternative, the issuance of 26.875 to 80.625 Kinross shares for each Kinam
preferred share. They also seek triple damages under Nevada statutes. Kinross
brought a motion for judgment on the pleadings with respect to the federal
securities claims based on fraud. Discovery was stayed pending the resolution of
this matter. On September 29, 2003, the Court ruled that plaintiffs had failed
to adequately state a federal securities fraud claim. The plaintiffs were given
an opportunity to amend the complaint to try and state a claim that would meet
the pleading standards established by the Court, but, if they are unable to do
so, these claims will be dismissed. The plaintiffs have filed an amended
complaint with the Court in an effort to eliminate the deficiencies in their
original complaint. Kinross believes the amended complaint is without merit and
has filed a motion for judgment on the pleadings seeking dismissal of the
securities fraud claims without


                                      -91-
<PAGE>

prejudice. Kinross anticipates continuing to vigorously defend this litigation.
Kinross cannot reasonably predict the outcome of this action and the amount of
loss cannot be reasonably estimated.

SETTLEMENT IN GREECE

        On December 10, 2003, the Greek government unilaterally terminated the
contract pursuant to which Kinross' two subsidiaries, TVX and TVX Hellas S.A.,
held title to the Hellenic Gold Properties, and invited them to enter into a
settlement agreement. A settlement agreement was then executed on December 12,
2003, pursuant to which the Greek government agreed to pay 11 million euros to
TVX Hellas. Kinross agreed to augment the 11 euros with an additional 11 million
euros, and to contribute all such amounts in full satisfaction of labor and
trade liabilities of TVX Hellas. On January 30, 2004, Kinross advanced TVX
Hellas 11 million euros and received a full release from all liabilities in
connection with environmental remediation. TVX Hellas has settled all labor
related claims and has filed for bankruptcy. Trade and other payables will be
settled in the bankruptcy proceeding out of the remaining funds on hand in
Greece.

THE HELLENIC GOLD PROPERTIES LITIGATION

        The Ontario Court (General Division) issued its judgment in connection
with the claim against TVX by three individuals (collectively the "Alpha Group")
on October 14, 1998, relating to TVX's interest in the Hellenic Gold Mining
assets in Greece. The Court rejected full ownership and monetary damages claims
but did award the Alpha Group a 12% carried interest and the right to acquire a
further 12% participating interest in the Hellenic Gold Assets. TVX filed a
notice to appeal and the Alpha Group filed a notice of cross appeal.

        Subsequent to the trial decision in October, 1998, TVX received
notification of two actions commenced by 1235866 Ontario Inc. ("1235866"), the
successor to Curragh Inc., Mineral Services Limited and Curragh Limited, against
the Alpha Group, and others, in Ontario and English Courts, in relation to the
claim by the Alpha Group against TVX for an interest in the Hellenic gold mines.
On July 28, 1999, TVX entered into an agreement with 1235866 to ensure that
these new claims would not result in any additional diminution of TVX's interest
in the Hellenic gold mines. 1235866 agreed not to pursue any claim against TVX
for an interest in the Hellenic Gold Properties beyond the interest awarded to
the Alpha Group by the courts. In the event that 1235866 is successful in its
claim against the Alpha Group, 1235866 would be entitled to a 12% carried
interest as defined in the agreement and the right to acquire a 12%
participating interest upon payment of 12% of the aggregate amounts expended by
TVX and its subsidiaries in connection with the acquisition, exploration,
development and operation of the Hellenic Gold Properties up to the date of
exercise. The TVX appeal, the Alpha Group cross appeal and a motion by 1235866
were all heard on February 17, 18 and 25, 2000. By judgment released June 1,
2000, the Court of Appeal, while partially granting the TVX appeal, upheld the
trial decision and rejected the Alpha Group cross appeal. The Court also
rejected the motion of 1235866 for a new trial. As a result, TVX holds, as
constructive trustee, a 12% carried interest and a right to acquire 12%
participating interest in the Hellenic Gold Properties upon the payment of costs
associated with that interest. The action by 1235866 against the Alpha Group
continues. TVX and the Alpha Group have been unable to agree on the definition
and application of the 12% carried interest and the right to acquire a 12%
participating interest in the Hellenic Gold Properties awarded to Alpha Group in
the trial judgment. Accordingly, in June 2001, a new action was commenced
between the Alpha Group and TVX to clarify the award. TVX anticipates that the
hearing with respect to such matter may be held in 2005.

        As a result of the settlement agreement Kinross executed with the Greek
Government with respect to TVX Hellas S.A., the Alpha group has threatened
further litigation due to an alleged breach of the October 14, 1998, judgment in
the action noted above between the Alpha Group and TVX relating to the Hellenic
Gold mines. The Alpha Group has threatened to expand this claim to include a
claim against Kinross for breach of fiduciary duty. In addition, 1235866 has
threatened further litigation for breach of fiduciary duty. Kinross cannot
reasonably predict the outcome of this litigation and the threatened litigation
and the amount of loss cannot be reasonably estimated. No pleadings have been
exchanged with respect to these two threatened actions.

RUSSIA

        In July 2003, Kinross received notice that local taxation authorities in
Russia are seeking a reassessment of the tax paid relating to the Kubaka mine by
Omolon, Kinross' 98.1% owned Russian Joint Stock Company, in the amount of $8.5
million, which included penalties and interest. The notice challenged certain
deductions and tax concessions relating to tax returns filed by Kinross in prior
years. Kinross appealed this notice of reassessment and,


                                      -92-
<PAGE>

on January 27, 2004, the Magadan Arbitration court agreed with Kinross on three
of the four major reassessment items. The impact of this ruling reduced the
liability to $3.9 million, which includes interest and penalties. Kinross will
appeal the decision, but in the event the decision of the appellant court is not
ruled in the Kinross' favor, Omolon has enough unutilized deductions to shelter
the additional taxable income. Kinross believes that this reassessment will be
resolved with no material adverse affect to Kinross' financial position, results
of operations, or cash flows.

CHILE

        On September 27, 2001, Kinross' 100% owned Chilean mining company,
Compania Minera Kinam Guanaco ("CMKG") received a tax reassessment from the
Chilean IRS. The reassessment, in the amount of $6.7 million, disallows certain
deductions utilized by a third party. The third-party has indemnified Kinross
for up to $13.5 million in relation to this reassessment. Kinross appealed the
reassessment and, on January 12, 2004, the Chilean IRS upheld the tax auditors'
position. Kinross plans to appeal the reassessment with the Chilean Tax Court.
Kinross believes this reassessment will be resolved with no material adverse
affect to Kinross' financial position, results of operations or cash flows.

BRAZIL

        Kinross' 50% owned Brazilian mining company, Mineracao Serra Grande S.A.
which owns the Crixas mine, received a tax reassessment in November 2003 from
the Brazilian IRS. The reassessment disallowed the claiming of certain sales tax
credits and assessed interest and penalties of which Kinross' 50% share totals
$9.5 million. Kinross and its joint venture partner believe that this
reassessment will be resolved without any material adverse affect on its
financial position, results of operations, or cash flows.

SUMMA

        In September 1992, Summa Corporation ("Summa") commenced a lawsuit
against Echo Bay Exploration Inc. and Echo Bay Management Corporation (together,
the "Subsidiaries"), indirect subsidiaries of Echo Bay, alleging improper
deductions in the calculation of royalties payable over several years of
production at McCoy/Cove and another mine, which is no longer in operation. The
matter was tried in the Nevada State Court in April 1997, with Summa claiming
more than $13 million in damages, and, in September 1997, judgment was rendered
for the Subsidiaries. The decision was appealed by Summa to the Supreme Court of
Nevada, which in April 2000 reversed the decision of the trial court and
remanded the case back to the trial court for "a calculation of the appropriate
royalties in a manner not inconsistent with this order." The case was decided by
a panel comprised of three of the seven Justices of the Supreme Court of Nevada
and the Subsidiaries petitioned that panel for a rehearing. The petition was
denied by the three-member panel on May 15, 2000 and remanded to the lower court
for consideration of other defenses and arguments put forth by the Subsidiaries.
The Subsidiaries filed a petition for a hearing before the full Supreme Court
and on December 22, 2000, the Court recalled its previous decision. Both the
Subsidiaries and their counsel believe that grounds exist to modify or reverse
the decision. Echo Bay has $1.5 million accrued related to this litigation. If
the appellate reversal of the trial decision is maintained and the trial court,
on remand, were to dismiss all of the Subsidiaries' defenses, the royalty
calculation at McCoy/Cove would change and additional royalties would be
payable. Neither Echo Bay, nor counsel to the Subsidiaries, believe it is
possible to quantify the precise amount of liability pursuant to a revised
royalty calculation.

        In March, 2004, Summa filed a complaint in the District Court of Nevada,
THE HOWARD HUGHES CORPORATION V. ECHO BAY MANAGEMENT CORPORATION, ET AL., Case
No. A481813, against Echo Bay, the Subsidiaries, Kinross, Newmont Mining
Corporation, and the officers and directors of the various corporate entities,
alleging that the Subsidiaries have transferred substantially all of their
assets to insiders and close third-parties, rendering them unable to respond to
any judgment that Summa may obtain in the underlying litigation. The complaint
alleges that the Echo Bay and TVX combination with Kinross and the acquisition
of the closed McCoy/Cove mining operations by Newmont in exchange for assumption
of the reclamation obligations was the culmination of a scheme to improperly
strip the Subsidiaries of their assets. Kinross has not filed an answer to the
complaint, and no discovery has taken place. Kinross believes this complaint to
be without merit and anticipates vigorously defending the action.


                                      -93-
<PAGE>

OTHER

        In November 2001, two former employees of Echo Bay brought a claim
against Echo Bay pursuant to the CLASS PROCEEDINGS ACT (British Columbia) as a
result of the temporary suspension of operations at Echo Bay's Lupin mine in the
spring of 1998 and the layoff of employees at that time. On August 12, 2002, the
Supreme Court of British Columbia dismissed Echo Bay's application for a
declaration that British Columbia did not have jurisdiction in connection with
this claim or in the alternative, that the Court should decline jurisdiction.
Echo Bay appealed this decision. On April 4, 2003, the appeal was heard by the
Court of Appeal for British Columbia. On May 16, 2003, in a unanimous decision,
the Court of Appeal allowed Kinross' appeal and service was set aside on the
basis that British Columbia does not have jurisdiction in connection with this
claim. In addition the court ordered the former employees to reimburse Echo Bay
for costs associated with the appeal and the Supreme Court of British Columbia
proceedings. On August 18, 2003, counsel for the former employees filed an
application for leave to appeal to the Supreme Court of Canada. On March 4,
2004, the application for leave to appeal to the Supreme Court of Canada was
dismissed with costs payable to Echo Bay.

        Kinross has been advised by counsel for the claimants that they have
initiated proceedings on behalf of 75 employees for damages for wrongful
dismissal in Nanavut and the Northwest Territories. They have requested that
Echo Bay choose the jurisdiction in which proceedings are to be pursued. Echo
Bay has not yet been served with these proceedings nor is the amount involved
known at this time.

        Kinross is also involved in legal proceedings and claims arising in the
ordinary course of its business. Kinross believes these claims are without merit
and is vigorously defending them. In the opinion of management, the amount of
ultimate liability with respect to these actions will not materially affect
Kinross' financial position, results of operations or cash flows.

EMPLOYEES

        At December 31, 2003, Kinross and its subsidiaries employed
approximately 6,400 persons. Kinross' employees in the United States and Canada
are predominately non-unionized. At the Porcupine Joint Venture a three-year
Collective Bargaining Agreement was ratified on November 1, 2002. Kinross
considers its employee relations to be good.

--------------------------------------------------------------------------------
                             DIRECTORS AND OFFICERS
--------------------------------------------------------------------------------

DIRECTORS

        Set forth below is information regarding the directors of Kinross.

<TABLE>
<CAPTION>
                                                             COMMON SHARES,                      MEETINGS ATTENDED(3)
                                                               RESTRICTED
                                                              SHARE RIGHTS
                                                              AND DEFERRED
                                                               SHARE UNITS
                                                                  OWNED,
   NAME AND PLACE          PRINCIPAL                          CONTROLLED OR       CURRENT       BOARD
    OF RESIDENCE           OCCUPATION       DIRECTOR SINCE     DIRECTED(1)     COMMITTEES(3)   (TOTAL 7)     COMMITTEES
------------------------------------------------------------------------------------------------------------------------
<S>                    <C>                 <C>                <C>                <C>            <C>         <C>
John A. Brough         President,          January 19, 1994   1,166 Common        A, C, N       7 of 7      A -  5 of 5
Vero Beach, Florida    Torwest Inc.                           2,673.46 DSUs                                 C -  3 of 3
                       (real estate                                                                         N -  2 of 2
                       development
                       company)

Robert M. Buchan(2)    President and       May 31, 1993      145,772 Common         None        7 of 7
Toronto, Ontario       Chief                                     50,000
                       Executive Officer                       Restricted
                       of Kinross                             Share Rights

Scott A. Caldwell      Executive Vice-     March 3, 2003      46,068 Common         None
Toronto, Ontario       President and                             17,000                         7 of 7
                       Chief                                   Restricted
                       Operating Officer                      Share Rights
                       of Kinross
</TABLE>


                                      -94-
<PAGE>
<TABLE>
<CAPTION>
                                                             COMMON SHARES,                      MEETINGS ATTENDED(3)
                                                               RESTRICTED
                                                              SHARE RIGHTS
                                                              AND DEFERRED
                                                               SHARE UNITS
                                                                  OWNED,
   NAME AND PLACE          PRINCIPAL                          CONTROLLED OR       CURRENT       BOARD
    OF RESIDENCE           OCCUPATION       DIRECTOR SINCE     DIRECTED(1)     COMMITTEES(3)   (TOTAL 7)     COMMITTEES
------------------------------------------------------------------------------------------------------------------------
<S>                    <C>                 <C>                <C>                <C>            <C>         <C>
Arthur H. Ditto        Retired Mining      May 31, 1993      182,953 Common         None
Phoenix, Arizona       Executive                              2,005.10 DSUs                     7 of 7

John A. Keyes          Retired Mining      March 3, 2003      11,666 Common          E          7 of 7      E -  4 of 4
The Woodlands, Texas   Executive                              2,272.44 DSUs                                 A - 1 of 1

Richard S. Hallisey    President of        December 5, 2003       None              A,E         -
Toronto, Ontario       Sullivan Holdings                      1,047.49 DSUs
                       Limited
John M. H. Huxley      Principal,          May 31, 1993       41,603 Common       A, C, N       6 of 7      A -  4 of 5
Toronto, Ontario       Algonquin                              2,272.44 DSUs                                 C -  3 of 3
                       Management Inc.                                                                      N -  2 of 2
                       (management
                       company)

George A. Michals      President,          January 31, 2003   27,083 Common        A, CG                    A -  3 of 3
Orangeville, Ontario   Baymont Capital                        2,005.10 DSUs                     7 of 7      CG -  2 of
                       Resources Inc.                                                                       2
                       (investment
                       holding company)

Cameron A. Mingay      Partner, Cassels    January 12, 2001   1,666 Common         CG, E        7 of 7      CG -  2 of
Toronto, Ontario       Brock & Blackwell                      2,005.10 DSUs                                 2
                       LLP (law firm)                                                                       E -  4 of 4

John E. Oliver         Senior              March 7, 1995      7,360 Common        C, CG, N      7 of 7      A - 1 of 1
San Francisco,         Vice-President,                        5,346.92 DSUs                                 C -  3 of 3
California             Atlantic Region,                                                                     CG -  2 of
                       Bank  of Nova                                                                        2
                       Scotia (financial                                                                    N -  2 of 2
                       institution)
</TABLE>
-------------------------
(1)     Information respecting holdings of common shares has been provided by
        individual directors. Information respecting Restricted Shares Rights
        and Deferred Share Units is set forth in "Management of
        Kinross--Executive Compensation."
(2)     Mr. Buchan also holds 384,613 convertible preferred shares of Kinross
        which are convertible into 1,058,390 common shares.
(3)     Committees: A-Audit, C-Compensation, CG-Corporate Governance,
        E-Environmental, N-Nominating.


                                      -95-
<PAGE>

        Each of the directors has held the principal occupation set forth
opposite his name, or other executive offices with the same firm or its
affiliates, for the past five years, with the exception of Messrs. Arthur H.
Ditto, Richard S. Hallisey, and John A. Keyes. Prior to February 2003, Mr. Ditto
held the position of Vice-Chairman of Kinross from April 2002 to January 2003.
Prior to that, from 1993 to 2002, he was Chief Operating Officer of Kinross and
from 1996 to 2002 he was President of Kinross. Prior to December 2001, Mr.
Hallisey was Vice-Chairman, National Bank Limited and, prior to January 1999, he
was Vice-Chairman, First Marathon Securities Limited. Mr. Keyes, prior to
January 2001, was President and Chief Operating Officer of Battle Mountain Gold
Company and prior thereto was Senior Vice-President of Battle Mountain Gold
Company.

        Below is a biography of each of the directors of Kinross:

JOHN A. BROUGH

        Mr. Brough has been President of Torwest Inc., a real estate development
company, since 1998. Prior to 1998, Mr. Brough held the position of Executive
Vice-President and Chief Financial Officer of iStar Internet Inc. Prior to 1997,
Mr. Brough was Senior Vice-President and Chief Financial Officer of Markborough
Properties Limited. He holds a Bachelor of Arts degree and is a Chartered
Accountant.

ROBERT M. BUCHAN

        Mr. Buchan has been Chief Executive Officer of Kinross since May 1993.
Prior to that he was Vice-Chairman of Dundee Bancorp Inc. Mr. Buchan is a
director of B. C. Metals Corporation and also sits on the Board of the Art
Gallery of Ontario. He has a degree in Mining Engineering and a Masters in
Mineral Economics.

SCOTT A. CALDWELL

        Mr. Caldwell has been Executive Vice-President and Chief Operating
Officer of Kinross since June 2002. Prior to that Mr. Caldwell was Senior
Vice-President of Mine Operations of Kinross from 2001 to 2002 and he was and
Senior Vice-President of Surface Operations of Kinross from 1998 to 2001. Prior
to joining Kinross, he was Vice-President of Operations for Echo Bay from 1996
to 1998. Mr. Caldwell has a Bachelor of Science (Mining) degree.

ARTHUR H. DITTO

        Mr. Ditto previously held the position of the Vice-Chairman of Kinross
from April 2002 to January 2003. Prior to that, from 1993 to 2002, he was Chief
Operating Officer of Kinross and from 1996 to 2002, he was the President of
Kinross. Mr. Ditto is currently retired and sits on the Board of Montana Tech
Foundation. Mr. Ditto is also a director of Titanium Corporation, Inc., a
position he has held since January 15, 2003. He holds a Bachelor of Science
degree, is a registered Professional Engineer and has completed the executive
development program at the University of Illinois.

RICHARD S. HALLISEY

        Mr. Hallisey is President and a director of Sullivan Holdings Limited, a
position he has held since December, 2001. From January 1999 to December 2001,
Mr. Hallisey was Vice-Chairman and Managing Director of National Bank Financial.
Prior to his position with National Bank Financial, Mr. Hallisey was
Vice-Chairman and a director of First Marathon Securities Limited. Mr. Hallisey
holds a Bachelor of Science degree and a Masters in Business Administration.

JOHN M. H. HUXLEY

        Mr. Huxley has been a principal of Algonquin Management Inc., the
manager of the Algonquin Power Income Fund, since 1997. Prior to that he was
President of Algonquin Power Corporation, a builder, developer and operator of
hydroelectric generating facilities in Canada and the United States. He holds a
Bachelor of Laws degree.


                                      -96-
<PAGE>

JOHN A. KEYES

        Mr. Keyes most recently held the position of President and Chief
Operating Officer of Battle Mountain Gold Company until 2001. Prior to that
position, Mr. Keyes served as the Senior Vice-President, Operations, for Battle
Mountain Gold Company with responsibility for operations in the United States,
Canada, Bolivia, Chile, and Australia. Mr. Keyes has a Bachelor of Science
degree (honors) and has completed an executive MBA course.

GEORGE F. MICHALS

        Mr. Michals is President of Baymont Capital Resources Inc., an
investment holding company. Mr. Michals is a director of Morguard Corporation
and Headwaters HealthCare Centre and has served in the past on the Boards of a
number of private and public companies. From 1987 to 1990, he held the position
of Executive Vice-President and Chief Financial Officer of Canadian Pacific
Limited. He holds a Bachelor of Commerce degree and is a Chartered Accountant.

CAMERON A. MINGAY

        Mr. Mingay has been a partner of Cassels, Brock & Blackwell LLP, a law
firm, since 1999. Prior to 1999, he was a partner of Smith Lyons LLP. He is also
a director of Waverider Communications Inc., Alliance Surface Finishing Inc.,
and the Canadian Parapalegic Association (Ontario). Mr. Mingay holds a Bachelor
of Laws degree and is a member of the Law Society of Upper Canada.

JOHN E. OLIVER

        Mr. Oliver was appointed Senior Vice-President, Atlantic Region, Bank of
Nova Scotia in March 2004. Prior to that, Mr. Oliver was Executive Managing
Director and Co-Head of Scotia Capital U.S., Bank of Nova Scotia from October
1999. From 1997 to 1999 Mr. Oliver was Senior Vice-President, Corporate and Real
Estate Banking of Bank of Nova Scotia and prior thereto, he was Senior
Vice-President of Real Estate Banking of Bank of Nova Scotia. Mr. Oliver was
appointed the Independent Chairman of Kinross in August 2002.

OFFICERS

        The following table sets forth the names of each of the officers of
Kinross and all offices of Kinross now held by each of them.

<TABLE>
<CAPTION>
<S>                                                      <C>
NAME                                                     OFFICE HELD
----                                                     -----------
ROBERT M. BUCHAN......................................   President and Chief Executive Officer
SCOTT A. CALDWELL.....................................   Executive Vice-President and Chief Operating Officer
RODNEY A. COOPER......................................   Vice-President, Technical Services
JERRY W. DANNI........................................   Vice-President, Environmental Affairs
ALAN R. EDWARDS.......................................   Vice-President, Operations
CHRISTOPHER T. HILL...................................   Vice-President, Investor Relations, and Treasurer
JOHN W. IVANY.........................................   Executive Vice-President
ANDREW F. KACZMAREK...................................   Vice-President, Project Development
GORDON A. MCCREARY....................................   Vice-President, Corporate Affairs
JOHN E. OLIVER........................................   Independent Chairman
BRIAN W. PENNY........................................   Chief Financial Officer and Vice-President Finance
SHELLEY M. RILEY......................................   Corporate Secretary
ALLAN D. SCHOENING....................................   Vice-President, Human Resources and Community Relations
RONALD W. STEWART.....................................   Vice-President, Exploration
</TABLE>

        The following sets forth biographical information for each of the
executive officers of Kinross who is not also a director of Kinross:

        RODNEY A. COOPER was appointed Vice-President, Technical Services, on
March 15, 2004. Prior to that, Mr. Cooper held the position of Director,
Technical Services, from March 2002 to March 2004, and Project Manager, Timmins,
from June 2000 to February 2002. From January 1999 to May 2000, he was Mine
Superintendent, Eskay Creek Mine for Homestake Canada Inc.


                                      -97-
<PAGE>

        JERRY W. DANNI has been Vice-President, Environmental Affairs since July
2000. Prior to joining Kinross, Mr. Danni was Vice-President of Environmental
Affairs for Cyprus Climax Metals Company from 1994 to June 2000.

        ALAN R. EDWARDS has been Vice-President, Operations, since July 2003.
Prior to that Mr. Edwards was a member in two mining limited liability
partnerships, Perlite Southwest and CE Resources, from February 2002 to June
2003; Senior Vice-President, Operations, for P.T. Freeport Indonesia from
September 2000 to February 2002; Vice-President, Surface Mines, for P.T.
Freeport Indonesia from May 2000 to September 2000; President and General
Manager for Minero C.V. from January 2000 to April 2000; and Vice-President and
General Manager of Minero Coiso Verde from January 1998 to January 2000.

        CHRISTOPHER T. HILL has been Vice-President, Investors Relations, and
Treasurer since March 2004. Mr. Hill was Vice-President, Treasurer from May 1998
to March 2004. Prior to that he was Treasury Manager, Barrick Gold Corporation
from September 1994 to May 1998.

        JOHN W. IVANY has been Executive Vice-President of Kinross since July
1995.

        ANDREW F. KACZMAREK was appointed Vice-President, Project Development,
on March 15, 2004. Prior to that, Mr. Kaczmarek was Vice-President and General
Manager, Chairman of Gabriel Resources Limited from July 2002 to May 2003. From
January 2000 to July 2002, Mr. Kaczmarek was Manager, Safford Project of Phelps
Dodge Corporation. Prior to that, he was Director, Project Development, of
Cyprus Amax Corporation.

        GORDON A. MCCREARY has been Vice-President, Corporate Affairs, since
January 2003. Mr. McCreary has also served as a director of McChip Resources,
Inc., since 1992; Baffinland Iron Mines Limited, since 2001; and Baffinland Iron
Mines Corporation, since January 2004. Prior to that, Mr. McCreary was
Vice-President Investor Relations and Corporate Development of Kinross from May
1993.

        BRIAN W. PENNY has been the Vice-President, Finance and Chief Financial
Officer since May 1993.

        SHELLEY M. RILEY has been the Corporate Secretary of Kinross since June
1993.

        ALLAN D. SCHOENING has been Vice-President, Human Resources and
Community Relations for Kinross since July 1998. Prior to this he was Director,
Human Resources for Barrick Gold Corporation from May 1995 to June 1998.

        RONALD W. STEWART has been the Vice-President, Exploration of Kinross
since March 2002. Prior to that date he was Director of Investor Relations for
Placer Dome from January 2000 to March 2002, Manager Mine Exploration for Placer
Dome from February 1998 to January 2000 and Country Exploration Manager,
Indonesia for Placer Dome from March 1996 to February 1998.

        Other than the following, none of the directors or officers: (i) has
been subject to corporate cease trade order or similar order in the past ten
years; (ii) became bankrupt or was the director or officer of a company that
became bankrupt in the last ten years; or (iii) has been subject to penalties or
sanctions imposed by a court relating to Canadian securities legislation.

        John Ivany, the Executive Vice-President of Kinross, was the subject of
enforcement proceedings by the Alberta Securities Commission IN RE CARTAWAY
RESOURCES CORP. In its order dated February 22, 2001, the Alberta Securities
Commission found that Mr. Ivany, as Chief Executive Officer of Cartaway
Resources Corp., had allowed the issuance of a press release that contained a
material factual error in violation of the securities laws of the Province of
Alberta. As a result, Mr. Ivany was prohibited from acting as a director or
officer of any "junior issuer" for a period of five years and ordered to pay
costs in the amount of CDN $20,000. Kinross is not a junior issuer under the
applicable Alberta Securities Commission provisions.

EXECUTIVE COMPENSATION

        The following table sets forth all annual and long-term compensation for
services in all capacities to Kinross and its subsidiaries for the fiscal year
ended December 31, 2003, in respect of each of the individuals who


                                      -98-
<PAGE>

were, at December 31, 2003, the Chief Executive Officer and the four senior
executive officers, whose total salary exceeded $100,000 (the "Named Executive
Officers").

<TABLE>
<CAPTION>
                                               SUMMARY COMPENSATION TABLE
=======================================================================================================================
                                                                                                      ALL OTHER(7)
                                             ANNUAL                    LONG TERM COMPENSATION         COMPENSATION
                                ---------------------------------- ------------------------------
                                                                    COMMON SHARE     RESTRICTED
                                                                       OPTIONS     SHARES RIGHTS
                                          SALARY        BONUS          GRANTED        GRANTED
 NAME AND PRINCIPAL POSITION     YEAR        $            $               #              #
-----------------------------------------------------------------------------------------------------------------------
<S>                              <C>      <C>         <C>             <C>              <C>             <C>
Robert M. Buchan                 2003     713,500     535,125(6)      100,000          50,000          111,260
President and Chief Executive    2002     420,479     964,752(5)      124,117               -           50,367
Officer                          2001     387,360      64,650(2)       66,667               -           52,534
-----------------------------------------------------------------------------------------------------------------------
Scott A. Caldwell                2003     273,806     121,295          53,125          17,000           22,722
Executive Vice-President and     2002     203,351     175,120(5)       42,105               -           66,787(3)
Chief Operating Officer          2001     172,892      63,527          26,667               -           35,341(3)
-----------------------------------------------------------------------------------------------------------------------
Arthur H. Ditto                  2003      21,553           -               -               -        1,012,974(4)
Former Vice-Chairman             2002     247,274           -               -               -           23,758
                                 2001     228,421      32,900          41,667               -           23,398
-----------------------------------------------------------------------------------------------------------------------
John W. Ivany                    2003     237,685     102,030          44,688          14,300           27,667
Executive Vice-President         2002     197,726     226,064(5)       38,916               -           22,199
                                 2001     193,680      64,560          26,667               -           22,055
-----------------------------------------------------------------------------------------------------------------------
Brian W. Penny                   2003     198,353      69,424          27,800           8,340           18,713
Vice-President Finance and       2002     171,936     201,388(5)       33,835               -           13,109
Chief Financial Officer          2001     159,592      47,904          23,333               -           30,613(3)
=======================================================================================================================
</TABLE>
(1)     Compensation, which is paid in Canadian dollars, is reported in United
        States dollars. The rates of exchange used to convert Canadian dollars
        to United States dollars are: 2001, 1.5489; 2002, 1.5703; and 2003,
        1.4051.
(2)     Paid in January 2002.
(3)     Included in all other compensation is the value of the common shares
        granted under the restricted share plan in 2000.
(4)     Mr. Ditto retired as Vice-Chairman on February 1, 2003, and this amount
        includes his retirement allowance and bonus amount previously shown in
        2002.
(5)     Includes bonuses earned in 2002 and paid in January 2003.
(6)     Paid in January 2004.
(7)     Includes pension contributions, auto allowances, and other perquisites.

        For the period January 1 to December 31, 2003, the five senior
executives of Kinross received salaries, bonuses, and other compensation
totaling $3,466,107 in respect of services rendered to Kinross and its
subsidiaries.

        Last year's management information circular of Kinross for its annual
meeting of shareholders reported that for the period January 1 to December 31,
2002, the five senior executives of Kinross received salaries, bonuses, and
other compensation totaling $2,180,621. This figure was incorrect, as it did not
include bonuses totaling $967,936, paid in January 2003, but earned in 2002.
These bonuses were declared in recognition of the combination of Kinross with
Echo Bay and TVX.

OPTION GRANTS IN LAST FISCAL YEAR

        The following table sets forth stock options granted under Kinross'
Stock Option Plan during the fiscal year ended December 31, 2003, to each of the
named executive officers.

        The options become exercisable as to 33-1/3% on each of the first,
second, and third anniversary of the date of grant. The exercise price of the
option is the market value (as defined in Kinross' Share Incentive Plan) of the
common shares on the date of grant.


                                      -99-
<PAGE>
<TABLE>
<CAPTION>

                                           OPTION GRANTS IN LAST FISCAL YEAR
======================================================================================================================
                                                                  AVERAGE
                                                              EXERCISE PRICE      MARKET VALUE ON        DATE OF
        NAME               NUMBER                %             (CDN $/SHARE)    GRANT (CDN $/SHARE)       EXPIRY
----------------------------------------------------------------------------------------------------------------------
<S>                       <C>                   <C>               <C>                 <C>                <C>
Robert M. Buchan          100,000               13.55%            $10.90              $10.90             11/24/08
----------------------------------------------------------------------------------------------------------------------
Scott A. Caldwell          53,125                7.20%            $10.90              $10.90             11/24/08
----------------------------------------------------------------------------------------------------------------------
John W. Ivany              44,688                6.05%            $10.90              $10.90             11/24/08
----------------------------------------------------------------------------------------------------------------------
Brian W. Penny             27,800                3.77%            $10.90              $10.90             11/24/08
======================================================================================================================
</TABLE>

AGGREGATED OPTION EXERCISES IN LAST FISCAL YEAR AND FISCAL YEAR END OPTION
VALUES

        The following table sets forth details of exercised stock options during
the fiscal year ended December 31, 2003, by each of the named executive officers
and the fiscal year end value of unexercised options on an aggregate basis.

<TABLE>
<CAPTION>
                         AGGREGATED OPTION EXERCISES IN LAST FISCAL YEAR AND FISCAL YEAR END OPTION VALUES
======================================================================================================================
         NAME              COMMON        AGGREGATE VALUE        UNEXERCISED AT FISCAL         VALUE OF UNEXERCISED
                           SHARES         REALIZED ($)                 YEAR-END                     IN-THE-
                         ACQUIRED ON                          EXERCISABLE/UNEXERCISABLE     MONEY OPTIONS AT FISCAL
                          EXERCISE                                                                   YEAR-
                                                                                                 END (CDN $)(1)
                                                                                           EXERCISABLE/UNEXERCISABLE
----------------------------------------------------------------------------------------------------------------------
<S>                        <C>                <C>                <C>                               <C>
Robert M. Buchan                -                   -              690,784/100,000                  3,285,623/0
----------------------------------------------------------------------------------------------------------------------
Scott A. Caldwell          60,000             309,323               125,438/53,125                    250,683/0
----------------------------------------------------------------------------------------------------------------------
Arthur H. Ditto            42,200              36,714                    270,000/0                  1,441,651/0
----------------------------------------------------------------------------------------------------------------------
John W. Ivany              33,333               4,000               242,249/44,688                  1,053,708/0
----------------------------------------------------------------------------------------------------------------------
Brian W. Penny             30,000             202,600                97,168/27,800                    307,282/0
======================================================================================================================
</TABLE>
-------------------------
(1)     Value of unexercised-in-the-money options calculated using the closing
        price of CDN $10.32 of the Kinross common shares on the TSX on December
        31, 2003, less the exercise price of in-the-money stock options.

PENSION AND OTHER BENEFIT PLANS

CANADA

        In 1997, Kinross established a deferred profit sharing plan and a
registered retirement savings plan covering all of the Canadian non-unionized
employees. The deferred profit sharing plan provides for basic contributions by
Kinross (which cannot be less than 4% of the member's compensation). In
addition, there is an annual profit sharing contribution based on Kinross'
financial performance. Kinross contributed an aggregate of $93,985 to the
deferred profit sharing plan on behalf of the named executive officers during
the year ended December 31, 2003.

        The registered retirement savings plan is available to all Canadian
employees and allows for the minimum contribution of CDN $60 per month with
Kinross matching 100% of this amount with any additional contributions being
matched by 50% up to a maximum of CDN $30. Kinross contributed $3,084 to the
registered retirement savings plan on behalf of each of Messrs. Buchan,
Caldwell, Ivany, and Penny during the year ended December 31, 2003.

UNITED STATES

        Kinross' subsidiary, Kinross Gold U.S.A., Inc., has various pension
plans in which one executive officer is eligible to participate. Kinross is
required to make certain contributions to the pension plans on behalf of Arthur
H. Ditto.


                                     -100-
<PAGE>

        Employees are allowed to make contributions to the 401(k) Savings Plan
from salary deductions each year subject to certain limitations. Kinross has in
past years made matching contributions of 50% of each employee's contributions,
but subject to a maximum contribution of 3% of the employee's annual
compensation. Employees are always fully vested in their own salary deferral
contributions and become fully vested (in 33?% increments) in any contribution
by Kinross after three years. Participants are allowed to direct the investment
of their account within a group of designated investment funds. Kinross
contributed $3,912 to the 401(k) Savings Plan on behalf of Arthur H. Ditto
during the year ended December 31, 2003.

        Kinross established a defined contribution money purchase plan (the
"Money Purchase Plan") in which substantially all of the employees in the United
States participate. The Money Purchase Plan is funded entirely by Kinross.
Kinross contributes 5% of the employees' annual wages to this plan. Kinross is
required to make contributions to this plan such that no unfunded pension
obligations exist. Participants are allowed to direct the investment of the
pension plan account balances. Kinross contributed $6,520 to the Money Purchase
Plan on behalf of Arthur H. Ditto during the year ended December 31, 2003.

EMPLOYMENT CONTRACTS

        Kinross has entered into a severance agreement with each of the Named
Executive Officers. Each of the severance agreements provides for a severance
payment equal to two (in the case of Messrs. Ivany and Penny) or 2.5 (in the
case of Messrs. Buchan and Caldwell multiplied by the sum of the Named Executive
Officer's annual compensation (annual base salary and benefits) and target
bonus. In the case of Messrs. Buchan and Caldwell, the severance payment may be
paid to the Named Executive Officer following a change of control of Kinross, at
the option of the Named Executive Officer. On January 31, 2003, Mr. Ditto
retired as Vice-Chairman of Kinross and received payments in consideration of
the grant of a release of his entitlement under his severance agreement. In the
case of Messrs. Ivany and Penny, the severance is paid to the Named Executive
Officer if a triggering event occurs following a change of control. A triggering
event includes: (i) an adverse change in the employment terms of the executive,
(ii) a diminution of the title of the executive; (iii) a change in the person to
whom the executive reports (subject to certain exceptions); and (iv) a change in
the location at which the executive is required to work (subject to certain
exceptions). The severance amount is payable at the option of Messrs. Ivany and
Penny provided the exercise of such option occurs within 18 months following the
change of control and within six months of the triggering event.

        Other than as described above, Kinross (and its subsidiaries) have no
employment contracts in place with the Named Executive Officers and no
compensatory plans or arrangements with respect to the Named Executive Officers
that results or will result from the resignation, retirement or any other
termination of employment of such officers' employment with Kinross (and its
subsidiaries), from a change of control of Kinross (and its subsidiaries) or a
change in the Named Executive Officers' responsibilities following a change of
control.

CERTAIN TRANSACTIONS

        John E. Oliver is Senior Vice President, Atlantic Region, of the Bank of
Nova Scotia. The Bank of Nova Scotia is a co-lead of the lending syndicate for
Kinross' credit facility. The Bank of Nova Scotia's commitment to the credit
facility is approximately $20 million. Mr. Oliver's duties do not include
responsibilities in the commercial lending department responsible for management
and decisions with respect to the Kinross credit facility. The board of Kinross
does not consider this relationship to present a conflict of interest with Mr.
Oliver's responsibilities as a board member.

        Kinross holds a 10% interest in a joint venture to develop a potential
copper property in which Robert M. Buchan, chief executive officer and a
director of Kinross, and Arthur H. Ditto, a director of Kinross, hold ownership
interests. Kinross contributed $0.7 million to this joint venture during the
preceding three years to provide working capital. As of March 31, 2004, Kinross
has been reimbursed for these costs.

DIRECTORS AND OFFICERS' INSURANCE

        Kinross has purchased an insurance policy which covers actions against
its directors and officers and those of its subsidiaries. The limit of liability
applicable to all insured directors and officers under the current policy, which
expires on February 1, 2005, is $25 million in the aggregate inclusive of
defense costs. Under the policy, Kinross has reimbursement coverage to the
extent that it has indemnified the directors and officers in excess of a


                                     -101-
<PAGE>

deductible of $2 million each loss for securities claims and $1 million each
loss for non-securities claims. The total premium paid by Kinross in respect of
coverage for 2004 was $775,000, no part of which is payable by the directors or
officers of Kinross.

        The bylaws of Kinross also provide for the indemnification of Kinross'
directors and officers from and against any liability and cost in respect of any
action or suit against them in connection with the execution of their duties of
office, subject to the limitations contained in the BUSINESS CORPORATION ACT
(ONTARIO).

COMPENSATION OF DIRECTORS

        During the year ended December 31, 2003, the Compensation Committee
determined that it was desirable to obtain professional advice regarding the
compensation of Kinross' directors. Mercer Human Resource Consulting LLC
("Mercer") was retained to develop alternative pay programs for consideration by
the Compensation Committee for Kinross' outside directors and Non-Executive
Chair taking into consideration:

        (a)     Competitive compensation levels relative to the TSX 60 and TSX
                100 companies;

        (b)     Introduction of a flat fee approach; and

        (c)     Introduction of deferred share units in place of stock options.

        Reports were then prepared by Mercer pertaining to alternate methods of
director compensation and corporate governance considerations. These reports
were discussed in detail with the Compensation Committee and then presented to
the board of directors for their review and approval.

        Under the new compensation plan adopted by the board of directors, each
director who is not a salaried employee of Kinross or any of its subsidiaries is
entitled to an annual retainer of CDN $75,000; the Chairs of the Compensation,
Corporate Governance, Environmental, Health and Safety and Nominating Committees
will receive an additional annual retainer of CDN $10,000; the Chair of the
Audit Committee will receive an additional annual retainer of CDN $25,000 and
the Non-Executive Chair will receive an additional annual retainer of CDN
$125,000. The flat fee will be paid 50% in cash and 50% in deferred share units.
In addition, such directors are also entitled to the reimbursement of their
expenses.

        The main purpose of the deferred share unit plan is to strengthen the
alignment of interests between the directors and the shareholders of Kinross by
linking a portion of annual director compensation to the future value of Kinross
common shares. Under the plan, each director receives, on the date in each
quarter, which is two business days following the publication by Kinross of its
earnings results for the previous quarter (or year in the case of the first
quarter) that number of deferred share units having a value equal to 50% of the
compensation of the director for the current quarter. The number of deferred
share units granted to a director is determined by dividing the closing price of
Kinross' common shares on the Toronto Stock Exchange on the business day
immediately preceding the date of grant. At such time as a director ceases to be
a director, Kinross will make a cash payment to the director, equal to the
market value of Kinross' common shares on the date of departure, multiplied by
the number of deferred share units held on that date.

REPORT ON EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION PROGRAM

        The executive compensation program of Kinross is designed to encourage,
compensate, and reward employees on the basis of individual and corporate
performance, both in the short and long term. Base salaries are set at levels
which are competitive with the base salaries paid by similar corporations within
the mining industry. Compensation is directly tied to corporate and individual
performance. Bonuses are directly tied to the performance of Kinross. Share
ownership opportunities are provided as an incentive to align the interests of
senior officers with the longer term interests of shareholders and to reward
past performance.

        Compensation for Named Executive Officers, as well as for the senior
officers as a whole, consists of a base salary, bonus, stock options, and
restricted share rights.


                                     -102-
<PAGE>

        During the year ended December 31, 2003, the Compensation Committee
determined that it was desirable to obtain professional advice regarding the
compensation of the senior officers of Kinross and for a review to be conducted
generally in relation to compensation matters that are properly within the
purview of the Compensation Committee. As set forth above, Mercer was retained
to work with the Compensation Committee on executive compensation and related
governance requirements, including in particular:

        (a)     conducting interviews with senior management and the board of
directors to review the performance management process;

        (b)     executive compensation benchmarking;

        (c)     studying director compensation;

        (d)     the CEO evaluation process; and

        (e)     the appropriate quantum of transaction bonuses.

Reports were then prepared by Mercer pertaining to transaction bonuses, director
compensation, corporate governance considerations and executive compensation.
These reports were discussed in detail with the Compensation Committee.

BASE SALARY

        Corporate office base salaries are established at a competitive level.
The level of base salary for each senior officer of Kinross is determined by the
level of responsibility and the importance of the position to Kinross.

        For 2003, the President and Chief Executive Officer presented salary
recommendations to the Compensation Committee with respect to the senior
officers of Kinross. The Compensation Committee's recommendations for the base
salaries for the senior officers were then submitted for approval by the board
of directors of Kinross.

PRESIDENT AND CHIEF EXECUTIVE OFFICER COMPENSATION

        The Chairman of the Compensation Committee presents recommendations to
the Compensation Committee with respect to the President and Chief Executive
Officer. In setting the President and Chief Executive Officer's salary for 2003,
the Compensation Committee reviewed salaries paid to other senior officers in
Kinross, salaries paid to other chief executive officers in the industry and the
President and Chief Executive Officer's impact on the achievement of Kinross'
objectives for the previous financial year.

        To determine the President and Chief Executive Officer's compensation
for the year the Committee took into consideration Kinross' balance sheet and
other financial items; merger and acquisition initiatives; reserve position and
investor profile.

        During 2003, under President and Chief Executive Officer Robert M.
Buchan's leadership, Kinross achieved a number of important goals and
objectives. In September, 2003 the redemption of approximately CDN $195 million
5.5% Unsecured Subordinated Convertible Debentures eliminated a significant
portion of Kinross' balance sheet debt. Mr. Buchan took a leadership role in
this initiative at a time that capitalized on commodity price strength and
reduced the equity issuance obligations on Kinross. In addition, Kinross' cash
position increased 50% over prior year end. While some portion of this
improvement was attributable to the increase in the gold price and corresponding
improvements in cash flow generated from operating activities, a meaningful
portion was attributable to Mr. Buchan's leadership in asset disposal decisions.

        Two very significant merger and acquisition initiatives were completed
or initiated in 2003. In January, Kinross successfully completed a combination
agreement with Echo Bay Mines Ltd. and TVX Gold Inc., resulting in Kinross
becoming the seventh largest primary gold producer in the world. In October, Mr.
Buchan led the proposed acquisition of Crown Resources Corporation and its 100%
owned Buckhorn Mountain gold deposit. This transaction will add to Kinross'
proven and probable resources and support efforts to address concerns regarding
Kinross' long-term reserve position.


                                     -103-
<PAGE>

        Mr. Buchan played a key role in monitoring and supporting aggressive
drilling efforts at various of Kinross' properties which resulted in an increase
in the reported reserve position.

        Under Mr. Buchan's direction, Kinross committed significant resources to
advancing its profile with investors with very positive results. Mr. Buchan took
a very active role in both participating in events to promote Kinross as well as
directing resources to ensure that Kinross remains a key player with a much
larger investor base.

BONUS

        The Committee set the proposed bonuses for the 2003 fiscal year of
Kinross for the Named Executives Officers based on the performance of the Chief
Executive Officer and the senior executives with reference to the Mercer reports
discussed above with particular emphasis on the following performance metrics:

        (a)     shareholder value creation;

        (b)     corporate financial performance; and

        (c)     implementation of strategic goals.

The Committee also reviewed comparator groups to determine that bonuses were in
line with market expectations.

SHARE INCENTIVE PLAN

        The Share Incentive Plan of Kinross is designed to advance the interests
of Kinross by encouraging employees to acquire equity participation in Kinross
through the acquisition of Kinross common shares. The Share Incentive Plan
consists of a stock option plan (the "Stock Option Plan") and a share purchase
plan (the "Share Purchase Plan"). Currently the maximum number of Kinross common
shares issuable pursuant to the Share Incentive Plan is 6,833,333, representing
approximately 2.0% of the number of Kinross common shares currently issued and
outstanding.

OPTIONS

        The Stock Option Plan of Kinross is administered by the Compensation
Committee and forms part of Kinross' Share Incentive Plan. The Stock Option Plan
is designed to give each holder of an option an interest in preserving and
maximizing shareholder value in the longer term, to enable Kinross to attract
and retain individuals with experience and ability and to reward individuals for
current and future performance. The Compensation Committee considers option
grants when reviewing key employee compensation packages. Any grant
recommendations made by the Compensation Committee requires approval by the
board of directors of Kinross. In determining the number of options to be
granted, the Compensation Committee gives consideration to an individual's
present and potential contribution to the success of Kinross.

        The number of options which may be issued under the Stock Option Plan in
the aggregate and in respect of any fiscal year is limited under the terms of
the Stock Option Plan and cannot be increased without shareholder and regulatory
approval. The exercise price per share is not less than the closing price of the
Kinross common shares on the TSX on the trading day preceding the day on which
the option is granted. Each option is for a term of five years and have various
vesting periods.

        The maximum number of Kinross common shares issuable under the Stock
Option Plan is currently set at 4,166,667 in the aggregate, representing 1.2% of
the outstanding number of Kinross common shares. The maximum number of common
shares issuable to insiders pursuant to the Stock Option Plan within a one-year
period, is limited to 10% of the total number of common shares then outstanding.
The maximum number of common shares issuable to any one insider and such
insider's associates pursuant to the Stock Option Plan, within a one year
period, is limited to 5% of the total of common shares then outstanding. The
maximum number of Kinross common shares reserved for issue to any one person
under the Stock Option Plan is limited to 5% of the outstanding number of
Kinross common shares from time to time.


                                     -104-
<PAGE>

        The initial grants of options to directors, officers, and employees of
Kinross and options granted by and inherited from Kinross' predecessor companies
were ratified by the full board of directors of Kinross. All subsequent grants
were reviewed by the Compensation Committee and recommended to and approved by
the board of directors of Kinross.

SHARE PURCHASE PLAN

        For the year ended December 31, 2003, employees of Kinross or designated
affiliates are entitled to contribute up to 10% of their annual basic salary to
the Share Purchase Plan. Kinross matches the participant's contribution on a
quarterly basis and each participant is then issued common shares having a value
equal to the aggregate amount contributed to the Share Purchase Plan by the
participant and by Kinross. The purchase price per share is the weighted average
closing price of the common shares on the TSX, for participants resident in
Canada, or the NYSE, for participants resident in the United States, for the 20
consecutive trading day period prior to the end of the calendar quarter in
respect of which the common shares are issued. Such common shares are delivered
to participants 12 months following their date of issue. In the event of
termination of employment or death of an employee, any portion of the
participant's contribution then held in trust shall be paid to the participant
or his or her estate and any portion of Kinross' contribution shall be returned
to Kinross. In addition, any common shares held in safekeeping will be purchased
for cancellation at an amount equal to the participant's contribution and the
proceeds will be paid to the participant. The maximum number of common shares
issuable under the Share Purchase Plan is currently set at 2,666,666 common
shares in the aggregate.

        Subsequent to year end, Kinross made revisions to the Share Purchase
Plan. Effective January 1, 2004, Kinross' match was reduced to 50% from 100% of
the participant's contribution and common shares will be delivered to
participants six months instead of one year following their date of issue. These
changes were made to more closely align the Share Purchase Plan with those of
comparative companies.

RESTRICTED SHARE RIGHTS

        The Restricted Share Plan of Kinross is administrated by the
Compensation Committee. The purpose of the Restricted Share Plan is to advance
the interests of Kinross through the motivation, attraction, and retention of
employees, directors, and consultants of Kinross and to secure for Kinross and
its shareholders the benefits inherent in the ownership of Kinross common shares
to key employees, directors, and consultants of Kinross. Restricted share rights
("Restricted Share Rights") may be granted by the Compensation Committee to
employees, officers, directors, and consultants of Kinross as a discretionary
payment in consideration of past services to Kinross. In determining the
eligibility of participants to the Restricted Share Plan, the Compensation
Committee considers the present and potential contributions and the services
rendered by each particular participant to the success of Kinross.

        A Restricted Share Right is exercisable for no additional consideration
into one common share on the later of: (i) the end of a restricted period of
time wherein a Restricted Share Right cannot be exercised as determined by the
Committee ("Restricted Period"); and (ii) a date determined by an eligible
participant that is after the Restricted Period and before a participant's
retirement date or termination date (a "Deferred Payment Date"). The maximum
number of common shares issuable under the Restricted Share Plan is currently
set at 333,333. The maximum number of common shares issuable to insiders
pursuant to the Restricted Share Plan, within a one-year period, is limited to
10% of the total number of common shares then outstanding. The maximum number of
common shares issuable to any one insider and such insider's associates pursuant
to the Restricted Share Plan, within a one-year year period, is limited to 5% of
the total number of common shares then outstanding. The maximum number of common
chares reserved for issue to any one person under the Restricted Share Plan is
limited to 5% of the total number of common shares then outstanding. The maximum
number of common shares reserved for issue to any one person under the
Restricted Share Plan is limited to 5% of the number of common shares
outstanding from time to time.

        The grant of a Restricted Share Right is evidenced by a Restricted Share
Rights agreement between a participant and Kinross which is subject to the
Restricted Share Plan and may be subject to other terms and conditions that are
not inconsistent with the Restricted Share Plan and which the Compensation
Committee deems appropriate.

        Participants seeking to set a Deferred Payment Date must give Kinross at
least 60 days notice prior to the expiration of the Restricted Period in order
to effect such change. Participants electing to change a Deferred Payment Date
must give Kinross prior written notice not later than 60 days prior to the
Deferred Payment Date.


                                     -105-
<PAGE>

        In the event of a participant's retirement or termination during a
Restricted Period, any Restricted Share Rights automatically terminate, unless
otherwise determined by the Committee. In the event of the retirement or
termination after the Restricted Period and prior to any Deferred Payment Date,
any Restricted Share Rights shall be immediately exercised without any further
action by the participant and Kinross shall issue Restricted Shares and any
dividends declared but unpaid to the participant. In the event of death or
disability, such Restricted Share Rights shall be immediately exercised.

        If a participant holds Restricted Share Rights that are subject to a
Restricted Period, the Committee shall have the discretion to pay a participant
cash equal to any cash dividends declared on the common shares at the time such
dividends are ordinarily paid to holders of the common shares. Kinross shall pay
such cash dividends, if any, to those participants that hold Restricted Share
Rights that are no longer subject to a Restricted Period and are exercisable at
a Deferred Payment Date.

        A participant has the right, subject to the approval of the Committee,
to receive cash instead of Restricted Shares upon the exercise of Restricted
Share Rights calculated on the basis of the current market value of the common
shares.

        In the event of a change of control, all Restricted Share Rights shall
be immediately exercised notwithstanding the Restricted Period and any
applicable Deferred Payment Date.

        The Restricted Share Plan shall remain in effect until terminated by the
directors.

SHAREHOLDER RETURN PERFORMANCE GRAPH

        The following chart compares the yearly percentage changes in the
cumulative total shareholder return on the common shares against the cumulative
total shareholder return of the TSX 300 Index and the TSX Gold and Silver Index
for the period December 31, 1998 to December 31, 2003.

     COMPARISON OF CUMULATIVE TOTAL SHAREHOLDER RETURN ON THE COMMON SHARES,
               THE TSX 300 INDEX AND THE TSX GOLD AND SILVER INDEX





                               [PERFORMANCE GRAPH]



<TABLE>
<CAPTION>
                                                  1998       1999       2000       2001       2002       2003
<S>                                             <C>         <C>        <C>        <C>       <C>         <C>
Kinross                                         100.00      75.92      22.95      33.71     109.63      97.45
S&P/TSX Composite Index                         100.00     131.71     141.47     123.69     108.30     137.25
TSX Gold and Precious Minerals Index            100.00      83.01      74.74      88.40     112.41     132.91
</TABLE>


                                     -106-
<PAGE>

--------------------------------------------------------------------------------
                        PRINCIPAL SHAREHOLDERS OF KINROSS
--------------------------------------------------------------------------------

        The table below sets forth information as to each person owning of
record or who was known by Kinross to own beneficially more than 5% of the
Kinross common shares as of March 31, 2004, and information as to the ownership
of Kinross common shares by each of its directors and by all directors and
executive officers as a group. Except as otherwise indicated, all shares are
owned directly, and the persons named in the table have sole voting and
investment power with respect to shares shown as beneficially owned by them.

<TABLE>
<CAPTION>
                                                            Amount and Nature of          Percent of Kinross'
         Name and Address of Beneficial Owner(1)            Beneficial Ownership(1)          Common Shares
         ----------------------------------------------     -------------------------    ----------------------
<S>                                                             <C>                           <C>
         FMR Corp.
         82 Devonshire Street
         Boston, Massachusetts 02109                                29,555,088                    8.5

         John A. Brough(3)                                              31,166                   (2)

         Robert M. Buchan(4)                                           886,556                   (2)

         Scott A. Caldwell(5)                                          188,506                   (2)

         Arthur H. Ditto(6)                                            299,620                   (2)

         Richard S. Hallisey                                                 0                   (2)

         John M. H. Huxley(7)                                           71,603                   (2)

         John A. Keyes                                                  11,666                   (2)

         George F. Michals(8)                                          102,917                   (2)

         Cameron A. Mingay(9)                                            6,666                   (2)

         John E. Oliver(10)                                             37,360                   (2)

         EXECUTIVE OFFICERS                                                                      (2)

         Robert M. Buchan                                            See above

         Scott A. Caldwell                                           See above                   (2)

         John W. Ivany(11)                                             281,458                   (2)

         Brian W. Penny(12)                                             71,554                   (2)

         All Directors, nominees for director,
            and executive officers as a group
            twelve (12) persons                                      1,989,072                   (2)
</TABLE>
-------------------------
(1)     The information in the foregoing table is based on 345,929,995 Kinross
        common shares outstanding as of March 31, 2004. With respect to FMR
        Corp., this information is based on the filings of FMR Corp. under
        section 13 of the Exchange Act.
(2)     Less than 1%.
(3)     Includes 30,000 options to purchase common shares.
(4)     Includes 690,784 options to purchase common shares exercisable within 60
        days and 50,000 restricted share rights. Mr. Buchan also owns 384,613
        preferred shares convertible into 1,058,390 common shares and an
        additional 100,000 options.
(5)     Includes 125,438 options to purchase common shares exercisable within 60
        days and 17,000 restricted share rights. Mr. Caldwell also owns an
        additional 53,125 options.
(6)     Includes 116,667 options to purchase common shares exercisable within 60
        days.
(7)     Includes 30,000 options to purchase common shares.
(8)     Includes 75,834 options to purchase common shares.
(9)     Includes 5,000 options to purchase common shares. (10) Includes 30,000
        options to purchase common shares.
(11)    Includes 242,249 options to purchase common shares exercisable within 60
        days and 14,300 restricted share rights. Mr. Ivany also owns an
        additional 44,688 options.
(12)    Includes 57,168 options to purchase common shares exercisable within 60
        days and 8,340 restricted share rights. Mr. Penny also owns an
        additional 27,800 options.


                                     -107-
<PAGE>

--------------------------------------------------------------------------------
                     MARKET PRICE FOR KINROSS COMMON SHARES
--------------------------------------------------------------------------------

        In Canada, the Kinross common shares trade on the TSX under the symbol
"K." The Kinross common shares trade on the NYSE under the symbol "KGC." The
Kinross common shares began trading on the NYSE on February 3, 2003. The
following table sets forth, for the periods indicated, the high and low sales
prices of the Kinross common shares on the TSX and the NYSE.

<TABLE>
<CAPTION>
                                    Kinross Common Shares on the TSX(1)(2)    Kinross Common Shares on the NYSE(1)(2)(3)
                                    -------------------------------------------------------------------------------------
                                                                Average                                     Average
                                                                 Daily                                       Daily
                                       High          Low        Trading        High              Low        Trading
                                                                 Volume                                     Volume
                                    -------------------------------------------------------------------------------------
                                    (CDN Dollars) (CDN Dollars)            (U.S. Dollars)   (U.S. Dollars)
<S>                                   <C>           <C>       <C>             <C>              <C>         <C>
Fiscal Year Ended December 31, 1998     21.45         8.10      323,136         15.00            5.25        31,331
Fiscal Year Ended December 31, 1999     16.65         6.81      245,226         11.06            4.50        43,325
Fiscal Year Ended December 31, 2000     10.05         1.50      244,338          6.94            1.13        59,121
Fiscal Year Ended December 31, 2001
         First Quarter                   3.12         1.98      217,003          1.98            1.31        57,332
         Second Quarter                  4.89         2.10      529,899          3.60            1.32       137,884
         Third Quarter                   5.19         3.57      379,393          3.15            2.31        89,226
         Fourth Quarter                  4.59         2.85      331,562          2.97            1.86        58,322
Fiscal Year Ended December 31, 2002
         First Quarter                   6.42         3.51      907,887          4.02            2.13       143,703
         Second Quarter                 13.32         5.55    2,146,161          8.70            3.48       394,243
         Third Quarter                  11.25         6.18    1,695,503          7.20            3.75       282,677
         Fourth Quarter                 12.06         7.23    1,494,885          7.71            4.62       288,623
Fiscal Year Ending December 31, 2003
         First Quarter                  12.33         7.72    2,568,167          8.10            5.23       796,587
         Second Quarter                  9.88         7.92    2,132,746          7.39            5.34       645,859
         Third Quarter                  11.30         8.06    3,425,746          8.29            5.70     1,260,880
         Fourth Quarter                 12.00         9.61    2,684,527          9.22            7.19     1,361,578
Fiscal Year Ending December 31, 2004
         First Quarter                  10.93         8.70    2,327,337          8.53            6.48     1,444,124
</TABLE>
-------------------------
(1)     All amounts presented have been restated to reflect a three old for one
        new share consolidation which was completed on January 31, 2003.
(2)     Information presented through April 16, 2004.
(3)     From August 1, 2001 until February 3, 2003, the Kinross common shares
        were listed on the American Stock Exchange under the symbol "KGC." Prior
        to August 1, 2001, the Kinross common shares were listed on the NYSE.

        In addition to common shares, Kinross has redeemable retractable
preferred shares outstanding. As of March 31, 2004, there were 23,347 holders of
record of Kinross common shares (including holders who are nominees for an
undetermined number of beneficial owners).

--------------------------------------------------------------------------------
                         KINROSS SELECTED FINANCIAL DATA
--------------------------------------------------------------------------------

        The selected financial data presented in this Annual Information Form
should be read in conjunction with the consolidated financial statements of
Kinross and the notes thereto and the discussion under the caption
"--Management's Discussion and Analysis of Financial Condition and Results of
Operations."

SELECTED CONSOLDIATED HISTORICAL FINANCIAL DATA OF KINROSS

        The financial data set forth in the table below has been selected by
Kinross and has been derived from the audited financial statements for the
periods indicated.


                                     -108-
<PAGE>

        The selected consolidated financial data set forth below should be read
in conjunction with the consolidated financial statements of Kinross and the
notes thereto included in this Annual Information Form, and management's
discussion and analysis of financial condition and results of operations
included in this Annual Information Form. The financial information as at
December 31, 2003 and 2002, and for the years ended December 31, 2003, 2002, and
2001, is derived from the audited consolidated financial statements of Kinross
included in this Annual Information Form. The financial information as of
December 31, 2001, 2000, and 1999, and for the years ended December 31, 2000,
and 1999, is derived from audited consolidated financial statements of Kinross
that are neither included nor incorporated by reference in this Annual
Information Form.

        Readers should read Note 22 to the audited consolidated financial
statements for a reconciliation of the financial statements to U.S. GAAP. The
formation of Kinross on May 31, 1993, qualifies under International Accounting
Standard No. 22 (IAS 22), business combinations, as a uniting of interests and
thereby has been accounted for as a pooling of interests.

        Readers should note that in the United States, reporting standards for
auditors require the addition of an explanatory paragraph (following the opinion
paragraph) when there are changes in accounting principles that have a material
effect on the comparability of the financial statements, such as the changes
described in Note 1 to Kinross' consolidated financial statements. The auditor's
report to the shareholders dated March 12, 2004, is expressed in accordance with
Canadian reporting standards, which do not require a reference to such changes
in accounting principles in the auditors' report when the changes are properly
accounted for and adequately disclosed in the financial statements.

        The consolidated financial statements have been prepared in accordance
with Canadian generally accepted accounting principles, which differ in certain
respects from generally accepted accounting principles in the United States. See
Note 22 of the audited consolidated financial statements of Kinross for a
description of these differences.

        Kinross utilizes the U.S. $ as its reporting currency. All financial
data presented below are in millions of dollars except per share data and number
of shares outstanding.


                                     -109-
<PAGE>
<TABLE>
<CAPTION>
                                                            YEAR ENDED DECEMBER 31,
                                       ------------------------------------------------------------------
                                           2003         2002        2001         2000          1999
                                       ------------------------------------------------------------------
FOR THE PERIOD:                         (CDN GAAP)
<S>                                      <C>         <C>          <C>         <C>            <C>
Revenue and other income                 $  584.6    $  275.2     $ 282.9     $  289.3       317.0
Net earnings (loss)                           9.7       (30.9)      (36.3)      (125.4)     (243.9)
Net earnings (loss) attributable to
  common shareholders                        19.7       (38.2)      (44.0)      (132.6)     (250.4)
Cash flow  provided  from  operating
activities                                   92.7        59.5        75.0         48.0        67.3
Cash flow from (used in)
  financing activities                       28.1        67.8       (46.5)       (36.8)      (31.5)
Cash flow provided from (used in)
  investing activities                       54.7       (40.7)      (24.8)       (47.1)      (77.5)
Weighted average common shares
  outstanding (millions)                    308.6       119.7       104.5         99.4        99.7
Capital expenditures                         73.4        22.6        30.4         41.6        44.0

PER COMMON SHARE:
Net earnings (loss) - basic and diluted  $   0.06    $  (0.32)    $ (0.42)    $  (1.32)    $ (2.52)
Cash dividends to common shareholders          --          --          --           --          --
Dividends declared per common share            --          --          --           --          --
AT PERIOD END:
Cash and cash equivalents                $  245.8    $  170.6     $  81.0     $   77.8     $ 113.9
Current assets                              402.3       246.2       138.7        156.3       215.1
Total assets                              2,142.5       598.0       577.6        700.0       882.4
Current liabilities                         150.0        73.8        76.7         81.6        90.5
Long-term debt(1)                            33.1        60.4        92.5        145.6       177.6
Convertible preferred shares of
  subsidiary company                         12.6        12.9        48.0         91.8        88.3
Net shareholders' equity                  1,814.7       418.9       331.6        340.9       477.1
Working capital                             252.3       172.4        62.0         74.7       124.6
</TABLE>


                                     -110-
<PAGE>
<TABLE>
<CAPTION>

                                                                        YEAR ENDED DECEMBER 31,
                                                  --------------------------------------------------------------------
                                                      2003          2002          2001          2000          1999
                                                  ------------  ------------  ------------  ------------  ------------
FOR THE PERIOD:                                   (U.S. GAAP)  RESTATED(3)
<S>                                                 <C>          <C>           <C>          <C>           <C>
Net earnings (loss)                                 $  (16.6)     $  17.3       $ (32.3)      $(113.6)      $ (228.3)
Net earnings (loss) attributable to common             (16.6)        17.3         (32.3)       (113.6)        (228.3)
shareholders
Cash flow provided from operating activities            86.2         29.8          42.1          19.7           38.2
Cash flow  provided from (used in) financing            32.3         74.7          (6.5)        (12.5)          (7.0)
  activities
Cash flow from (used in) investing activities          (23.0)       (37.2)        (23.3)        (46.9)         (75.3)
Net income (loss) per share - basic and             $  (0.05)     $  0.14       $ (0.31)      $ (1.14)      $  (2.29)
diluted
AT PERIOD END:
Current assets                                      $  402.6      $ 204.6       $ 123.6       $ 118.6       $  178.4
Current liabilities                                    172.7         90.2          69.9          51.2           64.1
Total assets                                         2,164.5        611.2         526.2         602.3          758.0
Long-term debt (2)                                      33.1        159.9         184.9         205.3          218.1
Net shareholders' equity                             1,799.8        321.9         201.5          67.4          318.6
Working capital                                        229.9        114.4          53.7          67.4          114.3
</TABLE>
-------------------------
(1)     Includes long-term debt (current and long-term portions), the debt
        component of Kinross' 5.5% convertible subordinated unsecured debentures
        and Kinross' redeemable retractable preferred shares.
(2)     Includes long-term debt (current and long-term portions), Kinross' 5.5%
        convertible subordinated unsecured debentures and Kinross' redeemable
        retractable preferred shares.
(3)     Subsequent to the exchange of debt securities, Kinross accounted for its
        share investment in Echo Bay as an available for sale security under
        U.S. GAAP. At January 31, 2003, when Kinross acquired the remaining
        outstanding common shares of Echo Bay, Kinross retroactively restated
        its 2002 financial statements to account for its share investment in
        Echo Bay on an equity basis. As a result, Kinross reversed an unrealized
        gain of $21.8 million previously included in other comprehensive income,
        increased its deficit by $0.7 million to reflect its share of equity
        losses for the period ended December 31, 2002, and correspondingly
        reduced the carrying value of its investment. In addition, Kinross
        decreased long-term investments and recorded a share of loss in investee
        company of $1.0 million for the one month ended January 31, 2003, and
        increased long-term investments and recorded a share of income in
        investee company of $0.7 million for the year ended December 31, 2002.
        For U.S. GAAP purposes, as a result of the business combination on
        January 31, 2003, Kinross recognized an additional $40.8 million of
        goodwill representing the difference in carrying value of its share
        investment in Echo Bay between CDN and U.S. GAAP.

EXCHANGE RATE DATA

        References in this document to "U.S. dollars," or "U.S. $" are to the
currency of the United States and references to "Canadian dollars," or "CDN $"
are to the currency of Canada. Solely for your convenience, we have provided the
following exchange rate information. You should not take this information as an
assurance that the Canadian dollar amounts currently represent U.S. dollar
amounts or could be converted into U.S. dollars at the rate indicated or at any
other rate, at any time.

        The following table sets forth, for each period indicated, the high and
low exchange rates for one United States dollar expressed in Canadian dollars,
the average of such exchange rates during such period, and the exchange rate at
the end of such period, based upon the noon buying rate as reported by the Bank
of Canada:

<TABLE>
<CAPTION>
                                                                          Exchange Rates
                                                 -----------------------------------------------------------------
                                                    High            Low              Average          Period End
                                                 -----------    -------------     -------------     --------------
                                                                        (Canadian Dollars)
<S>                                               <C>             <C>               <C>               <C>
Fiscal Year Ended December 31, 2000                 1.5593          1.4341            1.4850            1.5002
Fiscal Year Ended December 31, 2001                 1.6021          1.4936            1.5484            1.5926
Fiscal Year Ended December 31, 2002                 1.6132          1.5110            1.5704            1.5796
Fiscal Year Ending December 31, 2003
        First Quarter                               1.5747          1.4656            1.5102            1.4693
        Second Quarter                              1.4846          1.3342            1.3984            1.3553
        Third Quarter                               1.4116          1.3363            1.3799            1.3504
        Fourth Quarter                              1.3480          1.2924            1.3160            1.2924
</TABLE>


                                     -111-
<PAGE>

         As of April 16, 2004, the noon buying rate as reported by the Bank of
Canada was CDN $1.3445 per U.S. $1.00. This information should not be construed
as a representation that the Canadian dollar amounts actually represent, or
could be converted into, U.S. dollars at the rate indicate.

KINROSS GOLD CORPORATION
SELECTED UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION

        The following summary of selected unaudited pro forma consolidated
financial information for Kinross is derived from and should be read in
conjunction with the detailed information contained in the audited consolidated
financial statements of Kinross and Crown as at and for the year ended December
31, 2003, each of which financial statements are included in this Annual
Information Form, together with the accompanying notes to such financial
statements.

        The unaudited pro forma consolidated financial statements of Kinross
reflect the completion of the acquisition of TVX and Echo Bay and the merger
with Crown if these transactions had occurred on January 1, 2003, for purposes
of the pro forma consolidated statement of operations and as at December 31,
2003, for purposes of the consolidated balance sheet. The unaudited pro forma
consolidated financial statements are not necessarily indicative of the
financial position or financial results that would have been achieved had the
transactions been completed as of the beginning of the period presented and
should not be construed as representative of such amounts for any future dates
or periods.

        All financial data presented are in millions of dollars, except per
share data.

                                                              PRO FORMA FOR
                                                             THE YEAR ENDED
                                                            DECEMBER 31, 2003
        OPERATING RESULTS:

        Revenue and other income                                $     613.5
        Net loss for the period                                        (5.0)
        Net earnings attributable to common
        shareholders                                                    5.0

        PER SHARE DATA:

        Net earnings per share - basic and diluted              $       0.01

                                                                PRO FORMA
                                                                  AS AT
                                                            DECEMBER 31, 2003
        FINANCIAL POSITION:

        Cash and cash equivalents                               $     246.6
        Current assets                                                403.3
        Total assets                                                2,249.7
        Current liabilities                                           150.5
        Long-term debt(1)                                              33.2
        Common shareholders' equity                                 1,919.6
        Working capital                                               252.8

-------------------------
(1)     Includes long-term debt (current and long-term portions), and Kinross'
        redeemable retractable preferred shares.

        The tables below set out the material adjustments to pro forma
consolidated net earnings (loss) and shareholders' equity reflected in the
unaudited pro forma consolidated financial information which would be required
if U.S. GAAP had been applied. These tables should be read in conjunction with
Note 22 of Kinross' audited consolidated financial statements, which are
included in this Annual Information Form.


                                     -112-
<PAGE>

                      RECONCILIATION OF PRO FORMA NET LOSS

<TABLE>
<CAPTION>
<S>                                                                             <C>
Pro forma net loss for the year under CDN GAAP                                       $      (5.0)

Adjustments for:

Recognition of deferred exchange gains and losses on convertible debentures (a)            (17.8)
Elimination of effects of recognition of equity component of convertible
  debentures (a)                                                                            (3.2)
Property,  plant and equipment & amortization of differences  from applying
  SFAS 121 (b)                                                                               6.3
Restatement to equity account for investment in Echo Bay (c)                                (1.0)
Effect of SFAS 133 (d)                                                                       0.5
Effects of SFAS 143 (e)                                                                    (11.1)
                                                                                ----------------------
Pro forma net loss for the year under US GAAP                                        $     (31.3)
                                                                                ======================

Pro forma U.S. GAAP loss per common share                                            $     (0.09)


          RECONCILIATION OF PRO FORMA CONSOLIDATED SHAREHOLDERS' EQUITY

Pro forma shareholders' Equity under CDN GAAP                                        $   1,919.6

Adjustments for:

Property,  plant and equipment & amortization of differences  from applying
  SFAS 121 (b)                                                                             (28.2)
Gains on marketable securities and long-term investments (c)                                 7.2
Restatement to equity account for investment in Echo Bay (c)                                40.8
Effect of SFAS 133 (d)                                                                     (20.5)
Effects of SFAS 143 (e)                                                                    (11.1)
Minimum pension liability (f)                                                               (3.1)
                                                                                ----------------------
Pro forma shareholders equity under US GAAP                                          $   1,904.7
                                                                                ======================
</TABLE>

        The pro forma US GAAP net loss per common share in the amount of ($0.09)
for the year ended December 31, 2003, has been calculated using the weighted
average number of common shares of Kinross outstanding during the year ended
December 31, 2003, plus the additional common shares that will be issued to
complete the merger with Crown and the additional weighting of the shares issued
to complete the business combination with TVX and Echo Bay, had that combination
been completed on January 1, 2003.

        (a)     Under CDN GAAP, the convertible debentures, described in Note 13
of Kinross' audited financial statements were accounted for in accordance with
their substance and, as such, were presented in the financial statements in
their liability and equity component parts. Kinross redeemed these convertible
debentures on September 29, 2003. Under U.S. GAAP, the entire principal amount
of the convertible debentures, plus accrued interest of $146.8 million
immediately prior to the redemption and $123.8 million at December 31, 2002, was
treated as debt with interest expense based on the coupon rate of 5.5%.

        In addition, under CDN GAAP, realized and unrealized foreign exchange
gains and losses on the debt component of the debentures were recognized in
income. For U.S. GAAP, in addition to including these gains and losses in
income, realized and unrealized exchange gains and losses related to the portion
of the convertible debentures included in equity under CDN GAAP were also
included in income. There was no gain or loss on the redemption of the
convertible debentures for U.S. GAAP.

        (b)     Cumulatively, as a result of applying SFAS 121 "Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of"
and following the adoption of SFAS 144 "Accounting for the Impairment or
Disposal of Long-Lived Assets," property, plant and equipment is reduced and the
deficit increased by $60.5 million. This difference arose from the requirement
to discount future cash flows from impaired property, plant and equipment under
U.S. GAAP and from using proven and probable reserves only. At the time of the
impairment, future cash flows from impaired property, plant, and equipment were
not discounted under CDN


                                     -113-
<PAGE>

GAAP. Under U.S. GAAP, depreciation, depletion, and amortization, in periods
subsequent to the impairment, would be reduced by $6.3 million, $8.1 million,
and $6.1 million during the years ended December 31, 2003, 2002, and 2001,
respectively, to reflect the above. Cumulatively, as a result of these
reductions in depreciation, depletion, and amortization, property, plant, and
equipment is increased and the deficit decreased by $32.3 million and $26.0
million as at December 31, 2003 and 2002, respectively.

        (c)     Under CDN GAAP, unrealized gains and losses on long-term
investments and marketable securities are not recorded. Under U.S. GAAP,
unrealized gains on long-term investments that are classified as securities
available for sale of $6.9 million and $13.5 million at December 31, 2003 and
2002, respectively, and marketable securities of $0.3 million and $0.1 million
at December 31, 2003 and 2002, respectively are included as a component of
comprehensive income (loss).

        Furthermore, U.S. GAAP requires that the transaction on April 3, 2002,
whereby Kinross exchanged its investment in debt securities of Echo Bay for 57.1
million common shares of Echo Bay, be recorded at fair value with the resulting
gain included in earnings. Fair value of the Echo Bay common shares received,
under U.S. GAAP, was $49.1 million, representing 57.1 million common shares at
$0.86 each, being the closing market price of such shares on April 3, 2002. Fair
value is not discounted for liquidity concerns or other valuation
considerations.

        The resulting gain of $42.5 million, after deducting the $6.6 million
carrying value of the debt securities exchanged, increased the carrying value of
this investment and was included in earnings for the year ended December 31,
2002. Under CDN GAAP, the cost of the Echo Bay common shares acquired on the
exchange was recorded at the values of the securities given up. Since the fair
value of the capital securities given up approximated their carrying value, no
gain was recorded under CDN GAAP.

        Subsequent to the exchange of debt securities, Kinross accounted for its
share investment in Echo Bay as an available for sale security under U.S. GAAP.
At January 31, 2003, when Kinross acquired the remaining outstanding common
shares of Echo Bay, Kinross retroactively restated its 2002 consolidated
financial statements, prepared in accordance with U.S. GAAP, to account for its
share investment in Echo Bay on an equity basis. As a result, Kinross reversed
an unrealized gain of $21.8 million previously included in other comprehensive
income, increased its deficit by $0.7 million to reflect its share of equity
losses for the period ended December 31, 2002, and correspondingly reduced the
carrying value of its investment. In addition, Kinross decreased long-term
investments and recorded a share of loss in investee company of $1.0 million for
the one month ended January 31, 2003, and increased long-term investments and
recorded a share of income in investee company of $0.7 million during the year
ended December 31, 2002.

        For U.S. GAAP purposes, as a result of the business combination on
January 31, 2003, Kinross recognized an additional $40.8 million of goodwill
representing the difference in carrying value of its share investment in Echo
Bay between CDN and U.S. GAAP.

        (d)     Under CDN GAAP, derivatives hedging forecasted transactions are
off-balance sheet until the hedged transaction is recorded. Realized gains and
losses on derivatives that are closed out early are initially recorded as
deferred revenue or deferred charges and are recorded as an adjustment to net
earnings (loss) when the original hedged transaction is recorded.

        On January 1, 2001, Kinross adopted Financial Accounting Standards Board
("FASB") Statement No. 133, "Accounting for Derivative Instruments and Hedging
Activities" ("SFAS 133"), and the corresponding amendments under FASB Statement
No. 138 ("SFAS 138"). SFAS 133 requires that all derivative financial
instruments be recognized in the financial statements and measured at fair value
regardless of the purpose or intent for holding them. Changes in the fair value
of derivative financial instruments are either recognized periodically in income
or shareholders' equity (as a component of other comprehensive income),
depending on whether the derivative is being used to hedge changes in fair value
or cash flows. SFAS 138 amends certain provisions of SFAS 133 to clarify four
areas causing difficulties in implementation.

        For derivatives designated as cash flow hedges, the effective portions
of changes in fair value of the derivative are reported in other comprehensive
income and are subsequently reclassified into other income when the hedged item
affects other income. Changes in fair value of the derivative instruments used
as economic instruments and ineffective portions of hedges are recognized in
other income in the period incurred.


                                     -114-
<PAGE>

        The application of SFAS 133 results in a cumulative decrease in deferred
revenue of $2.2 million and $4.5 million, a cumulative increase in accounts
payable and accrued liabilities of $22.7 million and $21.1 million, a cumulative
increase in deficit of $1.4 million and $1.9 million, and a cumulative decrease
in other comprehensive income of $19.1 million and $14.7 million at December 31,
2003 and 2002, respectively. Additionally, as a result of applying SFAS 133,
there would be an increase in the CDN GAAP net earnings of $0.5 million and a
decrease in the CDN GAAP net loss $2.0 million for the years ended December 31,
2003 and 2002, respectively. On adoption of SFAS 133, Kinross did not complete
the required documentation and effectiveness assessments to achieve hedge
accounting for the commodity derivatives hedging gold revenues and energy price
risk, although the contracts are considered to be effective economic hedges and
they were accounted for as hedges for CDN GAAP purposes. For U.S. GAAP only,
these derivatives are carried at fair value with the changes in fair value
recorded as an adjustment to net earnings (loss). The SFAS requirements for
foreign exchange forward contracts were accounted for as cash flow hedges from
January 1, 2001. Realized and unrealized derivatives gains and losses included
in other comprehensive income ("OCI") on transition and during 2001 were
reclassified into mining revenue for cash-flow hedges of forecasted commodity
sales and foreign exchange gain (loss) for forecasted foreign currency revenues
or expenses when the hedged forecasted revenue or expense is recorded. During
the year ended December 31, 2003, $9.3 million of derivative losses were
reclassified out of other comprehensive income (year ended December 31, 2002,
$16.3 million of comprehensive gain). Kinross estimates that $15.3 million of
net derivatives losses included in other comprehensive income will be
reclassified into earnings within the next twelve months.

        Beginning January 2002, Kinross met the required documentation
requirements under SFAS 133 relating to the prospective and retrospective
effectiveness assessments for the commodity derivatives; thus, these derivatives
were designated as cash flow hedges. The effective portions of changes in fair
values of these derivatives are now recorded in other comprehensive income and
are recognized in the income statement when the hedged item affects earnings.
Ineffective portions of changes in fair value of cash flow hedges are recognized
in earnings. There was no ineffectiveness recorded during 2003, 2002, or 2001.

        (e)     On January 1, 2003, Kinross adopted SFAS 143, "Accounting for
Asset Retirement Obligations" which requires that the fair value of liabilities
for asset retirement obligations associated with tangible long-lived assets be
recognized in the period in which they are incurred. For the purposes of
applying SFAS 143, asset retirement obligations are based principally on legal
and regulatory requirements associated with the retirement of long-lived assets
that result from the acquisition, construction, development, and/or the normal
operation of a long-lived asset. When the liability is initially recorded, a
corresponding increase to the carrying amount of the related asset is recorded
and then depreciated over the useful life of the asset. Over time, the liability
is increased to reflect an interest element (accretion) considered in its
initial measurement at fair value. This differs from the prior practice in which
Kinross accrued for the estimated site restoration and closure obligations over
the producing life of the mine with an annual charge to earnings. Under SFAS
143, accretion is charged against earnings during the life of the mine and
afterwards until all obligations have been settled.

        Kinross is not required to re-measure the obligation at fair value each
period, but is required to evaluate the cash flow estimates at the end of each
reporting period to determine whether the estimates continue to be appropriate.
Upon settlement of the liability, Kinross will record a gain or loss if the
actual cost incurred is different than the liability recorded. The cumulative
effect of adopting SFAS 143 was to increase property, plant, and equipment by
$1.6 million, increase long-term equity accounted investments by $0.3 million,
increase site restoration cost accruals by $14.0 million, and to record a
one-time charge of $12.1 million ($0.04 per share) to earnings in the year ended
December 31, 2003. Following the adoption of SFAS 143, the total amount of
recognized liabilities for asset retirement obligations was $66.9 million. If
the change had occurred on January 1, 2002, the cumulative effect would have
resulted in no change to property, plant, and equipment, an increase of $0.3
million in long-term equity accounted investments, an increase in site
restoration cost accruals of $22.5 million and a one-time charge of $22.2
million ($0.18 per share) to earnings in the year ended December 31, 2002. The
total amount of recognized liabilities would have been $74.7 million at December
31, 2001. For the year ended December 31, 2003, the effect on earnings in
addition to the cumulative effect of adopting SFAS 143 was a decrease in net
loss of $1.0 million ($nil per share). For the year ended December 31, 2002, the
effect of adopting SFAS 143 in addition to the cumulative effect, would have
been a decrease in net income of $0.1 million ($nil per share), an increase in
property, plant, and equipment of $1.7 million and a reduction in long-term
investments of $0.1 million.

        The following is a reconciliation of the liability for asset retirement
obligations:


                                     -115-
<PAGE>

         ----------------------------------------------------------
         Balance as at December 31, 2002               $    52.9
         ----------------------------------------------------------
         Impact of adoption of SFAS 143                     14.0
         ----------------------------------------------------------
         Additions to liabilities(1)                        68.5
         ----------------------------------------------------------
         Liabilities settled                               (22.4)
         ----------------------------------------------------------
         Accretion expense                                   9.4
         ----------------------------------------------------------
         Foreign exchange                                    3.4
         ----------------------------------------------------------
         Revisions                                           5.0
         ----------------------------------------------------------
         Balance as at December 31, 2003               $   130.8
         ----------------------------------------------------------

-------------------------
(1)     Properties acquired from Echo Bay Mines Ltd. and TVX Inc. of $45.5
        million and $17.5 million, respectively, and $5.5 million relating to
        the Kubaka Mine as a result of changing accounting for the investment in
        Omolon from the equity method to full consolidation.

        (f)     Under U.S. GAAP, if the accumulated pension plan benefit
obligation exceeds the market value of plan assets, a minimum pension liability
for the excess is recognized to the extent that the liability recorded in the
balance sheet is less than the minimum liability. Any portion of this additional
liability that relates to unrecognized prior service cost is recognized as an
intangible asset while the remainder is charged to Other Comprehensive Income.
CDN GAAP does not require Kinross to record a minimum liability and does not
have the concept of Other Comprehensive Income. During the year, Kinross
recorded a minimum pension liability of $3.1 million (2002 - $nil) with a
corresponding decrease in Other Comprehensive Income. None of the additional
liability relates to unrecognized prior service cost.

<TABLE>
<CAPTION>
                                                      ---------------------------------------------------------------
                                                          Plans where assets                   Plans where
                                                          exceed accumulated              accumulated benefits
                                                               benefits                       exceed assets
---------------------------------------------------------------------------------------------------------------------
Amounts recognized on the consolidated                December 31,    December 31,    December 31,    December 31,
   balance sheets consist of:                             2003            2002            2003            2002
---------------------------------------------------------------------------------------------------------------------
<S>                                                     <C>            <C>               <C>           <C>
Accrued pension asset (liability)                       $    (0.3)     $     0.4         $    1.3      $    --
---------------------------------------------------------------------------------------------------------------------
Additional minimum pension obligation                          --             --             (3.1)          --
---------------------------------------------------------------------------------------------------------------------
Accumulated other comprehensive income                         --             --              3.1           --
---------------------------------------------------------------------------------------------------------------------
Net amount recognized on consolidated balance sheets    $    (0.3)     $     0.4         $    1.3      $    --
---------------------------------------------------------------------------------------------------------------------
</TABLE>


                                     -116-
<PAGE>

--------------------------------------------------------------------------------
     KINROSS MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                              RESULTS OF OPERATIONS
--------------------------------------------------------------------------------

        All results are expressed in United States dollars unless otherwise
stated

        Management's discussion and analysis ("MD&A") provides a detailed
discussion of Kinross' financial and operating results for the year ended
December 31, 2003, with comparisons to the two previous years. The following
information should be read in conjunction with the consolidated financial
statements and accompanying notes.

        This discussion is intended to provide investors with a reasonable basis
for assessing Kinross' operating and financial performance and future prospects.

        The discussion is comprised of eight key sections.

        1.      Overview--a summary of production, financial results, and cash
flow provided from operating activities.

        2.      Material Events--details of events during the year that
materially impacted Kinross' operations and financial position.

        3.      Financial/Operations--analysis of the overall results of Kinross
with specific details of each mine's operations.

        4.      Liquidity and Capital Resources--details of the Kinross'
liquidity and the sources and uses of cash.

        5.      Critical Accounting Policies--summary of material accounting
policies.

        6.      Risk Analysis--details of the material risks to Kinross.

        7.      Strategy--describes Kinross' strategic plan.

        8.      Outlook--summary outlook for the year ahead.

OVERVIEW

        Kinross is principally engaged in the mining and processing of gold and,
as a by-product, silver ore and the exploration for, and the acquisition of,
gold-bearing properties, principally in the Americas and Russia. Kinross'
products are gold and silver produced in the form of dore that is shipped to
refineries for final processing.

        The profitability of Kinross and its competitors is subject to the world
prices of gold and silver and the costs associated with the acquisition,
exploration, and development of mining interests, the mining and processing of
gold and silver, regulatory and environmental compliance, and general and
administrative functions. The prices of gold and silver are subject to a
multitude of variables outside of Kinross' control. In order to minimize the
impact of price movements, management continually strives to be a low cost
producer.

        On January 31, 2003, Kinross combined its operations with those of TVX
and Echo Bay. This transaction is more fully discussed in the section entitled
"Material Events" and in Note 2 to the consolidated financial statements. The
results for 2003 include eleven months of operations of these assets. The
results of operations of TVX and Echo Bay are not included in the consolidated
financial statements for the years ended December 31, 2002 and 2001.

        This transaction had a material impact on Kinross' operations and its
balance sheet rendering comparisons to previous years rather meaningless except
in the discussion of the operations of each mine. Those discussions


                                     -117-
<PAGE>

include both mines owned at the beginning of the year and those added during the
year as a result of the combination.

RESULTS SUMMARY

        Kinross' share of attributable gold equivalent production was 1,620,410
ounces in 2003, an increase of 82% over 2002 production of 888,634 ounces and
72% over 2001 production of 944,803 ounces. The increase in 2003 is attributed
to the addition of 838,883 ounces resulting from the combination with TVX and
Echo Bay.

        Revenue from gold and silver sales was $571.9 million in 2003, compared
to $261.0 million in 2002 and $270.1 million in 2001.

        Average total cash costs per attributable gold equivalent ounces were
$222 in 2003 compared to $201 in 2002 and $193 in 2001. Cash flow provided from
operating activities for the year was $92.7 million compared to $59.5 million in
2002 and $75.0 million 2001. Cash flow provided from operating activities in
2003 was positively impacted by higher gold production and higher gold prices.

        Net income for the year ended December 31, 2003, totaled $9.7 million,
or $0.06 per share. This compares to net losses of $30.9 million ($0.32 per
share) for 2002 and $36.3 million ($0.42 per share) in 2001.

MATERIAL EVENTS

        During 2003, Kinross completed or committed to certain transactions that
had, and will have, a material impact on Kinross' operations, its financial
condition, and its prospects. The following details those transactions:

        1.      TVX GOLD INC. AND ECHO BAY MINES LTD. COMBINATION

        Kinross, TVX, and Echo Bay entered into a combination agreement dated
June 10, 2002, as amended as of July 12, 2002 and November 19, 2002, for the
purpose of combining the ownership of their respective businesses. The
combination was effected by way of a plan of arrangement under the Canada
Business Corporations Act with an effective date of January 31, 2003.

        In a concurrent transaction, TVX entered into two agreements dated June
10, 2002, each amended as of November 19, 2002, with a subsidiary of Newmont.
Pursuant to these agreements, TVX acquired Newmont's 50% non-controlling
interest in the TVX Newmont Americas Joint Venture ("TVX Newmont J/V") for an
aggregate purchase price of $180.0 million with an effective date of January 31,
2003. Kinross advanced TVX $94.5 million immediately prior to the completion of
the combination which allowed TVX to complete the acquisition of the 50%
non-controlling ownership interest in TVX Newmont J/V.

        Pursuant to the combination, TVX became a wholly-owned subsidiary of
Kinross on January 31, 2003, and each holder of TVX common shares received
2.1667 common shares of Kinross for each TVX common share. Also pursuant to the
combination, Echo Bay became a wholly-owned subsidiary of Kinross and each
holder of Echo Bay common shares, other than Kinross, received 0.1733 of a
common share of Kinross for each Echo Bay common share. The exchange ratios
reflect the three-for-one consolidation of Kinross' common shares that was
completed on January 31, 2003, immediately prior to the arrangement. Kinross
issued 177.8 million common shares with a fair value of $1,269.8 million with
respect to the combination with TVX and Echo Bay.

        TVX held interests in various operating mines located in Canada, Brazil,
and Chile. Giving effect to the acquisition of Newmont's 50% interest in TVX
Newmont J/V, TVX's share of production from these mines in 2002 was 473,602
ounces of gold equivalent. Echo Bay held interests in various operating mines in
Canada and the United States. Echo Bay's share of production from these mines in
2002 was 522,208 ounces of gold equivalent.

        The combination is being accounted for using the purchase method of
accounting. Pursuant to the purchase method of accounting, the TVX and Echo Bay
assets acquired and liabilities assumed have been recorded at their fair values
as of the effective date of the combination. The excess of the purchase price
over such fair values is recorded as goodwill. Goodwill is assigned to specific
reporting units as of the date of the combination and will not be amortized.


                                     -118-
<PAGE>

        The goodwill resulting from the business combinations is $918.0 million
and has been assigned to the Exploration and Acquisitions reporting unit and the
Corporate reporting unit in the amount of $908.4 million and $9.6 million,
respectively. Goodwill will be tested for possible impairment at least annually
or more frequently upon the occurrence of certain events or when circumstances
indicate the reporting unit's carrying value, including goodwill, is greater
than its fair value. At December 31, 2003, Kinross has determined that there is
no impairment of goodwill as discussed in more detail in the section entitled
"Critical Accounting Policies."

        A more detailed discussion of the properties acquired pursuant to the
business combinations and their impact on Kinross' operations, is provided under
the section entitled "Financial/Operations--Operation."

        Concurrent with Kinross' shareholder approval of the combination,
approval was also given for the elimination of Kinross' accumulated deficit of
approximately $761.4 million as at December 31, 2002.

        2.      COMMON SHARE ISSUE AND CONVERTIBLE DEBENTURE REDEMPTION

        On August 28, 2003, Kinross issued 23.0 million common shares from its
treasury for gross proceeds of $152.5 million. The bulk of the net proceeds from
the offering were used to redeem the outstanding 5.5% convertible unsecured
subordinated debentures. The principal amount of the convertible debentures was
$144.8 million.

        The debentures were redeemed on September 29, 2003, which gave rise to a
net gain on redemption of $15.4 million. The financial impact of the redemption
is fully described in Note 13 to the consolidated financial statements.

        3.      SALE OF EQUITY INVESTMENTS

        During the fourth quarter of 2003, Kinross sold several of its equity
interests and portfolio investments which were considered non-strategic,
including investments in Minefinders Corporation Ltd., Pacific Rim Mining
Corporation, and Endeavour Mining Capital Corporation. Proceeds from the sale of
equity investments totaled $56.2 million. These transactions resulted in
after-tax gains amounting to $26.0 million which are included in the
Consolidated Statements of Operations for the year as a component of the $29.5
million gain on disposal of assets.

        4.      FURTHER DEBT REPAYMENT

        As at December 31, 2003, Kinross owed $25.0 million in tax exempt
industrial revenue bonds to the Alaska Industrial Development and Export
Authority. The obligation was fully secured by a letter of credit issued by
Kinross under its syndicated credit facility. On January 7, 2004, Kinross repaid
the debt in its entirety and the letter of credit was returned and cancelled.

        5.      NEW SYNDICATED CREDIT FACILITY

        On February 27, 2003, Kinross arranged a new $125.0 million credit
facility with a group of eight banks. The facility may be used for general
corporate purposes but its main purpose is to allow for the issuance of letters
of credit to various regulatory agencies to satisfy financial assurance
requirements. The facility is secured by the Fort Knox mine and shares in
various wholly-owned subsidiaries. As at December 31, 2003, there were letters
of credit issued against the facility totaling $118.2 million. This has been
reduced subsequent to the year end to $92.7 million as a result of the
cancellation of the letter of credit supporting the industrial revenue bonds
that were repaid subsequent to year end as described above.

        6.      ACQUISITION OF 43.44% OF OMOLON GOLD MINING COMPANY

        On December 3, 2002, Kinross entered into purchase agreements with four
of the five Russian minority shareholders holding 44.17% of the shares of Omolon
Gold Mining Company ("Omolon"). Omolon agreed to purchase these shares from the
four shareholders for $44.7 million. The acquisition increased Kinross'
ownership interest in Omolon to 98.1% and closed in February of 2003.

        7.      ACQUISITION OF CROWN RESOURCES CORPORATION


                                     -119-
<PAGE>

        On November 20, 2003, Kinross announced that it had executed a
definitive acquisition agreement with Crown Resources Corporation ("Crown")
whereby Kinross will acquire Crown and its wholly-owned Buckhorn gold deposit
located in north central Washington State, approximately 67 kilometers by road
from Kinross' Kettle River gold milling facility. On December 16, 2003, Crown
reported total proven and probable reserves, at a gold price of $350 per ounce,
for the Buckhorn Mountain Project of 2.79 million tonnes grading 11.05 grams of
gold per tonne containing 991,300 ounces of gold.

        The current operating plan for the Buckhorn Mountain Project
contemplates the development of an underground mine and the shipping of ore to
the Kettle River mill. This development strategy addresses the major
environmental issues identified during prior permitting efforts. Kinross has a
strong environmental record and believes that by working diligently with
federal, state, and local agencies as well as other stakeholders, the permitting
process, initiated by Crown, can be successfully completed in a timely manner.

        Kinross has agreed to issue 0.2911 of a common share of Kinross for each
outstanding common share of Crown. The total common shares to be issued by
Kinross is approximately 13.6 million. A registration statement covering the
issuance of the common shares has been filed with the U.S. Securities and
Exchange Commission. It is anticipated that the acquisition of Crown will be
completed following the effectiveness of the registration statement and the
approval of the transaction by the Crown shareholders.

        8.      SUMMARY

        The results of these material transactions were to add to Kinross'
annual production output, to increase reserves, to virtually eliminate all debt
and to increase cash balances as at December 31, 2003, to $245.8 million.

        Management considers 2003 as a transition year whereby a strong
financial and operating foundation was put in place to provide a basis for
future growth and profitability.

FINANCIAL/OPERATIONS

BALANCE SHEET

Key items and statistics are highlighted below (in millions of U.S. dollars):

<TABLE>
<CAPTION>
                                          2003               2002               2001
                                     ---------------    ---------------    ---------------
<S>                                     <C>               <C>                <C>
Unrestricted cash and equivalents       $    245.8        $    170.6         $      81.0
Current Assets                          $    402.3        $    246.2         $     138.7
Total Assets                            $  2,142.5        $    598.0         $     577.6
Debt and other obligations(1)           $     45.7        $    205.6         $     265.3
Current Liabilities                     $    150.0        $     73.8         $      76.7
Total Liabilities(2)                    $    327.8        $    311.4         $     370.8
Shareholders' Equity(3)                 $  1,814.7        $    286.6         $     206.8
STATISTICS
   Working Capital                      $    252.3        $    172.4         $      62.0
   Working Capital Ratio(4)                  2.68x             3.34x               1.81x
</TABLE>
-------------------------
(1)     Includes long-term debt (plus the current portion thereof), preferred
        shares, and debt and equity components of convertible debentures.
(2)     Include equity component of convertible debentures, preferred shares,
        and non-controlling interest.
(3)     Excludes equity component of convertible debentures.
(4)     Current assets divided by current liabilities.


                                     -120-
<PAGE>

REVENUES

GOLD AND SILVER SALES

        Kinross' primary source of revenue is from the sale of its gold
production. Kinross sold 1,541,575 ounces of gold in 2003, compared to 848,513
ounces in 2002 and 907,149 ounces in 2001. Revenue from gold and silver sales
was $571.9 million in 2003, compared to $261.0 million in 2002 and $270.1
million in 2001. In 2003, Kinross realized, on average, $357 per ounce of gold
compared to $306 in 2002 and $296 in 2001. Revenue increases in 2003 were
principally from the sale of gold and silver produced by the properties added
from the TVX/Echo Bay combination totaling 838,883 ounces of gold equivalent and
the increase in the realized gold price.

<TABLE>
<CAPTION>
                                                              2003               2002              2001
                                                         ---------------   ---------------   ---------------
<S>                                                         <C>               <C>                <C>
Attributable gold equivalent production--ounces             1,620,410            888,634            944,803
Gold sales--ounces                                          1,541,575            848,513            907,149
Gold sales--revenue (millions)                              $   547.6         $    254.5         $    251.1
Gold deferred revenue realized (millions)                         2.3                5.1         $     17.7
                                                            ---------       ------------       ------------
Total gold revenue realized (millions)                      $   549.9         $    259.6              268.8
                                                            =========       ============       ============
Average sales price per ounce of gold                       $     355         $      300         $      277
Deferred revenue realized per ounce of gold                         2                  6                 19
                                                            ---------       ------------       ------------
Average realized price per once of gold sold                $     357         $      306         $      296
                                                            =========       ============       ============
Average spot gold price per ounce                           $     364         $      310         $      271
                                                            ---------       ------------       ------------
Silver sales revenue (millions)                             $    22.0         $      1.4         $      1.3
                                                            ---------       ------------       ------------
Total gold and silver revenue (millions)                    $   571.9         $    261.0         $    270.1
                                                            =========       ============       ============
</TABLE>

        Included in gold equivalent production is silver production converted to
gold production using a ratio of the average spot market prices for the
commodities for each year. The ratios are 74.79:1 in 2003, 67.24:1 in 2002, and
62.00:1 in 2001. Silver production was 4.4 million ounces in 2003, 0.3 million
ounces in 2002, and 0.4 million ounces in 2001. For 2003, 86% of the total was
produced at the La Coipa mine.

        Realized revenue is furnished to provide additional information and is a
non-GAAP measure. This measure combined with total cash costs is intended to
provide investors with information about the cash generating capability
(realized revenue per ounce net of total cash costs per ounce) of the mining
operations. Kinross uses this information for the same purpose and for assessing
the performance of its mining operations. The measure of average realized price
per ounce of gold sold has been calculated on a consistent basis in each period.

INTEREST AND OTHER INCOME

        Kinross invests its surplus cash in high quality, interest-bearing cash
equivalents. Interest and other income during 2003 totaled $12.3 million
compared to $16.9 million in 2002 and $9.3 million in 2001. Interest and other
income in 2003 was comprised of interest on cash deposits of $4.6 million, the
Sleeper mine reclamation recovery of $4.0 million and $3.7 million of other
items. This compares to 2002 interest on cash deposits of $1.5 million,
arbitration settlements of $10.3 million, and $5.1 million of other items. For
2001, interest on cash deposits totaled $4.9 million, insurance settlements were
$1.3 million, and other items totaled $3.1 million.

MARK-TO-MARKET GAIN (LOSS) ON WRITTEN CALL OPTIONS

        In accordance with recommendations from the Canadian Institute of
Chartered Accountants ("CICA") regarding accounting for written call options,
the premiums received at the inception of the option are recorded as a
liability. Changes in the fair value of the liability are recognized in
earnings. The change in fair value of the written call options resulted in a
mark-to-market gain of $0.4 million in 2003. This compared to a loss of $2.7
million in 2002 and a gain of $3.5 million in 2001. The remaining positions held
by Kinross at December 31, 2003, will expire by June 2004.

COSTS AND EXPENSES

OPERATING COSTS


                                     -121-
<PAGE>

        Gold equivalent production in 2003 increased by 82% when compared to
2002, while operating costs increased by 122%. Operating costs were $387.3
million in 2003 compared to $174.8 million in 2002 and $180.7 million in 2001.

        Total cash costs per ounce of gold equivalent production were $222 in
2003, compared to $201 in 2002, and $193 in 2001. Total cash costs per ounce of
gold equivalent produced in 2003 increased at Kubaka as low-grade stockpiles
were being milled. Total cash costs increased at the Porcupine Joint Venture as
the Canadian dollar strengthened against the United States dollar materially
during the year. Total cash costs at Fort Knox increased due primarily to lower
gold production from the True North mine. Total cash costs for each mine are
discussed in more detail in the section entitled "Operations."

<TABLE>
<CAPTION>

CONSOLIDATED PRODUCTION COSTS PER
  EQUIVALENT OUNCE OF ATTRIBUTABLE
  GOLD PRODUCTION                                              YEARS ENDED DECEMBER 31,
                                                 ------------------------------------------------------
                                                      2003                2002               2001
                                                 ----------------    ---------------    ---------------
<S>                                                 <C>                 <C>                <C>
Cash operating costs                                $    211            $    194           $    186
Royalties                                                 11                   7                  7
                                                    --------            --------           --------
Total cash costs                                    $    222            $    201           $    193
                                                    --------            --------           --------
Reclamation                                                6                   4                  2
Depreciation, depletion and amortization                  91                 101                 94
                                                    --------            --------           --------
Total production costs                              $    319            $    306           $    289
                                                    ========            ========           ========
</TABLE>

        The following table reconciles the production costs per equivalent ounce
of gold presented above to the operating costs presented in the consolidated
financial statements.

<TABLE>
<CAPTION>

RECONCILIATION OF TOTAL CASH COSTS PER
  EQUIVALENT OUNCE OF GOLD TO CONSOLIDATED
  FINANCIAL STATEMENTS                                                     YEARS ENDED DECEMBER 31,
                                                             ------------------------------------------------------
(millions except production in ounces and per ounce amounts)       2003               2002                2001
                                                             ----------------    --------------     ---------------
<S>                                                           <C>                <C>                <C>
Operating costs per financial statements                        $    387.3         $    174.8         $     180.7
Operating costs for attributable production                            0.4               13.4                 7.4
Site restoration cost accruals                                        (9.4)              (3.0)               (1.9)
Change in bullion inventory                                           (2.5)              (2.0)                1.5
Operating costs not related to gold production                       (16.4)              (4.4)               (5.2)
                                                                ----------         ----------         -----------
Total cash costs for per ounce calculation purposes             $    359.4         $    178.8         $     182.5
                                                                ----------         ----------         -----------
Gold equivalent production--ounces                               1,620,410            888,634             944,803
Total cash costs per equivalent ounce of gold                   $      222         $      201         $       193
                                                                ==========         ==========         ===========
</TABLE>

        Total cash costs per equivalent ounce of gold is furnished to provide
additional information and is a non-GAAP measure. This measure should not be
considered in isolation as a substitute for measures of performance prepared in
accordance with generally accepted accounting principles and is not necessarily
indicative of operating expenses as determined under generally accepted
accounting principles. This measure intends to provide investors with
information about the cash generating capabilities of Kinross' operations.
Kinross uses this information for the same purpose and for assessing the
performance of its mining operations. Mining operations are capital intensive.
The measure total cash costs excludes capital expenditures but is reconciled to
total operating costs for each mine. Capital expenditures require the use of
cash in the current period, and in prior periods and are discussed throughout
the MD&A and included in the segmented information note to the consolidated
financial statements (Note 19).


                                     -122-
<PAGE>

OPERATIONS

        Details of each individual mine operation, its performance, and outlook
are discussed in this section. First a summary:

<TABLE>
<CAPTION>
                                                               YEARS ENDED DECEMBER 31,
                                                ----------------------------------------------------
GOLD EQUIVALENT PRODUCTION (OUNCES)                   2003               2002              2001
                                                ----------------    --------------    --------------
<S>                                               <C>               <C>               <C>
PRIMARY OPERATIONS:
   Fort Knox                                         391,831           410,519           411,221
   Round Mountain(1)(4)                              364,271                --                --
   Porcupine(2)                                      223,960           189,464           156,581
   Kubaka(3)                                         164,006           220,972           237,162
   Paracatu Brasilia(1)(5)                            91,176                --                --
   La Coipa(1)(4)                                    144,125                --                --
   Crixas(1)(4)                                       86,698                --                --
   Musselwhite(1)(6)                                  64,978                --                --
   New Britannia(1)(4)                                31,627                --                --
   Lupin(9)                                           56,008                --                --
                                                ----------------    --------------    --------------
                                                   1,618,680           820,955           804,964
                                                ----------------    --------------    --------------
OTHER OPERATIONS:
   Blanket(8)                                             --            41,612            39,592
   Refugio(4)                                             --            13,047            67,211
   Denton-Rawhide(7)                                   1,730            11,162            17,713
   Andacollo(7)                                           --             1,858            11,718
   Other                                                  --                --             3,605
                                                ----------------    --------------    --------------
Total gold equivalent ounces                       1,620,410           888,634           944,803
                                                ================    ==============    ==============
</TABLE>
-------------------------
(1)     Production data is for eleven months from January 31, 2003, to December
        31, 2003.
(2)     2003 production reflects Kinross' 49% ownership interest in the
        Porcupine Joint Venture. 2002 production reflects Kinross' 100%
        ownership interest in the Hoyle Pond mine to June 30, and its 49%
        ownership interest in the Porcupine Joint Venture thereafter.
(3)     Represents Kinross' 54.7% ownership interest to February 28, 2003, and
        its 98.1% interest thereafter.
(4)     Represents Kinross' 50% ownership interest.
(5)     Represents Kinross' 49% ownership interest.
(6)     Represents Kinross' 31.9% ownership interest.
(7)     Includes proportionate share of Denton-Rawhide and Andacollo production
        attributable to the Pacific Rim (formerly Dayton) ownership interest.
(8)     Because of the economic and political conditions and the negative impact
        of inflationary pressures in Zimbabwe, Blanket was written off in 2001,
        Kinross commenced cost accounting for this investment in 2002 and ceased
        reporting its production in 2003.
(9)     Production data is for the period January 31, 2003, to August 2003, when
        mining operations were suspended.


                                     -123-
<PAGE>
<TABLE>
<CAPTION>

                                                             YEARS ENDED DECEMBER 31,
                                                ----------------------------------------------------
TOTAL CASH COSTS PER OUNCE OF ATTRIBU-
TABLE GOLD EQUIVALENT PRODUCTION                     2003               2002              2001
                                                ----------------    --------------    --------------
(Dollars per equivalent ounce of gold)
<S>                                                <C>                <C>               <C>
PRIMARY OPERATIONS:
   Fort Knox                                           243                232               207
   Round Mountain(1)                                   201                 --                --
   Porcupine                                           211                201               182
   Kubaka                                              194                133               140
   Paracatu Brasilia(1)                                193                 --                --
   La Coipa(1)                                         234                 --                --
   Crixas(1)                                           109                 --                --
   Musselwhite(1)                                      257                 --                --
   New Britannia(1)                                    327                 --                --
   Lupin(1)                                            407                 --                --

OTHER OPERATIONS:
   Blanket                                              --                243               279
   Refugio                                              --                186               242
   Denton-Rawhide                                      221                249               248
   Andacollo                                            --                295               259
   Other                                                --                 --               353
                                                ----------------    --------------    --------------
Average total cash costs                               222                201               193
                                                ================    ==============    ==============
</TABLE>
-------------------------
(1)     Cost data is for eleven months from January 31, 2003, to December 31,
        2003, except Lupin which suspended operations in August 2003.

        Total Cash Costs is a non-GAAP measure. For further information on this
non-GAAP measure, please refer to the disclosure under the heading "Costs and
Expenses--Operating Costs."

MINE OPERATIONS

FORT KNOX (100% OWNERSHIP AND OPERATOR) - USA

        Kinross acquired the Fort Knox open pit mine, located near Fairbanks,
Alaska, in 1998. The Fort Knox operation consists of the main Fort Knox open pit
and the True North open pit located approximately 15 kilometers northwest of
Fort Knox. Gold equivalent production for 2003 was 391,831 ounces compared to
410,519 ounces in 2002 and 411,221 in 2001. The processing of lower grade True
North ore that was slightly more refractory, due to the presence of sulphides,
adversely impacted gold recoveries and the total cash costs per ounce in 2003.
Total cash costs per gold equivalent ounce for 2003 increased to $243 from $232
in 2002 and $207 in 2001.

<TABLE>
<CAPTION>

RECONCILIATION OF THE FORT KNOX TOTAL CASH COSTS
  PER EQUIVALENT OUNCE OF GOLD TO CONSOLIDATED
  FINANCIAL STATEMENTS                                                     YEARS ENDED DECEMBER 31,
                                                             ------------------------------------------------------
(millions except production in ounces and per ounce amounts)       2003               2002                2001
                                                             ----------------    --------------     ---------------
<S>                                                           <C>                <C>                <C>
Operating costs per financial statements                        $     92.9         $     99.2         $      82.9
Site restoration cost accruals                                        (2.5)              (1.0)               (1.2)
Change in bullion inventory                                            4.8               (2.9)                3.3
                                                                ----------         ----------         -----------
Total cash costs for per ounce calculation purposes             $     95.2         $     95.3         $      85.0
                                                                ----------         ----------         -----------
Gold equivalent production--ounces                                 391,831            410,519             411,221
Total cash costs per equivalent ounce of gold                   $      243         $      232         $       207
                                                                ==========         ==========         ===========
</TABLE>

        Total Cash Costs is a non-GAAP measure. For further information on this
non-GAAP measure, please refer to the disclosure under the heading "Costs and
Expenses--Operating Costs."


                                     -124-
<PAGE>

        Management's expectation for the mine is for 2004 gold production of
approximately 340,000 ounces at total cash costs of $220 per ounce. This
reflects the intention to suspend mining of the True North mine for several
months in 2004 and use the True North mining fleet to complete the next phase of
the tailings dam lift at Fort Knox rather than rely on more expensive third
party contractors. This will result in decreased production in 2004. Mining of
True North is expected to be reactivated later in 2004 and is expected to
continue into mid-2005.

        Capital expenditures at the Fort Knox operations in 2003 were $26.5
million compared to $15.0 million in 2002 and $20.2 million in 2001. The
majority of capital expenditures was directed towards equipment purchases and
rebuilds, the drilling of pit de-watering wells and exploration. Capital
expenditures for 2004 are planned to be $39.0 million including mining
equipment, development, a tailings dam lift, pit de-watering wells, and
exploration.

        During 2003, exploration was conducted within the Fort Knox pit, at the
True North mine, on the Gil project, and at Ryan Lode. Results from the Fort
Knox in-pit work confirmed sufficient continuity of the mineralized zones to
justify a major pit wall layback at an assumed gold price of $325 per ounce.
This major layback is comprised of a three year, approximately $60.0 million
capital expenditure program mostly in the form of stripping to liberate ore to
prolong the economic life of the Fort Knox mine. At Gil, 10 kilometers east of
the Fort Knox mine site, an engineering scoping study was completed. Reserves at
year-end 2003 for Fort Knox and area deposits increased by approximately 10% to
2,945,000 ounces at a gold price of $325 per ounce.

ROUND MOUNTAIN (50% OWNERSHIP AND OPERATOR) - USA

        Kinross acquired its ownership interest in the Round Mountain open pit
mine, located in Nye County, Nevada, upon completion of the combination with
Echo Bay on January 31, 2003. Round Mountain continues to perform well in spite
of a power problem that limited mill production in the second half of 2003.
Kinross' share of the eleven-month production ended December 31, 2003, totaled
364,271 ounces. Gold equivalent production was positively impacted by higher
gold recoveries due to the installation of new carbon columns during the second
quarter and the implementation of side slope leaching of the historic dedicated
leach pad.

        Due to the failure of an electrical transformer, production activities
in the second half of the year focused on accelerating ore placement on the
dedicated leach pads to offset crushing and milling limitations. Higher grade
ore, which would have been milled during a portion of the third and fourth
quarters, was stockpiled. As a result of the flexibility provided by having
three separate processing streams, the lower mill throughput did not severely
impact production for the second half of 2003. The transformer repairs have been
completed and the mill was back at full production in February 2004.

        Total cash costs per gold equivalent ounce were $201 per ounce for the
eleven-month period ended December 31, 2003.

        Kinross' expectation for Round Mountain is to produce approximately
367,000 ounces to Kinross' account at total cash costs of $223 per ounce in
2004.


                                     -125-
<PAGE>

        Costs in 2004 will increase since royalty payments are geared to the
price of gold. In addition, the Nevada "Net Proceeds Tax" is also geared towards
the price of gold and will negatively impact total cash costs per ounce.


RECONCILIATION OF THE ROUND MOUNTAIN TOTAL CASH
  COSTS PER EQUIVALENT OUNCE OF GOLD TO                   ELEVEN MONTHS ENDED
  CONSOLIDATED FINANCIAL STATEMENTS                        DECEMBER 31, 2003
                                                        -----------------------
(millions except production in ounces and per ounce amounts)
Operating costs per financial statements                     $         76.7
Site restoration cost accruals                                         (1.8)
Change in bullion inventory                                            (1.6)
                                                             --------------
Total cash costs for per ounce calculation purposes          $         73.3
                                                             --------------
Gold equivalent production--ounces                                  364,271
Total cash costs per equivalent ounce of gold                $          201
                                                             ==============

        Total Cash Costs is a non-GAAP measure. For further information on this
non-GAAP measure, please refer to the disclosure under the heading "Costs and
Expenses--Operating Costs."

        Kinross' share of capital expenditures at the Round Mountain mine in
2003 was $5.7 million. Pit de-watering and dedicated leach pad construction
accounted for the majority of the capital expenditures. Capital expenditures for
2004 are planned to be $8.1 million.

        At the Gold Hill project, reverse circulation and diamond drilling was
completed during 2003 in order to verify the existing block models. As a result
of exploration activity at Round Mountain and Gold Hill, Kinross' gold reserves
at Round Mountain and area were 1,850,000 ounces at an estimated gold price of
$325 per ounce, essentially unchanged at the end of 2003 compared to the pro
forma reserves at December 31, 2002.

PORCUPINE JOINT VENTURE (49% INTEREST, PLACER DOME 51%, OPERATOR) - CANADA

        On July 1, 2002, Kinross formed a joint venture with a wholly-owned
subsidiary of Placer Dome Inc. ("Placer"). The formation of the joint venture
combined the two companies' gold mining operations in the Porcupine district in
Timmins, Ontario. The ownership of this unincorporated joint venture is 51%
Placer and 49% Kinross. The joint venture operates pursuant to a contractual
agreement and both parties receive their share of gold output in kind. Capital,
exploration and operating costs are funded in proportion to each party's
ownership interest. Upon creation of the joint venture, Placer contributed the
Dome mine and mill and Kinross contributed the Hoyle Pond, Nighthawk Lake, and
Pamour mines, exploration properties in the Porcupine district, as well as the
Bell Creek mill.

        Comparative production and cost information for the first half of 2002,
and for the full year ended December 31, 2001, represent Kinross' results from
the Hoyle Pond mine.

        Kinross' share of gold production in 2003 increased to 223,960 ounces at
a total cash cost of $211 per ounce compared to 189,464 ounces during 2002 at
$201 per ounce and 156,581 ounces during 2001 at $182 per ounce.


                                     -126-
<PAGE>

        Kinross' expectation for the Porcupine joint venture is to produce
approximately 200,000 ounces for Kinross' account at total cash costs of $230
per ounce in 2004. The reduction in production in 2004 and the cash costs per
ounce increase in 2004 are due principally to the processing of lower grade ore.

<TABLE>
<CAPTION>

RECONCILIATION OF THE PORCUPINE TOTAL CASH COSTS
  PER EQUIVALENT OUNCE OF GOLD TO CONSOLIDATED
  FINANCIAL STATEMENTS                                                     YEARS ENDED DECEMBER 31,
                                                             ------------------------------------------------------
(millions except production in ounces and per ounce amounts)       2003               2002                2001
                                                             ----------------    --------------     ---------------
<S>                                                             <C>                <C>                <C>
Operating costs per financial statements                        $     53.4         $     38.6         $      29.1
Site restoration cost accruals                                        (1.6)              (1.5)               (0.2)
Change in bullion inventory                                           (1.5)               1.5                 0.7
Operating costs not related to gold production                        (2.9)              (0.6)               (1.1)
                                                                ----------         ----------         -----------
Total cash costs for per ounce calculation purposes             $     47.4         $     38.0         $      28.5
                                                                ----------         ----------         -----------
Gold equivalent production--ounces                                 223,960            189,464             156,581
Total cash costs per equivalent ounce of gold                   $      211         $      201         $       182
                                                                ==========         ==========         ===========
</TABLE>

        Total Cash Costs is a non-GAAP measure. For further information on this
non-GAAP measure, please refer to the disclosure under the heading "Costs and
Expenses--Operating Costs."

        Kinross' share of capital expenditures at the Porcupine joint venture in
2003 was $8.3 million compared to $6.7 million in 2002 and $7.9 million in 2001.
This amount included expenditures on the tailings dam lift and the development
of the Pamour project. Capital expenditures in 2004 are planned to be $28.7
million for Kinross' share of the Pamour project and Hoyle Pond development.

        The Pamour open pit feasibility study was finalized in late 2003 and
permitting work was initiated. Demolition of the old Pamour headframe and
associated infrastructure was completed in preparation for the development of
the open pit operations. Saleable production is expected to commence in 2005.

        An aggressive exploration program continued during 2003 with 88,090
meters of exploration diamond drilling completed. These activities resulted in
the Porcupine joint venture replacing its reserves consumed in 2003. Kinross'
share of the reserves was 1,489,000 ounces at December 31, 2003, using a gold
price of $325 per ounce.

KUBAKA (98.1% OWNERSHIP AND OPERATOR) - RUSSIA

        Kinross acquired a 54.7% interest in the Kubaka open pit mine located in
the Magadan Oblast in far eastern Russia in three transactions during 1998 and
1999. In December 2002, Kinross entered into purchase agreements with its former
Russian partners to acquire further shares to increase its interest to 98.1%.
Consideration for this further purchase was $44.7 million with the transaction
closing February 28, 2003.

        Mining activities at the Kubaka pit ceased in October of 2002, and the
processing of relatively lower grade stockpiles commenced along with further
exploration drilling.


                                     -127-
<PAGE>

        Kinross' share of gold equivalent production totaled 164,006 ounces in
2003 (54.7% ownership to February 28, 2003, 98.1% thereafter) at a total cash
cost of $194 per ounce down from its 2002 share of gold equivalent production of
220,992 ounces at $133 per ounce and its 2001 share of 237,162 ounces at $140
per ounce.

<TABLE>
<CAPTION>

RECONCILIATION OF THE KUBAKA TOTAL CASH COSTS
  PER EQUIVALENT OUNCE OF GOLD TO CONSOLIDATED
  FINANCIAL STATEMENTS                                                     YEARS ENDED DECEMBER 31,
                                                             ------------------------------------------------------
(millions except production in ounces and per ounce amounts)       2003               2002                2001
                                                             ----------------    --------------     ---------------
<S>                                                             <C>                <C>                <C>
Operating costs per financial statements                        $     30.6         $     28.6         $      34.1
Site restoration cost accruals                                        (0.5)              (0.8)               (0.4)
Change in bullion inventory                                            0.3               (0.1)               (1.6)
Management fees                                                        1.6                1.6                 1.0
                                                                ----------         ----------         -----------
Total cash costs for per ounce calculation purposes             $     32.0         $     29.3         $      33.1
                                                                ----------         ----------         -----------
Gold equivalent production--ounces                                 164,006            220,972             237,162
Total cash costs per equivalent ounce of gold                   $      194         $      133         $       140
                                                                ==========         ==========         ===========
</TABLE>

        Total Cash Costs is a non-GAAP measure. For further information on this
non-GAAP measure, please refer to the disclosure under the heading "Costs and
Expenses--Operating Costs."

        Gold equivalent production in 2003 was 13% below Kinross' expectations
due to lower underground production which was partially offset by higher than
anticipated mill throughput. Underground production is expected to continue well
into 2004 to supplement low-grade stockpiles and initial ore from a test pit at
the Birkachan property located 28 kilometers north of Kubaka. In 2003, capital
expenditures were $1.7 million compared to $0.1 million in 2002 and $0.4 million
in 2001. Kinross plans to spend $11.2 million in 2004 on capital expenditures
principally to develop the Birkachan test pit and commence underground
exploration and development of the Tsokol vein.

        For 2004, Kubaka is expected to produce approximately 137,000 gold
equivalent ounces at total cash costs of $260 per ounce. The expected increase
in total cash costs per ounce in 2004 is due to lower grade ore being processed
and the additional costs to transport the ore from the Birkachan property to the
mill.

        Exploration drilling during the second half of 2003 assisted in further
defining mineralization at the Birkachan and Tsokol deposits. Kinross' share of
gold reserves at Kubaka and area, estimated at $325 per ounce of gold, increased
to 410,000 ounces at year-end 2003 due to the inclusion of initial reserves at
Birkachan and Tsokol, exploration success on the underground portion of Kubaka
and the increase in ownership year-over-year.

PARACATU (ALSO KNOWN AS BRASILIA - 49% OWNERSHIP, RIO TINTO 51%, OPERATOR) -
BRAZIL

        Kinross acquired its ownership interest in the Paracatu (Brasilia) open
pit mine, located in the State of Minas Gerais, upon completion of the
combination with TVX on January 31, 2003. During the eleven-months ended
December 31, 2003, Kinross' share of gold production was 91,176 ounces at a
total cash cost of $193 per ounce. In the second half of 2003, harder than
anticipated ore, which reduced mill throughput, and the higher sulphide content
of the ore processed, which reduced recoveries, combined to negatively impact
gold production as compared to Kinross' expectations. The lower gold production
in addition to higher electricity, fuel, and maintenance costs resulted in
fourth quarter total cash costs per ounce being 20% above expectations.

        The economics of the Calha Mill expansion prefeasibility study completed
during the second quarter were favorable and, as a result, work is well advanced
on a full feasibility study that is to be completed during the second quarter of
2004. The study envisions the installation of a SAG mill to increase mill
throughput by approximately 50% to 30 million tonnes per year.


                                     -128-
<PAGE>

        Kinross expects the Paracatu (Brasilia) mine to produce approximately
95,000 ounces to Kinross' account at total cash costs of $228 per ounce in 2004.
The expected increase in total cash costs per ounce in 2004 is due to the
strengthening of the Brazilian real in relation to the United States dollar and
higher than normal electrical and fuel costs resulting from processing harder
ore. The SAG mill, once commissioned in 2005, will mitigate the hard ore issue
and should translate into higher production at reduced operating costs.


RECONCILIATION OF THE PARACATU (BRASILIA) TOTAL
  CASH COSTS PER EQUIVALENT OUNCE OF GOLD TO              ELEVEN MONTHS ENDED
  CONSOLIDATED FINANCIAL STATEMENTS                        DECEMBER 31, 2003
                                                        -----------------------
(millions except production in ounces and per ounce amounts)
Operating costs per financial statements                     $        19.9
Site restoration cost accruals                                        (0.8)
Change in bullion inventory                                           (0.4)
Operating costs not related to gold mining                            (1.1)
                                                             -------------
Total cash costs for per ounce calculation purposes          $        17.6
                                                             -------------
Gold equivalent production--ounces                                  91,176
Total cash costs per equivalent ounce of gold                $         193
                                                             =============

        Total Cash Costs is a non-GAAP measure. For further information on this
non-GAAP measure, please refer to the disclosure under the heading "Costs and
Expenses--Operating Costs."

        Kinross' share of capital expenditures at the Paracatu (Brasilia) mine
in 2003 was $5.2 million. Capital expenditures were mainly related to additions
to the mining fleet and work related to the tailings dam. Kinross plans to spend
$13.1 million in 2004 for capital expenditures to expand the output of the mine.

        In 2003, Kinross' share of reserves at Paracatu (Brasilia) increased by
almost 5% to 2,613,000 ounces of gold, estimated at a gold price of $325 per
ounce, compared to the pro forma reserves for the previous year. In addition,
the economies of scale resulting from the proposed expansion could lower the
cut-off grade and, consequently, could have the impact of enhancing future
reserves.

LA COIPA (50% OWNERSHIP, PLACER DOME 50%, OPERATOR) - CHILE

        Kinross acquired its ownership interest in the La Coipa open pit mine
upon completion of the combination with TVX on January 31, 2003. Kinross' share
of gold equivalent production for the eleven-months ended December 31, 2003, was
144,125 ounces at a total cash cost of $234 per ounce. During the fourth quarter
of the year, production was 44,454 ounces which was 48% above management's
expectations at a total cash cost of $204 which was 34% below management's
expectations. The much higher production and much lower costs resulted from a
positive grade variance caused by a change in the sequencing of ore from Phase
Three at Coipa Norte rather than Phase Five. Also, a planned maintenance
shutdown in December was deferred to January 2004, causing throughput to exceed
expectations.


                                     -129-
<PAGE>

        Kinross' expectation for the La Coipa mine is to produce approximately
145,000 gold equivalent ounces to Kinross' account at total cash costs of $288
per ounce in 2004. In 2004, Kinross will be mining more in-pit waste rock than
in 2003, which will increase costs by approximately $6.0 million for its
ownership interest. This additional cost will account for the majority of the
increase in total cash costs per ounce in 2004. In 2005, total cash costs per
ounce should decline as less waste is mined.


ECONCILIATION OF THE LA COIPA TOTAL CASH
  COSTS PER EQUIVALENT OUNCE OF GOLD TO                   ELEVEN MONTHS ENDED
  CONSOLIDATED FINANCIAL STATEMENTS                        DECEMBER 31, 2003
                                                        -----------------------
(millions except production in ounces and per ounce amounts)
Operating costs per financial statements                     $        34.9
Site restoration cost accruals                                        (0.6)
Change in bullion inventory                                           (0.6)
                                                             -------------
Total cash costs for per ounce calculation purposes          $        33.7
                                                             -------------
Gold equivalent production--ounces                                 144,125
Total cash costs per equivalent ounce of gold                $         234
                                                             =============

        Total Cash Costs is a non-GAAP measure. For further information on this
non-GAAP measure, please refer to the disclosure under the heading "Costs and
Expenses--Operating Costs."

        Kinross' share of capital expenditures at La Coipa during 2003 was $0.5
million and Kinross plans to spend $1.4 million in 2004.

        Exploration activity in 2003 at La Coipa focused on the Puren Norte
deposit that has a significant silver component. Compared to the pro forma
reserves of the previous year, Kinross' share of gold reserves at La Coipa
declined by 9% to 584,000 ounces while silver reserves increased by 18% to
37,837,000 ounces, estimated at a gold price of $325 per ounce and a silver
price of $4.75 per ounce.

CRIXAS (50% OWNERSHIP, ANGLO GOLD 50%, OPERATOR) - BRAZIL

        Kinross acquired its ownership interest in the Crixas underground mine,
located in the State of Goias, upon completion of the combination with TVX on
January 31, 2003. For the eleven months ended December 31, 2003, Kinross' share
of production was 86,698 ounces of gold at a total cash cost of $109 per ounce.

        Expectations are for the Crixas mine to produce approximately 94,000
ounces to Kinross' account at total cash costs of $129 per ounce in 2004. The
expected total cash costs per ounce increase in 2004 is due to the strengthening
of the Brazilian real in relation to the United States dollar and the fact that
the mine is deeper which translates into higher operating costs.


RECONCILIATION OF THE CRIXAS TOTAL CASH
  COSTS PER EQUIVALENT OUNCE OF GOLD TO                   ELEVEN MONTHS ENDED
  CONSOLIDATED FINANCIAL STATEMENTS                        DECEMBER 31, 2003
                                                        -----------------------
(millions except production in ounces and per ounce amounts)
Operating costs per financial statements                     $        10.5
Site restoration cost accruals                                        (0.2)
Change in bullion inventory                                           (0.8)
                                                             -------------
Total cash costs for per ounce calculation purposes          $         9.5
                                                             -------------
Gold equivalent production--ounces                                  86,698
Total cash costs per equivalent ounce of gold                $         109
                                                             =============

        Total Cash Costs is a non-GAAP measure. For further information on this
non-GAAP measure, please refer to the disclosure under the heading "Costs and
Expenses--Operating Costs."

        Kinross' share of capital expenditures at the Crixas mine in 2003 was
$3.2 million. Planned 2004 capital expenditures are $3.3 million.


                                     -130-
<PAGE>

        Exploration work on the Forquilha Sul zone, which overlies the principal
Mina III ore body, has confirmed continuity of mineralization over a strike
length of approximately 400 meters. The zone remains open and exploration
drilling in 2004 will target extensions along the strike. Kinross' share of 2003
gold reserves at Crixas was essentially unchanged at 470,000 ounces, estimated
at a gold price of $325 per ounce, compared to pro forma reserves the previous
year of 478,000 ounces.

MUSSELWHITE (31.93% OWNERSHIP, PLACER DOME 68.07%, OPERATOR) - CANADA

        Kinross acquired its ownership interest in the Musselwhite underground
mine, located in northwestern Ontario, Canada, upon completion of the
combination with TVX on January 31, 2003. For the eleven-month period ended
December 31, 2003, Kinross' share of gold production was 64,978 ounces at total
cash costs of $257 per ounce. Operational shortfalls in the first quarter of
2003 were largely responsible for the lower than expected gold production and
higher total cash costs for the year.

        Kinross' expectation for the Musselwhite mine is to produce
approximately 75,000 ounces to Kinross' account at total cash costs of $251 per
ounce in 2004.


RECONCILIATION OF THE MUSSELWHITE TOTAL CASH
  COSTS PER EQUIVALENT OUNCE OF GOLD TO                   ELEVEN MONTHS ENDED
  CONSOLIDATED FINANCIAL STATEMENTS                        DECEMBER 31, 2003
                                                        ----------------------
(millions except production in ounces and per ounce amounts)
Operating costs per financial statements                     $        16.5
Site restoration cost accruals                                        (0.4)
Change in bullion inventory                                            0.8
Operating costs not related to gold mining                            (0.2)
                                                             -------------
Total cash costs for per ounce calculation purposes          $        16.7
                                                             -------------
Gold equivalent production--ounces                                  64,978
Total cash costs per equivalent ounce of gold                $         257
                                                             =============

        Total Cash Costs is a non-GAAP measure. For further information on this
non-GAAP measure, please refer to the disclosure under the heading "Costs and
Expenses--Operating Costs."

        Kinross' share of capital expenditures at the Musselwhite mine in 2003
was $2.7 million. Planned 2004 capital expenditures total $3.7 million.

        During 2003, over 80,000 meters of drilling was completed at
Musselwhite. Positive results continue to be obtained from infill diamond
drilling of the PQ Deeps zone. Kinross' share of gold reserves in 2003,
estimated at a gold price of $325 per ounce, was essentially unchanged at
658,000 ounces compared to pro forma reserves containing 667,000 ounces in 2002.

NEW BRITANNIA (50% OWNERSHIP AND OPERATOR) - CANADA

        Kinross operates and owns a 50% interest in the New Britannia
underground mine, located in northern Manitoba, acquired in the combination with
TVX on January 31, 2003. Kinross' share of gold production for the eleven-months
ended December 31, 2003, was 31,627 ounces at total cash costs of $327 per
ounce. During the fourth quarter of 2003, Kinross' share of gold production was
a disappointing 6,567 ounces at total cash costs of $408 per ounce. Kinross and
its joint venture partner, High River Gold Mines Limited have completed an
initial evaluation of the future of the mine. Due to the escalating unit cost
and rapidly declining gold reserves, it is currently projected that gold
production from New Britannia will be suspended in the first half of 2005.

        Kinross' revised expectation for the New Britannia mine is to produce
approximately 34,000 ounces to Kinross' account at total cash costs of $320 per
ounce in 2004. Kinross continues to evaluate various mining options at New
Britannia and is closely monitoring progress towards achieving the targets in
the revised plan.


                                     -131-
<PAGE>

RECONCILIATION OF THE NEW BRITANNIA TOTAL CASH
  COSTS PER EQUIVALENT OUNCE OF GOLD TO                   ELEVEN MONTHS ENDED
  CONSOLIDATED FINANCIAL STATEMENTS                        DECEMBER 31, 2003
                                                        -----------------------
(millions except production in ounces and per ounce amounts)
Operating costs per financial statements                     $        11.3
Site restoration cost accruals                                        (0.1)
Change in bullion inventory                                           (0.8)
Operating costs not related to gold mining                            (0.1)
Total cash costs for per ounce calculation purposes          $        10.3
                                                             -------------
Gold equivalent production--ounces                                  31,627
                                                             -------------
Total cash costs per equivalent ounce of gold                $         327
                                                             =============

        Total Cash Costs is a non-GAAP measure. For further information on this
non-GAAP measure, please refer to the disclosure under the heading "Costs and
Expenses--Operating Costs."

        Kinross' share of capital expenditures at the New Britannia mine in 2003
was $1.0 million. No capital expenditures are planned for 2004.

LUPIN (100% OWNERSHIP AND OPERATOR) - CANADA

        Kinross operates the Lupin underground mine, located in the Nunavut
Territory, acquired in the combination with Echo Bay on January 31, 2003.

        In August 2003, Kinross announced the immediate suspension of operations
at the Lupin mine due to the poor economic performance of the operation over a
protracted period of time. As a result, there was no gold production during the
fourth quarter of 2003 and gold production for the full year was 56,008 ounces
at total cash costs of $407 per ounce. The plant and equipment was placed on
care and maintenance pending the results of the review of future alternatives
for the property. Personnel have remained on site to continue with environmental
management programs to ensure compliance with all regulatory requirements.
Kinross incurred $9.1 million for severance and holding costs during the balance
of 2003 as operations remained suspended.

        During the fourth quarter of 2003, a review of alternatives for the
property concluded that the development of a mine plan to extract the shaft and
crown pillars and previously developed remnant ore was appropriate.
Consequently, plans have been developed that consume the remaining supply
inventories and the projected cash flow, at a gold price of $350 per ounce,
supports the remaining mine carrying value. Therefore, no impairment has been
recorded in 2003. During the first quarter of 2004, Kinross has been preparing
to reactivate Lupin with the objective of producing 79,000 ounces in 2004 at
total cash costs of $319 per ounce with additional production to mid-2005. Mill
operations and gold production are to commence in March 2004.


RECONCILIATION OF THE LUPIN TOTAL CASH
  COSTS PER EQUIVALENT OUNCE OF GOLD TO                   ELEVEN MONTHS ENDED
  CONSOLIDATED FINANCIAL STATEMENTS                        DECEMBER 31, 2003
                                                        -----------------------
(millions except production in ounces and per ounce amounts)
Operating costs per financial statements                     $        35.6
Site restoration cost accruals                                        (0.8)
Change in bullion inventory                                           (2.9)
Operating costs not related to gold mining                            (9.1)
                                                             --------------
Total cash costs for per ounce calculation purposes          $        22.8
                                                             -------------
Gold equivalent production--ounces                                    56,008
Total cash costs per equivalent ounce of gold                $          407
                                                             ==============

        Total Cash Costs is a non-GAAP measure. For further information on this
non-GAAP measure, please refer to the disclosure under the heading "Costs and
Expenses--Operating Costs."

        Capital expenditures at the Lupin mine in 2003 were $1.1 million. No
capital expenditures are planned for 2004.


                                     -132-
<PAGE>

EXPENSES

GENERAL AND ADMINISTRATIVE

       General and administrative costs include corporate office expenses
related to the overall management of the business which are not part of direct
mine operating costs. General and administrative costs include the costs
incurred at two corporate offices located in Toronto and Reno. There are two
leases associated with the Toronto office which expire in 2005 and in 2007 while
the Reno office lease expires in 2006. General and administrative expenses
totaled $25.0 million in 2003 compared to $11.3 million in 2002 and $10.1
million in 2001.

       The 2003 general and administrative expenses are higher due to the
increased size of Kinross resulting from the combination with TVX and Echo Bay,
increased costs associated with compliance with new regulatory requirements, and
increased costs dealing with transitional issues when compared to 2002. As
Kinross continues to realize synergies associated with the combination, general
and administrative expenses are estimated to decrease to $21.0 million in 2004.

EXPLORATION AND BUSINESS DEVELOPMENT

       Total exploration and business development expenses in 2003 were $24.3
million, compared with $11.6 million in 2002 and $7.9 million in 2001.
Exploration activities increased significantly in 2003 upon completion of the
TVX and Echo Bay combination and as a result of higher gold prices. Exploration
activities were focused principally at and around existing operating mines and
at the Kettle River - Emanuel Creek project in Washington State and the Refugio
project in Chile. During 2003, Kinross spent $11.3 million on exploration at
mines it operates including $2.7 million at Kettle River, $2.4 million at Fort
Knox including the True North, Gil, and Ryan Lode projects, $2.1 million on
district exploration and advancing the Gold Hill project at Round Mountain, and
$1.3 million in the Kubaka area. At Kinross' joint venture properties operated
by others, Kinross' portion of exploration expenditures in 2003 totaled $6.0
million, including $2.5 million at Porcupine and $2.1 million at Musselwhite.
Other exploration expenses totaled $3.8 million, of which $1.4 million was spent
at Refugio.

       As a result of this exploration activity and using a gold price
assumption of $325 per ounce compared to $300 per ounce the previous year, gold
reserves increased by 978,000 ounces, an increase of 7.4% during 2003. Total
reserve growth was 2,742,000 ounces of gold in 2003, thereby more than
offsetting reserve depletion during the year.

       For 2004, Kinross plans to spend a minimum of $20 million on its
exploration program in order to replace and increase reserves at existing mines
and increase reserves at development projects.

DEPRECIATION, DEPLETION AND AMORTIZATION

       Depreciation, depletion, and amortization totaled $140.9 million in 2003
compared to $85.3 million in 2002 and $85.8 million in 2001. Depreciation,
depletion, and amortization have decreased per equivalent ounce of gold to $91
in 2003 from $101 in 2002 and $94 in 2001. The 2003 decrease per equivalent
ounce of gold was largely due to the impact of the combination with TVX and Echo
Bay and the increase in the reserve base of Kinross. It is expected that
depreciation, depletion, and amortization expenses will increase by
approximately 4.8% in 2004 to $147.7 million but is expected to decline
marginally per gold equivalent ounce as production levels are expected to
increase in 2004 compared to 2003.

GAIN ON DISPOSAL OF ASSETS

       The net gain on asset disposals for the year 2003 totaled $29.5 million.
The bulk of this is from the gain on the sale of equity investments in
Minefinders Corporation Ltd., Pacific Rim Mining Corporation, and Endeavour
Mining Capital Corporation totaling $26.0 million as described in the section
entitled "Material Events." There can be no assurance that similar gains will
occur in future years. Gains in 2002 were $2.7 million and $1.2 million in 2001.

INTEREST EXPENSE

       Interest expense totaled $5.1 million in 2003, compared to $5.0 million
in 2002 and $9.1 million in 2001. Interest expense in 2003 is comprised of $0.2
million relating to interest on the Kubaka project loans, $1.2 million of
interest on the industrial revenue bonds and the Fort Knox capital leases, $2.4
million of interest on the debt component of the convertible debentures, and
$1.3 million on other items. Interest expense is expected to decrease
substantially in 2004 as the convertible debentures and the industrial revenue
bonds have been fully repaid.


                                     -133-
<PAGE>

FOREIGN EXCHANGE (GAIN) LOSS

       For 2003, Kinross recorded net gains on foreign currency transactions of
$3.3 million compared to net losses in 2002 of $4.3 million and $0.5 million in
2001.

       Kinross' monetary assets and liabilities are translated at the rate of
exchange prevailing at the balance sheet date. Non-monetary assets and
liabilities are translated at historical rates. Revenues and expenses are
translated at the average rate of exchange for the year. Exchange gains and
losses are included in income.

       The foreign exchange risks facing Kinross and the impact of swings in the
currencies in which Kinross conducts its operations in relation to the United
States dollar are discussed later in the "Risk Analysis" section.

       Since Kinross' major exposure to foreign currencies is the relationship
between the Canadian and the United States dollar, Kinross has entered into
foreign exchange forward contracts to sell United States dollars and buy
Canadian dollars. As at December 31, 2003, the contracts to buy Canadian dollars
totaled CDN $28.4 million at an average exchange rate of 1.4221.

ASSET WRITE-DOWNS AND NON-CASH CHARGES

       Impairment analysis for the operating assets consists of comparing the
estimated undiscounted future net cash flows on an area of interest basis with
the assets' carrying values, and when the future net cash flows are less than
the carrying value of any particular asset, a write-down is recorded. Over the
past three years, gold has averaged $315 per ounce and closed the year at $417
per ounce. Subsequent to the end of 2003, gold has continued to trade above $390
per ounce. In addition to considering current and historical spot gold prices,
Kinross reviewed analysts' reports and participated in external surveys. As a
result of this trend, and external survey expectations for spot gold prices,
Kinross used an assumption of $350 per ounce for gold for impairment analysis in
2003, compared to $325 per ounce in 2002.

       Asset write-downs and non-cash charges totaled $9.9 million in 2003
compared to $7.9 million in 2002 and $16.1 million in 2001. The 2003 write-downs
relate to a reduction in the carrying value of E-Crete of $5.2 million and $4.7
million of other write-downs. The 2002 write-down and other non-cash charges
were principally as a result of increases in reclamation provisions at the
closure properties.

SHARE OF LOSS OF INVESTEE COMPANIES

       Kinross' share of gain or loss of investee companies was $ nil in 2003,
compared to a loss of $0.6 million in 2002 and $2.2 million in 2001. Kinross
accounts for investments on an equity basis when it owns more than 20% and
exercises significant influence over management and operations of the business.
As at December 31, 2003, Kinross did not have any investments accounted for on
an equity basis.

INCOME AND MINING TAXES

       Kinross is subject to tax in various jurisdictions including Canada, the
United States, Russia, Brazil, and Chile. Kinross has substantial operating
losses and other tax deductions in Canada, the United States, and Chile (Refugio
mine) to shelter future taxable income in those jurisdictions. The 2003
liability arose from income taxes in Russia, Brazil, Chile (La Coipa mine), and
federal large corporations tax and provincial mining taxes in Canada. Kinross'
joint venture investments in the La Coipa and Refugio mines are held in separate
Chilean companies, each of which is subject to tax.

SITE RESTORATION COSTS

       Although the ultimate amount of reclamation and closure costs is
uncertain, Kinross estimates its closure obligations at December 31, 2003, to be
$146.3 million based on information currently available including preliminary
closure plans and existing regulations. As at December 31, 2003, Kinross has
accrued $119.7 million of this estimated obligation compared to the December 31,
2002, accrual of $57.0 million and the December 31, 2001, accrual of $55.6
million. The major reason for the significant increase at December 31, 2003, was
the accrual established for the acquired properties resulting from the TVX and
Echo Bay combination.


                                     -134-
<PAGE>

       Kinross plans reclamation spending of $19.2 million in 2004 compared to
$19.3 million in 2003.

LIQUIDITY AND CAPITAL RESOURCES

       The mining business is highly capital intensive. It is imperative that
Kinross be liquid with sufficient cash resources to meet the objectives of
expanding existing mine production, to add to its reserves through exploration
and development and to have the ability to acquire properties.

OPERATING ACTIVITIES

       Cash flow provided from operating activities was $92.7 million in 2003
compared to $59.5 million in 2002 and $75.0 million in 2001. The improvement in
cash flow for 2003 was due principally to the properties added from the TVX and
Echo Bay combination and the increase in the price received per ounce of gold
sold.

FINANCING ACTIVITIES

       (i)    Equity issues

              o      On August 28, 2003, Kinross issued 23.0 million common
                     shares for gross proceeds of $152.5 million. The net
                     proceeds from the offering were used to redeem the
                     outstanding 5.5% convertible unsecured subordinated
                     debentures. The principal amount of the convertible
                     debentures was $144.8 million. The convertible debentures
                     were redeemed on September 29, 2003.

              o      On November 14, 2003, Kinross issued 6.7 million common
                     shares upon the exercise of Echo Bay warrants. Total
                     proceeds of $34.9 million were realized.

       (ii)   Credit facility

       As at December 31, 2002, Kinross had a $30.0 million operating line of
credit in place with a bank syndicate which was being utilized for letters of
credit purposes. As at December 31, 2002, $38.5 million of letters of credit
were issued under this facility requiring Kinross to restrict $8.5 million of
cash. On February 27, 2003, Kinross entered into a new credit facility for
$125.0 million with a maturity date of December 31, 2005. The primary purpose of
the new credit facility is to provide credit support so Kinross can issue
letters of credit to satisfy financial assurance requirements.

       The new credit facility is extendable for further one-year periods with
the mutual agreement of Kinross and the banks. Interest rates and letters of
credit fees vary based on the results of the net debt to operating cash flow
ratio and a standby fee is charged on the unused amount. As at December 31,
2003, the letter of credit fee was 1.5% and the standby fee 0.3%. The facility
was put in place prior to certain events that significantly improved the
financial position and liquidity of Kinross, notably, the equity issue, the
debenture redemption and the sale of non-core investments. The covenants in the
loan agreement were, therefore, tailored towards the then balance sheet. As a
result, Kinross is well within the financial covenants which include a test of
minimum tangible net worth, an interest coverage ratio, a net debt to operating
cash flow ratio and a minimum proven and probable reserve test. Kinross was in
compliance with all covenants at December 31, 2003. Kinross is in discussions
with the banks to extend the maturity date and possibly increase the size of the
credit facility.

       The loan facility is secured by the assets of the Fort Knox mine as well
as by shares in various wholly-owned subsidiaries.

       Kinross had restricted cash of $21.1 million at December 31, 2002, which
was comprised of $8.5 million of cash securing letters of credit issued in
excess of the maximum allowable under the then credit facility, $12.2 million
representing Kinross' share of restricted cash subject to a court ordered freeze
in Russia and $0.4 million of other items. The court ordered freeze resulted
from legal claims against Omolon alleging that the original issuance of its
shares was flawed and therefore, null and void. On January 8, 2003, the claim
was dismissed and the restrictions on cash were released.


                                     -135-
<PAGE>

       Kinross had restricted cash of $5.1 million at December 31, 2003. This
restricted cash is associated with cash deposits that were made by Echo Bay to
secure letters of credit for various financial assurance requirements. At the
end of the year, letters of credit had been issued to replace all of the old
financial assurances. Some state agencies have not released, as yet, the old
financial assurance they were holding resulting in the restricted cash balances
which are expected to be released in 2004.

DEBT REPAYMENT

       Kinross' outstanding convertible debentures were fully repaid during the
third quarter of 2003, at par, using the proceeds of the equity issue which
closed on August 28, 2003.

       Other long-term debt of $10.5 million was repaid during the year
including $4.7 million of capital leases, $3.8 million of debt at E-Crete and
$2.0 million of debt in Russia.

       No dividends were declared or paid to the holders of the convertible
preferred shares of subsidiary company Kinam Gold Inc., in 2003, 2002, or 2001.

       As at December 31, 2003, Kinross' long-term debt was $0.7 million
consisting of various capital leases. The current portion of the long-term debt
is $29.4 million which includes $25.0 million in respect of the industrial
revenue bonds, which were repaid on January 7, 2004.

INVESTING ACTIVITIES

       Additions to property, plant and equipment were $73.4 million in 2003
compared to $22.6 million in 2002 and $30.4 million in 2001. The amount of
capital expenditures per mine is included in the "Operations" section. Capital
expenditures increased by $50.8 million in 2003 with $28.9 million spent on
additions to the mines added pursuant to the Echo Bay and TVX combination,
including $9.5 million in preparation for the reactivation of the Kettle River
operation with ore from the Emanuel zones. The largest amount spent was at the
Fort Knox mine at $26.5 million. The remainder was spent fairly evenly across
the other operating mines including the mines added by the combination. All
capital expenditures were funded from cash flow provided from operating
activities.

LIQUIDITY OUTLOOK

       As a result of the operating, financing, and investing activities during
2003, Kinross has significantly strengthened its financial condition and
liquidity such that as at December 31, 2003, cash and cash equivalents totaled
$245.8 million.

       Kinross has planned an aggressive spending program for 2004. The three
major uses of cash, outside of operating activities, are expected to be:

                                                     (IN MILLIONS)
                                                -------------------------

Site restoration                                     $        19.2
Exploration                                                   20.0
Property, plant and equipment additions                      165.0
                                                     -------------
Total                                                $       204.2
                                                     =============

       The site restoration and exploration costs are discussed in more detail
in the section entitled "Financial/Operations."

       (i)    2004 capital additions

       Kinross plans to spend $165.0 million on additions to its property,
plant, and equipment in 2004. This is a significant increase over the $73.4
million spent in 2003. Management believes that, with the price of gold in the
$400 range, it is the correct time to upgrade and expand its mining operations.
Below is a summary by mine of the planned expenditures. All amounts presented
represent Kinross' proportionate share of planned expenditures.


                                     -136-
<PAGE>

                                                     (IN MILLIONS)
                                                -------------------------

Fort Knox                                            $        39.0
Round Mountain                                                 8.1
Porcupine                                                     28.7
Kubaka                                                        11.2
Paracatu (Brasilia)                                           13.1
La Coipa                                                       1.4
Crixas                                                         3.3
Musselwhite                                                    3.7
Refugio                                                       52.3
Other                                                          4.2
                                                     -------------
                                                     $       165.0
                                                     =============

       The major projects are for equipment and development at Fort Knox, the
expansion and recommissioning of Refugio, the Pamour open pit project for the
Porcupine joint venture and the mill expansion at Paracatu (Brasilia). This
spending is in pursuit of expanding production and reserves and improving
operating efficiencies.

       The total spending program of $204.2 million is expected to be paid for,
in its entirety, with cash flow provided from operating activities.

       (ii)   Contractual obligations and commitments

       Once the industrial revenue bonds were repaid in January 2004, Kinross
was essentially debt free. Therefore, there are no significant debt repayment
obligations for the balance of 2004.

       Kinross has entered into an agreement to acquire Crown in exchange for
the issuance of Kinross' common shares. Kinross will not issue fractional shares
to the shareholders of Crown resulting in a small amount that will be paid in
cash. This acquisition is fully discussed in the section entitled "Material
Events."

       A Brazilian Central Bank program enables exporters to borrow United
States dollars and commit to conduct export activities. The borrowed amounts are
then reinvested locally at rates in excess of those on the loans. These
contracts are referred to as export prepayment contracts. Kinross' Paracatu
(Brasilia) joint venture participates in this program and entered into contracts
during 2000 and 2001, which were immediately assigned to a Brazilian bank. The
joint venture receives a premium instead of the higher interest rate earned by
the bank. The lenders of the funds agreed to the assignment of the borrowed
amounts to the local bank. There is no obligation by Kinross to repay any of the
borrowed amounts. Kinross has $1.1 million of unearned premium related to these
export prepayment contracts at December 31, 2003. Kinross will earn this premium
as it exports gold. As at December 31, 2003, Kinross is committed to export
$50.4 million of gold, $25.9 million in 2004, and $24.5 million in 2005.

<TABLE>
<CAPTION>
                                                                                                           2008 AND
Contractual Obligations (millions)        TOTAL        2004         2005          2006          2007        BEYOND
                                       -------------------------------------------------------------------------------
<S>                                      <C>          <C>          <C>          <C>            <C>          <C>
Long-term debt obligations               $   27.8     $   27.8     $   --       $    --        $    --      $    --
Capital lease obligations                     2.3          1.6          0.7          --             --           --
Operating lease obligations                   9.3          3.0          3.0           2.6            0.7         --
Purchase obligations                          5.7          5.7         --            --             --           --
Export prepayment contracts                  50.4         25.9         24.5          --             --           --
Other long-term liabilities reflected
  on the balance sheet under CDN GAAP         2.5          0.4          0.3           0.3            0.3          1.2
                                       -------------------------------------------------------------------------------
Total                                    $   98.0     $   64.4     $   28.5     $     2.9      $     1.0    $     1.2
                                       ===============================================================================
</TABLE>

       (iii)  Financial instruments

       Kinross manages its exposure to fluctuations in commodity prices and
foreign exchange rates by entering into derivative financial instrument
contracts in accordance with the formal risk management policies approved by its
board of directors. Kinross does not hold or issue derivative contracts for
speculative or trading purposes. Kinross' exposure with respect to foreign
exchange is addressed under the heading "Expenses--Foreign Exchange"


                                     -137-
<PAGE>

and in the section entitled "Risk Analysis--Foreign Exchange Risk" and, with
respect to commodities, in the section entitled "Risk Analysis--Commodity Price
Risks."

CRITICAL ACCOUNTING POLICIES

       Kinross' accounting policies are described in Note 1 to the consolidated
financial statements, including the recognition of revenue which occurs upon
shipment to third-party gold refineries when the sales price is fixed and title
has passed to the customer. The preparation of Kinross' consolidated financial
statements in conformity with Canadian ("CDN") GAAP requires management to make
estimates and assumptions that affect amounts reported in the consolidated
financial statements and accompanying notes. These estimates and assumptions
affect the reported amounts of assets and liabilities and disclosures of
contingent assets and liabilities at the date of the consolidated financial
statements and the reported amounts of revenues and expenses during the
reporting period. Changes in estimates of useful lives are accounted for
prospectively from the date of change. Actual results could differ from these
estimates.

       The assets and liabilities which require management to make significant
estimates and thus are deemed critical accounting policies are:

       o      Carrying value of goodwill;

       o      Carrying value of operating mines, mineral rights, development
              properties and other assets;

       o      Depreciation, depletion and amortization;

       o      Inventories;

       o      Site restoration accruals;

       o      Provision for income and mining taxes; and

       o      Contingencies.

CARRYING VALUE OF GOODWILL

       Goodwill of $918.0 million arose as a result of Kinross' combination with
TVX and Echo Bay. The total purchase price was $683.8 million for TVX and $634.9
million for Echo Bay. In the final purchase equation, the identifiable assets
acquired and liabilities assumed were recorded at amounts equal to their
respective fair values as at January 31, 2003, being the effective date of the
combination. The remaining balance of the purchase price was allocated to
goodwill. Goodwill is not subject to amortization but is subject to annual tests
for impairment.

       Goodwill has been allocated to two reporting units: the Exploration and
Acquisitions reporting unit and the Corporate reporting unit.

EXPLORATION AND ACQUISITIONS REPORTING UNIT

       The fundamental objective of the Exploration and Acquisitions reporting
unit is to sustain and enhance growth in Kinross' mineral reserves through
successful exploration programs and acquisitions of gold assets either directly
or indirectly, through corporate acquisition activities.

       Goodwill of $908.4 million has been allocated to this reporting unit. The
reporting unit's assets include Kinross' exploration properties, its exploration
experience and its senior management's focus on value-enhancing acquisitions.

       As a result of the business combination, Kinross has estimated that it
will add 2.6 million ounces to proven and probable reserves annually, computed
on a three-year rolling average basis. Kinross' fundamental underlying objective
is to replace annual production plus add an additional 0.4 to 0.8 million ounces
to proven and probable reserves each year. The assignment of goodwill to the
Exploration and Acquisitions reporting unit is premised upon the position that
as a result of the combination with TVX and Echo Bay, Kinross now has a
portfolio of mining and


                                     -138-
<PAGE>

exploration assets, the financial strength, and the currency, in the form of its
common stock, that will allow it to focus upon the significant enhancement of
its reserves not only through its exploration programs but also by becoming a
fully competitive contender in bidding for gold assets as they become available
throughout the world.

       The key strategy of Kinross and the most relevant measure of its success
is its growth in annual production levels. The combination with TVX and Echo Bay
was accretive to Kinross not only by adding immediately to production and cash
flow but by also allowing Kinross to establish a global platform from which it
can meet its long-term growth objectives.

       The amount of goodwill assigned to the Exploration and Acquisitions
reporting unit upon completion of the combination is intended to represent the
increase in the value of Kinross resulting from the combination which can be
attributed to the enhancement of Kinross' ability to significantly increase its
mineral reserves and hence, increase its future production capabilities. The
quantification of this increase in value was based upon a discounted cash flow
methodology that assumed an average annual increase in proven and probable
reserves of 2.6 million ounces (computed on a three-year rolling average basis)
for a 10 year period, a value of $52 for each ounce added to proven and probable
reserves (based upon a gold price of $325 per ounce) and a discount rate of 7%,
representing Kinross' cost of capital.

       While Kinross believes that this discounted cash flow model provides a
reasonable basis for the allocation of goodwill to the Exploration and
Acquisitions reporting unit, Kinross also recognizes that the actual timing and
value of additions to proven and probable reserves in the future could be
significantly different from the assumptions used in the model. In this respect,
reducing the additions to proven and probable reserves by 300,000 ounces per
year would decrease the value of the goodwill by $69.0 million, keeping other
variables constant. A reduction in the gold price to $300 would have the impact
of reducing the value of the goodwill by $416.0 million, keeping other variables
constant.

       Kinross tested the goodwill for impairment as at December 31, 2003. In
carrying out the impairment test, Kinross considered the following factors:

       1.     Kinross must maintain its exploration budget at a minimum of $20
million per annum.

       2.     On a three year rolling average basis, Kinross must meet its
target of adding 2.6 million ounces to its proven and probable reserves
annually.

       3.     At the time of the impairment testing, a value of $58 for each
ounce to be added to proven and probable reserves (based upon a gold price of
$350 per ounce) and a discount of 7% were utilized.

       Kinross concluded that there was no impairment of the goodwill allocated
to the Exploration and Acquisitions reporting unit as at December 31, 2003.

CORPORATE REPORTING UNIT

       Goodwill of $9.6 million has been allocated to the Corporate reporting
unit. This allocation is based upon the anticipated reduction in corporate
overhead resulting from synergies arising from the business combination. The
value of this component of the total goodwill has been determined based upon the
net present value of the anticipated savings over a five year period calculated
using a discount rate of 7%, representing Kinross' cost of capital.

       For purposes of impairment testing at December 31, 2003, Kinross
determined that 50% of the anticipated annual savings should be the target for
2003 in recognition of the fact that significant "one-time" costs were incurred
in 2003 in order to effect the combination. Kinross has concluded that there was
no impairment of the goodwill allocated to the Corporate reporting unit as at
December 31, 2003.

CARRYING VALUE OF OPERATING MINES, MINERAL RIGHTS, DEVELOPMENT PROPERTIES AND
OTHER ASSETS

       Kinross reviews and evaluates the carrying value of its operating mines
and development properties for impairment when events or changes in
circumstances indicate that the carrying amounts of related assets or groups of
assets may not be recoverable. If the total estimated future cash flows on an
undiscounted basis are less than the


                                     -139-
<PAGE>

carrying amount of the asset, an impairment loss is measured and recorded.
Future cash flows are based on estimated future recoverable mine production,
expected sales prices (considering current and historical prices, price trends
and related factors), production levels, cash costs of production, capital and
reclamation costs, all based on detailed engineering life-of-mine plans. Future
recoverable mine production is determined from proven and probable reserves and
measured, indicated and inferred mineral resources after taking into account
losses during ore processing and treatment. Estimates of recoverable production
from measured, indicated, and inferred mineral interests are risk adjusted based
on management's relative confidence in converting such interests to proven and
probable reserves. All long-lived assets at a particular operation are
considered together for purposes of estimating future cash flows. In the case of
exploration stage mineral interests associated with greenfields exploration
potential, cash flows and fair values are individually evaluated based primarily
on recent exploration results and recent transactions involving sales of similar
properties. Assumptions underlying future cash flow estimates are subject to
risks and uncertainties. It is possible that changes in estimates could occur
which may affect the expected recoverability of Kinross' investments in mineral
properties.

       These changes in estimates could include differences in estimated and
actual cash costs of mining, differences between actual gold and silver prices
and price assumptions used in the estimation of reserves and resources,
differences in capital expenditure and reclamation cost estimates.

       The reviews and evaluations completed for 2003, 2002, and 2001 determined
that certain asset values had become impaired and certain site restoration costs
were under-accrued. Assets identified as impaired were written-down to their
estimated recoverable amounts while accruals were made for certain restoration
costs. The components of the asset write-downs and other non-cash charges are as
follows:

<TABLE>
<CAPTION>
                                                                2003               2002                2001
                                                           ----------------    --------------     ---------------
<S>                                                            <C>                 <C>                <C>
Blanket mine--producing mine                                   $    --             $    --            $   11.8
E-Crete--aerated concrete producer                                 5.2                  --                  --
Delamar property--reclamation project                              2.0                 5.7                 4.3
Haile property--reclamation project                                0.8                 0.6                  --
Sleeper property--reclamation project                               --                 0.3                  --
Q.R. property--reclamation project                                  --                 1.1                  --
Loan receivable from joint venture partner                         1.2                  --                  --
Marketable securities                                              0.2                 0.1                  --
Long-term investments                                              0.5                 0.1                  --
                                                           ----------------    --------------     ---------------
                                                               $   9.9             $   7.9            $   16.1
                                                           ================    ==============     ===============
</TABLE>

       In the fourth quarter of 2003, following a comprehensive review of its
properties, Kinross determined that the net recoverable amount of E-Crete, a
producer of aerated concrete located in Phoenix, Arizona, was less than net book
value. Accordingly, Kinross recorded a $5.2 million write-down. In addition,
Kinross determined that a loan receivable from a joint venture partner was not
collectible and that the liabilities previously accrued to reclaim certain
closure properties were insufficient and required a further $2.8 million
accrual. The 2003 fourth quarter review was performed using a gold price
assumption of $350 per ounce.

       In the fourth quarter of 2002, following a comprehensive review of its
mining properties, Kinross determined that the liabilities accrued to reclaim
certain closure properties were insufficient and required a further $7.7 million
accrual. These adjustments were required due to new and more stringent
regulatory requirements for mine closures. The 2002 fourth quarter review was
performed using a gold price assumption of $325 per ounce.

       In the fourth quarter of 2001, following a comprehensive review of its
mining properties, Kinross determined that the estimated cost to reclaim the
Delamar property was insufficient and required a further $4.3 million accrual.
This adjustment was required due to a reassessment of the amount of water to be
reclaimed from this site. In addition, as a result of the extreme inflationary
pressures in Zimbabwe, difficulty in accessing foreign currency to pay for
imported goods and services and the then current civil unrest, Kinross recorded
a write-down of the carrying value of the Blanket mine by $11.8 million.
Furthermore, the political situation in Zimbabwe and the related social and
economic instability have prevented Kinross from continuing to exercise control
of its subsidiary in Zimbabwe, which operates the Blanket mine. Consequently,
due to the imposition of severe foreign exchange and currency export
restrictions and the uncertainty as to whether the Zimbabwean subsidiary had the
ability to


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distribute its earnings, Kinross discontinued the consolidation of the
Zimbabwean subsidiary effective December 31, 2001. The investment in the
subsidiary is nil following the write-down of the Blanket mine described above.
The 2001 fourth quarter review was performed using a gold price assumption of
$300 per ounce.

DEPRECIATION, DEPLETION AND AMORTIZATION

       (i)    Building, Plant, and Equipment

       New facilities, plant, and equipment are recorded at cost and carried net
of depreciation. Mobile and other equipment is amortized, net of residual value,
using the straight-line method, over the estimated productive life of the asset.
Productive lives range from 2 to 5 years, but do not exceed the related
estimated mine life based on proven and probable reserves. Plant and other
facilities, used in carrying out the mine operating plan, are amortized using
the units-of-production ("UOP") method over the estimated life of the ore body
based on recoverable ounces to be mined from estimated proven and probable
reserves. Repairs and maintenance expenditures are expensed as incurred.
Expenditures that extend the useful lives of existing facilities or equipment
are capitalized and amortized over the remaining useful life of the related
asset.

       (ii)   Mineral Exploration and Mine Development Costs

       Mineral exploration costs are expensed as incurred. When it has been
determined that a mineral property can be economically developed as a result of
establishing proven and probable reserves, costs incurred prospectively to
develop the property are capitalized as incurred and are amortized using the UOP
method over the estimated life of the ore body based on recoverable ounces to be
mined from estimated proven and probable reserves. At Kinross' open pit mines,
these costs include costs to further delineate the ore body and remove
overburden to initially expose the ore body. Kinross expenses in-pit stripping
costs as incurred. At Kinross' underground mines, these costs include the cost
of building access ways, shaft sinking and access, lateral development, drift
development, ramps and infrastructure development.

       Major development costs incurred after the commencement of production are
amortized using the UOP method based on recoverable ounces to be mined from
estimated proven and probable reserves.

       Ongoing development expenditures to maintain production are charged to
operations as incurred.

       (iii)  Mineral Interests

       Mineral interests include acquired mineral use rights in production,
development, and exploration stage properties. The amount capitalized related to
a mineral interest represents its fair value at the time it was acquired, either
as an individual asset purchase or as part of a business combination. The values
of such mineral use rights are primarily driven by the nature and amount of
mineral interests believed to be contained, or potentially contained, in
properties to which they relate.

       Production stage mineral interests represent mineral use rights in
operating properties that contain proven and probable reserves. Development
stage mineral interests represent mineral use rights in properties under
development that contain proven and probable reserves. Exploration stage mineral
interests represent mineral use rights in properties that are believed to
potentially contain: (i) other mineralized material such as measured, indicated,
or inferred mineral resources with insufficient drill spacing to qualify as
proven and probable reserves which is in close proximity to proven and probable
reserves and within the immediate mine structure; or (ii) around - mine
exploration potential such as inferred mineral resources not immediately
adjacent to existing reserves and mineralization but located within the
immediate mine infrastructure; and (iii) other mine-related or greenfields
exploration potential that is not part of measured or indicated resources and is
comprised mainly of material outside of the immediate mine area.

       Currently, under CDN GAAP, pursuant to CICA Handbook Section 1581
(Appendix A31) "business combinations" and Section 3062 "goodwill and other
intangible assets," mineral use rights are listed as contract-based intangible
assets. These new Handbook sections resulted in a conflict between previously
issued accounting standards included in the CICA Handbook Section 3061 and
EIC-126, which identify acquired mineral rights as property, plant, and
equipment.


                                     -141-
<PAGE>

       Kinross has elected to account for the mineral use rights it acquired
after January 1, 2002, in accordance with the CICA Handbook Sections 1581 and
3062. Had Kinross elected to account for acquired mineral use rights in
accordance with CICA Handbook Sections 3061 and EIC-126, Kinross would increase
property, plant, and equipment by $260.1 million and reduce mineral interests by
$260.1 million as at December 31, 2003. There would be no effect on reported
earnings.

       Kinross' mineral use rights generally are enforceable regardless of
whether proven and probable mineral reserves have been established. Kinross has
the ability and intent to renew mineral use rights where the existing term is
not sufficient to recover all identified and valued proven and probable reserves
and/or undeveloped mineral interests.

       Production stage mineral interests are amortized over the life of mine
using the UOP method based on recoverable ounces to be mined from estimated
proven and probable reserves. Development stage mineral interests are not
amortized until such time as the underlying property is converted to the
production stage. With respect to exploration stage mineral interests, the
excess of the carrying value over the residual value is amortized on a
straight-line basis over the period that Kinross expects to convert, develop or
further explore the underlying properties. Residual values for exploration stage
mineral interests represent the expected fair value of the interests at the time
Kinross plans to convert, develop, further explore, or dispose of the interests.
The residual values range from 75% to 90% of the gross carrying value of the
respective exploration stage mineral interests. Residual values are determined
for each individual property based on the fair value of the exploration stage
mineral interest, and the nature of, and Kinross' relative confidence in, the
mineralized material believed to be contained, or potentially contained, in the
underlying property. Such values are based on: (i) discounted cash flow analyses
for those properties characterized as other mineralized material and around -
mine exploration potential; and (ii) recent transactions involving similar
properties for those properties characterized as other mine-related exploration
potential and greenfields exploration potential. Based on its knowledge of the
secondary market that exists for the purchase and sale of mineral properties,
Kinross believes that both methods result in a residual value that is
representative of the amount that Kinross could expect to receive if the
property were sold to a third party. When an exploration stage mineral interest
is converted to a development or production stage mineral interest, the residual
value is reduced to zero for purposes of calculating UOP amortization.

       The expected useful lives and residual values used in amortization
calculations are determined based on the facts and circumstances associated with
the mineral interest. The useful lives used to amortize production stage mineral
interests range from 3 to 19 years. Kinross evaluates the remaining amortization
period and residual value for each individual mineral interest on at least an
annual basis. Any changes in estimates of useful lives and residual values are
accounted for prospectively from the date of the change.

       The calculation of UOP depreciation, depletion, and amortization on
buildings, plant, and equipment, mineral exploration and mine development costs
and mineral interests could be materially affected by change in estimates. These
changes in estimates could be as a result of actual future production differing
from current forecasts of future production based on proven and probable
reserves. These factors could include an expansion of proven and probable
reserves through exploration activities, differences between estimated and
actual cash costs of mining and differences in gold and silver prices used in
the estimation of proven and probable reserves.

       The calculation of straight line amortization of intangible assets could
be materially affected by changes in the estimated useful life and residual
values. These changes could be a result of exploration activities and
differences in gold and silver prices used in the estimation of resources.

       Significant judgment is involved in the determination of useful life and
residual values for the computation of depreciation, depletion, and amortization
and no assurance can be given that actual useful lives and residual values will
not differ significantly from current assumptions.

INVENTORIES

       Expenditures and depreciation, depletion, and amortization of assets
incurred in the mining and processing activities that will result in future gold
production are deferred and accumulated as ore in stockpiles, ore on leach pads
and in-process inventories. These deferred amounts are carried at the lower of
average cost or net realizable value ("NRV"). NRV is the difference between the
estimated future gold price based on prevailing and long-term


                                     -142-
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metal prices, less estimated costs to complete production into a saleable form.
Write-downs of ore in stockpiles, ore on leach pads and inventories resulting
from NRV impairments are reported as a component of current period costs.

       (i)    Ore in Stockpiles

       Stockpiles are comprised of coarse ore that has been extracted from the
mine and is available for further processing. Stockpiles are measured by
estimating the number of tonnes (via truck counts and/or in-pit surveys of the
ore before processing) added and removed from the stockpile. Stockpile tonnages
are verified by periodic surveys. Stockpiles are valued based on mining costs
incurred up to the point of stockpiling the ore, including applicable
depreciation, depletion, and amortization relating to mining operations. Costs
are added to stockpiles based on the current mining cost per tonne and removed
at the average costs per tonne.

       Ore in stockpiles is processed according to a life of mine plan that is
designed to optimize use of known mineral reserves, present processing capacity
and pit design. The market price of gold does not significantly affect the
timing of processing of ore in stockpiles. While stockpiled ore can be processed
earlier than planned in the event of an unforeseen disruption to mining
activities, the current portion of ore in stockpiles represents the amount
expected to be processed in the next twelve months. Ore in stockpiles not
expected to be processed in the next twelve months is classified as long-term.

       Kinross' ore in stockpiles had a carrying value of $15.3 million at
December 31, 2003.

       (ii)   Ore on Leach Pads

       The recovery of gold from certain oxide ores is best achieved through the
heap leaching process. Under this method, ore is placed on leach pads where it
is permeated with a chemical solution, which dissolves the gold contained in the
ore. The resulting recovered solution, which is included in in-process
inventory, is further processed in a plant where gold is recovered. For
accounting purposes, costs are added to leach pads based on current mining
costs, including applicable depreciation, depletion, and amortization relating
to mining operations. Costs are removed from the leach pad as ounces are
recovered in circuit at the plant based on the average cost per recoverable
ounce of gold on the leach pad.

       The engineering estimates of recoverable gold on the leach pads are
calculated from the quantities of ore placed on the pads (measured tonnes added
to the leach pads), the grade of ore placed on the leach pads (based on assay
data) and a recovery percentage (based on the leach process and ore type). While
it may not be uncommon for recoveries to occur on a declining basis over a
period of time in excess of twelve months, the engineering estimates of
economically recoverable gold, based on Kinross' current operations, will be
recovered within a period of twelve months or less. Presently, the Round
Mountain mine is the only active heap leach operation. As such, all of Kinross'
ore on leach pads is classified as current. In the event that Kinross
determined, based on engineering estimates, that a quantity of gold contained in
ore on leach pads was to be recovered over a period exceeding twelve months,
that portion would be classified as long-term.

       Although the quantities of recoverable gold placed on the leach pads are
reconciled by comparing the grades of ore placed on the leach pads to the
quantities of gold actually recovered (metallurgical balancing), the nature of
the leaching process inherently limits the ability to precisely monitor
inventory levels. As a result, the metallurgical balancing process is constantly
monitored and the engineering estimates are refined based on actual results over
time. Operating results at the Refugio mine, Kinross' only historic interest in
a heap leach operation, were not materially impacted by variations between the
estimated and actual recoverable ounces of gold on its leach pads. Variances
between actual and estimated quantities resulting from changes in assumptions
and estimates that do not result in write-downs to net realizable value are
accounted for on a prospective basis. Assuming a one percent change in the
estimated economically recoverable gold on the leach pads at December 31, 2003,
Kinross would experience a production variance of approximately 1,000 ounces. As
at December 31, 2003, the weighted average cost per recoverable ounce of gold on
the leach pads was $120 per ounce. The ultimate recovery of gold from a leach
pad will not be known until the leaching process is concluded. Kinross expects
to place the last tonne of ore on its current leach pad in 2008 and recover the
remaining economic ounces during the following twelve months.

       Kinross' ore on leach pads had a carrying value of $8.3 million at
December 31, 2003.


                                     -143-
<PAGE>

       (iii)  In-process Inventory

       In-process inventories represent materials that are currently in the
process of being converted to a saleable product. Conversion processes vary
depending on the nature of the ore and the specific mining operation, but
include mill in-circuit, leach in-circuit, flotation and column cells, and
carbon in-pulp inventories. In-process material is measured based on assays of
the material fed to the processing plants and the projected recoveries of the
respective plants. In-process inventories are valued at the average cost of the
material fed to the processing plant which is attributable to the source
material coming from the mines, stockpiles or leach pads plus the in-process
conversion costs, including applicable depreciation relating to the process
facilities, incurred to that point in the process.

       Kinross' in-process inventory had a carrying value of $15.5 million at
December 31, 2003.

       (iv)   Finished Metal

       Finished metal inventories, comprised of gold and silver dore and
bullion, are valued at the lower of average production cost and net realizable
value. Average production cost represents the average cost of the respective
in-process inventories incurred prior to the refining process, plus applicable
refining costs.

       Kinross' finished metal inventory had a carrying value of $15.4 million
at December 31, 2003.

       The allocation of costs to ore in stockpiles, ore on leach pads and
in-process inventories and the determination of NRV involves the use of
estimates. A high degree of judgment is involved in estimating future costs,
future production levels, proven and probable reserve estimates, gold and silver
prices and the ultimate estimated recovery (for ore on leach pads). There can be
no assurance that actual results will not differ significantly from estimates
used in the determination of the carrying value of inventories.

SITE RESTORATION ACCRUALS

       Estimated costs of site restoration for producing mines are accrued and
expensed over the estimated life of the mine on a UOP basis using proven and
probable reserves. Ongoing environmental protection expenditures are expensed as
incurred. Estimated costs of site restoration for inactive mines are accrued
based on management's best estimate at the end of each period. Changes in the
estimate of site restoration costs for inactive mines are charged to income in
the period the estimate is revised. Estimates of the ultimate site restoration
costs are based on current laws and regulations and expected costs to be
incurred, calculated on an undiscounted basis, all of which are subject to
 possible future changes to environmental laws and regulations which could
materially impact amounts changed to operations for site restoration.

       The site restoration accrual as at December 31, 2003, is $146.3 million
and is discussed in the section entitled "Financial/Operations."

PROVISION FOR INCOME AND MINING TAXES

       The provision for income and mining taxes is based on the liability
method. Future taxes arise from the recognition of the tax consequences of
temporary differences by applying enacted or substantively enacted statutory tax
rates applicable to future years to differences between the financial statement
carrying amounts and the tax bases of certain assets and liabilities. There was
no difference between enacted and substantially enacted statutory tax rates as
at December 31, 2003, 2002, and 2001, respectively. Kinross records a valuation
allowance against any portion of those future tax assets that it believes will,
more likely than not, fail to be realized. On business acquisitions, where
differences between assigned values and tax bases of assets acquired other than
non-tax deductible goodwill, and liabilities assumed exist, Kinross recognizes
the future tax assets and liabilities in respect of the tax effects of such
differences.

       Assessing the recoverability of future income tax asset requires
management to make significant estimates of future taxable income. Estimates of
future taxable income are subject to changes in estimates discussed under the
section "Carrying value of operating mines, mineral rights, development
properties and other assets." In addition, future tax assets are subject to
changes in future tax rates.


                                     -144-
<PAGE>

CONTINGENCIES

       Kinross follows Section 3290 of the CICA Handbook in determining its
accruals and disclosures with respect to loss contingencies. Accordingly,
estimated losses from loss contingencies are accrued by a charge to income when
information available prior to the issuance of the financial statements
indicates that it is likely that a future event will confirm that an asset has
been impaired or a liability incurred at the date of the financial statements
and the amount of the loss can be reasonably estimated.

       Note 23 to the consolidated financial statements describes the material
contingencies facing Kinross as at December 31, 2003.

RECENT ACCOUNTING PRONOUNCEMENTS

CONSOLIDATION OF VARIABLE INTEREST ENTITIES

       In January 2003, the FASB issued Interpretation No. 46, "Consolidation of
Variable Interest Entities" ("Fin 46"). FIN 46 requires that the assets,
liabilities and results of variable interest entities be consolidated into the
financial statements of the entity that has the controlling financial interest.
FIN 46 also provides the framework for determining whether a variable interest
entity should be consolidated based on voting interest or significant financial
support provided to it. In December 2003, the FASB issued FIN 46(R), amending
the guidance in FIN 46 as well as the transition guidance. As a Foreign Private
Issuer and based on its interpretation of the revised transition guidance,
Kinross will be required to adopt the guidance in FIN 46(R) for the first
reporting period that ends after March 15, 2004. Kinross is in the process of
assessing the impact of the amended standard on the consolidated financial
statements.

HEDGING RELATIONSHIPS

       In 2002, the Accounting Standards Board of the CICA issued Accounting
Guideline No. 13 "Hedging Relationships" ("AcG-13"). AcG-13 increases the
documentation, designation and effectiveness criteria to achieve hedge
accounting. The guideline requires the discontinuance of hedge accounting for
hedging relationships established that do not meet the conditions at the date
AcG-13 is first applied. It does not change the method of accounting for
derivatives in hedging relationships, but requires fair value accounting for
derivatives that do not qualify for hedge accounting. The new guideline is
applicable for fiscal years commencing July 1, 2003. Kinross does not believe
that the adoption of AcG-13 will have an impact on its results of operations and
financial position.

IMPAIRMENT OF LONG-LIVED ASSETS

       In 2002, the CICA Handbook Section 3063 - "Impairment of long-lived
Assets" ("CICA 3063") was amended to harmonize with SFAS 144. CICA 3063 applies
to long-lived assets held for use and is effective on a prospective basis, for
fiscal years beginning on or after April 1, 2003. Early adoption is encouraged.
This standard requires that an impairment loss be recognized when the carrying
amount of an asset held for use exceeds the sum of undiscounted cash flows. The
impairment loss is measured as the amount by which the carrying amount exceeds
the fair value of the asset. Kinross does not believe that the adoption of CICA
3063 will have an impact on its results of operations and financial position.

ASSET RETIREMENT OBLIGATIONS

       In 2003, the CICA issued Handbook Section 3110 - "Asset Retirement
Obligations" ("CICA 3110"), which is consistent with SFAS 143, "Accounting for
Asset Retirement Obligations." The standard provides for the recognition,
measurement and disclosure of liabilities for asset retirement obligations and
the associated asset retirement costs. It addresses obligations required to be
settled as a result of an existing law, regulation or contract related to asset
retirements. The new standard is applicable for fiscal years beginning January
1, 2004. Upon adoption, CICA 3110 will require retroactive restatement of all
comparative periods which Kinross estimates may represent a cumulative increase
in site restoration cost accruals of approximately $12.1 million based on the
calculations done for the implementation of SFAS 143.


                                     -145-
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STOCK-BASED COMPENSATION

       Effective January 1, 2004, Kinross is required to adopt CICA Handbook
Section 3870 - "Stock-based Compensation and Other Stock-based Payments" ("CICA
3870") for fiscal years beginning on or after January 1, 2004, CICA 3870
requires fair value accounting for stock options. Adoption is retroactive,
covering all stock options granted on or after January 1, 2002. Kinross will be
required to restate the results for the years ended December 31, 2003 and 2002,
upon adoption. The effects of this restatement will be to reduce net earnings
$1.1 million ($nil per share) in 2003 and increase net loss by $2.0 million
($0.02 per share) in 2002. In addition, retained earnings would decrease by $3.1
million at December 31, 2003, and by $2.0 million at December 31, 2002. Common
share capital and common share purchase warrants would increase by $3.1 million
and $2.0 million at December 31, 2003, and 2002, respectively.

RISK ANALYSIS

       The operations of Kinross are high-risk due to the nature of operation,
exploration, and development of mineral properties. Certain of the risk factors
listed below are related to the mining industry in general while some are
specific to Kinross. Included in the risk factors below are details on how
Kinross mitigates these risks wherever possible.

NATURE OF MINERAL EXPLORATION AND MINING

       The exploration and development of mineral deposits involves significant
financial and other risks over an extended period of time, which even a
combination of careful evaluation, experience and knowledge may not eliminate.
While discovery of a gold-bearing structure may result in substantial rewards,
few properties explored are ultimately developed into producing mines. Major
expenses are required to establish reserves by drilling and to construct mining
and processing facilities at a site. It is impossible to ensure that the current
or proposed exploration programs on properties in which Kinross has an interest
will result in profitable commercial mining operations.

       The operations of Kinross are subject to the hazards and risks normally
incident to exploration, development and production of gold, any of which could
result in damage to life or property, environmental damage and possible legal
liability for such damage. The activities of Kinross may be subject to prolonged
disruptions due to weather conditions depending on the location of operations in
which it has interests. Hazards, such as unusual or unexpected formations, rock
bursts, pressures, cave-ins, flooding or other conditions, may be encountered in
the drilling and removal of material. While Kinross may obtain insurance against
certain risks, potential claims could exceed policy limits or could be excluded
from coverage. There are also risks against which Kinross cannot or may not
elect to insure. The potential costs which could be associated with any
liabilities not covered by insurance or in excess of insurance coverage or
compliance with applicable laws and regulations may cause substantial delays and
require significant capital outlays, adversely affecting the future earnings and
competitive position of Kinross and, potentially, its financial viability.

       Whether a gold deposit will be commercially viable depends on a number of
factors, some of which are the particular attributes of the deposit, such as its
size and grade, costs and efficiency of the recovery methods that can be
employed, proximity to infrastructure, financing costs and governmental
regulations, including regulations relating to prices, taxes, royalties,
infrastructure, land use, importing and exporting of gold and environmental
protection. The effect of these factors cannot be accurately predicted, but the
combination of these factors may result in Kinross not receiving an adequate
return on its invested capital.

       Kinross mitigates the likelihood and potential severity of these mining
risks it encounters in its day-to-day operations through the application of high
operating standards. In addition, Kinross reviews its insurance coverage at
least annually to ensure the most complete and cost-effective coverage is
obtained.

ENVIRONMENTAL RISKS

       Kinross' mining and processing operations and exploration activities in
Canada, the United States, Russia, Brazil, Chile, and other countries are
subject to various laws and regulations governing the protection of the
environment, exploration, development, production, exports, taxes, labor
standards, occupational health, waste disposal, toxic substances, mine safety,
and other matters. New laws and regulations, amendments to existing laws


                                     -146-
<PAGE>

and regulations, or more stringent implementation of existing laws and
regulations could have a material adverse impact on Kinross, increase costs,
cause a reduction in levels of production and/or delay or prevent the
development of new mining properties. Compliance with these laws and regulations
requires significant expenditures and increases Kinross' mine development and
operating costs.

       In all jurisdictions, permits from various governmental authorities are
necessary in order to engage in mining operations. Such permits relate to many
aspects of mining operations, including maintenance of air, water and soil
quality standards. In most jurisdictions, the requisite permits cannot be
obtained prior to completion of an environmental impact statement and, in some
cases, public consultation. Further, Kinross may be required to submit for
government approval a reclamation plan and to pay for the reclamation of the
mine site upon the completion of mining activities. Kinross estimates its share
of reclamation closure obligations at $146.3 million based on information
currently available. As at December 31, 2003, Kinross has accrued $119.7 million
of this liability. Kinross mitigates this risk by performing reclamation
activities concurrent with production. In addition, planned spending on closure
properties of approximately $19.2 million in 2004 is part of an aggressive plan
to bring the majority of the closure projects to post closure monitoring by the
end of 2005.

       Mining, like many other extractive natural resource industries, is
subject to potential risks and liabilities associated with pollution of the
environment and the disposal of waste products occurring as a result of mineral
exploration and production. Environmental liability may result from mining
activities conducted by others prior to Kinross' ownership of a property. To the
extent Kinross is subject to uninsured environmental liabilities, the payment of
such liabilities would reduce funds otherwise available and could have a
material adverse effect on Kinross. Should Kinross be unable to fund fully the
cost of remedying an environmental problem, Kinross might be required to suspend
operations or enter into interim compliance measures pending completion of the
required remedy, which could have a material adverse effect. Kinross mitigates
the likelihood and potential severity of these environmental risks it encounters
in its day-to-day operations through the application of high operating
standards.

RESERVE ESTIMATES

       The figures for reserves presented are estimates, and no assurance can be
given that the anticipated tonnages and grades will be achieved or that the
indicated level of recovery will be realized. Market fluctuations in the price
of gold may render the mining of ore reserves uneconomical and require Kinross
to take a write-down of the asset or to discontinue development or production.
Moreover, short-term operating factors relating to the reserves, such as the
need for orderly development of the ore body or the processing of new or
different ore grades, may cause a mining operation to be unprofitable in any
particular accounting period.

       Proven and probable reserves at Kinross' mines and development projects
were calculated based upon a gold price of $325 per ounce of gold. Prior to
2002, gold prices were significantly below these levels. Prolonged declines in
the market price of gold may render reserves containing relatively lower grades
of gold mineralization uneconomic to exploit and could reduce materially
Kinross' reserves. Should such reductions occur, material write-downs of
Kinross' investment in mining properties or the discontinuation of development
or production might be required, and there could be material delays in the
development of new projects and reduced income and cash flow.

       There are numerous uncertainties inherent in estimating quantities of
proven and probable gold reserves. The estimates in this document are based on
various assumptions relating to gold prices and exchange rates during the
expected life of production, and the results of additional planned development
work. Actual future production rates and amounts, revenues, taxes, operating
expenses, environmental and regulatory compliance expenditures, development
expenditures and recovery rates may vary substantially from those assumed in the
estimates. Any significant change in these assumptions, including changes that
result from variances between projected and actual results, could result in
material downward or upward revision of current estimates.

OPERATIONS OUTSIDE OF NORTH AMERICA

       Kinross has mining operations and carries out exploration and development
activities in Russia, Brazil, and Chile. There is no assurance that future
political and economic conditions in these countries will not result in those
countries governments adopting different policies respecting foreign development
and ownership of mineral resources. Any such changes in policy may result in
changes in laws affecting ownership of assets, taxation, rates of exchange, gold
sales, environmental protection, labor relations, repatriation of income, and
return of capital, which may affect both the ability of Kinross to undertake
exploration and development activities in respect of future


                                     -147-
<PAGE>

properties in the manner currently contemplated, as well as its ability to
continue to explore, develop, and operate those properties for which it has
obtained exploration, development, and operating rights to date. The possibility
that a future government of these countries may adopt substantially different
policies, which might extend to expropriation of assets, cannot be ruled out.

       Kinross is subject to the considerations and risks of operating in
Russia. The economy of the Russian Federation continues to display
characteristics of an emerging market. These characteristics include, but are
not limited to, the existence of a currency that is not freely convertible
outside of the country, extensive currency controls and high inflation. The
prospects for future economic stability in the Russian Federation are largely
dependent upon the effectiveness of economic measures undertaken by the
government, together with legal, regulatory and political developments.

       Russian laws, licenses and permits have been in a state of change and new
laws may be given a retroactive effect. It is also not unusual in the context of
dispute resolution in Russia for parties to use the uncertainty in the Russian
legal environment as leverage in business negotiations. In addition, Russian tax
legislation is subject to varying interpretations and constant change. Further,
the interpretation of tax legislation by tax authorities as applied to the
transactions and activities of Kinross' Russian operations may not coincide with
that of management. As a result, transactions may be challenged by tax
authorities and Kinross' Russian operations may be assessed additional taxes,
penalties and interest, which could be significant. The periods remain open to
review by the tax authorities for three years. Kinross mitigates this risk
through effective communications with the Russian regulators.

       In addition, the economies of Russia, Brazil, and Chile differ
significantly from the economies of Canada and the United States. Growth rates,
inflation rates and interest rates of developing nations have been and are
expected to be more volatile than those of western industrial countries.

LICENSES AND PERMITS

       The operations of Kinross require licenses and permits from various
governmental authorities. However, such licenses and permits are subject to
change in various circumstances. There can be no guarantee that Kinross will be
able to obtain or maintain all necessary licenses and permits that may be
required to explore and develop its properties, commence construction or
operation of mining facilities and properties under exploration or development
or to maintain continued operations that economically justify the cost. Kinross
endeavors to be in compliance with these regulations at all times.

GOLD PRICE

       The profitability of any gold mining operations in which Kinross has an
interest will be significantly affected by changes in the market price of gold.
Gold prices fluctuate on a daily basis and are affected by numerous factors
beyond the control of Kinross. The supply and demand for gold, the level of
interest rates, the rate of inflation, investment decisions by large holders of
gold, including governmental reserves, and stability of exchange rates can all
cause significant fluctuations in gold prices. Such external economic factors
are in turn influenced by changes in international investment patterns and
monetary systems and political developments. The price of gold has fluctuated
widely and future serious price declines could cause continued commercial
production to be impractical. Depending on the price of gold, cash flow from
mining operations may not be sufficient to cover costs of production and capital
expenditures. If, as a result of a decline in gold prices, revenues from metal
sales were to fall below cash operating costs, production may be discontinued.

TITLE TO PROPERTIES

       The validity of mining claims which constitute most of Kinross' property
holdings in Canada, the United States, Brazil, Chile, and Russia may, in certain
cases, be uncertain and is subject to being contested. Kinross' titles,
particularly title to undeveloped properties, may be defective.

       Certain of Kinross' United States mineral rights consist of unpatented
lode mining claims. Unpatented mining claims may be located on U.S. federal
public lands open to appropriation, and may be either lode claims or placer
claims depending upon the nature of the deposit within the claim. In addition,
unpatented mill site claims, which may be used for processing operations or
other activities ancillary to mining operations, may be located on


                                     -148-
<PAGE>

federal public lands that are non-mineral in character. Unpatented mining claims
and mill sites are unique property interests, and are generally considered to be
subject to greater title risk than other real property interests because the
validity of unpatented mining claims is often uncertain and is always subject to
challenges of third parties or contests by the federal government of the United
States. The validity of an unpatented mining claim, in terms of both its
location and its maintenance, is dependent on strict compliance with a complex
body of U.S. federal and state statutory and decisional law. In addition, there
are few public records that definitively control the issues of validity and
ownership of unpatented mining claims. The General Mining Law of the United
States, which governs mining claims and related activities on U.S. federal
public lands, includes provisions for obtaining a patent, which is essentially
equivalent to fee title, for an unpatented mining claim upon compliance with
certain statutory requirements (including the discovery of a valuable mineral
deposit).

COMPETITION

       The mineral exploration and mining business is competitive in all of its
phases. Kinross competes with numerous other companies and individuals,
including competitors with greater financial, technical, and other resources
than Kinross, in the search for and the acquisition of attractive mineral
properties. The ability of Kinross to acquire properties in the future will
depend not only on its ability to develop its present properties, but also on
its ability to select and acquire suitable producing properties or prospects for
mineral exploration. There is no assurance that Kinross will continue to be able
to compete successfully with its competitors in acquiring such properties or
prospects.

JOINT VENTURES

       After completion of the combination, Kinross has ownership in eight mines
that are operated through joint ventures with other mining companies. Any
failure of such other companies to meet their obligations to Kinross or to third
parties could have a material adverse effect on the joint ventures.

DISCLOSURES ABOUT MARKET RISKS

       To determine its market risk sensitivities, Kinross uses an internally
generated financial forecast that is sensitized to various gold prices, currency
exchange rates, interest rates and energy prices. The variable with the greatest
impact is the gold price, and Kinross prepares a base case scenario and then
sensitizes it by a $10 increase and decrease in the gold price. For 2004,
sensitivity to a $10 change in the gold price is $15 million on pre-tax
earnings.

       The financial forecast Kinross uses covers the life of the mine. In each
year gold is produced according to the mine plan, the production is estimated
based on current production costs plus the impact of any major changes to the
operation during its life. Quantitative disclosure of market risks is disclosed
below.

COMMODITY PRICE RISKS

       Kinross' net income can vary significantly with fluctuations in the
market price of gold. At various times, in response to market conditions,
Kinross has entered into gold forward sales contracts, spot deferred forward
sales contracts and written call options for some portion of expected future
production to mitigate the risk of adverse price fluctuations. Kinross does not
hold these financial instruments for speculative or trading purposes. In
addition, Kinross is not subject to margin requirements on any of its hedging
lines. Due to the increase in gold prices, Kinross made a decision in 2002 to
continue to deliver into these financial instruments and will not replace them
with new financial instruments thereby increasing its exposure to changes in
gold prices.

       The outstanding number of ounces, average expected realized prices and
maturities for the gold commodity derivative contracts as at December 31, 2003,
are as follows:

<TABLE>
<CAPTION>
                        OUNCES             AVERAGE          CALL OPTIONS          AVERAGE
     YEAR               HEDGED              PRICE               SOLD            STRIKE PRICE
---------------     ---------------    ----------------    ----------------    ---------------
<S>                     <C>               <C>                   <C>               <C>
2004                    137,500           $    277              50,000            $     340
2005                     37,500           $    296                  --            $      --
                    ---------------    ----------------    ----------------    ---------------
Total                   175,000           $    281              50,000            $     340
                    ===============    ================    ================    ===============
</TABLE>


                                     -149-
<PAGE>

       The fair value of the call options sold is recorded in the financial
statements at each measurement date. The fair value of the gold forward sales
and spot deferred forward sales contracts, as at December 31, 2003, was negative
$24.4 million based on a gold price of $417 per ounce. In 2004, Kinross will
receive $277 per ounce of gold for 137,500 ounces which may be significantly
different from market prices. If the market price of gold is $400 per ounce on
the dates the ounces are delivered into the forward sales contracts, Kinross
would be paid $16.9 million less than if it were unhedged. In addition, at
December 31, 2003, Kinross has 50,000 ounces of written call options
outstanding. If the market price of gold is above $340 per ounce on expiry in
June 2004, Kinross will be committed to sell 50,000 ounces at $340 per ounce. If
the market price of gold is $400 per ounce, Kinross would be paid $3.0 million
less than if it were unhedged. Kinross does not include these financial
instruments in testing for impairment of operating mines, mineral rights, and
development properties.

FOREIGN CURRENCY EXCHANGE RISK

       Kinross conducts the majority of its operations in the United States,
Russia, Canada, Brazil, and Chile. Currency fluctuations affect the cash flow
that Kinross will realize from its operations as gold is sold in U.S. dollars,
while production costs are incurred in Russian rubles, Chilean pesos, Brazilian
reals, Canadian, and U.S. dollars. Kinross' results are positively affected when
the U.S. dollar strengthens against these foreign currencies and adversely
affected when the U.S. dollar weakens against these foreign currencies. Kinross'
cash and cash equivalent balances are held in U.S. and Canadian dollars;
holdings denominated in other currencies are relatively insignificant.

       RUSSIAN RUBLES

       Kinross operates the Kubaka mine in Russia. Kinross estimates 2004
Russian ruble payments for operating, exploration and royalty expenses of 580.1
million Russian rubles at an exchange rate of 29 rubles to one U.S. dollar. A
10% change in the exchange rate could result in an approximate $2.0 million
change in Kinross' pre-tax earnings.

       CHILEAN PESOS

       Kinross has joint venture interests in the Refugio mine and the La Coipa
mine, both located in Chile. Kinross estimates 2004 payments for operating,
exploration, and royalty expenses of 10.4 billion Chilean pesos at an exchange
rate of 700 pesos to one U.S. dollar. A 10% change in the exchange rate could
result in an approximate $1.5 million change in Kinross' pre-tax earnings. In
addition, Kinross has budgeted capital expenditures of 15.0 billion Chilean
pesos. A 10% change in the exchange rate could result in an approximate $2.1
million change in Kinross' capital expenditures.

       BRAZILIAN REALS

       Kinross is a partner in the Paracatu (Brasilia) and Crixas mines, both
located in Brazil. Kinross estimates 2004 payments for operating, exploration,
and royalty expenses of 51.0 million Brazilian reals at an exchange rate of 3
Brazilian reals to one U.S. dollar. A 10% change in the exchange rate could
result in an approximate $1.7 million change in Kinross' pre-tax earnings. In
addition, Kinross has budgeted capital expenditures of 36.3 million Brazilian
reals. A 10% change in the exchange rate could result in an approximate $1.2
million change in Kinross' capital expenditures.

       CANADIAN DOLLARS

       Kinross operates the Lupin mine and is a partner in the New Britannia,
Musselwhite, and Porcupine joint ventures. As a result of these ownership
interests and expenses incurred by the Canadian corporate office, Kinross has
Canadian dollar denominated operating, exploration, and administrative expenses.
Kinross has currency hedges of CDN $14.1 million for 2004 at an exchange rate of
1.4121 to one U.S. dollar. Assuming 2004 budgeted payments of CDN $163.0 million
at an exchange rate of CDN $1.30 per U.S. dollar and considering the 2004
Canadian dollar hedges, a 10% change in the exchange rate could result in an
approximate $11.5 million change in Kinross' pre-tax earnings. In addition,
Kinross has budgeted capital expenditures of CDN $42.0 million. A 10% change in
the exchange rate could result in an approximate $3.2 million change in Kinross'
capital expenditures.


                                     -150-
<PAGE>

STRATEGY

       Kinross' strategy is to increase shareholder value through increases in
long-term cash flow, production, and earnings per share. Kinross' strategy
consists of optimizing the performance and, therefore, the value of existing
mines, investing in quality projects and looking for additional accretive
acquisitions.

       The first component of this strategy is addressed as Kinross continues to
look for opportunities to enhance the performance of existing assets that it
operates, through its continuous improvement program. The continuous improvement
program focuses on productivity improvements and cost cutting initiatives that
add value by improving cash flow and earnings per share. Two significant
initiatives in 2003 at the Round Mountain mine focused on waste dump haulage
costs and heap leach pad inventory management. Modifications to the waste rock
haulage process reduced haulage distances and costs, while side slope leaching
of the heap leach pad improved the timing of the recovery of gold ounces.

       The second component of the strategy is the value created by investing in
quality projects. In 2003, Kinross announced plans to expand and recommission
the Refugio mine and restart the Kettle River operation. The Refugio mine is
scheduled to achieve production during the fourth quarter of 2004, while the
Kettle River operation reopened in January of 2004. The Pamour open pit project
is being developed as a long-term source of ore for the Porcupine joint
venture's Dome mill and at Paracatu (Brasilia), the joint venture partners are
currently evaluating an expansion project. In addition, 2003 exploration
activities added proven and probable reserves of 2.7 million ounces of gold,
less the 1.8 million ounces of reserves depleted by production during the year.
Kinross' current exploration budget in 2004 is approximately $20.0 million and
may be expanded depending on success-driven opportunities. The objective of
these exploration activities is to again increase proven and probable reserves
in 2004.

       The third component of this strategy is to increase value through
accretive acquisitions. On November 20, 2003, Kinross announced it had entered
into an agreement with Crown whose major asset is the Buckhorn Mountain gold
deposit located in north central Washington State. The current operating plan
for Buckhorn contemplates the development of an underground mine and processing
the ore at the nearby Kettle River mill. This component of the business strategy
is designed to add value by increasing proven and probable reserves and
providing additional production thereby increasing earnings and cash flow.

       Kinross will continue to focus on its continuous improvement program in
2004, advance existing exploration and development projects and look for
accretive projects to acquire that will ultimately create additional value to
Kinross' shareholders.

OUTLOOK

       Kinross has a robust pipeline of new projects at various stages of
exploration and development and is well positioned financially through strong
cash flow from operating activities and significant cash balances to advance
these projects towards production. The first of these projects achieved
commercial production in January 2004, with the development of the Emanuel Creek
ore body and the restart of the Kettle River mill where gold production of
approximately 100,000 ounces is anticipated in 2004. As a result of major
projects such as the restart of an expanded Refugio, the development of the
Pamour pit and the potential expansion of Paracatu (Brasilia), the capital
expenditure program in 2004 is currently budgeted at approximately $165.0
million. It is expected that this capital expenditure program, the largest in
Kinross' history, can be funded entirely from cash flow from operating
activities at year end gold prices. During 2004, Kinross will deliver into
essentially all remaining gold hedges and in the first quarter of 2005 will
become totally unhedged.

       A key focus in 2004, and into the future, will be to continue to expand
the reserve base of Kinross through exploration, optimization of producing
assets and accretive acquisitions such as the Crown transaction. Planned
production for Kinross in 2004 is 1.70 to 1.75 million ounces of gold equivalent
at total cash costs in the range of $225 to $235 per ounce. A primary objective
is to meet or exceed expectations in this regard, and to work toward our goal of
ultimately reaching an annual production rate of two million ounces.


                                     -151-
<PAGE>

--------------------------------------------------------------------------------
                                THE CROWN MERGER
--------------------------------------------------------------------------------

GENERAL

       Kinross proposes to acquire Crown Resources Corporation ("Crown")
pursuant to a merger agreement entered into on November 20, 2003, as amended.
The merger agreement provides for the merger of Crown with and into a wholly
owned subsidiary of Kinross ("Crown Merger"), with Crown surviving the merger.

       The merger was unanimously approved by the boards of directors of both
Kinross and Crown. Neither board formed a special committee in connection with
their consideration of the merger.

       The Crown common stock will be converted into Kinross common shares on
the basis of 0.2911 shares of Kinross common shares for each share of Crown
common stock previously outstanding.

       If the holder of any unexercised warrant to purchase shares of Crown
common stock so elects, the warrant will be exchanged for 0.2911 of a Kinross
common share for each share of Crown common stock that would have been issued on
exercise of the warrant immediately prior to the effective time of the merger on
a cashless basis and the number of shares of Solitario common stock to which the
holder would have been entitled if the warrant had been exercised on a cashless
basis immediately prior to the merger. If the holder does not make the foregoing
election, the warrant will represent the right to acquire Kinross common shares
in accordance with the terms and conditions of the warrant as amended pursuant
to the merger agreement.

       On December 8, 2003, the Crown board of directors took action, as
permitted under the Crown 2002 Stock Incentive Plan, so that conditional upon
the completion of the merger as contemplated by the merger agreement, all
options to purchase Crown common stock not exercised as of the effective time of
the merger will be terminated on three days notice of the completion of the
merger.

       The merger agreement contemplates that the merger will be completed
within three business days of the satisfaction of all conditions precedent. The
parties anticipate closing the merger as quickly as practicable subsequent to
the approval of the transaction by the Crown shareholders. Completion of the
merger is subject to the satisfaction of all conditions which must be satisfied
or waived by the parties. In the event of the failure to meet any of these
conditions, the merger may not be completed even if approved by the Crown
stockholders.

ACCOUNTING FOR THE MERGER

       The merger will be accounted for by Kinross using the purchase method of
accounting in accordance with both Section 1581, "Business Combinations," of the
CICA Handbook, for purposes of Canadian generally accepted accounting
principals, and SFAS 141, "Business Combinations," for purposes of United States
generally accepted accounting principles. Pursuant to the purchase method of
accounting under both Canadian and United States generally accepted accounting
principles, the Crown assets acquired, other potential intangible assets
identified, and liabilities assumed will be recorded at their fair market values
as of the effective date of the merger. The excess of the purchase price over
such fair value will be recorded as goodwill. In accordance with Section 3062,
"Goodwill and Other Intangible Assets," of the CICA Handbook, for purposes of
Canadian generally accepted accounting principles, and SFAS 142, "Goodwill and
Other Intangible Assets," for purposes of United States generally accepted
accounting principles, goodwill will be assigned to specific reporting units and
will not be amortized. Goodwill is subject to a determination of fair value and
will be reviewed for possible impairment at least annually or more frequently
upon the occurrence of certain events or when circumstances indicate that a
reporting unit's carrying value, including the goodwill which was allocated to
it, is greater than its fair value.

--------------------------------------------------------------------------------
                        AGREEMENTS RELATING TO THE MERGER
--------------------------------------------------------------------------------

THE MERGER AGREEMENT

       The following is a description of the material provisions of the merger
agreement:


                                     -152-
<PAGE>

STRUCTURE OF THE MERGER

       The merger agreement provides for the acquisition of Crown by Kinross
through the merger of Crown Merger into Crown. As a result of the merger, Crown
Merger will cease to exist and Crown will be the surviving corporation. Shares
of Crown Merger's outstanding common stock, which are held by Kinross, will be
converted in the merger into preferred stock of Crown with a fair market value
and redemption amount equal to the value of the shares of Crown Merger common
stock converted, and will remain outstanding following the merger.

EFFECTIVE TIME AND TIMING OF CLOSING

       The closing of the merger will take place no later than the third
business day after satisfaction or waiver of the conditions to the merger set
forth in the merger agreement (see "Conditions to the Merger" below), unless
Kinross, Crown and Crown Merger agree to another time or date. Crown will file
articles of merger with the Washington Secretary of State at the closing. The
merger will be effective at the time that the articles of merger are filed,
unless a later date is specified in the articles of merger and agreed to in
writing by Kinross, Crown and Crown Merger.

CONSIDERATION TO BE RECEIVED IN THE MERGER

       At the effective time of the merger, Crown shareholders (other than
shareholders exercising rights of appraisal under Washington law) will have the
right, with respect to each of their shares of Crown common stock, to receive
0.2911 of a Kinross common share. Kinross will not issue any fractional Kinross
common shares to holders of Crown common stock in connection with the merger.
Instead, Kinross will pay in cash an amount equal to the product of the
fractional part of a Kinross common share each such holder would otherwise be
entitled to receive (taking into account all Crown common stock delivered by
such holder) multiplied by the closing price of one Kinross common share on the
NYSE Composite Tape (as reported by The Wall Street Journal or, if not reported
by The Wall Street Journal, some other authoritative source) for the ten
consecutive trading days ending on the third trading day immediately preceding
the effective time of the merger.

EXCHANGE OF CERTIFICATES REPRESENTING CROWN COMMON STOCK

       Kinross will appoint an exchange agent who will exchange certificates
representing shares of Crown common stock outstanding as of the effective time
of the merger for certificates representing Kinross common shares and any cash
issuable in lieu of fractional shares.

       As soon as reasonably practicable after the effective time of the merger,
Kinross will cause the exchange agent to mail to each holder of record of a
certificate representing shares of Crown common stock outstanding as of the
effective time of the merger, a letter of transmittal which the holder must
properly complete and deliver to the exchange agent along with the holder's
certificate or certificates for Crown common stock, and instructions for
effecting surrender of the certificate. The letter of transmittal will specify
that the exchange agent will deliver the certificate representing Kinross common
shares, and risk of loss and title to the certificate representing Crown common
stock will pass, only upon delivery of the certificate to the exchange agent and
will be in a form and have other provisions that Kinross will reasonably
specify.

       Until each certificate representing Crown common stock is surrendered
(except for certificates representing shares with respect to which appraisal
rights have been validly exercised) it will be deemed from and after the
effective time of the merger, for all corporate purposes, to evidence the
Kinross common shares into which the shares of Crown common stock represented by
the certificate have been converted in connection with the merger and the
payment of cash for fractional shares. Certificates representing shares of Crown
common stock with respect to which a Crown shareholder has validly exercised
appraisal rights will represent the right to pursue any appraisal rights that
the holder may have.

       After the surrender of a certificate representing Crown common stock to
the exchange agent, together with a duly executed and completed letter of
transmittal and all other documents and other materials required by the exchange
agent, the holder of the certificate will be entitled to receive a certificate
representing the Kinross common shares into which the Crown common stock
represented by the certificate have been converted in connection with the
merger, excluding fractional shares, and payment of cash for fractional shares.


                                     -153-
<PAGE>

DISTRIBUTION OF SOLITARIO COMMON STOCK

       The merger agreement contemplates that all or some portion of the common
stock of Solitario Resources Corporation ("Solitario") held by Crown may be
distributed to the Crown shareholders prior to the effective time of the merger.
Crown agreed to use its commercially reasonable efforts to cause Solitario to
make all filings and obtain all regulatory approvals required by the Securities
Act of 1933, the Exchange Act, Canadian securities laws and rules of the TSX in
connection with the distribution by Crown of the Solitario Common Stock to the
shareholders of Crown and to reasonably cooperate in providing all information
to Solitario necessary to complete such filings. Solitario has filed documents
with the United States Securities and Exchange Commission (the "SEC") to permit
the distribution of all of the shares of Solitario held by Crown to the Crown
shareholders, except those shares, estimated to be approximately 1,000 shares,
that would otherwise result in one or more Crown shareholders holding a fraction
of a share of Solitario stock. The registration statement is subject to review
and comment by the SEC prior to the distribution of the Solitario common stock.
Crown anticipates completing the distribution prior to the merger.

TREATMENT OF CROWN STOCK OPTIONS

       The merger agreement provides that the Crown board of directors will take
action as permitted under the Crown 2002 Stock Incentive Plan so that all
options to purchase Crown common stock will either be exercised or terminated
prior to the effective time of the merger.

TREATMENT OF CROWN WARRANTS

       If the holder of any unexercised warrant to purchase shares of Crown
common stock elect, the warrant will be exchanged for 0.2911 of a Kinross common
share for each share of Crown common stock that would have been issued on
exercise of the warrant immediately prior to the effective time of the merger on
a cashless basis. If the holder does not make the foregoing election, the
warrant will represent the right to acquire Kinross common shares in accordance
with the terms and conditions of the warrant as amended pursuant to the merger
agreement.

REPRESENTATIONS AND WARRANTIES

       In the merger agreement, Kinross and Crown Merger, on the one hand, and
Crown, on the other, have made various representations and warranties relating
to, among other things, their respective organization, capital structure,
business and financial condition, the completeness and accuracy of filings made
with the SEC, and the satisfaction of certain legal requirements for the merger.
The representations and warranties of each of the parties to the merger
agreement will expire upon consummation of the merger.

       The merger agreement provides that these representations and warranties
of Crown, Kinross and Crown Merger will not survive, or continue in effect,
after the closing date of the merger.

CONDUCT OF BUSINESS PENDING THE MERGER

       Crown has agreed that, until the closing of the merger or the termination
of the merger agreement, unless Kinross otherwise agrees in writing or as
otherwise contemplated by the merger agreement, Crown will cause its business
and the business of its subsidiaries to be conducted only in the ordinary course
of business or as reasonably necessary to consummate the transactions
contemplated by the merger agreement and will otherwise not engage in certain
activities, including certain significant business or financing transactions or
changes in corporate structure. The specific restrictions on the conduct of
Crown's business are listed in the merger agreement.

OFFERS FOR ALTERNATIVE TRANSACTIONS

       The merger agreement provides that, until the earlier of the effective
time of the merger or the termination of the merger agreement, Crown will not,
and will not agree to:

       o      enter into any transaction with any party other than Kinross
              relative to an alternative transaction (including a merger or
              consolidation or any other business combination or any disposition
              of Crown's assets or any interest in its business, its capital
              stock or any part thereof or a transaction comparable or similar
              to the merger with Kinross or that would prevent or materially
              impede the merger),


                                     -154-
<PAGE>

       o      solicit or encourage submission of inquiries, proposals or offers
              from any other party relative to an alternative transaction;

       o      except in the ordinary course of business or as required by law,
              regulation, or court order or by agreements existing at the date
              of the merger agreement, provide information to any other person
              regarding Crown or any of its subsidiaries (other than Solitario);
              or

       o      conduct any discussions or negotiations regarding, or enter into
              any agreement, arrangement or understanding regarding, or approve,
              recommend or propose publicly to approve or recommend, an
              alternative transaction.

       Crown agreed to cease and cause to be terminated any existing discussions
or negotiations with any person (other than Kinross) conducted prior to the date
of the merger agreement with respect to any alternative transaction. Crown also
agreed not to release any third party from the confidentiality and standstill
provisions of any agreement to which Crown is a party, other than agreements
with Crown's customers and suppliers entered into in the ordinary course of
business.

       The merger agreement further provides that Crown will promptly notify
Kinross if Crown receives any offer, inquiry or proposal or enters into any
discussions, including without limitation, the terms and conditions of any
alternative transaction and the identity of the potential acquirer relating to
an alternative transaction and the details of the foregoing. Crown has agreed to
keep Kinross fully informed on an ongoing basis with respect to each offer,
inquiry, proposal or discussions with any person relating to an alternative
transaction. Crown will provide Kinross with copies of all offers, inquiries or
proposals relating to an alternative transaction that are in writing and all
written materials and correspondence relating to those as soon as practicable
after Crown receives them.

       Crown has agreed that neither it nor its board of directors will enter
into any agreement with respect to, or otherwise approve or recommend, any
alternative transaction, unless it has provided Kinross with the details of the
alternative transaction (including a copy of all written agreements,
correspondence and other documents relating thereto) and a reasonable period of
time (which shall not be less than two business days) during which Kinross may
propose changes to the transaction provided for by the merger agreement. The
merger agreement provides that Crown may not furnish any of its non-public
information to a potential party to a proposal superior to that of Kinross
unless Crown has previously furnished or provided access to, or promptly
thereafter furnishes or provides access to, such information to Kinross.

       In response to an unsolicited offer, inquiry or proposal from any person
with respect to an alternative transaction, however, if the alternative
transaction is a proposal superior to the transaction with Kinross, Crown (and
its directors, officers, agents, representatives, affiliates, shareholders and
other persons acting on its behalf) may

       o      participate in discussions or negotiations with, review
              information from, any third party that has made the offer, inquiry
              or proposal relative to an alternative transaction;

       o      subject to Crown providing Kinross with notice and an opportunity
              to propose changes to the offer, furnish non-public information to
              any third party that has made the offer, inquiry or proposal
              relative to an alternative transaction;

       o      approve or accept an unsolicited alternative transaction; and

       o      make or authorize any statement, recommendation or solicitation in
              support of an unsolicited alternative transaction.

       An alternative transaction is a superior proposal if Crown's board of
directors determines in good faith that:

       o      with regard to participation in discussion or providing non-public
              information, the alternative transaction proposal is or is
              reasonably likely to be or become, or with regard to approving,
              accepting or recommending an alternative transaction, the
              alternative transaction proposal is more favorable to Crown and
              its shareholders than the transactions contemplated by the merger
              agreement; and


                                     -155-
<PAGE>

       o      following consultation with outside legal counsel, that the
              failure to participate in discussions or negotiations, review such
              information or furnish such information regarding, or approve or
              accept, the alternative transaction would violate the fiduciary
              duties under applicable law.

       Crown has agreed that it will, prior to providing information or
participating in discussions relating to an alternative transaction, advise
Kinross that Crown will do so.

       Even if Crown's board of directors changes or withdraws its
recommendation, the merger agreement requires Crown to take all action under law
necessary to provide notice of and hold the special meeting of shareholders to
seek approval of the merger.

CONDITIONS TO THE PARTIES' OBLIGATIONS TO CLOSE THE MERGER

       The obligations of Crown, Kinross and Crown Merger to complete the merger
depend upon the satisfaction or waiver of a number of conditions, including the
following:

       o      the effectiveness of the registration statement that includes this
              Annual Information Form and the receipt of all other
              authorizations necessary under applicable securities laws to
              consummate the transactions contemplated by the merger agreement;

       o      the adoption and approval of the merger agreement, the merger and
              all other transactions contemplated by the merger agreement by
              Crown's shareholders holding at least 66-2/3% of Crown's
              outstanding common stock;

       o      the absence of any law or any preliminary or permanent injunction
              or other order by any federal, state or foreign court having
              appropriate jurisdiction prohibiting, restraining, enjoining,
              restricting or preventing consummation of the merger having been
              issued and continuing in effect;

       o      the absence of any litigation instigated which seeks to prohibit,
              restrain, enjoin, or restrict the consummation of the merger; and

       o      the receipt and continuing effectiveness of all approvals,
              consents, or authorizations of any governmental entity or other
              regulatory body having jurisdiction over the matter, including,
              but not limited to, the NYSE and the TSX, so long as neither Crown
              nor Kinross have received written notice from any governmental
              entity or regulatory body that it is conducting any review or
              investigation to determine whether any approval, consent, or
              authorization should be withdrawn or materially modified.

       The obligation of Crown to complete the merger also depends on the
satisfaction or waiver of, among others, the following additional conditions
(any of which may be waived by Crown):

       o      The truthfulness and correctness, as of the closing date, of the
              representations and warranties of Kinross and Crown Merger in the
              merger agreement and Crown's receipt of a certificate of the
              President and the Chief Financial Officer of Kinross, dated the
              closing date, to that effect;

       o      Kinross and Crown Merger's performance of or compliance with, in
              all material respects, all agreements and covenants required by
              the merger agreement to be performed or complied with by them on
              or prior to the closing date and Crown's receipt of a certificate
              of the President and the Chief Financial Officer of Kinross and
              Crown Merger, dated the closing date, to that effect;

       o      The absence of any change, occurrence, or circumstance, since the
              date of the merger agreement, in the current or future business,
              assets, liabilities, financial condition, or results of operations
              of Kinross and its consolidated subsidiaries having, or reasonably
              likely to have, individually or in the aggregate, a material
              adverse effect on Kinross, viewed on a consolidated basis;

       o      Crown's receipt of the written opinion of Parr Waddoups Brown Gee
              & Loveless, counsel to Kinross, dated the closing date, to the
              effect that: (a) the merger will constitute a reorganization
              within the


                                     -156-
<PAGE>

              meaning of Section 368(a) of the Internal Revenue Code; (b)
              Kinross, Crown Merger, and Crown will constitute parties to the
              reorganization within the meaning of Section 368(b) of the
              Internal Revenue Code; and (c) for United States federal income
              tax purposes no gain or loss will be recognized by the holders of
              Crown common stock or outstanding warrants to purchase Crown
              common stock upon receipt of Kinross common shares in the merger
              in exchange for the Crown common stock or the warrants, except for
              any cash received in lieu of a fractional share interest in the
              Kinross common shares; and (d) Crown shareholders will not
              recognize taxable gain under Section 367(a) of the Internal
              Revenue Code as a result of the merger; and the opinion shall not
              have been withdrawn or modified;

       o      Kinross obtaining any consents from third parties necessary to
              consummate the transactions contemplated hereby without material
              adverse effect on the business or financial condition of Kinross;
              and

       The obligation of Kinross and Crown Merger to complete the merger also
depends on the satisfaction or waiver of the following additional conditions
(any of which may be waived by Kinross):

       o      The truthfulness and correctness, as of the closing date, of the
              representations and warranties of Crown in the merger agreement
              and Kinross' receipt of a certificate of the President and the
              Chief Financial Officer of Crown, dated the closing date, to that
              effect;

       o      Crown's performance of or compliance with, in all material
              respects, all agreements and covenants required by the merger
              agreement to be performed or complied with by it on or prior to
              the closing date and Kinross' receipt of a certificate of the
              President and the Chief Financial Officer of Crown, dated the
              closing date, to that effect;

       o      The absence of any change, occurrence, or circumstance, since the
              date of the merger agreement, in the current or future business,
              assets, liabilities, financial condition, or results of operations
              of Crown and its consolidated subsidiaries having, or reasonably
              likely to have, individually or in the aggregate, a material
              adverse effect on the business, properties or prospects of Crown;

       o      The number of shares of Crown common stock for which valid notices
              of the intent to exercise shareholder appraisal rights have been
              provided and remain outstanding immediately prior to the
              effectiveness of the merger not exceeding 5% of the issued and
              outstanding Crown common stock immediately prior to the effective
              time of the merger;

       o      Completion of the distribution of the Solitario common stock to
              the shareholders of Crown, if any, in accordance with applicable
              United States and Canadian securities and corporate laws in a
              method reasonably satisfactory to Kinross;

       o      Crown obtaining consents from third parties necessary to
              consummate the transactions contemplated hereby without material
              adverse effect on the business or financial condition of Crown;

       o      Conversion or redemption of all of Crown's convertible notes prior
              to the effective time of the merger; and

       o      Exercise or termination of all options to purchase Crown common
              stock prior to the effective time of the merger.

TERMINATION AND EFFECTS OF TERMINATION

       The merger agreement may be terminated, and the merger may be abandoned,
at any time before Kinross and Crown complete the merger, under the following
circumstances:

       o      By mutual written consent of Kinross and Crown;

       o      By either Kinross or Crown, if:


                                     -157-
<PAGE>

              o      the merger has not occurred by September 30, 2004, provided
                     that the party seeking to terminate the merger agreement
                     for this reason has not breached in any material respect
                     its obligations under the merger agreement in any manner
                     that has contributed to the failure of the consummation of
                     the merger on or before the such date;

              o      the existence of any law that prohibits or makes the
                     consummation of the merger illegal, or the entry of an
                     order, decree, ruling, judgment or injunction by a
                     governmental entity of competent jurisdiction permanently
                     restraining, enjoining or otherwise prohibiting the merger
                     and such order, decree, ruling, judgment or injunction has
                     become final and non-appealable;

              o      approval of the Crown shareholders has not been obtained at
                     the Crown special meeting (including any adjournment or
                     postponement thereof), if required by applicable law,
                     unless the failure to obtain the approval is the result of
                     a material breach of merger agreement by the party seeking
                     to terminate the merger agreement; or

              o      Crown's board of directors has withdrawn its recommendation
                     or has recommended or entered into a definitive agreement
                     with respect to a superior proposal.

o      By Crown, if:

              o      the representations and warranties of Kinross and Crown
                     Merger in the merger agreement fail to be true and correct
                     in any material respect (or if the representation or
                     warranty already is qualified as to materiality, shall fail
                     to be true and correct as so qualified) either (x) as of
                     the date referred to in any representation or warranty that
                     addresses matters as of a particular date or (y) as to all
                     other representations and warranties, as of the date of
                     determination and the failure cannot be or has not been
                     cured in all material respects within ten days after
                     Crown's written notice thereof to Kinross or Crown Merger;
                     or

              o      Kinross or Crown Merger materially breaches or materially
                     fails to perform its covenants and other agreements
                     contained herein; provided that, in each of the foregoing
                     clauses and the breach or failure cannot be or has not been
                     cured in all material respects within ten days after
                     Crown's written notice thereof to Kinross or Crown Merger.

       o      By Kinross and Crown Merger, if:

              o      the representations and warranties of Crown in the merger
                     agreement fail to be true and correct in any material
                     respect (or if the representation or warranty already is
                     qualified as to materiality, shall fail to be true and
                     correct as so qualified) either (1) as of the date referred
                     to in any representation or warranty that addresses matters
                     as of a particular date or (2) as to all other
                     representations and warranties, as of the date of
                     determination and the failure cannot be or has not been
                     cured in all material respects within ten days after
                     Kinross' written notice thereof to Crown; or

              o      Crown materially breaches or materially fails to perform
                     its covenants and other agreements contained herein;
                     provided that, in each of the foregoing clauses and the
                     breach or failure cannot be or has not been cured in all
                     material respects within ten days after Kinross' written
                     notice thereof to Crown.

       If the merger agreement is terminated, all rights and obligations of
Kinross, Crown and Crown Merger under the merger agreement will terminate
without any liability of any party to any other party. However, termination of
the merger agreement will not relieve any party from liability for breach of the
merger agreement. In addition, the provisions of the agreement relating to
termination, fees and expenses (including the termination fees), confidentiality
and certain miscellaneous provisions will survive termination of the merger
agreement.


                                     -158-
<PAGE>

EXPENSES

       Generally, all fees and expenses incurred by either party will be paid by
the party incurring the expenses, whether the merger is consummated or not. If
Crown does not complete the merger as a result of entering into any agreement
resulting from a superior proposal within six months of the date of the merger
agreement, then Crown has agreed (1) to pay to Kinross a fee of U.S. $2.0
million, and (2) reimburse Kinross for its documented, reasonable third-party,
out-of-pocket expenses in connection with the merger agreement.

ADDITIONAL AGREEMENTS

       Kinross and Crown have agreed in the merger agreement to use commercially
reasonable efforts to take, or cause to be taken, all actions and to do, or
cause to be done, all things necessary, proper or advisable on its part, to
consummate and make effective the transactions contemplated by the merger
agreement at the earliest practicable date.

       Crown has also agreed in the merger agreement

       o      to use its commercially reasonable efforts to amend or redeem its
              outstanding convertible notes so that, in any event, all of its
              outstanding convertible notes are redeemed or are converted into
              Crown common stock prior to the effective time of the merger; and

       o      to provide Kinross and its representatives with full access during
              normal business hours to Crown's facilities, personnel and
              records.

       Kinross has also agreed in the merger agreement that the surviving
corporation in the merger and Kinross will assume and be jointly and severally
liable for all obligations of Crown under the indemnification provisions in
Crown's articles of incorporation and bylaws for any "proceeding" (as defined in
Crown's bylaws) that arises with respect to the former officers and directors of
Crown within six (6) years after the effective time of the merger.

AMENDMENT

       The merger agreement provides that the parties may amend the merger
agreement in writing at any time prior to the effective time of the merger. In
the event the parties amend the merger agreement following approval of the
agreement by the Crown shareholders, Crown may need to obtain further
shareholder approval of those amendments.

WAIVER

       Either party may waive any failure of the other party to comply with any
provision of the merger agreement. Any waiver must be in writing and must be
signed by the party giving the waiver.

STOCKHOLDER AND VOTING AGREEMENT

       On November 20, 2003, as a condition and an inducement to Kinross'
willingness to enter into the merger agreement, several directors and officers
of Crown and certain significant shareholders of Crown entered into a
stockholder and voting agreement with Kinross under which they agreed, among
other things, to vote or cause the vote of all of the shares of Crown common
stock owned by them, as set forth in the stockholder and voting agreement, as
well as any shares of Crown common stock acquired by them (i) in favor of the
adoption and approval of the merger, and (ii) against any proposal to acquire
the stock or assets of Crown made by any person or group other than Kinross and
any other action that is intended or could reasonably be expected to impede,
interfere with, delay or materially and adversely affect the contemplated
economic benefits to Kinross of any of the transactions contemplated by the
merger agreement or any of the other transactions contemplated by the
stockholder and voting agreement. The stockholder and voting agreement expires
on the earlier of the effective time of the merger or the termination of the
merger agreement in accordance with its terms.

       Each shareholder that is a party to the stockholder and voting agreement
has appointed Kinross and its designees, individually, as the shareholder's
proxy to vote or act by written consent with respect to the shareholder's shares
of Crown common stock in the manner described above. The shareholder also
revoked all prior proxies granted with respect to the shareholders shares.


                                     -159-
<PAGE>

       Each shareholder also agreed generally not to grant any proxies or
transfer his or its shares of Crown common stock during the term of the
stockholder and voting agreement. The Crown shareholders who entered into the
and voting agreement did not receive any additional consideration for entering
into the stockholder and voting agreement.

       The following shareholders of Crown entered into the stockholder and
voting agreement: Zoloto Investors, LP, a Delaware limited partnership,
Solitario, Christopher E. Herald, Mark E. Jones, III, Brian Labadie, James R.
Maronick, and Steven A. Webster. As of March 31, 2004, 2,012,458 shares of Crown
common stock were subject to the stockholder and voting agreement, representing
approximately 9% of the outstanding shares of Crown common stock. Parties to the
stockholder and voting agreement also hold $3,000,000 of certain secured
convertible notes ("Senior Notes") which can be converted into 8,771,429 shares,
options to acquire 1,917,500 shares, and warrants to acquire up to 8,771,429
shares. If all of these notes, options, and warrants were converted or exercised
prior to the record date for the special meeting, the parties to the stockholder
and voting agreement would hold 21,472,816 shares, or 43.3% of the outstanding
Crown common stock on a fully diluted basis.

THE DISTRIBUTION AGREEMENT

       On November 20, 2003, Solitario and Crown entered into a distribution
agreement with Kinross under which Solitario agreed, among other things, to file
a registration statement under the Exchange Act with the Securities and Exchange
Commission and all other necessary filings under applicable federal, state and
provincial laws of the United States and Canada to permit the distribution of
Solitario common stock by Crown to the Crown shareholders in accordance with
applicable law. Solitario further agreed to work in good faith and use its best
efforts to obtain the effectiveness of the registration statement and other
filings. Kinross and Crown agreed to cooperate in providing information required
to permit Solitario prepare the registration statement and other filings.

       Solitario filed an amended registration statement on Form 10/A with the
SEC on April 22, 2004 that provides for the distribution of all of the shares of
Solitario common stock held by Crown to the Crown shareholders, other than those
shares, estimated to be approximately 1,000 shares, that could otherwise result
in Crown shareholders owning a fraction of a share of Solitario common stock.
The registration statement is subject to review and comment by the SEC prior the
distribution of the Solitario common stock.

       Each of the parties agreed to bear its own expenses in performing their
obligations under the distribution agreement. Solitario agreed to indemnify
Crown and Kinross for certain untrue statements or omissions of material facts
in the registration statement, blue sky filings or other filings and for
violations of applicable securities laws. Crown and Kinross agreed to indemnify
Solitario for untrue statements in the registration statement to the extent the
statements were provided by Crown or Kinross.

--------------------------------------------------------------------------------
                                BUSINESS OF CROWN
--------------------------------------------------------------------------------

OVERVIEW

       Crown is a precious metals exploration company operating in the western
United States. Crown owns 38.7% of Solitario, which was included in the
financial statements of Crown on a consolidated basis prior to October 2000.
Since that date, Crown's investment in Solitario has been accounted for under
the equity method of accounting. Solitario operates as a precious and base
metals exploration company in the United States, Brazil, Bolivia, and Peru.

       Crown's principal expertise is in identifying properties and mineral
interests with promising mineral potential, acquiring these properties and
interests and exploring them to an advanced stage. Crown's goal historically has
been to advance its properties, either on its own or through joint ventures, to
the feasibility study stage and thereafter to pursue development of the
properties, typically through a joint venture with a partner that has expertise
in mining operations. Crown has in the past recognized revenues from the option
and sale of property interests to joint venture partners and from the sale of
its share of metals produced on its properties.


                                     -160-
<PAGE>

       Over the past several years, Crown has had limited financial resources
and, accordingly, has not engaged directly in any significant exploration
activity other than at the Buckhorn Mountain Project. Crown's current activities
relate to the permitting process for development of the Buckhorn Mountain
Project.

       Crown was incorporated under the laws of the State of Washington in
August 1988. Unless otherwise indicated by the context, all references to Crown
refer to Crown Resources Corporation and its subsidiaries.

RECENT DEVELOPMENTS

       On February 21, 2003, Crown issued $2,705,000 of its Convertible
Subordinated Notes, Series B, due 2006 (the "Subordinated B Notes"). The
Subordinated B Notes were convertible into common stock of Crown at $0.75 per
share. Solitario invested $400,000 in the Subordinated B Notes on the same terms
as all other investors.

       On October 8, 2003, Crown announced that it would be distributing its
holdings of 9,633,585 shares of Solitario's common stock, other than shares
withheld to avoid the distribution of fractional shares to its shareholders.
Crown plans to make this distribution prior to closing the merger with Kinross.

       On October 31, 2003, and November 5, 2003, a total of $839,331 of Crown's
10% Convertible Subordinated Notes due 2006 (the "Subordinated Notes") were
converted into 1,119,108 shares of Crown common stock. On November 5, 2003, the
remaining $3,160,669 of Subordinated Notes were automatically converted into
4,214,225 shares of Crown common stock. Also on November 5, 2003, $2,705,000 of
Crown's Subordinated B Notes were automatically converted into 3,606,667 shares
of Crown common stock. The automatic conversions were in accordance with the
provisions of the Subordinated Notes and Subordinated B Notes whereby the
Subordinated Notes and Subordinated B Notes automatically convert into common
stock if the price of the common stock trades above 233% of the conversion price
of $0.75, or $1.75, for 20 consecutive days. The shares related to the automatic
conversion are deemed issued and outstanding as of November 5, 2003.

       On November 11, 2003, Crown entered into a toll milling agreement (the
"Toll Milling Agreement") with Echo Bay Minerals Co. ("Echo Bay Minerals"), a
wholly-owned subsidiary of Kinross, whereby Crown would deliver ore from its
Buckhorn Mountain Project deposit to Echo Bay Minerals' Kettle River mill,
located near Republic, Washington approximately 92 kilometers (57 miles) from
the Buckhorn Mountain Project. Under the terms of the Toll Milling Agreement,
Echo Bay Minerals agreed to process up to 1,500 tons per day of ore (the
"Production Ores") at a rate of $20 per ton. In addition Crown agreed to pay a
one-time capital charge of $5 million to Echo Bay Minerals on or before the last
day of the calendar month following the delivery of Production Ores to the
Kettle River Mill. The agreement is subject to Crown obtaining the necessary
permits to mine and deliver the Production Ores, standard toll-milling terms
regarding (among other terms) grade, delivery, commingling and refining, and
regulatory approval.

       On November 20, 2003, Crown entered into the merger agreement with
Kinross whereby Kinross would acquire 100% of the shares of Crown common stock.
Under the terms of the merger agreement, shareholders of Crown will receive
0.2911 of a Kinross common share for each share of Crown and prior to the
completion of the acquisition, Crown would dividend to its shareholders its
approximate 38.7% equity interest in Solitario.

       On November 21, 2003, the Secured Notes were called for redemption, and
prior to December 31, 2003, $1,994,000 in Secured Notes were converted into
5,679,142 shares of Crown common stock with the remainder being redeemed for
cash.

       On December 1, 2003, Crown received a feasibility study for the Buckhorn
Mountain Project prepared by SRK Consulting, Suite 602, 357 Bay Street, Toronto,
ON, Canada ("SRK"), an independent mining and engineering consulting firm. The
SRK feasibility study determined that the reported mineral reserves in the study
are economically viable based on current information on costs and technology
applicable to mining, metallurgy and other relevant factors that relate to the
extraction of the mineral reserve. The mineral reserves and resources reported
in the SRK feasibility study have been verified by Mike Michaud, a Mineral
Economist representing SRK. Mr. Michaud is a "qualified person" within the
meaning of applicable Canadian securities regulatory standards. He has verified
the reserve data disclosed herein, including any relevant sampling, analytical
and test data.


                                     -161-
<PAGE>

MATERIAL PROPERTIES

       The following discussion summarizes the primary mining properties in
which Crown has a direct interest. Crown believes the properties described below
are favorable for mineral development, although Crown cannot assure you that any
of the properties, in which Crown has or may acquire an interest, will be
economically viable.

BUCKHORN MOUNTAIN PROJECT

PROPERTY DESCRIPTION AND LOCATION

       The Buckhorn Mountain Project is located on approximately 2,000 acres 24
miles east of Oroville, Washington. Crown currently owns 100% of the Buckhorn
Mountain Project, which was held in a joint venture with Battle Mountain Gold
Corporation ("Battle Mountain") prior to July 2001. During Crown's joint venture
with Battle Mountain, the Buckhorn Mountain Project was known as the Crown Jewel
Project. Battle Mountain merged with Newmont Gold Corporation ("Newmont") on
January 10, 2002.

       The Buckhorn Mountain Project is held by a combination of fee ownership,
fee land for which leases are held with options to purchase, and unpatented
mining claims. The ore deposit lies primarily on unpatented claims owned by
Crown. Royalties on mineral property controlled by Crown payable to third
parties vary from a 2% net smelter return royalty to an 8.33% net profits
royalty on certain unpatented mining claims. The ore body as currently defined
is subject only to the sliding-scale royalty payable to Newmont of 0.5% to 4%,
depending on the price of gold. The Newmont royalty may be purchased in its
entirety for $2.0 million at any time before July 23, 2006.

       Crown has applied for patents on nine unpatented mining claims covering
approximately 150 acres.

       The following map depicts the approximate location of the Buckhorn
Mountain Project.





                                    [PICTURE]






                                     -162-
<PAGE>

ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY

       The Buckhorn Mountain Project is located in the Okanogan Highlands, a
mountainous terrain province characterized by rounded peaks and moderately steep
walled valleys. The elevation range in the project area is approximately 4,500
feet to 5,500 feet.

       Vegetative cover in the project area is mostly coniferous forest
dominated by Douglas fir and western larch. Natural openings on forested
hillsides consist of dry scrublands or grassy meadows. The climate in the
deposit area can be considered temperate. The calculated mean annual
precipitation is 20 inches, approximately 35% of which falls as snow. Average
total snow accumulation in the area of the deposit is about three feet.

       The small community of Chesaw is the closest town. Oroville (population
1,500) is the nearest incorporated community. Paved roads from Oroville approach
to within six miles of the property with the remaining access by graded county
road and three miles of primitive USFS road. No power exists at the location of
the ore deposit. The nearest power is located three miles to the south.

HISTORY

       Crown discovered the ore bodies known as the Buckhorn Mountain Project
shortly after acquiring the property in 1988. Prior to that time only small
prospect pits shafts and tunnels had explored the general area, none of which
intersected the ore body as it is currently defined.

       In March 1990, Crown entered into a joint venture agreement with Battle
Mountain (the "Battle Mountain JV Agreement"), under which Battle Mountain could
earn a 51% interest in the Buckhorn Mountain Project by building a 3,000-ton per
day mining facility. The Battle Mountain JV Agreement was subsequently modified
in May 1994 allowing Battle Mountain the right to earn a 54% interest in the
Project. Under the Battle Mountain JV Agreement, as amended, Battle Mountain
paid Crown $18,500,000, and funded all exploration and permitting on the
Buckhorn Mountain Project through July 2001. On July 23, 2001, Crown entered
into an agreement (the "Termination Agreement") with Battle Mountain to
terminate the Battle Mountain JV Agreement. As part of the Termination
Agreement, Crown became the sole owner and manager of the Buckhorn Mountain
Project and granted Battle Mountain a sliding scale royalty of 0.5% to 4% on the
first one million ounces of gold. The royalty varies with the price of gold and
Crown may purchase the royalty from Newmont, as successor to Battle Mountain,
for a payment of $2 million any time before July 23, 2006.

       Since return of 100% ownership of the property, Crown has conducted
drilling, engineering, and environmental studies and permitting activities.

GEOLOGY AND MINERALIZATION

       The Buckhorn Mountain Project gold deposit occurs within a portion of an
extensive skarn system formed at the southern contact between a
diorite-granodiorite intrusive and sediments and volcanic rocks of Triassic age.
Both the skarn system and the gold-mineralized body are largely tabular and flat
lying in geometry. The skarn system shows a zonation in its composition when
observed in relation to the intrusive pluton. Gold mineralization can be both
concordant with the skarn or cross-cutting it. Gold enrichment occurs almost
exclusively within skarnified rocks both as irregular bodies and as more
continuous tabular replacements of limestone. Gold values are associated with
low grades of silver (less than one ounce per ton). No other economic minerals
occur within the ore.

EXPLORATION

       Crown began an exploration program at the Buckhorn Mountain Project in
mid-1988 and by the end of 1989 had drilled approximately 200 holes on the
property. Between March 1990 and December 1992, Battle Mountain drilled over 550
holes designed to both confirm and expand the known reserve. In 2002 and 2003,
Crown drilled 41 core holes to further confirm the grade and continuity of
mineralization in selected parts of the ore body.


                                     -163-
<PAGE>

DRILLING, SAMPLE AND ANALYSIS, AND SECURITY OF SAMPLES

       Drilling on the property occurred in three phases. Crown drilled core and
reverse circulation rotary holes during the period of 1988 to early 1989. Battle
Mountain drilled core and reverse circulation rotary holes from 1990 to 1995 and
Crown drilled core holes in 2002 and 2003. During the first phase of Crown
drilling, splits were taken of drill samples and submitted for analysis to
Silver Valley Laboratories of Osburn, Idaho. Core was sawed and reverse
circulation rotary chips were riffle split in order to obtain representative
samples for analysis. Check assays of selected samples were submitted for
comparison with original assays. Sample intervals were selected by the geologist
in charge of the project. After acquiring its joint venture interest, Battle
Mountain checked Crown's drill results by submitting splits from the core, pulps
from core and reverse circulation rotary samples and reverse circulation rotary
duplicate chips to a second laboratory for confirmatory assays. Additionally,
Battle Mountain drilled twin holes to confirm Crown's results in selected areas.

       Battle Mountain's drilling was logged by a geologist and was sampled on
five-foot intervals. Entire core samples were submitted for assay and pulps were
checked for re-assay. Rejects of reverse circulation rotary holes were
re-assayed. Standards and blanks were submitted along with exploration samples.
Battle Mountain primarily used Silver Valley Laboratory of Osburn, Idaho for
assay services.

       Samples from Crown's second phase of drilling in 2002 and 2003 were check
assayed. Imbedded standards, sample duplicates and blanks were assayed. Crown
used ALS laboratories of Spokane, Washington as the primary laboratory and ALS
Chemex laboratory of Vancouver, British Columbia as the primary check assay
laboratory. Core was logged and sample intervals were selected by the geological
staff for analysis. Chain of custody was documented between the geologist and
the laboratory. Core samples and rejects are stored on site under the
supervision of Crown.

         No significant sampling or analytical biases are known to exist that
could affect the modeling of the resources or reserves.

TOLL MILLING AGREEMENT

       On November 11, 2003, Crown entered into a toll milling agreement with
Echo Bay Minerals whereby Crown has agreed to deliver ore from its Buckhorn
Mountain Project deposit to Echo Bay Minerals' Kettle River mill, located near
Republic, Washington approximately 92 kilometers (57 miles) from the Buckhorn
Mountain Project. Under the terms of the toll milling agreement, Echo Bay
Minerals agreed to process up to 1,500 tons per day of ore produced at the
Buckhorn Mountain Project at a rate of $20 per ton. In addition, Crown agreed to
pay a one-time capital charge of $5 million to Echo Bay Minerals on or before
the last day of the calendar month following the delivery of ores from the
Buckhorn Mountain Project to the Kettle River mill. The toll milling agreement
is subject to Crown obtaining the necessary permits to mine and deliver the ores
from the Buckhorn Mountain Project, standard toll-milling terms regarding (among
other terms) grade, delivery, commingling and refining, and regulatory approval.
If the merger is consummated, the toll milling agreement will be between
subsidiaries of Kinross and, therefore, may be terminated.

MINERAL RESERVE ESTIMATES

<TABLE>
<CAPTION>
                              MINERAL RESERVES(1)(2)(3) - BUCKHORN MOUNTAIN PROJECT

---------------- ------------------ ---------------------------- ------------------------------------ -----------------
                  CLASSIFICATION              TONNAGE                        GOLD GRADE                   GOLD CONTENT
---------------- ------------------ ---------------------------- ------------------------------------ -----------------
                                       (TONS)       (TONNES)       (OUNCES/TON)      (GRAMS/TONNE)        (OUNCES)
---------------- ------------------ ------------- -------------- ----------------- ------------------ -----------------
<S>                <C>              <C>            <C>                <C>               <C>              <C>
  CURRENT(4)         PROBABLE        3,075,600      2,790,200          0.32              11.1             991,300
---------------- ------------------ ------------- -------------- ----------------- ------------------ -----------------
</TABLE>
-------------------------
(1)    Drill spacing used to determine reserves varies from 50 to 100 feet. The
       cutoff grade used was 0.188 ounces per ton based on detailed costs
       developed in the Feasibility Study. A mill recovery of 90% was assumed.
(2)    Crown's mineral reserves reported herein are classified in accordance
       with the Canadian Institute of Mining, Metallurgy and Petroleum's "CIM
       Standards on Mineral Resources and Reserves, Definitions and Guidelines"
       as required by Canadian National Instrument 43-101.
(3)    The mineral reserve estimates presented herein comply with the reserve
       categories required by Industry Guide 7 in the United States.
(4)    Current Reserves are reported as of December 15, 2003.


                                     -164-
<PAGE>

       The mineral reserves reported in this Annual Information Form have been
verified by Mike Michaud, a Mineral Economist representing SRK Consulting, based
in Toronto, Canada. Mr. Michaud, a "qualified person," under Canadian National
Instrument 43-101, has verified the data disclosed in this Annual Information
Form, including any relevant sampling, analytical and test data. SRK's
feasibility study for the Buckhorn Mountain Project incorporates the toll
milling agreement in this Annual Information Form and determined that the
reported mineral reserves are economically viable based on current information
on costs and technology applicable to mining, metallurgy, and other relevant
factors that relate to the extraction of the mineral reserve.

       A summary of the major assumptions is provided below:

<TABLE>
<CAPTION>
<S>                                                <C>
       Toll milling contract costs:                $20 per ton
       Gold price:                                 $350 per ounce
       Gold recovery from mined ore:               90%
       Economic cut off grade (ounces gold/ton):   0.19
       Daily production rate:                      1,500 tons
       Total operating costs:                      $201 per ounce of gold recovered (including toll milling
                                                      agreement cost)
       Initial capital costs:                      $32.6 million (including contingency reserve of $2.6 million)
       Sustaining capital, life of mine:           $10.0 million
</TABLE>

       Mineral reserves were estimated based on an estimated gold price of U.S.
$350 per ounce at December 31, 2003. The value of contained silver in the ore
was ignored. The gold market price at the time of reporting of the reserves was
substantially higher than the level used in estimating. However, the gold market
price has been lower during recent time periods. If the gold market price were
to decrease to significantly lower levels then Crown may determine that its
reserves should be re-estimated resulting in a potential reduction in the amount
of reserves. Crown estimates that mineral reserves will change if a different
estimated gold price is assumed.

PERMITTING AND DEVELOPMENT

       In July 2001, Crown became the sole owner of the Crown Jewel project and
renamed it the Buckhorn Mountain Project. Previously, the Crown Jewel Project
had been subject to a joint venture agreement between Crown and Battle Mountain.
Battle Mountain had proposed an open-pit mining operation with an on-site
processing facility. Battle Mountain's proposed open-pit Crown Jewel Project was
subjected to numerous permitting and legal challenges and delays. In January of
2000, the Washington Pollution Control Hearings Board (the "PCHB") vacated the
previously granted 401 Water Quality Permit and certain water rights for the
Crown Jewel Project. Other permits previously granted to the Crown Jewel Project
have since lapsed, some of which will have to be reacquired as part of the
ongoing permitting process.

       As part of the analysis of the Buckhorn Mountain Project subsequent to
the January 2000 PCHB ruling, Crown retained Gochnour and Associates
("Gochnour") to review the required permits for a potential combination
underground/open-pit-mine design for the Buckhorn Mountain Project ore deposit.
Gochnour indicated this mine design would require conducting additional baseline
studies and collecting data for modeling to amend previously approved permits as
well as to obtain permits for activities that were not previously contemplated,
for example the underground mining effects on ground water. Gochnour indicated
the underground alternative would also require mitigation of environmental
impacts. The Gochnour report concluded the proposed mine design is legally
permittable.

       Subsequent to the January 2000 PCHB ruling, Crown began seeking
regulatory approval and permits to operate an exclusively underground mining
operation at the Buckhorn Mountain Project. In May 2003, Crown submitted its
Initial Buckhorn Mountain Project Plan of Operations with the USFS and the
Washington State Department of Ecology. The Initial Buckhorn Mountain Project
Plan of Operations was deemed complete by the USFS in August 2003. This plan
proposes a processing facility seven miles from the mine that would be
constructed, owned, and operated by Crown. The ore would be trucked from the
mine to the mill. Crown believes this development plan significantly reduces the
environmental impacts compared to the Crown Jewel open-pit mining plan proposed
by Battle Mountain. Based on discussion with the regulatory agencies, Crown is
unaware of any legal impediments to permitting a mining operation as proposed in
the Initial Buckhorn Mountain Project Plan of Operations.


                                     -165-
<PAGE>

       Subsequent to the signing of the toll milling agreement with Echo Bay
Minerals, Crown filed an amended plan of operations as outlined in the SRK
feasibility study that provides for trucking of ore from the mine to the Kettle
River processing facility owned by Echo Bay Minerals. This amended plan further
reduces environmental impacts in comparison to the initial Buckhorn Mountain
Project Plan of Operations.

       Construction of the Buckhorn Mountain Project will not begin prior to the
successful issuance of the remaining permits and resolution of the potential
future legal and administrative challenges. Potential delays due to the appeals
process, permit process or litigation are difficult to quantify. See "--Legal
Proceedings" below.

       If the Kinross merger is not completed, Crown would require additional
capital in the form of either equity or debt financing, or enter into a joint
venture to permit, develop, and operate the Buckhorn Mountain Project. Crown
cannot assure you that such financing would be available on acceptable terms in
order for the Buckhorn Mountain Project to enter into commercial production. See
also "--Corporate Reorganization" below and "Crown Management's Discussion and
Analysis of Financial Condition and Results of Operations" beginning on page 38.

KINGS CANYON

       The Kings Canyon property in Utah consists of 360 acres of unpatented
claims. Crown holds a 100% interest in the property, subject to a 4% NSR royalty
to third parties. Crown has conducted drilling at the Kings Canyon property but
does not report any capitalized costs or mineral reserves. Crown continues to
maintain the property and, if the proposed transaction with Kinross is not
consummated, may seek a joint venture partner to further evaluate and develop
Kings Canyon.

PERU, BOLIVIA, AND BRAZIL

       Crown has no direct interest in properties outside of the United States.
Crown currently owns a 38.7% interest in Solitario, which owns interests in and
operates mineral property and operations in Peru, Bolivia, and Brazil. Crown
intends to distribute its interest in Solitario to Crown shareholders prior to
completion of the merger. If the distribution occurs, Crown will have
essentially no interest in Solitario as of the effective date of the merger.

MINERAL PROPERTY AND EXPLORATION EXPENDITURE OVERVIEW

       During 2003, Crown incurred $1,168,000 in expenditures in support of
permitting and development of its Buckhorn Mountain Project. Crown paid $15,000
in claim maintenance fee payments for 2003. Crown has acquired certain other
mining claims and properties not subject to leases by deed located at its
Buckhorn Mountain Project. To maintain the claims and other properties that
Crown has acquired by deed or located, Crown must pay AD VALOREM property taxes
in the case of the patented mining claims and fee land, and annual rental fees
in the case of the unpatented mining claims. Crown paid approximately $6,000 in
property taxes and $17,000 in annual rental fees related to the Buckhorn
Mountain Project in 2003. Crown has no work commitments, claim maintenance fees,
or property taxes remaining to be fulfilled in 2003. If the proposed merger with
Kinross is not completed, Crown has budgeted $1,400,000 for permitting and
development at the Buckhorn Mountain Project for 2004.

<TABLE>
<CAPTION>
                                      Payments on unpatented
           Property                    mining claims in 2003        Crown's share of costs in 2003
--------------------------------    ----------------------------    --------------------------------
<S>                                           <C>                              <C>
Buckhorn Mountain Project                     $15,000                          $15,000
Kings Canyon                                    2,000                            2,000
                                              -------                          -------
                  Total                       $17,000                          $17,000
</TABLE>

EXPLORATION ACTIVITIES

       Historically, a significant part of Crown's business involves the review
of potential property acquisitions and continuing review and analysis of
properties in which it has an interest, to determine the exploration and
development potential of the properties. In analyzing expected levels of
expenditures for work commitments and lease obligations, Crown considers the
fact that its obligations to make such payments fluctuate greatly depending on
whether, among other things Crown makes a decision to sell a property interest,
convey a property interest to a joint venture, or to allow its interest in a
property to lapse by not making the work commitment or payment required. Crown
is not currently conducting any potential property acquisitions or exploration.


                                     -166-
<PAGE>

EMPLOYEES

       As of March 31, 2004, Crown employed seven persons, all of whom are
located in the United States. Crown considers its relations with employees to be
excellent. All employees are eligible to participate in Crown's stock option
plans. None of Crown's employees are covered by a collective bargaining
agreement. A portion of Crown's employees' time is devoted to work under a
management services contract with Solitario. Solitario reimburses Crown for
direct out-of-pocket expenses; payment of 25% of total corporate administrative
costs for executive and technical salaries, benefits, and expenses; 50% of total
corporate administrative costs for financial management and reporting salaries,
benefits, and expenses; and 75% of total corporate administrative costs for
investor relations salaries, benefits, and expenses. These allocations are based
on estimated time and expenses spent by Crown management and employees on Crown
activities and Solitario activities. Management of Crown believes these
allocations are reasonable and the allocations are periodically reviewed by
management and approved by independent Board members of both Crown and
Solitario.

       Effective with the completion of the distribution of the Solitario common
stock and assuming the merger is successfully consummated, the management
agreement will be terminated and Solitario will procure the services of the
Crown employees directly. In the event that the merger is not successfully
completed, it is anticipated that the management agreement would continue under
the same or similar terms.

LEGAL PROCEEDINGS

       Crown is not currently involved in any legal proceedings. Crown is not
aware of any legal challenge to its current proposed mining plans at the
Buckhorn Mountain Project. However, beginning in March 1997, the prior attempt
to permit the Crown Jewel Project (as it was then known) was subject to various
legal challenges in Washington State court, United States District Court, and
administrative hearings. Prior permitting efforts centered on Battle Mountain's
proposed open pit mine. That plan of operations is no longer being pursued. The
currently proposed plan of operations calls for an underground mine, which Crown
anticipates will address many of the prior concerns. Most notably, the current
proposed plan substantially reduces the number of surface acres that will be
impacted by mining operations and utilizes the existing Kettle River processing
facility owned by Kinross, so that a new processing facility will no longer need
to be constructed at or near the proposed mine. Although none of the previous
legal challenges or protests relates to Crown's current proposed plan of
operations, Crown cannot make assurances that future litigation will not be
filed.

       On April 16, 1992, Crown filed a patent application with the United
States Department of the Interior relating to the property underlying the
Buckhorn Mountain Project. The Mining Law of 1872 of the United States allows
owners of unpatented mining claims that demonstrate economic viability of
mineralization discovered on such claims to apply for patent of the unpatented
claim. Patenting involves the transfer of surface ownership from the United
States Government to the successful patent applicant. Certain opposition groups
filed a protest to Crown's patent application with the Department of Interior.
Crown has filed a response to the protest. The Department of Interior has not
set a time frame for granting the patents or adjudicating the protest.

       Approval of this patent application will not change the ultimate
ownership of the reserves at the Buckhorn Mountain Project. Currently, retention
of the mineral rights under the unpatented claims is subject to meeting certain
annual maintenance work requirements and the payment of annual claim fees.
Approval of the patent application will eliminate the annual maintenance and fee
requirements as well as combine perfected title to the surface rights with
Crown's existing mineral rights. If the Department of the Interior does not
grant the patents, it will not affect Crown's rights to mine the unpatented
claims nor require a modification to the currently proposed plan of operations
at the Buckhorn Mountain Project.

STOCKHOLDER AND VOTING AGREEMENT

       Several directors and executive officers of Crown, and entities
affiliated with these directors and officers, have entered into a stockholder
and voting agreement with Kinross pursuant to which these directors and
executive officers and other shareholders agreed, among other things, to convert
certain Senior Notes held by them to common shares prior to the record date for
the special meeting and to vote all of the shares of Crown common stock owned by
them, as well as all shares of Crown common stock acquired by them, in favor of
the approval of the plan of merger, and against the acquisition of Crown by any
person other than Kinross. As of March 31, 2004, 2,012,458 shares of Crown
common stock were subject to the stockholder and voting agreement, representing


                                     -167-
<PAGE>

approximately 9% of the outstanding shares of Crown common stock. Parties to the
stockholder and voting agreement also hold $3,000,000 of Senior Notes which can
be converted into 8,771,429 shares, options to acquire 1,917,500 shares, and
warrants to acquire up to 8,771,429 shares. If all of these notes, options, and
warrants were converted or exercised prior to the record date for the special
meeting, the parties to the stockholder and voting agreement would hold
21,472,816 shares, or 43.3% of the outstanding Crown common stock on a fully
diluted basis. See the section entitled "Agreements Relating to the
Merger--Stockholder and Voting Agreement."

--------------------------------------------------------------------------------
                 CROWN SELECTED HISTORICAL FINANCIAL INFORMATION
--------------------------------------------------------------------------------

       The selected consolidated financial data set forth below as of and for
each of the five years in the period ended December 31, 2003, has been derived
from the audited consolidated financial statements of Crown (not all of which
financial statements are presented herein). The selected consolidated financial
data should be read in conjunction with the audited consolidated financial
statements of Crown and related notes thereto included elsewhere in this Annual
Information Circular.

<TABLE>
<CAPTION>
BALANCE SHEET DATA:                                                As of December 31,
                                    --------------------------------------------------------------------------------
  (in thousands)                          2003         2002(1)         2001(1)         2000(1)           1999(1)
                                          ----         -------         -------         -------           -------
<S>                                    <C>             <C>             <C>            <C>                <C>
Total assets                           $34,446         $29,644         $31,030        $ 28,871           $30,514
Current portion of long term debt           49              70          18,302          15,000               -
Non-current portion of long-
  term debt                                353           5,037             107             -              15,000
Working capital (deficit)                2,082             793         (15,713)        (14,211)            4,881
Stockholders' equity                   $30,244         $19,159         $11,630         $13,470           $13,785

INCOME STATEMENT DATA:                                            Year ended December 31,
                                    --------------------------------------------------------------------------------
 (in thousands, except per share
 amounts)(4)                             2003         2002(1)         2001(1)         2000(1)           1999(1)
                                         ----         -------         -------         -------           -------

Revenues and property sales            $     -         $   171         $   214         $ 6,057          $    201
                                       -------         -------         -------         -------          --------
Income (loss) before change in
 accounting principle                   (2,989)          2,091          (2,098)           (688)           (1,695)
Change in accounting principle               -               -               -               -            (8,451)
                                       -------         -------         -------         -------          --------
Net income (loss)                      $(2,989)        $ 2,091         $(2,098)        $  (688)         $(10,146)
                                       =======         =======         =======         =======          ========
Basic income (loss) per share
 before change in accounting
 principle                             $ (0.45)        $  0.65         $ (0.72)        $                $  (0.58)
Change in accounting principle               -               -               -               -             (2.90)
                                       -------         -------         -------         -------          --------
Basic income (loss) per share          $ (0.45)        $  0.65         $ (0.72)        $ (0.24)          $ (3.48)
                                       =======         =======         =======         =======           =======
Diluted income (loss) per share
 before change in accounting
 principle                             $ (0.45)        $  0.10         $ (0.72)        $ (0.24)         $  (0.58)
Change in accounting principle               -               -               -               -             (2.90)
                                       -------         -------         -------         -------          --------
Diluted income (loss) per share        $ (0.45)        $  0.10         $ (0.72)        $ (0.24)         $  (3.48)
                                       =======         =======         =======         =======          ========
</TABLE>
-------------------------
(1)  As restated. See note 12 to the 2003 Crown consolidated financial
     statements starting on page F-E1.
(2)  Includes the operations of Solitario on a consolidated basis through
     October 18, 2000. Subsequent to October 18, 2000, the results of Solitario
     are reflected under the equity method of accounting.
(3)  Crown changed its method of accounting for exploration costs and recorded
     an $8.5 million charge related to the cumulative effect of the change in
     accounting principle to operations in 1999.
(4)  All per share amounts have been adjusted to account for the one-for-five
     reverse split pursuant to the Plan.

--------------------------------------------------------------------------------
                              MARKET FOR SECURITIES
--------------------------------------------------------------------------------

     The common shares of Kinross are listed and posted for trading on the TSX
and the NYSE. In addition, Kinross has issued warrants that are listed and
posted for trading on the TSX. The warrants are exercisable to acquire common
shares of Kinross. See "Description of Securities."

--------------------------------------------------------------------------------
                            DESCRIPTION OF SECURITIES
--------------------------------------------------------------------------------


                                     -168-
<PAGE>

KINROSS PREFERRED SHARES

     A total of 384,613 shares of Kinross preferred shares are outstanding. A
summary of the terms of the Kinross preferred shares is set forth below.

DIVIDENDS

     Holders of Kinross preferred shares are entitled to receive fixed
cumulative preferential cash dividends as and when declared by the board of
directors of Kinross at an annual rate of CDN $0.80 per share payable in equal
quarterly installments on the first day of January, April, July, and October in
each year.

CONVERSION

     Holders of Kinross preferred shares are entitled at any time to convert all
or any part of the Kinross preferred shares into Kinross common shares on the
basis of 2.7518 Kinross common shares for each Kinross preferred share so
converted, subject to usual anti-dilution adjustments.

REDEMPTION; PUT RIGHT

     Kinross may at any time redeem all or any part of the Kinross preferred
shares at a price of CDN $10 per share, together with an amount equal to all
dividends accrued and unpaid thereon, whether or not declared, to and including
the date of redemption (collectively the "Redemption Price"). The holders of
Kinross preferred shares are entitled to require Kinross to redeem all or any
part of their Kinross preferred shares at any time at a price equal to the
Redemption Price.

OTHER PAYMENTS

     So long as any Kinross preferred shares are outstanding, Kinross is not
permitted, without the approval of the holders of the Kinross preferred shares,
to declare or pay dividends on, or redeem, purchase for cancellation or
otherwise retire shares of Kinross ranking junior to the Kinross preferred
shares unless all dividends on the Kinross preferred shares have been paid and,
after giving effect to such payment, Kinross would still be in a legal position
to redeem all of the Kinross preferred shares then outstanding prior to any
payment being made to any security ranking junior to the Kinross preferred
shares.

VOTING RIGHTS

     The holders of Kinross preferred shares are not entitled (except as
required by law) to receive notice of or to attend or vote at any meeting of
shareholders of Kinross.

LIQUIDATION PREFERENCE

     In the event of the liquidation, dissolution, or winding-up of Kinross,
holders of Kinross preferred shares will have preference over holders of Kinross
common shares and will be entitled to receive an amount equal to the Redemption
Price for each Kinross preferred share held by them.

KINAM CONVERTIBLE PREFERRED SHARES

     The convertible preferred shares of Kinam Gold Inc. comprise 1,840,000
shares of $3.75 Series B convertible preferred stock. A summary of the terms and
provisions of the Kinam preferred shares is set forth below. A subsidiary of
Kinross, Kinross Gold U.S.A., Inc., holds 1,632,717 of the issued and
outstanding Kinam preferred shares, representing approximately 88.7% of the
outstanding number of such shares.

DIVIDENDS

     Annual cumulative dividends of $3.75 per Kinam preferred share are payable
quarterly on each February 15, May 15, August 15, and November 15, as and if
declared by Kinam's board of directors. No dividends


                                     -169-
<PAGE>

were paid on the Kinam preferred shares during 2001. Due to low gold prices and
reduced cash flow from Kinam operations, dividend payments on these shares were
suspended in August 2000 and continue to remain suspended.

CONVERSION

     The Kinam preferred shares are convertible into Kinross common shares at a
conversion price of $30.92 per share (equivalent to a conversion rate of 1.6171
Kinross common shares for each preferred share), subject to adjustment in
certain events.

REDEMPTION

     The Kinam preferred shares are redeemable at the option of Kinross at any
time on or after August 15, 1997, in whole or in part, for cash initially at a
redemption price of $52.625 per share declining rateably annually to $50.00 per
share on or after August 15, 2004, plus accrued and unpaid dividends.

VOTING RIGHTS

     The holders of Kinam preferred shares are not entitled to receive notice of
or to attend or vote at any meeting of shareholders of Kinross. The holders of
Kinam preferred shares are entitled to one vote per share at meetings of the
shareholders of Kinam Gold Inc.

WARRANTS

     As a result of the unit offering of Kinross, which closed on December 5,
2002, 25,000,000 common shares purchase warrants of Kinross are outstanding.

     Each three common share purchase warrants are exercisable on or before 5:00
p.m. (eastern standard time) on December 5, 2007, for one Kinross common share
at an exercise price of CDN $15.00. The exercise price and the number of Kinross
common shares issuable upon exercise are both subject to adjustment as provided
for in the indenture governing the warrants. The warrants will expire and become
null and void after 5:00 p.m. (eastern standard time) on December 2, 2007.

KINROSS COMMON SHARES

     Kinross has an unlimited number of common shares authorized and 345,929,995
common shares issued and outstanding as of March 31, 2004. There are no
limitations contained in the articles or bylaws of Kinross on the ability of a
person who is not a Canadian resident to hold Kinross common shares or exercise
the voting rights associated with Kinross common shares. A summary of the rights
of the Kinross common shares is set forth below.

DIVIDENDS

     Holders of Kinross common shares are entitled to receive dividends when, as
and if declared by the board of directors of Kinross out of funds legally
available therefor, provided that if any Kinross preferred shares or any other
preferred shares are at the time outstanding, the payment of dividends on common
shares or other distributions (including repurchases of common shares by
Kinross) will be subject to the declaration and payment of all cumulative
dividends on outstanding Kinross preferred shares and any other preferred shares
which are then outstanding. The OBCA provides that a corporation may not declare
or pay a dividend if there are reasonable grounds for believing that the
corporation is, or would after the payment of the dividend, be unable to pay its
liabilities as they fall due or the realizable value of its assets would thereby
be less than the aggregate of its liabilities and stated capital of all classes
of shares of its capital.

LIQUIDATION

     In the event of the dissolution, liquidation, or winding up of Kinross,
holders of Kinross common shares are entitled to share rateably in any assets
remaining after the satisfaction in full of the prior rights of creditors,
including holders of Kinross' indebtedness, and the payment of the aggregate
liquidation preference of the Kinross preferred shares, and any other preferred
shares then outstanding.


                                     -170-
<PAGE>

VOTING

     Holders of Kinross common shares are entitled to one vote for each share on
all matters voted on by shareholders, including the election of directors.

TRANSFER AGENT

     Computershare Trust Company, Inc., is the Transfer Agent for Kinross.
Computershare can be reached at 100 University Avenue, Toronto, Ontario, Canada
M5J 2Y1, telephone 1-800-663-9097.

--------------------------------------------------------------------------------
                GLOSSARY OF TECHNICAL TERMS USED IN THIS DOCUMENT
--------------------------------------------------------------------------------

AA FINISH
     A method used to complete fire assaying where the bead produced by this
assay technique is dissolved in strong acids. The gold in the acid solution is
determined by a machine called an atomic adsorption spectrometer. This method is
used to accurately quantify small amounts of gold and other metals.

ADIT
     A nearly horizontal gallery or passage driven from the surface of the
ground to the ore body. The term "tunnel" is frequently used in place of adit,
but technically a tunnel is open to the surface on both ends.

ADULARIA
     A variety of orthoclase, a mineral part of the feldspar group. A common
mineral of granitic rocks.

ALBITITE
     A porphyritic igneous rock, containing phenocrysts of albite in a
groundmass chiefly consisting of albite. Muscovite, garnet, apatite, quartz, and
opaque oxides are common accessory minerals.

ALIQUOTS
     A small representative sample taken from a gold bar or article from assay
to determine its fine gold content.

ALLUVIAL
     Referring to material, which has been placed by the action of surface
water.

ALLUVIAL PLACER
     Gravel that has been transported and deposited by flowing waters, streams,
creeks, etc., depositing placer gold and other valuable minerals. Also called an
"alluvial deposit."

ALLUVIUM
     A general term for all detrital deposits resulting from the flow of present
waterways, thus including the sediments laid down in streambeds, flood plain,
lakes, fan at the foot of mountain slopes, and estuaries.

ALMANDINE
     An isometric mineral, 8[Fe32+Al2Si3O12]; pyralspilite subgroup of the
garnet group, with Fe replaced by Mg, Mn, and Ca; in red to brownish-black
dodecahedral and trapezohedral crystals, or massive; Mohs hardness, 7-1/2;
occurs in medium-grade metamorphic rock and felsic igneous rocks; used as a
gemstone and an abrasive.

ALUNITE
     1. A trigonal mineral, Kal3(OH)6(SO4)2; massive or disseminated; in pale
tints; formed from sulfuric acid acting on potassium feldspar in volcanic
regions (alunization), and around fumaroles. 2. A mineral group including
jarosite.

ANKERITE
     A trigonal mineral, Ca(Fe,Mg,Mn)(CO3)2; dolomite group; forms series with
dolomite and with kutnohorite; associated with iron ores; commonly forms thin
veins in some coal seams.


                                     -171-
<PAGE>

ANTIFORM
     A fold that is convex upward or had such an attitude at some stage of
development.

ARCHEAN ABITIBI

     The Abitibi-Grenville Transect focuses on the Late Archean Abitibi
greenstone belt, which is part of the southern Superior Province, the central
core of the North American craton, and on the Mesoproterozoic Grenville orogen
which extends from southern Sweden to southern Mexico, but is exposed
principally as the southeastern Canadian shield. The Abitibi subprovince is the
largest, and perhaps the best studied, of the Archean greenstone terranes of the
world and is host to a major proportion of Canada's mineral resources.

ARCUATE STRIPS OR BELTS
     A geological term referring to a long narrow structure (i.e., reef) that
derives its name from the fact that it has a shape resembling an arc.

ARGILLIC
     Pertaining to clay or clay minerals; e.g., argillic alteration in which
certain minerals of a rock are converted to minerals of the clay group.

ARGILLITE
     A compact rock, derived either from mudstone (claystone or siltstone), or
shale, that has undergone a somewhat higher degree of induration than mudstone
or shale but is less clearly laminated and without its fissility, and that lacks
the cleavage distinctive of slate.

ARSENOPYRITE
     The most common arsenic mineral and principal ore of arsenic; occurs in
many sulfide ore deposits, particularly those containing lead, silver and gold.

ASSAY
     To determine the value of various elements within an ore sample, streambed
sample, or valuable metal sample.

B2 HORIZON
     A local geological term identifying a particular formation of rock.

BALL MILL
     A steel cylinder filled with steel balls into which crushed ore is fed. The
ball mill is rotated, causing the balls to cascade and grind the ore.

BASALT
     An extrusive volcanic rock composed primarily of plagioclase, pyroxene and
some olivine.

BASEMENT ROCKS
     A name commonly applied to metamorphic or igneous rocks underlying the
sedimentary sequence.

BELT
     A series of mineral deposits occurring in close proximity to each other
often with a common origin.

BIOTITE
     A common rock-forming mineral in crystalline rocks, either as an original
crystal in igneous rocks or as a metamorphic product in gneisses and schists; a
detrital constituent of sedimentary rocks.

BLOCK FAULTED
     A type of normal faulting in which the crust is divided into structural or
fault blocks of different elevations and orientations. It is the process by
which block mountains are formed.


                                     -172-
<PAGE>

BOUDINS
     Series of sausage-shaped segments occurring in a boudinage structure.
Boudinage occurs when bed sets are divided by cross-fractures into pillowlike
segments. The cross-fractures are not sharp, but rather rounded, and may be
compared with the necks that develop in ductile metal pieces under tension. The
overall resulting appearance is that of a string of linked sausages when
observed in section.

BQ
     A diamond drill core measuring 1.432 inches in diameter (3.637 cm).

BRECCIA
     A coarse-grained clastic rock, composed of angular broken rock fragments
held together by a mineral cement or in a fine-grained matrix; it differs from
conglomerate in that the fragments have sharp edges and unworn corners.

CALDERA
     A large, basin-shaped volcanic depression, more or less circular, the
diameter of which is many times greater than that of the included vent or vents,
no matter what the steepness of the walls or the form of the floor may be.

CALL OPTION
     A bullion option entitling, but not obliging, except upon exercise, the
buyer to purchase from the seller at the strike price a specified number of
ounces of bullion.

CALOMEL
     A tetragonal mineral, 2[Hg2Cl2]; a secondary alteration of mercury-bearing
minerals; horn quicksilver; mercurial horn ore.

CARBON-IN-LEACH
     A process step wherein granular activated carbon particles much larger than
the ground ore particles are introduced into the ore pulp. Cyanide leaching and
precious metals adsorption onto the activated carbon occur simultaneously. The
loaded activated carbon is mechanically screened to separate it from the barren
ore pulp and processed to remove the precious metals and prepare it for reuse.

CARBON-IN-PULP
     A process step wherein granular activated particles much larger than the
ground ore particles are introduced into the ore pulp after primary leaching in
cyanide. Precious metals adsorption occurs onto the activated carbon from the
pregnant cyanide solution.

CARBONACEOUS
     1. containing carbon or coal, especially shale or other rock containing
small particles of carbon distributed throughout the whole mass. 2. Carbonaceous
sediments include original organic tissues and subsequently produced derivatives
of which the composition is organic chemically.

CARE AND MAINTENANCE
     The status of a mining operation when mining has been suspended but
reclamation and closure of the property has not been commenced. The mill and
associated equipment is being cared for and maintained until operations
re-commence.

CATHODE
     A rectangular plate of metal, produced by electrolytic refining, which is
melted into commercial shapes such as wire-bars, billets, ingots, etc.

CERARGYRITE
     A former name for chlorargyrite, which is an isometric mineral, 4[AgCl];
sectile; forms waxy white, yellow, or pearl-gray incrustations, darkening to
violet on exposure to light; a supergene mineral occurring in silver veins; an
important source of silver.

CHALCOPYRITE
     A copper mineral composed of copper, iron and sulphur. This mineral is very
similar to marcasite in its characteristics; it tarnishes easily; going from
bronze or brassy yellow to yellowish or grayish brown, has a dark streak, and
are lighter in weight and harder than gold.


                                     -173-
<PAGE>

CHERT
     A compact, glass-like siliceous rock composed of silica of various types
(opaline or chalcedonic).

CHIP SAMPLE
     A method of sampling of rock exposure whereby a regular series of small
chips of rock is broken off along a line across the face.

CHLORITE
     1. The mineral group chamosite, clinochlore, cookeite, gonyerite, nimite,
orthochamosite, pennantite, and sudoite. 2. Chlorites are associated with and
resemble micas (the tabular crystals of chlorites cleave into small, thin flakes
or scales that are flexible, but not elastic like those of micas); they may also
be considered as clay minerals when very fine grained. Chlorites are widely
distributed, esp. in low-grade metamorphic rocks, or as alteration products of
ferromagnesian minerals.

CHLORITOID
     A monoclinic or triclinic mineral, (Fe,Mg,Mn)2Al4Si2O10(OH)4; dull green to
gray-black; occurs in masses of brittle folia in metamorphosed argillaceous
sedimentary rocks. It is related to the brittle micas.

CIRCUIT
     A processing facility for removing valuable minerals from the ore so that
it can be processed and sold.

CLAY
     An extremely fine-grained natural earthy material composed primarily of
hydrous aluminum silicates. It may be a mixture of clay minerals and small
amounts of nonclay materials or it may be predominantly one clay mineral. The
type is determined by the predominant clay mineral. Clay is plastic when
sufficiently pulverized and wetted, rigid when dry, and vitreous when fired to a
sufficiently high temperature.

CONGLOMERATE
     Rounded, water-worn fragments of rock or pebbles, cemented together by
another mineral substance.

CORE
     The long cylindrical piece of rock, about an inch in diameter, brought to
surface by diamond drilling.

COVELLITE
     A copper mineral, CuS; metallic indigo blue with iridescent tarnish. It is
a mineral produced by supergene enrichment.

CRETACEOUS
     1. Applied to the third and final period of the Mesozoic Era. Extensive
marine chalk beds were deposited during this period. 2. Of the nature of chalk
or relating to chalk. 3. System of strata deposited in the Cretaceous Period.

CUPEL
     1. A small bone-ash cup used in gold or silver assaying with lead. 2. The
hearth of a small furnace used in refining metals.

CUT-OFF GRADE
     The lowest grade of mineral resources considered economic; used in the
calculation of reserves in a given deposit.

CYANIDATION
     A method of extracting exposed gold or silver grains from crushed or ground
ore by dissolving the contained gold and silver in a weak cyanide solution. May
be carried out in tanks inside a mill or in heaps of ore out of doors.

CYCLONE UNDERFLOW
     A coarser sized fraction, which leaves via apex aperture of hydrocyclone.


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DEDICATED PAD
     An area of topography where gold ore will be placed in order to be leached.
The ore will remain permanently upon this pad upon the completion of the gold
extraction.

DEVONIAN
     The fourth period, in order of decreasing age, of the periods making up the
Paleozoic era. It followed the Silurian period and was succeeded by the
Mississippian period. Also, the system of strata deposited at that time.
Sometimes called the Age of Fishes.

DILUTION
     The effect of waste or low-grade ore being included unavoidably in the mine
ore, lowering the recovered grade.

DOLOMITE
     A carbonate sedimentary rock consisting of more than 50% to 90% mineral
dolomite, depending upon classifier, or having a Ca:Mg ratio in the range 1.5 to
1.7, or having an MgO equivalent of 19.5% to 21.6%, or having a
magnesium-carbonate equivalent of 41.0% to 45.4%. Dolomite beds are associated
and interbedded with limestone, commonly representing postdepositional
replacement of limestone.

DORE
     Unrefined gold and silver bullion bars, which will be further, refined to
almost pure metal.

DRUMLINS
     A hilly remnant from the ice ages.

DRUSY
     Pertaining to an insoluble residue or encrostation, especially of quartz
crystals; e.g. a drusy oolith covered with subhedral quartz.

ELECTROWINNING
     Recovery of a metal from a solution by means of electro-chemical processes.

ENARGITE
     An orthorhombic mineral, Cu3AsS4; dimorphous with luzonite, metallic
gray-black; in vein and replacement copper deposits as small crystals or
granular masses; an important ore of copper and arsenic; may contain up to 7%
antimony.

EPITHERMAL
     Said of a hydrothermal mineral deposit formed within about 1 kilometer of
the Earth's surface and in the temperature range of 50 to 200 degrees C,
occurring mainly as veins. Also, said of that depositional environment.

ESKERS
     A sinuous ridge of sedimentary material (typically gravel or sand)
deposited by streams that cut channels under or through the glacier ice.

FACIES
     A term of wide application, referring to such aspects of rock units as rock
type, mode of origin, composition, fossil content, or environment of deposition.

FAULT
     A fracture in the earth's crust accompanied by a displacement of one side
of the fracture with respect to the other and in a direction parallel to the
fracture.

FELDSPAR
     1. Constituting 60% of the Earth's crust, feldspar occurs in all rock types
and decomposes to form much of the clay in soil, including kaolinite. 2. The
mineral group albite, andesine, anorthite, anorthoclase, banalsite,
buddingtonite, bytownite, celsian, hyalophane, labradorite, microcline,
oligoclase, orthoclase, paracelsian, plagioclase, reedmergnerite, sanidine, and
slawsonite.


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FELSIC
     A mnemonic adjective derived from (fe) for feldspar, (l) for lenad or
feldspathoid, and (s) for silica, and applied to light-colored rocks containing
an abundance of one or all of these constituents. Also applied to the minerals
themselves, the chief felsic minerals being quartz, feldspar, feldspathoid, and
muscovite.

FLOCCULENT
     A chemical used to promote the formation of denser slurries.

FLOTATION
     A separation process in which valuable mineral particles are induced to
become attached to bubbles and float, which the non-valuable minerals sink.

FOLD
     Any bending or wrinkling of rock strata.

FOLIATION
     Laminated structure resulting from the segregation of different minerals
into parallel layers.

FOOTWALL
     The mass of rock beneath a fault plane, vein, lode, or bed of ore.

FORMATION
     Unit of sedimentary rock of characteristic composition or genesis.

GALENA
     A lead mineral, which occurs with sphalerite in hydrothermal veins, also in
sedimentary rocks as replacement deposits; an important source of lead and
silver.

GARNET
     The silicate minerals almandine, andradite, calderite, goldmanite,
grossular, hibshite, katoite, kimzeyite, knorringite, majorite, pyrope,
schlorlomite, spessartine, and uvarovite.

GEYSERITES
     A type of rock associated with natural hot springs.

GLACIAL TILL
     Dominantly unsorted and unstratified drift, generally unconsolidated,
deposited directly by and underneath a glacier without subsequent reworking by
meltwater, and consisting of a heterogeneous mixture of clay, silt, sand,
gravel, and boulders ranging widely in size and shape; ice-laid drift.

GLACIOLACUSTRINE
     Pertaining to, derived from, or deposited in glacial lakes; especially said
of the deposits and landforms composed of suspended material brought by
meltwater streams flowing into lakes bordering the glacier, such as deltas, kame
deltas, and varved sediments.

GOLD
     A yellow malleable ductile high density metallic element resistant to
chemical reaction, often occurring naturally in quartz veins and gravel, and
precious as a monetary medium, in jewellery, etc. Symbol - Au.

GOLD EQUIVALENT PRODUCTION
     Gold equivalent production represents gold production plus silver
production computed into gold ounces using a market price ratios.

GRADE
     The amount of valuable metal in each tonne or ore, expressed as grams per
tonne for precious metals.

     CUT-OFF GRADE - is the minimum metal grade at which a tonne of rock can be
     processed on an economic basis.


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     RECOVERED GRADE - is actual metal grade realized by the metallurgical
     process and treatment or ore, based on actual experience or laboratory
     testing.

GRAVIMETRIC FINISH
     A method used to complete fire assaying where the bead produced by this
assay technique is weighed upon an extremely sensitive weigh scale.

GRAVITY RECOVERY CIRCUIT
     Equipment used within a plant to recover gold from the ore using the
difference in specific gravity between the gold and the host rock. Typically
used are shaking tables, spirals, etc.

GREENSCHIST
     A metamorphosed basic igneous rock, which owes its color and schistosity to
abundant chlorite.

GREENSCHIST FACIES
     Metamorphic rocks produced under low temperature conditions.

GREENSTONE
     An old field term applied to altered basic igneous rocks which owe their
color to the presence of chlorite, hornblende, and epidote.

HALIDE
     A fluoride, chloride, bromide, or iodide.

HALOS
     A differentiated (lower) grade zone surrounding a central zone of higher
grade.

HANGINGWALL
     The mass of rock located above a fault plane, vein, lode, or bed of ore.

HEAP LEACHING
     A process whereby gold is extracted by "heaping" broken ore on sloping
impermeable pads and repeatedly spraying the heaps with a weak cyanide solution
which dissolves the gold content. The gold-laden solution is collected for gold
recovery.

HEDGING
     Taking a buy or sell position in a futures market opposite to a position
held in the cash market to minimize the risk of financial loss from an adverse
price change.

HIGH-GRADE
     Rich ore. As a verb, it refers to selective mining of the best ore in a
deposit.

HIGH RATE THICKENER
     A type of equipment used to perform solid liquid separation. Slurry (a
mixture of rock and water) is fed into this unit with a clear solution produced
in one stream and a moist solid produced in the second stream.

HQ
     A diamond drill core measuring 2.500 inches in diameter (6.35 cm).

INTRUSIVE
     Rock which while molten, penetrated into or between other rocks but
solidified before reaching the surface.

IGNIMBRITES
     A silicic volcanic rock forming thick, massive, lavalike sheets. The rock
is chiefly a fine grained rhyolitic tuff.


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INTRACALDERA OLIGOCENE ASH-FLOW TUFFS
     A geological term referring to a rock formation comprising ash-flow tuffs
existing inside a caldera. A caldera is a crater formed from by the collapse of
the central part of a volcano. This particular formation dates back to the
Oligocene epoch.

JOINTS
     Natural cracks or fractures in rocks. They tend to occur in more or less
parallel systems, and when quarry walls are maintained parallel and at right
angles to them, they may be utilized as natural partings in the process of block
removal.

KAOLINITE
     A monoclinic mineral, 2[Al2Si2O5(OH)4]; kaolinite-serpentine group;
kaolinite structure consists of a sheet of tetrahedrally bonded silica and a
sheet of octahedrally bonded alumina with little tolerance for cation exchange
or expansive hydration; polymorphous with dickite, halloysite, and nacrite;
soft; white; formed by hydrothermal alteration or weathering of
aluminosilicates, esp. feldspars and feldspathoids; formerly called kaolin.

K-FELDSPAR
     A potassium-bearing feldspar.

LEACH
     A method of extracting gold from ore by a chemical solution usually
containing cyanide.

LENSE
     Pyrite, round or oval in plan and lenticular in section, ranging up to 2 to
3 feet (0.6 to 0.9 meters) in thickness and several hundred feet in the greatest
lateral dimension, that is found in coalbeds.

LENTICULAR
     Resembling in shape the cross section of a lens. The term may be applied,
e.g., to a body of rock, a sedimentary structure, or a mineral habit.

LENTICULAR SULPHIDE OREBODIES
     Sulphide orebodies that are shaped approximately like a double convex lens.
When a rock mass thins out from the center to the edge all around it is said to
be lenticular in form.

LIMBS
     The two parts of a fold on either side of its axis.

LITHOLOGIES
     Refers to the physical characteristics of a rock, generally as determined
megascopically or with the aid of low-powered magnification.

LODE
     Vein of metal ore.

LOW-GRADE
     A term applied to ores relatively poor in the metal they are mined for;
lean ore.

MAFIC
     Igneous rocks composed mostly of dark, iron- and magnesium-rich minerals.

MAGMATIC DOMING
     Creation of a roughly symmetrical structure resembling a dome produced by
the actions of magma.

METACHERT HORIZON
     Layers of compact siliceous rock formed of chalcedonic silica that has been
subjected to the forces of metamorphism.

METAMORPHISM
     The process by which the form or structure of rocks is changed by heat and
pressure.


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METASEDIMENTARY SLATES
     Partially metamorphosed slate.

MICA
     1. A group of phyllosilicate minerals having the general composition,
X2Y4-6Z8O20(OH,F) where X=(Ba,Ca,Cs,H3O,K,Na,NH4), Y=(Al,Cr,Fe,Li,Mg,Mn,V,Zn),
and Z=(Al,Be,Fe,Si); may be monoclinic, pseudohexagonal or pseudo-orthorhombic;
soft; perfect basal (micaceous) cleavage yielding tough, elastic flakes and
sheets; colorless, white, yellow, green, brown, or black; excellent electrical
and thermal insulators (isinglass); common rock-forming minerals in igneous,
metamorphic, and sedimentary rocks. 2. The mineral group anandite, annite,
biotite, bityite, celadonite, chernykhite, clintonite, ephesite, ferri-annite,
glauconite, hendricksite, kinoshitalite, lepidolite, margarite, masutomilite,
montdorite, muscovite, nanpingite, norrishite, paragonite, phlogopite,
polylithionite, preiswerkite, roscoelite, siderophyllite, sodium phlogopite,
taeniolite, tobelite, wonesite, and zinnwaldite.

MICACEOUS
     Consisting of or containing mica; e.g., a micaceous sediment.

MILL
     A plant where ore is ground fine and undergoes physical or chemical
treatment to extract the valuable metals.

MINERAL CLAIM
     A mineral claim usually authorizes the holder to prospect and mine for
minerals and to carry out works in connection with prospecting and mining.

MINERAL RESERVES
     The economically mineable part of a measured or indicated mineral resource
demonstrated by at least a preliminary feasibility study. This study must
include adequate information on mining, processing metallurgical, economic and
other relevant factors that demonstrate, at the time of reporting, that economic
extraction can be justified. An mineral reserve includes diluting materials and
allowances for losses that may occur when the material is mined.

     PROVEN MINERAL RESERVE: The economically mineable part of a measured
     mineral resource demonstrated by at least a preliminary feasibility study.
     This study must include adequate information on mining, processing,
     metallurgical, economic, and other relevant factors that demonstrate, at
     the time of reporting, that economic extraction is justified.

     PROBABLE MINERAL RESERVE: The economically mineable part of an Indicated,
     and in some circumstances a measured mineral resource demonstrated by at
     least a preliminary feasibility study. This study must include adequate
     information on mining, processing, metallurgical, economic, and other
     relevant factors that demonstrate, at the time of reporting, that economic
     extraction can be justified.

MINERAL RESOURCE

     A concentration or occurrence of natural, solid, inorganic or fossilized
organic material in or on the earth's crust in such form and quantity and of
such a grade or quality that it has reasonable prospects for economic
extraction. The location, quantity, grade, geological characteristics and
continuity of a mineral resource are known, estimated or interpreted from
specific geological evidence and knowledge.

     MEASURED MINERAL RESOURCES: A measured mineral resource is that part of a
     mineral resource for which quantity, grade or quality, densities, shape,
     physical characteristics are so well established that they can be estimated
     with confidence sufficient to allow the appropriate application of
     technical and economic parameters, to support production planning and
     evaluation of the economic viability of the deposit. The estimate is based
     on detailed and reliable exploration, sampling and testing information
     gathered through appropriate techniques from locations such as outcrops,
     trenches, pits, workings and drill holes that are spaced closely enough to
     confirm both geological and grade continuity.


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     INDICATED MINERAL RESOURCES: An indicated mineral resource is that part of
     a mineral resource for which quantity, grade or quality, densities, shape
     and physical characteristics, can be estimated with a level of confidence
     sufficient to allow the appropriate application of technical and economic
     parameters, to support mine planning and evaluation of the economic
     viability of the deposit. The estimate is based on detailed and reliable
     exploration and test information gathered through appropriate techniques
     from location such as outcrops, trenches, pits, workings and drill holes
     that are spaced closely enough for geological and grade continuity to be
     reasonably assumed.

     INFERRED MINERAL RESOURCE: The part of a mineral resource for which
     quantity and grade or quality can be estimated on the basis of geological
     evidence and limited sampling and reasonably assumed, but not verified,
     geological and grade continuity. The estimate is based on limited
     information and sampling gathered through appropriate techniques from
     locations such as outcrops, trenches, pits, workings and drill holes. Due
     to the uncertainty which may attach to inferred mineral resources, it
     cannot be assumed that all or any part of an inferred mineral resource will
     be upgraded to an indicated or measured mineral resource as result of
     continued exploration.

MINERALIZATION
     The process or processes by which a mineral or minerals are introduced into
a rock, resulting in a valuable or potentially valuable deposit. It is a general
term, incorporating various types; e.g., fissure filling, impregnation, and
replacement.

MISSISSIPPIAN
     Belonging to the geologic time, system of rocks or sedimentary deposits of
the fifth period of the Paleozoic Era, characterized by the submergence of
extensive land areas under shallow seas.

MORAINES
     A mound, ridge, or other distinct accumulation of glacial till.

MUCK SAMPLE
     A representative piece of ore that is taken from a muck pile and then
assayed to determine the grade of the pile.

MUSCOVITE
     A monoclinic mineral, Kal2(Si3Al)O10(OH,F)2; mica group; pseudohexagonal;
perfect basal cleavage; forms large, transparent, strong, electrically and
thermally insulating, stable sheets; a common rock-forming mineral in silicic
plutonic rocks, mica schists, gneisses, and commercially in pegmatites; also a
hydrothermal and weathering product of feldspar and in detrital sediments. Also
spelled muscovite.

NET SMELTER RETURN
     A type of royalty payment where the royalty owner receives a fixed
percentage of the revenues of a property or operation.

NQ
     A letter name specifying the dimensions of bits, core barrels, and drill
rods in the N-size and Q-group wireline diamond drilling system having a core
diameter of 47.6 mm and a hole diameter of 75.7 mm.

OPEN PIT
     A mine that is entirely on surface. Also referred to as open-cut or
open-cast mine.

OLIGOCENE
     An epoch of the early Tertiary Period, after the Eocene and before the
Miocene; also, the corresponding worldwide series of rocks. It is considered to
be a period when the Tertiary is designated as an era.

OXIDATION
     A reaction where a material is reacted with an oxidizer such as pure oxygen
or air in order to alter the state of the material.


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OXIDE CAPPING
     Is the part of the orebody, which is found on top of the original ore
material, but which has not been altered by climate and groundwater.

OXIDE-SILICATE FACIES BANDED IRON FORMATIONS
     A geological term referring to a part of a group of rocks that differs from
the whole formation in composition. In this instance the rock comprises
iron-bearing minerals of the oxide-silicate variety (i.e., hematite, magnetite).
These iron-bearing rocks exist in thin layers or bands hence the term "banded
iron formation."

PALEOZOIC
     The era of geologic time that includes the Cambrian, Ordovician, Silurian,
Devonian, Mississippian, Pennsylvanian and Permian periods and is characterized
by the appearance of marine invertebrates, primitive fishes, land plants and
primitive reptiles.

PEGMATITES
     Igneous rocks of coarse grain found usually as dikes associated with large
masses of plutonic rock.

PHASES
     Stages in time and/or composition in forming the rock.

PHYLLITE
     1. A metamorphic rock, intermediate in grade between slate and mica schist.
Minute crystals of sericite and chlorite impart a silky sheen to the surfaces of
cleavage (or schistosity). Phyllites commonly exhibit corrugated cleavage
surfaces. 2. A general term for minerals with a layered crystal structure. 3. A
general term used by some French authors for the scaly minerals, such as micas,
chlorites, clays, and vermiculites.

PLACER
     A place where gold is obtained by the washing of materials: rocks,
boulders, sand, clay, etc. containing gold or other valuable minerals by the
elements. These are deposits of valuable minerals, in Kinross' case, native
gold, are found in the form of dust, flakes, grains, and nuggets. In the United
States mining law, mineral deposits, not veins in place, are treated as placers
as far as locating, holding, and patenting are concerned. The term "placer"
applies to ancient (Tertiary) gravel as well as to recent deposits, and to
underground (drift mines) as well as surface deposits.

PORPHYRY
     An igneous rock in which relatively large crystals, called phenocrysts, are
set in a fine-granted groundmass.

POLYMETAMORPHIC
     The property possessed by certain chemicals compounds of crystallizing in
several distinct forms.

POTASSIC
     Of, pertaining to, or containing potassium; relating to or containing
potash.

PQ
     A diamond drill core measuring 2.344 inches in diameter (5.954 cm).

PREMIUM
     An amount specified as such by the parties to a hedging agreement, which
amount is the purchase price of the bullion option and is payable by the buyer
to the seller on the premium payment date for value on such date.

PUT OPTION
     A bullion option entitling, but not obliging, except upon exercise, the
buyer to sell to the seller at the strike price a specified number of ounces of
bullion.

PULP METALLIC
     A type of assay method, which is used to handle the coarse gold component
of a sample to allow for its accurate determination.

PYRITE
     A yellow iron sulphide mineral, normally of little value. It is sometimes
referred to as "fool's gold."


                                     -181-
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PYROCLASTIC
     Produced by explosive or aerial ejection of ash, fragments, and glassy
material from a volcanic vent. Applied to the rocks and rock layers as well as
to the textures so formed.

QUALIFIED PERSON
     An individual who: (a) is an engineer or geoscientist with at least five
years of experience in mineral exploration, mine development or operation, or
mineral project assessment, or any combination of these; (b) has experience
relevant to the subject matter of the mineral project; and (c) is a member in
good standing of a professional association as defined by NI 43-101.

QUARTZ
     Common rock-forming mineral consisting of silicon and oxygen.

QUARTZITE
     1. A granoblastic metamorphic rock consisting mainly of quartz and formed
by recrystallization of sandstone or chert by either regional or thermal
metamorphism; metaquartzite. 2. A very hard but unmetamorphosed sandstone,
consisting chiefly of quartz grains that are so completely cemented with
secondary silica that the rock breaks across or through the grains rather than
around them; an orthoquartzite. 3. Stone composed of silica grains so firmly
cemented by silica that fracture occurs through the grains rather than around
them. 4. As used in a general sense by drillers, a very hard, dense sandstone.
5. A granulose metamorphic rock consisting essentially of quartz. 6. Sandstone
cemented by silica that has grown in optical continuity around each fragment.

QUARTZ-MUSCOVITE
     A mineral, a member of the mica group.

RECLAMATION
     The restoration of a site after mining or exploration activity is
completed.

RECOVERY
     A term used in process metallurgy to indicate the proportion of valuable
material obtained in the processing of an ore. It is generally stated as a
percentage of valuable metal in the ore that is recovered compared to the total
valuable metal present in the ore.

RUN-OF-MINE
     Said of ore in its natural, unprocessed state; pertaining to ore just as it
is mined.

REUSABLE PAD ORE
     Ore which is processed on a reusable pad. The reusable pad is an area where
heap leaching takes place on ore material temporarily placed onto it. Upon
completion of leaching, the ore is removed from the pad and sent to disposal.
New material is then applied.

SAMPLE
     A small portion of rock or a mineral deposit, taken so that the metal
content can be determined by assaying.

SANIDINE
     A monoclinic mineral, (K,Na)AlSi3O8; feldspar group; forms a series with
albite; prismatic cleavage; colorless; forms phenocrysts in felsic volcanic
rocks.

SCALP
     The process of removing oversize lumps on a continuous basis from a stream
of bulk material.

SCHIST
     A foliated metamorphic rock the grains of which have a roughly parallel
arrangement; generally developed by shearing.


                                     -182-
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SEDIMENTARY ROCKS
     Secondary rocks formed from material derived from other rocks and laid down
under water. Examples are limestone, shale and sandstone.

SEMI-AUTOGENOUS (SAG) MILL
     A steel cylinder with steel balls into which run-of-mine material is fed.
The ore is ground in the action of large lumps of rock and steel balls.

SEMI-TABULAR FORMS
     Geological formations that are somewhat flat or tabular in character.

SERICITE
     A white, fine-grained potassium mica occurring in small scales as an
alteration product of various aluminosilicate minerals, having a silky luster,
and found in various metamorphic rocks (especially in schists and phyllites) or
in the wall rocks, fault gouge, and vein fillings of many ore deposits. It is
commonly muscovite or very close to muscovite in composition, but may also
include paragonite and illite.

SHEAR ZONE
     A geological term to describe a geological area in which shearing has
occurred on a large scale.

SILICA
     The chemically resistant dioxide of silicon, SiO2; occurs naturally as five
crystalline polymorphs: trigonal and hexagonal quartz, orthorhombic and
hexagonal tridymite, tetragonal and isometric cristobalite, monoclinic coesite,
and tetragonal stishovite. Also occurs as cryptocrystalline chalcedony, hydrated
opal, the glass lechatelierite, skeletal material in diatoms and other living
organisms, and fossil skeletal material in diatomite and other siliceous
accumulations. Also occurs with other chemical elements in silicate minerals.

SILT
     Material passing the No. 200 U.S. standard sieve that is nonplastic or very
slightly plastic and that exhibits little or no strength when air-dried.
Material composes of fine rock components.

SKIP
     1. A guided steel hoppit, usually rectangular, with a capacity up to 50 st
(45.4 t), which is used in vertical or inclined shafts for hoisting coal or
minerals. It can also be adapted for personnel riding. 2. A large hoisting
bucket, constructed of boiler plate that slides between guides in a shaft, the
bail usually connecting at or near the bottom of the bucket so that it may be
automatically dumped at the surface. 3. An open iron vehicle or car on four
wheels, running on rails and used esp. on inclines or in inclined shafts. 4. A
truck used in a mine. 5. A small car that conveys the charge to the top of a
blast furnace.

SLURRY
     Fine rock particles are suspended in a stream of water.

SPHALERITE
     A zinc mineral, which is composed of zinc and sulphur. It has a specific
gravity of 3.9 to 4.1.

SPOT DEFERRED CONTRACT
     A forward sale of gold based on the spot gold price at the inception of the
contract plus contango that accrues until the future delivery date under the
contract. The underlying LIBOR based return and gold lease rate expense may be
fixed or left floating, at the option of Kinross.

STIBNITE
     A mineral composed of antimony and sulphur often associated with other
sulphides.

STOCK
     A magma that has intruded into preexisting rock in a columnar shape
typically a kilometer or more in diameter.

STOCKPILE
     Broken ore heaped on surface, pending treatment or shipment.


                                     -183-
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STOCKWORK
     A mineral deposit consisting of a three-dimensional network of planar to
irregular veinlets closely enough spaced that the whole mass can be mined.

STOPES
     An underground opening in a mine from which ore is extracted.

STRATABOUND DEPOSIT
     An ore deposit, which is confined within a geological strata or layer.

STRATABOUND DISSEMINATED
     Disseminated ore within a stratabound deposit.

STRIKE-SLIP MOVEMENT
     1. In a fault, the component of the movement or slip that is parallel to
the strike of the fault. 2. A horizontal component of the slip parallel with the
fault strike.

SUMP
     The lowest part of a mine shaft into which water drains.

SUPRACRUSTAL ASSEMBLAGES
     Referring to overlying or "last in the sequence" groups of rocks or
assemblages in the earth's crust.

SYENITE
     A group of plutonic rocks containing alkali feldspar (usually orthoclase,
microcline, or perthite), a small amount of plagioclase (less than in
"monzonite"), one or more mafic minerals (esp. hornblende), and quartz, if
present, only as an accessory; also, any rock in that group; the intrusive
equivalent of "trachyte." With an increase in the quartz content, syenite grades
into "granite."

SYMPATHETIC FAULTING
     A minor fault that has the same orientation as the major fault or some such
structure with which it is associated.

SYNCLINE
     A fold in rocks in which the strata dip inward from both sides toward the
axis.

TAILINGS
     The material that remains after all metals considered economic have been
removed from ore during milling.

T-ANTIFORM STRUCTURE
     A local geological term identifying a particular formation of rock. In this
instance the structure is an antiform, which is an "n"shaped fold.

TENNANTITE
     An isometric mineral, (Cu,Fe)12As4S13; tetrahedrite group; forms a series
with tetrahedrite; may contain zinc, silver, or cobalt replacing copper; in
veins; an important source of copper.

TERRANE
     Area of land of a particular character, E.G., mountainous, swampy.

TETRAHEDRITE
     1. An isometric mineral, (Cu,Fe)12Sb4S13, having copper replaced by zinc,
lead, mercury, cobalt, nickel, or silver; forms a series with tennantite and
freibergite; metallic; crystallizes tetrahedra; occurs in hydrothermal veins and
contact metamorphic deposits; a source of copper and other metals. 2. The
mineral group freibergite, giraudite, goldfieldite, hakite, tennantite, and
tetrahedrite.

THOLEIITIC
     A silica-oversaturated (quartz-normative) basalt, characterized by the
presence of low-calcium pyroxenes (orthopyroxene and/or pigeonite) in addition
to clinopyroxene and calcic plagioclase.


                                     -184-
<PAGE>

TOURMALINE
     1. Any member of the trigonal mineral group, XY3Z6(BO3)3Si6O18(OH,F)4where
X is Na partially replaced by Ca, K, Mg, or a vacancy, Y is Mg, Fe2+, Li, or Al,
and Z is Al and Fe3+; forms prisms of three, six, or nine sides; commonly
vertically striated; varicolored; an accessory in granite pegmatites, felsic
igneous rocks, and metamorphic rocks. Transparent and flawless crystals may be
cut for gems. 2. The mineral group buergerite, dravite, elbaite, ferridravite,
liddicoatite, schorl, and uvite.

TRENDING FAULTS
     Faults that are similar in direction or bearing.

TRIASSIC
     Belonging to the geolic time, system of rocks or sedimentary deposits of
the first period of the Mesozoic Era, characterized by the diversification of
land life, the rise of dinosaurs and the appearance of the earliest mammals.

TUFF
     Rock composed of fine volcanic ash.

ULTRAMAFIC
     Also called ultrabasic. Characterizes rocks containing less than 45%
silica; containing virtually no quartz or feldspar. They are essentially
composed of iron and magnesium-rich minerals, metallic oxides and sulfides, and
native metals.

UNCONFORMITY
     A surface between successive strata representing a missing interval in the
geologic record of time, and produced either by an interruption in deposition or
by the erosion of depositionally continuous strata followed by renewed
deposition.

VEIN
     A fissure, fault or crack in a rock filled by minerals that have traveled
upwards from some deep source.

VOLCANICS
     A general collective term for extrusive igneous and pyroclastic material
and rocks.

VUG
     A small cavity in a rock, usually lined with crystals of a different
mineral composition than the enclosing rock.

VUGGY
     Pertaining to a vug or having numerous vugs.

ZONE
     An area of distinct mineralization.


                                     -185-
<PAGE>

MEASUREMENTS CONVERSION TABLE

<TABLE>
<CAPTION>
                                                METRIC CONVERSION TABLE
               TO CONVERT                     TO IMPERIAL MEASUREMENT UNITS                  MULTIPLY BY
<S>                                       <C>                                                <C>
Tonnes                                    Short tons                                           1.10231
Tonnes                                    Long tons                                            0.98422
Tonnes                                    Pounds                                               2204.62
Tonnes                                    Ounces (troy)                                         32,150
Kilograms                                 Ounces (troy)                                         32.150
Grams                                     Ounces (troy)                                        0.03215
Grams/tonnes                              Ounces (troy)/short ton                              0.02917
Hectares                                  Acres                                                2.47105
Kilometers                                Miles                                                0.62137
Meters                                    Feet                                                 3.28084
</TABLE>

--------------------------------------------------------------------------------
                             ADDITIONAL INFORMATION
--------------------------------------------------------------------------------

Kinross will provide to any person, upon request to the Secretary of Kinross:

(a)     when the securities of Kinross are in the course of a distribution
        pursuant to a short form prospectus or a preliminary short form
        prospectus has been filed in respect of a distribution of its
        securities:

        (i)     one copy of this Annual Information Form, together with one copy
                of any document incorporated by reference in this Annual
                Information Form;

        (ii)    one copy of the Consolidated Financial Statements of Kinross for
                its most recently completed financial year together with the
                accompanying report of the auditor and one copy of any interim
                consolidated financial statements of Kinross subsequent to the
                Consolidated Financial Statements for its most recently
                completed financial year;

        (iii)   one copy of the information circular of Kinross in respect of
                its most recent annual meeting of shareholders that involved the
                election of directors or one copy of any annual filing prepared
                in lieu of that information circular, as appropriate; and

        (iv)    one copy of any other documents that are incorporated by
                reference into the preliminary short form prospectus or the
                short form prospectus and are not required to be provided under
                (i) to (iii) above; or

(b)     at any other time, one copy of any documents referred to in (a)(i), (ii)
        and (iii) above, provided Kinorss may require the payment of a
        reasonable charge if the request is made by a person who is not a
        security holder of Kinross.

Additional information including directors' and officers' remuneration and
indebtedness, principal holders of Kinross' securities, options to purchase
securities and interest of insiders in material transactions, where applicable,
is contained in Kinross' information circular for its most recent annual meeting
of shareholders that involved the election of directors and additional financial
information is provided in Kinross' consolidated financial statements for its
most recently completed financial year.


                                     -186-
<PAGE>
<TABLE>
<CAPTION>
<S>                                                                             <C>
-------------------------------------------------------------------------------------------------------------------
                                           INDEX TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------------------------------------------

PRO FORMA FINANCIAL STATEMENTS:
Compilation report............................................................................................F-A1
Comment for United States Readers on Differences Between Canadian and United States
     Reporting Standards......................................................................................F-A2
Pro forma consolidated balance sheet as at December 31, 2003 (unaudited)......................................F-A3
Pro forma consolidated statement of operations for the year ended December 31, 2003 (unaudited)...............F-A4
Notes to pro forma consolidated financial statements..........................................................F-A5

HISTORICAL CONSOLIDATED FINANCIAL STATEMENTS OF KINROSS:
Auditors' report..............................................................................................F-B1
Consolidated balance sheets as at December 31, 2003 and 2002..................................................F-B2
Consolidated statements of operations for the years ended December 31, 2003, 2002 and 2001....................F-B3
Consolidated statements of cash flows for the years ended December 31, 2003, 2002 and 2001....................F-B4
Consolidated statements of common shareholders' equity for the years ended December 31, 2003, 2002
     and 2001.................................................................................................F-B5
Notes to the consolidated financial statements................................................................F-B6

HISTORICAL CONSOLIDATED FINANCIAL STATEMENTS OF TVX:
Auditors' report..............................................................................................F-C1
Consolidated balance sheets as at December 31, 2002 and 2001..................................................F-C2
Consolidated statements of operations for the years ended December 31, 2002, 2001, and 2000...................F-C3
Consolidated statements of deficit for the years ended December 31, 2002, 2001, and 2000......................F-C4
Consolidated statements of cash flows for the years ended December 31, 2002, 2001, and 2000...................F-C5
Notes to consolidated financial statements....................................................................F-C6

HISTORICAL CONSOLIDATED FINANCIAL STATEMENTS OF ECHO BAY:
Report of independent chartered accountants...................................................................F-D1
Consolidated balance sheets as at December 31, 2002 and 2001..................................................F-D2
Consolidated statements of operations for the years ended December 31, 2002, 2001 and 2000....................F-D3
Consolidated statements of deficit for the years ended December 31, 2002, 2001 and 2000.......................F-D3
Consolidated statements of cash flows for the years ended December 31, 2002, 2001 and 2000....................F-D4
Notes to consolidated financial statements....................................................................F-D5

HISTORICAL CONSOLIDATED FINANCIAL STATEMENTS OF CROWN:
Independent auditors' report..................................................................................F-E1
Consolidated balance sheets as at December 31, 2003 and 2002 (As Restated)....................................F-E2
Consolidated statements of operations for the years ended December 31, 2003, 2002 (As Restated),
     and 2001 (As Restated)...................................................................................F-E3
Consolidated statements of stockholders' equity and comprehensive income (loss) for the years ended
     December 31, 2003, 2002 (As Restated), and 2001 (As Restated)............................................F-E4
Consolidated statements of cash flows for the years ended December 31, 2003, 2002 (As Restated),
     and 2001 (As Restated)...................................................................................F-E5
Notes to consolidated financial statements (As Restated)......................................................F-E6
</TABLE>


                                                       -187-
<PAGE>

<PAGE>

COMPILATION REPORT ON PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS


To the Directors of
Kinross Gold Corporation

We have read the accompanying unaudited pro forma consolidated balance sheet of
Kinross Gold Corporation (the "Company") as at December 31, 2003, and unaudited
pro forma consolidated statement of operations for the year ended December 31,
2003, and have performed the following procedures:

1.      Compared the figures in the column captioned "Kinross" to the audited
consolidated financial statements of the Company as at and for the year ended
December 31, 2003, and found them to be in agreement.

2.      Compared the figures in the column captioned "Crown" to the audited
consolidated financial statements of Crown Resources Corporation as at and for
the year ended December 31, 2003, and found them to be in agreement.

3.      Made enquiries of certain officials of the Company who have
responsibility for financial and accounting matters about:

        (a)     the basis for determination of the pro forma adjustments; and

        (b)     whether the unaudited pro forma consolidated financial
statements comply as to form in all material respects with the regulatory
requirements of the various Securities Commissions and similar regulatory
authorities in Canada.

        The officials:

        (a)     described to us the basis for determination of the pro forma
adjustments, and

        (b)     stated that the unaudited pro forma consolidated financial
statements comply as to form in all material respects with the regulatory
requirements of the various Securities Commissions and similar regulatory
authorities in Canada.

4.      Read the notes to the unaudited pro forma consolidated financial
statements and found them to be consistent with the basis described to us for
determination of the pro forma adjustments.

5.      Recalculated the application of the pro forma adjustments to the
aggregate of the amounts in the columns captioned "Kinross" and "Crown" as at
and for the year ended December 31, 2003, and found the amounts in the column
captioned "Pro-Forma Consolidated" to be arithmetically correct.

A pro forma financial statement is based on management assumptions and
adjustments which are inherently subjective. The foregoing procedures are
substantially less than either an audit or a review, the objective of which is
the expression of assurance with respect to management's assumptions, the pro
forma adjustments, and the application of the adjustments to the historical
financial information. Accordingly, we express no such assurance. The foregoing
procedures would not necessarily reveal matters of significance to the pro forma
consolidated financial statements, and we therefore make no representation about
the sufficiency of the procedures for the purposes of a reader of such
statements.



(SIGNED) DELOITTE & Touche LLP
Chartered Accountants

Toronto, Canada
April 21, 2004


                                      F-A1
<PAGE>

COMMENT FOR UNITED STATES READERS ON DIFFERENCES BETWEEN CANADIAN AND UNITED
STATES REPORTING STANDARDS

The above compilation report on proforma consolidated financial statements,
provided solely pursuant to Canadian requirements, is expressed in accordance
with reporting standards generally accepted in Canada. Such standards
contemplate the issuance of a report with respect to the compilation of
unaudited pro forma financial statements. U.S. standards do not provide for the
issuance of a report on the compilation of unaudited pro forma financial
statements. To report in conformity with United States standards on the
reasonableness of the pro forma adjustments and their application to the
unaudited pro forma consolidated financial statements would require an
examination or review which would be substantially greater in scope than the
review as to compilation only that we have conducted. Consequently, under U.S.
standards, we would be unable to issue our report with respect to the
compilation of the accompanying unaudited pro forma consolidated financial
statements.



(SIGNED) DELOITTE & Touche LLP
Chartered Accountants

Toronto, Canada
April 21, 2004


                                      F-A2
<PAGE>
<TABLE>
<CAPTION>

                                                                                                            KINROSS GOLD CORPORATION
                                          PRO FORMA CONSOLIDATED BALANCE SHEET - UNAUDITED
                                               (EXPRESSED IN MILLIONS OF U.S. DOLLARS)
AS AT DECEMBER 31, 2003
                                                                                                   PRO-FORMA            PRO-FORMA
                                                       NOTES          KINROSS        CROWN        ADJUSTMENTS          CONSOLIDATED
                                                       -----          -------        -----        -----------          ------------
<S>                                                   <C>           <C>             <C>          <C>                   <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents                               2.2         $    245.7      $    2.4     $     (1.6)           $      246.6
Restricted cash                                                            5.1             -                                    5.1
Accounts receivable and other assets                                      42.2           0.2              -                    42.4
Inventories                                                              109.2             -              -                   109.2
                                                                    ----------------------------------------------------------------
                                                                         402.3           2.6           (1.6)                  403.3
                                                                    ----------------------------------------------------------------
Property, plant  and equipment                          2.2              522.6           8.7           (8.7)                  522.6
Mineral Interests                                       2.2              260.1          21.0           85.1                   366.2
Goodwill                                                                 918.0             -              -                   918.0
Future income and mining taxes                                             1.5             -              -                     1.5
Long-term investments                                   2.2                2.1           2.0           (2.0)                    2.1
Deferred charges and other long-term assets                               35.9           0.1              -                    36.0
                                                                    ----------------------------------------------------------------
                                                                    $  2,142.5      $   34.4     $      72.8           $    2,249.7
                                                                    ================================================================
LIABILITIES
CURRENT LIABILITIES
Accounts payable and accrued liabilities                                 101.4           0.4              -                   101.8
Current portion of long-term debt                                         29.4           0.1              -                    29.5
Current portion of site restoration cost accruals                         19.2             -              -                    19.2
                                                                    ----------------------------------------------------------------
                                                                         150.0           0.5              -                   150.5
                                                                    ----------------------------------------------------------------
Long-term debt                                                             0.7             -              -                     0.7
Site restoration cost accruals                                           100.5             -              -                   100.5
Future income and mining taxes                          2.2               55.6           3.3           (1.5)                   57.4
Deferred revenue                                                           2.2             -              -                     2.2
Other long-term liabilities                                                2.5             -              -                     2.5
Convertible senior notes payable                        2.2                  -           0.3           (0.3)                      -
Redeemable retractable preferred shares                                    3.0             -              -                     3.0
                                                                    ----------------------------------------------------------------
                                                                         314.5           4.1           (1.8)                  316.8

NON-CONTROLLING INTERESTS                                                  0.7             -              -                     0.7

CONVERTIBLE PREFERRED SHARES OF SUBSIDIARY COMPANY                        12.6             -              -                    12.6

COMMON SHAREHOLDERS' EQUITY
Common share capital and common share purchase          2.2            1,783.5          57.4           47.5                 1,888.4
warrants
Treasury stock                                          2.2                  -          (0.3)           0.3                       -
Unearned compensation                                   2.2                  -          (2.1)           2.1                       -
Contributed surplus                                     2.2               30.0             -              -                    30.0
Retained earnings (deficit)                             2.2                3.2         (24.7)          24.7                     3.2
Cumulative translation adjustments                                        (2.0)            -              -                    (2.0)
                                                                    ----------------------------------------------------------------
                                                                    $  1,814.7      $   30.3     $     74.6            $    1,919.6
                                                                    ----------------------------------------------------------------
                                                                    $  2,142.5      $   34.4     $     72.8            $    2,249.7
                                                                    ================================================================
</TABLE>


                                                                F-A3
<PAGE>
<TABLE>
<CAPTION>

                                                      KINROSS GOLD CORPORATION
                                     PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS - UNAUDITED
                                  (EXPRESSED IN MILLIONS OF U.S. DOLLARS EXCEPT PER SHARE AMOUNTS)
                                               FOR THE YEAR ENDED DECEMBER 31, 2003


                                                                                                   PRO-FORMA            PRO-FORMA
                                                       NOTES          KINROSS        CROWN        ADJUSTMENTS          CONSOLIDATED
                                                       -----          -------        -----        -----------          ------------
<S>                                                   <C>           <C>             <C>          <C>                   <C>
REVENUE AND OTHER INCOME
   Mining revenue                                         2.4       $    571.9      $            $      11.7           $      600.5
                                                                                           -
                                                          2.5                -             -            16.7
                                                          2.6                -             -             0.2
   Interest and other income                                              12.3             -             0.3                   12.6
   Mark to market gain on call options                                     0.4             -               -                    0.4
                                                                    ----------------------------------------------------------------
                                                                         584.6             -            28.9                  613.5
                                                                    ----------------------------------------------------------------
EXPENSES
   Operating (exclusive of depreciation, depletion and
       amortization shown separately below)               2.4            387.3             -             6.1                  404.9
                                                          2.5                -             -            11.0
                                                          2.6                -             -             0.2
                                                          2.7                -             -             0.3
   General and administrative                             2.4             25.0           4.1             6.2                   46.4
                                                          2.5                -             -            11.1
   Exploration and business development                   2.4             24.3             -             0.3                   25.4
                                                          2.5                -             -             0.8
   Depreciation, depletion and amortization               2.4            140.9             -             2.0                  146.4
                                                          2.5                -             -             2.8
                                                          2.8                -             -             0.7
   Gain on disposal of assets                                            (29.5)            -               -                  (29.5)
   Foreign exchange (gain) loss                           2.4             (3.3)            -            (0.8)                  (4.1)
   Interest expense on long-term liabilities                               5.1             -               -                    5.1
   Loss on redemption of debt component of
      convertible debentures                                               1.1             -               -                    1.1
   Asset write-downs and non-cash charges                                  9.9             -               -                    9.9
                                                                    ----------------------------------------------------------------
                                                                         560.8           4.1            40.7                  605.6
                                                                    ================================================================
   EARNINGS (LOSS) BEFORE TAXES AND OTHER ITEMS                           23.8          (4.1)          (11.8)                   7.9

   Provision for income and mining taxes                  2.4            (13.1)          1.7            (0.5)                 (11.9)
   Non-controlling interest                                               (0.2)            -               -                   (0.2)
   Share of loss in investee companies                    2.3                -          (0.6)            0.6                      -

   EARNINGS (LOSS) FOR THE YEAR BEFORE DIVIDENDS ON
      CONVERTIBLE PREFERRED SHARES OF SUBSIDIARY COMPANY                  10.5          (3.0)          (11.7)                  (4.2)
   DIVIDENDS ON CONVERTIBLE PREFERRED SHARES OF
      SUBSIDIARY COMPANY                                                   0.8             -               -                    0.8
                                                                    ----------------------------------------------------------------
   NET EARNINGS (LOSS) FOR THE YEAR                                 $      9.7      $   (3.0)    $     (11.7)          $       (5.0)
                                                                    ================================================================

   ATTRIBUTABLE TO COMMON SHAREHOLDERS:

   NET EARNINGS (LOSS) FOR THE YEAR                                 $      9.7      $   (3.0)    $     (11.7)          $       (5.0)
   INCREASE IN EQUITY COMPONENT OF CONVERTIBLE                            (6.5)            -               -                   (6.5)
      DEBENTURES
   GAIN ON REDEMPTION OF EQUITY COMPONENT OF
      CONVERTIBLE DEBENTURES                                              16.5             -               -                   16.5
                                                                    ----------------------------------------------------------------
   NET EARNINGS FOR THE YEAR ATTRIBUTABLE TO COMMON
      SHAREHOLDERS                                                  $     19.7      $   (3.0)    $     (11.7)          $        5.0
                                                                    ================================================================

EARNINGS (LOSS) PER SHARE
    Basic                                                           $     0.06        ($0.45)                          $       0.01
    Diluted                                                         $     0.06             -                           $       0.01

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
(MILLIONS)
   BASIC                                                                 308.6           6.6                                  333.9
   DILUTED                                                               309.6           6.6                                  334.9
</TABLE>

                                                                F-A4
<PAGE>

KINROSS GOLD CORPORATION
NOTES TO THE PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(EXPRESSED IN MILLIONS OF U.S. DOLLARS EXCEPT PER SHARE DATA)

1.      BASIS OF PRESENTATION

The unaudited pro forma consolidated financial statements ("pro forma financial
statements") have been prepared using the purchase method of accounting for the
business combination of Kinross Gold Corporation ("the Company" or "Kinross"),
TVX Gold Inc. ("TVX") and Echo Bay Mines Ltd. ("Echo Bay") and using the
purchase method of accounting for the business combination of the Company and
Crown Resources Corporation ("Crown"). The Company has been identified as the
acquirer for both business combinations. The purchase price allocated to the TVX
and Echo Bay assets acquired and liabilities assumed was based on the final
purchase equation and their respective fair values at January 31, 2003 upon
completion of the business combination. The purchase price allocated to the
Crown assets acquired and liabilities assumed was based on their respective fair
values at December 31, 2003. The allocation of the aggregate purchase price
reflected in the pro forma financial statements for the Crown business
combination is preliminary. The actual purchase adjustment to reflect the fair
values of the assets acquired and liabilities assumed will be based upon
management's evaluation of such assets and liabilities and, accordingly, the
adjustments that have been included in the pro forma financial statements may be
subject to change. Such allocation may differ significantly from the preliminary
allocation included herein.

The accompanying pro forma financial statements as at and for the year ended
December 31, 2003 have been prepared by the Company's management based on the
audited consolidated financial statements of the Company and Crown for the year
ended December 31, 2003 and the unaudited results of operations for TVX and Echo
Bay for the one month period ended January 31, 2003. The pro forma financial
statements are presented as if the business combinations had occurred on
December 31, 2003 in respect to the pro forma consolidated balance sheet and on
January 1, 2003 in respect of the pro forma consolidated statement of
operations. The pro forma financial statements have been reclassified to reflect
classifications consistent with the presentation adopted by the Company.

Accounting policies used in the preparation of the pro forma financial
statements are those disclosed in the Company's consolidated financial
statements. The financial statements of the Company and Crown have been prepared
in accordance with Canadian Generally Accepted Accounting Principles ("CDN
GAAP"). In the opinion of management of the Company, these pro forma financial
statements include all adjustments necessary for a fair presentation applicable
to the preparation of pro forma financial statements.

The pro forma financial statements are not necessarily indicative either of the
results that actually would have been achieved if the transactions reflected
herein had been completed on the dates indicated or the results, which may be
obtained in the future. In preparing these pro forma financial statements no
adjustments have been made to reflect transactions that have occurred since the
dates indicated or the general and administrative cost savings expected to
result from combining the operations of the Company, TVX, Echo Bay and Crown.

The pro forma financial statements should be read in conjunction with the
description of the combination of the Company and Crown in this registration
statement, the audited consolidated financial statements of the Company and
Crown as at and for the year ended December 31, 2003 and notes attached thereto,
each contained elsewhere in this registration statement.

The combinations will be accounted for by the Company using the purchase method
of accounting in accordance with both Section 1581 "Business Combinations" of
the Canadian Institute of Chartered Accountants Handbook ("CICA Handbook"), for
purposes of CDN GAAP and Statement of Accounting Standards ("SFAS") 141,
"Business Combinations," for purposes of United States Generally Accepted
Accounting Principles ("U.S. GAAP"). Pursuant to the purchase method of
accounting under both CDN and U.S. GAAP, the TVX and Echo Bay assets acquired
and liabilities assumed were recorded at their fair values on January 31, 2003,
while, the Crown assets acquired and liabilities assumed will be recorded at
their fair values as of the effective date of the Combination. The excess of the
purchase price over the TVX and Echo Bay fair values of assets acquired and
liabilities assumed has been recorded as goodwill. In accordance with CICA
Handbook Section 3062, "Goodwill and Other Intangible Assets" for purposes of
CDN GAAP and SFAS 142 "Goodwill and Other Intangible Assets" for the purposes of
U.S. GAAP, goodwill was assigned to specific reporting units and will not be
amortized. Based on the preliminary purchase equation for Crown there was no
goodwill to be allocated.


                                      F-A5
<PAGE>

2.      PRO FORMA ASSUMPTIONS AND ADJUSTMENTS

        The pro forma financial statements have been prepared on the basis that
the business combination more fully described elsewhere herein is completed and
the shareholders of Crown approve the business combination. In addition, the
results of operations of the Company have been adjusted to reflect the results
of operations for TVX and Echo Bay for the one month ended January 31, 2003 to
reflect the business combination as if it had occurred on January 1, 2003 for
purposes of pro forma statement of operations.

2.1     TVX AND ECHO BAY COMBINATION

        On January 31, 2003, pursuant to a Canadian Plan of Arrangement, the
        Company acquired 100% of TVX and 100% of Echo Bay. Consideration paid
        for the TVX common shares was 2.1667 Kinross common shares for each TVX
        common share. Consideration paid for the Echo Bay shares was 0.1733 of a
        Kinross common share for each Echo Bay common share. The exchange ratio
        reflects the three for one consolidation of the Company's common shares
        that was approved by the shareholders on January 28, 2003 (see Note 16
        to the audited consolidated financial statements). The purchase price
        for these acquisitions totaled $1.3 billion, comprised of 177.8 million
        Kinross common shares, $12.6 million of direct costs and $29.3 million
        representing the fair value of common share purchase warrants and stock
        options assumed. The value of Kinross was $7.14 per share based on the
        average market price of the shares over the two-day period before and
        after June 10, 2002, being the date Kinross, TVX and Echo Bay entered
        into the combination agreement.

        In a separate transaction, immediately prior to the business
        combination, TVX acquired Newmont Mining Corporation's ("Newmont") 50%
        non-controlling interest in the TVX Newmont Americas joint venture ("TVX
        Newmont JV") for $180.0 million in cash. The purchase price was
        satisfied using TVX's available cash of $85.5 million and cash advanced
        by Kinross to TVX of $94.5 million.

        Upon completion of the acquisition of TVX and TVX's purchase of
        Newmont's interest in the TVX Newmont JV, Kinross holds various
        non-operating interests in gold mines located in Chile (La Coipa - 50%),
        Brazil (Paracatu - 49% and Crixas - 50%) and Canada (Musselwhite 31.9%),
        an operating interest in one other Canadian mine (New Britannia - 50%)
        and exploration interests in Brazil. Upon acquiring Echo Bay, Kinross
        holds operating interests in gold mines located in the United States
        (Round Mountain - 50%) and Canada (Lupin 100%) and interests in
        development properties in both Canada and the United States.

        The combination of Kinross, TVX and Echo Bay was undertaken to create
        the seventh largest senior primary gold producer in the world, with the
        financial and operating base necessary to continue to grow the Company.
        With an expanded global operating base, a more than doubling of gold
        production, increased cash flow provided from operating activities and a
        portfolio of development projects, the Company has an enhanced ability
        to pursue new growth strategies, previously unattainable, and undertake
        significant exploration programs.

        The acquisitions were accounted for using the purchase method of
        accounting whereby identifiable assets acquired and liabilities assumed
        were recorded at their fair market values as of the date of acquisition.
        The excess of the purchase price over such fair value was recorded as
        goodwill and amounted to $918 million. During the fourth quarter of
        2003, the Company finalized the purchase price allocations for the TVX
        and Echo Bay acquisitions. In addition, Kinross tested the goodwill for
        impairment as at December 31, 2003 and determined that there was no
        impairment at that date.


                                      F-A6
<PAGE>

The following reflects the final purchase price allocation for the combination
with TVX and Echo Bay (in millions except per share data):

<TABLE>
<CAPTION>
                                                                                                TVX        ECHO BAY
<S>                                                                                         <C>           <C>
Common shares of Kinross issued to Echo Bay and TVX shareholders                                 93.9          83.9
Value of Kinross common stock per share                                                     $    7.14     $    7.14
                                                                                            --------------------------
Fair value of the Company's common stock issued                                             $   670.7     $   599.1

Plus - fair value of warrants and options assumed by the Company (100% vested)                    6.8          22.5
Plus - direct acquisition costs incurred by the Company                                           6.3           6.3
Plus - the Company's previous 10.6% ownership interest in Echo Bay                                  -           7.0
                                                                                            --------------------------

Total purchase price                                                                        $   683.8     $   634.9

Plus - fair value of liabilities assumed by Kinross
   Accounts payable and accrued liabilities                                                      53.6          23.1
   Long-term debt, including current portion                                                      2.2             -
   Site restoration cost accruals, including current portion                                     17.5          45.5
   Future income tax liabilities                                                                 52.0           0.8
   Other long-term liabilities                                                                    0.1             -
   Liability with respect to TVX Newmont JV assets acquired                                      94.5             -

Less - fair value of assets acquired by Kinross
  Cash                                                                                          (27.8)        (16.4)
  Restricted cash                                                                               (11.3)        (10.1)
  Marketable securities                                                                          (0.5)         (1.9)
  Accounts receivable and other assets                                                          (18.2)         (4.6)
  Inventories                                                                                   (19.1)        (28.8)
  Properties, plant and equipment                                                              (129.1)        (84.6)
  Mineral interests                                                                            (205.5)        (78.4)
  Long-term investments and other non-current assets                                             (5.1)        (48.6)
                                                                                            -------------------------

Residual purchase price allocated to goodwill                                               $   487.1     $   430.9
                                                                                            =========================
</TABLE>

Property, plant and equipment was adjusted to estimated fair values based on
replacement costs as determined through independent appraisals performed by a
third party. Mineral interests, representing acquired mineral use rights and
previously included in property, plant and equipment, were fair valued based on
estimated future cash flows or recent transactions involving sales of similar
properties, depending on the nature of the underlying property. Estimated future
cash flows were based on estimated quantities of gold to be produced at each
site, the estimated costs, timing and capital expenditures associated with such
production, the Company's long-term expectation that a price of $325 would be
realized for each ounce of gold produced, foreign currency exchange rates at the
date of acquisition and a discount rate specific to the Company's cost of
capital, estimated to be equal to 7%.

2.2     CROWN COMBINATION

On November 20, 2002, the Company executed a definitive acquisition agreement to
acquire 100% of the common shares of Crown. The Company has agreed to issue
0.2911 of a common share for each outstanding common share of Crown. The value
of the Kinross shares is $7.49 per share based on the average market price of
the shares over the two day period before and after October 8, 2003, being the
date Kinross and Crown announced the combination and entered into a letter
agreement. Total number of common shares to be issued by the Company is
approximately 10.53 million. The 10.53 million common shares to be issued by the
Company assume that all of the convertible senior notes payable outstanding by
Crown will be converted into common shares of Crown immediately prior to
closing, and the exercise of all stock options outstanding at December 31, 2003
for net proceeds of $1.4 million. All stock options expire if not exercised
prior to closing. In addition, the Company has eliminated Crown's investment in
Solitario as the purchase agreement with the Company contemplates Crown
distributing to its shareholders the 9,633,585 shares it holds in Solitario
immediately prior to the closing of the combination. The transaction is expected
to close in 2004.


                                      F-A7
<PAGE>

The following reflects the preliminary purchase price allocation for the
acquisition of 100% of Crown (in millions except per share data):

Common shares of Kinross to be issued to Crown shareholders           10.53
Value of Kinross common stock per share                            $   7.49
                                                                   ---------
Fair value of the Company's common stock to be issued              $   79.0
Plus - Fair value of Crown's warrants and options                      25.9
Acquisition costs                                                       3.0
                                                                   ---------

Total purchase price                                               $  107.9

Plus - fair value of liabilities assumed by Kinross
   Accounts payable and accrued liabilities                             0.4
   Long-term debt, including current portion                            0.1
   Future income tax liabilities                                        1.8

Less - fair value of assets acquired by Kinross
    Cash (including $1.4 million of stock option proceeds)             (3.8)
    Accounts receivable and other assets                               (0.2)
    Mineral interests                                                (106.1)
    Long-term investments and other non-current assets                 (0.1)
                                                                   ---------

Residual purchase price allocated to goodwill                      $    NIL
                                                                   =========

        Mineral interests were fair valued based on estimated future cash flows
of the underlying property. Estimated future cash flows were based on estimated
quantities of gold to be produced, the estimated costs, timing and capital
expenditures associated with such production, the Company's long-term
expectation that a price of $350 would be realized for each ounce of gold
produced and a discount rate specific to the Company's cost of capital,
estimated to be equal to 7%.

2.3     DISTRIBUTION OF SOLITARIO RESOURCES CORPORATION ("SOLITARIO")

To eliminate Crown's share of loss on the investment in Solitario in 2003 of
$0.6 million as the purchase agreement with the Company contemplates Crown
distributing to its shareholders the 9,633,585 shares it holds in Solitario
prior to the closing of the purchase by the Company.

2.4     TVX JANUARY RESULTS OF OPERATIONS

To increase mining revenue by $11.7 million, interest and other income by $0.3
million, operating costs by $6.1 million, general and administration costs by
$6.2 million, exploration and business development costs by $0.3 million,
depreciation depletion and amortization costs by $2.0 million, foreign exchange
gain by $0.8 million, and income tax expense by $0.5 million to reflect the
results of operations for January 2003 by TVX. Included in TVX's general and
administration cost for January are costs to complete the business combination
of $5.4 million.

2.5     ECHO BAY JANUARY RESULTS OF OPERATIONS

To increase mining revenue by $16.7 million, operating costs by $11.0 million,
general and administrative costs by $11.1 million, exploration and business
development costs by $0.8 million and depreciation, depletion and amortization
by $2.8 million to reflect the results of operations for January 2003 by Echo
Bay. Included in Echo Bay's general and administration cost for January are
costs to complete the business combination of $11.0 million.

CONFORMING ADJUSTMENTS

2.6     REVENUE RECOGNITION

To increase Echo Bay's mining revenue by $0.2 million and operating costs by
$0.2 million to reflect silver sales as revenue in accordance with the Company's
accounting policies. Echo Bay credited by-product silver revenues to operating
costs where the Company records by-product silver as part of revenue.


                                      F-A8
<PAGE>

2.7     DEFERRED STRIPPING

To increase operating costs of TVX by $0.3 million to reflect the impact of
expensing stripping costs as incurred in accordance with the Company's
accounting policies.

2.8     DEPRECIATION DEPLETION AND AMORTIZATION

To increase depreciation, depletion and amortization expense of TVX and Echo Bay
by $0.7 million to reflect the impact of the final purchase equation on the pro
forma results for January 2003.

3.      ITEMS NOT ADJUSTED

The pro forma financial statements do not give effect to operating efficiencies,
cost savings and synergies that might result from the business combinations of
Kinross, TVX, Echo Bay and Crown at the corporate level.

4.      SHARE INFORMATION

The number of pro forma common shares outstanding after giving effect to the
transaction is:

Kinross issued and outstanding at December 31, 2003          345.5
Crown shares converted to equivalent Kinross shares(1)        10.5
                                                         ------------

                                                             356.0
                                                         ============
-------------------------
(1)     Assumes the issuance of 10.5 million common shares of the Company for
        36.2 million common shares of Crown.

The pro forma net earnings per common share in the amount of $0.01 for the year
ended December 31, 2003 has been calculated using the weighted average number of
common shares of the Company outstanding during the year ended December 31,
2003, plus the additional common shares that will be issued to complete the
business combination with Crown and the additional weighting of the shares
issued to complete the business combination with TVX and Echo Bay, had that
combination been completed on January 1, 2003. The increase in equity component
of convertible debentures and gain on redemption of equity component of
convertible debentures have been included in the determination of net earnings
attributable to common shareholders on the pro forma statement of operations in
the determination of per share data.

<TABLE>
<CAPTION>
<S>                                                                                                             <C>
        Weighted average number of common shares outstanding for Kinross for the year ended December 31, 2003        308.6
        Additional common shares issued to complete the Crown combination                                             10.5
        Additional weighting of common shares issued to complete the TVX combination                                   7.8
        Additional weighting of common shares issued to complete the Echo Bay combination                              7.0
                                                                                                               ---------------

                                                                                                                     333.9
                                                                                                               ===============
</TABLE>

5.      INCOME AND MINING TAXES

The December 31, 2003 pro forma tax adjustment and the pro forma consolidated
provision for income and mining taxes were recorded at the statutory rates that
were then in force. The statutory rates were: Canada income tax--approximately
40%; Ontario mining tax--12%; Manitoba mining tax--18%; U.S. income tax--35%;
Russian income tax--24%; Brazil income tax--34%; Chile income tax--35%. For the
Canada and U.S. income tax, no recognition was given to tax losses for purposes
of the calculation of the current period tax expense.

6.      RECONCILIATION OF UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION
        FROM CDN TO U.S. GAAP.

The tables below set out the material adjustments to pro forma consolidated net
earnings (loss) and shareholders' equity reflected in the unaudited pro forma
consolidated financial information which would be required if U.S. GAAP had been
applied. These tables should be read in conjunction with Note 22 of the
Company's audited financial statements, which is included in this registration
statement.


                                      F-A9
<PAGE>

                      RECONCILIATION OF PRO FORMA NET LOSS

<TABLE>
<CAPTION>
<S>                                                                                     <C>
Pro forma net loss for the year under CDN GAAP                                             $           (5.0)

Adjustments for:


Recognition of deferred exchange gains and losses on convertible debentures (a)                       (17.8)

Elimination of effects of recognition of equity component of convertible debentures (a)                (3.2)

Property, plant and equipment & amortization of differences from applying SFAS 121 (b)                  6.3

Restatement to equity account for investment in Echo Bay (c)                                           (1.0)

Effect of SFAS 133 (d)                                                                                  0.5

Effects of SFAS 143 (e)                                                                               (11.1)
                                                                                           -----------------------

Pro forma net loss for the year under US GAAP                                              $          (31.3)
                                                                                           =======================

Pro forma U.S. GAAP loss per common share                                                  $          (0.09)
</TABLE>


          RECONCILIATION OF PRO FORMA CONSOLIDATED SHAREHOLDERS' EQUITY

<TABLE>
<CAPTION>
<S>                                                                                     <C>

Pro forma shareholders' Equity under CDN GAAP                                              $        1,919.6

Adjustments for:

Property, plant and equipment & amortization of differences from applying SFAS 121 (b)
                                                                                                      (28.2)
Gains on marketable securities and long-term investments (c)
                                                                                                        7.2
Restatement to equity account for investment in Echo Bay (c)
                                                                                                       40.8
Effect of SFAS 133 (d)
                                                                                                      (20.5)
Effects of SFAS 143 (e)
                                                                                                      (11.1)
Minimum pension liability (f)
                                                                                                       (3.1)
                                                                                           -----------------------
Pro forma shareholders equity under US GAAP                                                $        1,904.7
                                                                                           =======================
</TABLE>

The pro forma US GAAP net loss per common share in the amount of ($0.09) for the
year ended December 31, 2003 has been calculated using the weighted average
number of common shares of the Company outstanding during the year ended
December 31, 2003, plus the additional common shares that will be issued to
complete the business combination with Crown and the additional weighting of the
shares issued to complete the business combination with TVX and Echo Bay, had
that combination been completed on January 1, 2003.

(a)     Under CDN GAAP, the convertible debentures, described in Note 13 of the
Company's audited financial statements were accounted for in accordance with
their substance and, as such, were presented in the financial statements in
their liability and equity component parts. The Company redeemed these
convertible debentures on September 29, 2003. Under U.S. GAAP, the entire
principal amount of the convertible debentures plus accrued interest of $146.8
million immediately prior to the redemption and $123.8 million at December 31,
2002, was treated as debt with interest expense based on the coupon rate of
5.5%.

In addition, under CDN GAAP, realized and unrealized foreign exchange gains and
losses on the debt component of the debentures were recognized in income. For
U.S. GAAP, in addition to including these gains and losses in income, realized
and unrealized exchange gains and losses related to the portion of the
convertible debentures included in equity under CDN GAAP were also included in
income. There was no gain or loss on the redemption of the convertible
debentures for U.S. GAAP.


                                     F-A10
<PAGE>

(b)     Cumulatively, as a result of applying SFAS 121 "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of" and
following the adoption of SFAS 144 "Accounting for the Impairment or Disposal of
Long-Lived Assets," property, plant and equipment is reduced and the deficit
increased by $60.5 million. This difference arose from the requirement to
discount future cash flows from impaired property, plant and equipment under
U.S. GAAP and from using proven and probable reserves only. At the time of the
impairment, future cash flows from impaired property, plant and equipment were
not discounted under CDN GAAP. Under U.S. GAAP, depreciation, depletion and
amortization, in periods subsequent to the impairment, would be reduced by $6.3
million, $8.1 million and $6.1 million during the years ended December 31, 2003,
2002 and 2001, respectively, to reflect the above. Cumulatively, as a result of
these reductions in depreciation, depletion and amortization, property, plant
and equipment is increased and the deficit decreased by $32.3 million, $26.0
million as at December 31, 2003 and 2002, respectively.

(c)     Under CDN GAAP, unrealized gains and losses on long-term investments and
marketable securities are not recorded. Under U.S. GAAP, unrealized gains on
long-term investments that are classified as securities available for sale of
$6.9 million and $13.5 million at December 31, 2003 and December 31, 2002,
respectively, and marketable securities of $0.3 million and $0.1 million at
December 31, 2003 and December 31, 2002, respectively are included as a
component of comprehensive income (loss).

Furthermore, U.S. GAAP requires that the transaction on April 3, 2002, whereby
the Company exchanged its investment in debt securities of Echo Bay for 57.1
million common shares of Echo Bay, be recorded at fair value with the resulting
gain included in earnings. Fair value of the Echo Bay common shares received,
under U.S. GAAP, was $49.1 million, representing 57.1 million common shares at
$0.86 each, being the closing market price of such shares on April 3, 2002. Fair
value is not discounted for liquidity concerns or other valuation
considerations.

The resulting gain of $42.5 million, after deducting the $6.6 million carrying
value of the debt securities exchanged, increased the carrying value of this
investment and was included in earnings for the year ended December 31, 2002.
Under CDN GAAP, the cost of the Echo Bay common shares acquired on the exchange
was recorded at the values of the securities given up. Since the fair value of
the capital securities given up approximated their carrying value, no gain was
recorded under CDN GAAP.

Subsequent to the exchange of debt securities, the Company accounted for its
share investment in Echo Bay as an available for sale security under U.S. GAAP.
At January 31, 2003, when the Company acquired the remaining outstanding common
shares of Echo Bay, the Company retroactively restated its 2002 consolidated
financial statements, prepared in accordance with U.S. GAAP, to account for its
share investment in Echo Bay on an equity basis. As a result, the Company
reversed an unrealized gain of $21.8 million previously included in other
comprehensive income, increased its deficit by $0.7 million to reflect its share
of equity losses for the period ended December 31, 2002 and correspondingly
reduced the carrying value of its investment. In addition, the Company decreased
long-term investments and recorded a share of loss in investee company of $1.0
million for the one month ended January 31, 2003 and increased long-term
investments and recorded a share of income in investee company of $0.7 million
during the year ended December 31, 2002.

For U.S. GAAP purposes, as a result of the business combination on January 31,
2003, the Company recognized an additional $40.8 million of goodwill
representing the difference in carrying value of its share investment in Echo
Bay between CDN and U.S. GAAP.

(d)     Under CDN GAAP, derivatives hedging forecasted transactions are
off-balance sheet until the hedged transaction is recorded. Realized gains and
losses on derivatives that are closed out early are initially recorded as
deferred revenue or deferred charges and are recorded as an adjustment to net
earnings (loss) when the original hedged transaction is recorded.

On January 1, 2001, the Company adopted Financial Accounting Standards Board
("FASB") Statement No. 133, "Accounting for Derivative Instruments and Hedging
Activities" ("SFAS 133"), and the corresponding amendments under FASB Statement
No. 138 ("SFAS 138"). SFAS 133 requires that all derivative financial
instruments be recognized in the financial statements and measured at fair value
regardless of the purpose or intent for holding them. Changes in the fair value
of derivative financial instruments are either recognized periodically in income
or shareholders' equity (as a component of other comprehensive income),
depending on whether the derivative is being used to hedge changes in fair value
or cash flows. SFAS 138 amends certain provisions of SFAS 133 to clarify four
areas causing difficulties in implementation.


                                     F-A11
<PAGE>

For derivatives designated as cash flow hedges, the effective portions of
changes in fair value of the derivative are reported in other comprehensive
income and are subsequently reclassified into other income when the hedged item
affects other income. Changes in fair value of the derivative instruments used
as economic instruments and ineffective portions of hedges are recognized in
other income in the period incurred.

The application of SFAS 133 results in a cumulative decrease in deferred revenue
of $2.2 million and $4.5 million, a cumulative increase in accounts payable and
accrued liabilities of $22.7 million and $21.1 million, a cumulative increase in
deficit of $1.4 million and $1.9 million, and a cumulative decrease in other
comprehensive income of $19.1 million and $14.7 million at December 31, 2003 and
December 31, 2002, respectively. Additionally, as a result of applying SFAS 133,
there would be an increase in the CDN GAAP net earnings of $0.5 million and a
decrease in the CDN GAAP net loss $2.0 million for the years ended December 31,
2003 and 2002 respectively. On adoption of SFAS 133, the Company did not
complete the required documentation and effectiveness assessments to achieve
hedge accounting for the commodity derivatives hedging gold revenues and energy
price risk, although the contracts are considered to be effective economic
hedges and they were accounted for as hedges for CDN GAAP purposes. For U.S.
GAAP only, these derivatives are carried at fair value with the changes in fair
value recorded as an adjustment to net earnings (loss). The SFAS requirements
for foreign exchange forward contracts were accounted for as cash flow hedges
from January 1, 2001. Realized and unrealized derivatives gains and losses
included in other comprehensive income ("OCI") on transition and during 2001
were reclassified into mining revenue for cash-flow hedges of forecasted
commodity sales and foreign exchange gain (loss) for forecasted foreign currency
revenues or expenses when the hedged forecasted revenue or expense is recorded.
During the year ended December 31, 2003, $9.3 million of derivative losses were
reclassified out of other comprehensive income (year ended December 31, 2002,
$16.3 million of comprehensive gain). The Company estimates that $15.3 million
of net derivatives losses included in other comprehensive income will be
reclassified into earnings within the next twelve months.

Beginning January 2002, the Company met the required documentation requirements
under SFAS 133 relating to the prospective and retrospective effectiveness
assessments for the commodity derivatives; thus, these derivatives were
designated as cash flow hedges. The effective portions of changes in fair values
of these derivatives are now recorded in other comprehensive income and are
recognized in the income statement when the hedged item affects earnings.
Ineffective portions of changes in fair value of cash flow hedges are recognized
in earnings. There was no ineffectiveness recorded during 2003, 2002 or 2001.

(e)     On January 1, 2003, the Company adopted SFAS 143, "Accounting for Asset
Retirement Obligations" which requires that the fair value of liabilities for
asset retirement obligations associated with tangible long-lived assets be
recognized in the period in which they are incurred. For the purposes of
applying SFAS 143, asset retirement obligations are based principally on legal
and regulatory requirements associated with the retirement of long-lived assets
that result from the acquisition, construction, development and/or the normal
operation of a long-lived asset. When the liability is initially recorded, a
corresponding increase to the carrying amount of the related asset is recorded
and then depreciated over the useful life of the asset. Over time, the liability
is increased to reflect an interest element (accretion) considered in its
initial measurement at fair value. This differs from the prior practice in which
Kinross accrued for the estimated site restoration and closure obligations over
the producing life of the mine with an annual charge to earnings. Under SFAS
143, accretion is charged against earnings during the life of the mine and
afterwards until all obligations have been settled.

The Company is not required to re-measure the obligation at fair value each
period, but is required to evaluate the cash flow estimates at the end of each
reporting period to determine whether the estimates continue to be appropriate.
Upon settlement of the liability, the Company will record a gain or loss if the
actual cost incurred is different than the liability recorded. The cumulative
effect of adopting SFAS 143 was to increase property, plant and equipment by
$1.6 million, increase long-term equity accounted investments by $0.3 million,
increase site restoration cost accruals by $14.0 million and to record a
one-time charge of $12.1 million ($0.04 per share) to earnings in the year ended
December 31, 2003. Following the adoption of SFAS 143, the total amount of
recognized liabilities for asset retirement obligations was $66.9 million. If
the change had occurred on January 1, 2002, the cumulative effect would have
resulted in no change to property, plant and equipment, an increase of $0.3
million in long-term equity accounted investments, an increase in site
restoration cost accruals of $22.5 million and a one-time charge of $22.2
million ($0.18 per share) to earnings in the year ended December 31, 2002. The
total amount of recognized liabilities would have been $74.7 million at December
31, 2001. For the year ended December 31, 2003, the effect on earnings in
addition to the cumulative effect of adopting SFAS 143 was a decrease in net
loss of $1.0 million ($nil per share). For the year ended December 31, 2002, the
effect of adopting SFAS 143 in addition to the cumulative effect, would have
been a decrease in net income of $0.1 million ($nil per share), an increase in
property, plant and equipment of $1.7 million and a reduction in long-term
investments of $0.1 million.


                                     F-A12
<PAGE>

The following is a reconciliation of the liability for asset retirement
obligations:

        Balance as at December 31, 2002                   $   52.9
        Impact of adoption of SFAS 143                        14.0
        Additions to liabilities(1)                           68.5
        Liabilities settled                                  (22.4)
        Accretion expense                                      9.4
        Foreign exchange                                       3.4
        Revisions                                              5.0
                                                          --------
        Balance as at December 31, 2003                   $  130.8
                                                          ========

-------------------------

(1)     Properties acquired from Echo Bay Mines Ltd. and TVX Inc. of $45.5
        million and $17.5 million, respectively, and $5.5 million relating to
        the Kubaka Mine as a result of changing accounting for the investment in
        Omolon from the equity method to full consolidation.

(f)     Under U.S. GAAP, if the accumulated pension plan benefit obligation
exceeds the market value of plan assets, a minimum pension liability for the
excess is recognized to the extent that the liability recorded in the balance
sheet is less than the minimum liability. Any portion of this additional
liability that relates to unrecognized prior service cost is recognized as an
intangible asset while the remainder is charged to Other Comprehensive Income.
CDN GAAP does not require the Company to record a minimum liability and does not
have the concept of Other Comprehensive Income. During the year, the Company
recorded a minimum pension liability of $3.1 million (2002 - $nil) with a
corresponding decrease in Other Comprehensive Income. None of the additional
liability relates to unrecognized prior service cost.

<TABLE>
<CAPTION>
                                                    --------------------------------- -------------------------------
                                                           Plans where assets                  Plans where
                                                           exceed accumulated              accumulated benefits
                                                                benefits                      exceed assets
        --------------------------------------------- -------------- ---------------- -------------- ----------------
        Amounts recognized on the consolidated          December        December        December        December
             balance sheets consist of:                 31, 2003        31, 2002        31, 2003        31, 2002
        --------------------------------------------- -------------- ---------------- -------------- ----------------
<S>                                                   <C>            <C>              <C>            <C>
        Accrued pension asset (liability)             $    (0.3)     $      0.4       $      1.3     $      --
        --------------------------------------------- -------------- ---------------- -------------- ----------------
        Additional minimum pension obligation                 --             --             (3.1)           --
        --------------------------------------------- -------------- ---------------- -------------- ----------------
        Accumulated other comprehensive income                --             --              3.1            --
        --------------------------------------------- -------------- ---------------- -------------- ----------------
        Net amount recognized on
             consolidated balance sheets              $    (0.3)     $      0.4       $      1.3     $      --
        --------------------------------------------- -------------- ---------------- -------------- ----------------
</TABLE>


                                     F-A13
<PAGE>

    AUDITORS' REPORT

TO THE SHAREHOLDERS OF KINROSS GOLD CORPORATION


We have audited the consolidated balance sheets of Kinross Gold Corporation as
at December 31, 2003 and 2002 and the

consolidated statements of operations, common shareholders' equity and cash
flows for each of the years in the three year period ended December 31, 2003.
These financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements based
on our audits.

We conducted our audits in accordance with Canadian generally accepted auditing
standards and auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform an audit to obtain
reasonable assurance whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, these consolidated financial statements present fairly, in all
material respects, the financial position of the Company as at December 31, 2003
and 2002 and the results of its operations and its cash flows for each of the
years in the three year period ended December 31, 2003, in accordance with
Canadian generally accepted accounting principles.


/s/ Deloitte & Touche LLP

Deloitte & Touche LLP
Chartered Accountants


Toronto, Canada
March 12, 2004



COMMENTS BY AUDITOR ON CANADA - UNITED STATES OF AMERICA REPORTING DIFFERENCE


In the United States of America, reporting standards for auditors require the
addition of an explanatory paragraph (following the opinion paragraph) when
there are changes in accounting principles that have material effect on the
comparability of the Company's financial statements, such as the changes
described in Note (1) to the financial statements. Our report to the
Shareholders, dated March 12, 2004, is expressed in accordance with Canadian
reporting standards which do not require a reference to such changes in
accounting principles in the auditors' report when the change is properly
accounted for and adequately disclosed in the financial statements.





/s/ Deloitte & Touche LLP

Deloitte & Touche LLP
Chartered Accountants


Toronto, Canada
March 12, 2004


                                      F-B1
<PAGE>
<TABLE>
<CAPTION>

    CONSOLIDATED BALANCE SHEETS
    (EXPRESSED IN MILLIONS OF U.S. DOLLARS)
    AS AT DECEMBER 31

========================================================================================== ============
                                                                                   2003         2002
========================================================================================== ============
<S>                                                                            <C>           <C>
ASSETS
    Current assets
       Cash and cash equivalents                                               $     245.8   $    170.6
       Restricted cash                                                                 5.1         21.1
       Accounts receivable and other assets (Note 3)                                  42.2         15.6
       Inventories (Note 4)                                                          109.2         38.9
                                                                                     402.3        246.2
    Property, plant and equipment (Note 5)                                           522.6        330.0
    Mineral interests (Note 6)                                                       260.1            -
    Goodwill (Note 2)                                                                918.0            -
    Future income and mining taxes (Note 18)                                           1.5            -
    Long-term investments (Note 7)                                                     2.1         11.8
    Deferred charges and other long-term assets (Note 8)                              35.9         10.0
                                                                              ------------ ------------
                                                                               $   2,142.5   $    598.0
                                                                              ============ ============
LIABILITIES
    Current liabilities
       Accounts payable and accrued liabilities                                $     101.4   $     35.5
       Current portion of long-term debt (Note 11)                                    29.4         23.3
       Current portion of site restoration cost accruals (Note 12)                    19.2         15.0
                                                                              ------------ ------------
                                                                                     150.0         73.8
       Long-term debt (Note 11)                                                        0.7         12.9
       Site restoration cost accruals (Note 12)                                      100.5         42.0
       Future income and mining taxes (Note 18)                                       55.6          3.3
       Deferred revenue (Note 10(a))                                                   2.2          4.5
       Other long-term liabilities                                                     2.5          5.5
       Debt component of convertible debentures (Note 13)                                -         21.7
       Redeemable retractable preferred shares (Note 14)                               3.0          2.5
                                                                              ------------ ------------
                                                                                     314.5        166.2
                                                                              ------------ ------------
NON-CONTROLLING INTEREST                                                               0.7            -
                                                                              ------------ ------------
CONVERTIBLE PREFERRED SHARES OF SUBSIDIARY COMPANY (NOTE 15)                          12.6         12.9
                                                                              ------------ ------------
COMMON SHAREHOLDERS' EQUITY
    Common share capital and common share purchase warrants (Note 16)              1,783.5      1,058.5
    Contributed surplus                                                               30.0         12.9
    Equity component of convertible debentures (Note 13)                                 -        132.3
    Retained earnings (deficit)                                                        3.2       (761.4)
    Cumulative translation adjustments                                                (2.0)       (23.4)
                                                                              ------------ ------------
                                                                                   1,814.7        418.9
                                                                              ------------ ------------
                                                                               $   2,142.5   $    598.0
========================================================================================== ============
</TABLE>

COMMITMENTS AND CONTINGENCIES (NOTE 23)

Signed on behalf of the Board:


/s/ John A. Brough                            /s/ John M.H. Huxley

 John A. Brough                               John M.H. Huxley
 Director                                     Director


                                      F-B2
<PAGE>
<TABLE>
<CAPTION>

    CONSOLIDATED STATEMENTS OF OPERATIONS
    (EXPRESSED IN MILLIONS OF U.S. DOLLARS, EXCEPT PER SHARE AMOUNTS)
    FOR THE YEARS ENDED DECEMBER 31


=======================================================================================================  ===========  ===========
                                                                                                  2003         2002         2001
=======================================================================================================  ===========  ===========
<S>                                                                                           <C>         <C>          <C>
REVENUE AND OTHER INCOME
    Mining revenue                                                                            $   571.9   $   261.0    $   270.1
    Interest and other income                                                                      12.3        16.9          9.3
    Mark-to-market gain (loss) on call options                                                      0.4        (2.7)         3.5
                                                                                             ----------  -----------  -----------
                                                                                                  584.6       275.2        282.9
                                                                                             ----------  -----------  -----------
EXPENSES
    Operating (exclusive of depreciation, depletion and amortization shown separately below)      387.3       174.8        180.7
    General and administrative                                                                     25.0        11.3         10.1
    Exploration and business development                                                           24.3        11.6          7.9
    Depreciation, depletion and amortization                                                      140.9        85.3         85.8
    Gain on disposal of assets                                                                    (29.5)       (2.7)        (1.2)
    Foreign exchange (gain) loss                                                                   (3.3)        4.3          0.5
    Interest expense on long-term liabilities                                                       5.1         5.0          9.1
    Loss on redemption of debt component of convertible debentures                                  1.1           -            -
    Asset write-downs and non-cash charges (Note 17)                                                9.9         7.9         16.1
                                                                                             ----------  -----------  -----------
                                                                                                  560.8       297.5        309.0
                                                                                             ----------  -----------  -----------
    EARNINGS (LOSS) BEFORE TAXES AND OTHER ITEMS                                                   23.8       (22.3)       (26.1)

    Provision for income and mining taxes (Note 18)                                               (13.1)       (6.5)        (2.9)
    Non-controlling interest                                                                       (0.2)          -            -
    Share in loss of investee companies                                                               -        (0.6)        (2.2)

    EARNINGS (LOSS) FOR THE YEAR BEFORE DIVIDENDS ON CONVERTIBLE PREFERRED SHARES OF
     SUBSIDIARY COMPANY                                                                            10.5       (29.4)       (31.2)

    DIVIDENDS ON CONVERTIBLE PREFERRED SHARES OF SUBSIDIARY COMPANY                                 0.8         1.5          5.1
                                                                                             ----------  -----------  -----------
    NET EARNINGS (LOSS) FOR THE YEAR                                                          $     9.7   $   (30.9)   $   (36.3)
                                                                                             ==========  ===========  ===========
    ATTRIBUTABLE TO COMMON SHAREHOLDERS:

    NET EARNINGS (LOSS) FOR THE YEAR                                                          $     9.7   $   (30.9)   $   (36.3)

    INCREASE IN EQUITY COMPONENT OF CONVERTIBLE DEBENTURES (NOTE 13)                               (6.5)       (7.3)        (7.7)
    GAIN ON REDEMPTION OF EQUITY COMPONENT OF CONVERTIBLE DEBENTURES (NOTE 13)                     16.5            -           -
                                                                                             ----------  -----------  -----------
    NET EARNINGS (LOSS) FOR THE YEAR ATTRIBUTABLE TO COMMON SHAREHOLDERS                      $    19.7   $    (38.2)  $   (44.0)

    EARNINGS (LOSS) PER SHARE
     Basic (Note 16)                                                                          $    0.06   $    (0.32)  $   (0.42)
     Diluted (Note 16)                                                                        $    0.06          n/a         n/a

    WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (MILLIONS)
     Basic (Note 16)                                                                              308.6        119.7       104.5
     Diluted (Note 16)                                                                            309.6          n/a         n/a
=======================================================================================================  ===========  ===========
</TABLE>


                                      F-B3
<PAGE>
<TABLE>
<CAPTION>

CONSOLIDATED STATEMENTS OF CASH FLOWS
(EXPRESSED IN MILLIONS OF U.S. DOLLARS)
FOR THE YEARS ENDED DECEMBER 31

============================================================================================= ============= =============
                                                                                        2003          2002          2001
============================================================================================= ============= =============
<S>                                                                               <C>           <C>           <C>
NET INFLOW (OUTFLOW) OF CASH RELATED TO THE FOLLOWING ACTIVITIES:
OPERATING:
Earnings (loss) for the year before dividends on convertible preferred shares
    of subsidiary company                                                         $     10.5    $    (29.4)   $    (31.2)

Items not affecting cash:
    Depreciation, depletion and amortization                                           140.9          85.3          85.8
    Asset write-downs and non-cash charges                                               9.9           7.9          14.6
    Gain on disposal of assets                                                         (29.5)         (2.7)         (1.2)
    Future income and mining taxes                                                      (2.8)            -             -
    Deferred revenue recognized                                                         (2.3)         (5.1)        (17.7)
    Site restoration cost accruals                                                       9.4           3.0           1.9
    Proceeds on restructuring of gold forward sales contracts                              -             -          21.6
Changes in non-cash working capital items:
    Accounts receivable and other assets                                                 3.0           1.2           5.1
    Inventories                                                                        (11.3)          2.4           9.6
    Accounts payable and accrued liabilities                                           (20.1)          5.6          (8.0)
Site restoration cash expenditures                                                     (19.3)         (9.8)         (7.1)
    Other                                                                                4.3           1.1           1.6
                                                                                ------------- ------------- -------------
CASH FLOW PROVIDED FROM OPERATING ACTIVITIES                                            92.7          59.5          75.0
                                                                                ------------- ------------- -------------
FINANCING:
    Issuance of common shares and common share purchase warrants                       187.9         112.8           5.4
    Redemption of convertible debentures                                              (144.8)            -             -
    Acquisition of convertible preferred shares of subsidiary company                   (0.3)        (11.4)            -
    Reduction of debt component of convertible debentures                               (4.2)         (5.1)         (5.4)
    Repayment of debt                                                                  (10.5)        (28.5)        (46.5)
                                                                                ------------- ------------- -------------
CASH FLOW PROVIDED FROM (USED IN) FINANCING ACTIVITIES                                  28.1          67.8         (46.5)
                                                                                ------------- ------------- -------------
INVESTING:
    Additions to property, plant and equipment                                         (73.4)        (22.6)        (30.4)
    Business acquisitions, net of cash acquired (Note 2)                               (81.9)         (0.1)         (1.2)
    Long-term investments and other assets                                              57.2           1.8           2.1
    Proceeds from the sale of property, plant and equipment                              5.9           1.3           1.8
    Decrease (increase) in restricted cash                                              37.5         (21.1)          2.9
                                                                                ------------- ------------- -------------
CASH FLOW USED IN INVESTING ACTIVITIES                                                 (54.7)        (40.7)        (24.8)
                                                                                ------------- ------------- -------------

EFFECT OF EXCHANGE RATE CHANGES ON CASH                                                  9.1           3.0          (0.5)
                                                                                ------------- ------------- -------------
INCREASE IN CASH AND CASH EQUIVALENTS                                                   75.2          89.6           3.2
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                                           170.6          81.0          77.8
                                                                                ------------- ------------- -------------
CASH AND CASH EQUIVALENTS, END OF YEAR                                            $    245.8     $   170.6    $     81.0
                                                                                ============= ============= =============
Cash and cash equivalents consist of the following:
    Cash on hand and balances with banks                                          $     89.8     $    16.3    $     12.9
    Short-term investments                                                             156.0         154.3          68.1
                                                                                ------------- ------------- -------------
                                                                                  $    245.8     $   170.6    $     81.0
                                                                                ============= ============= =============
Supplementary disclosure of cash flow information:
    Cash paid for:
       Interest                                                                   $      8.0     $     8.8    $     13.1
       Income taxes                                                               $      7.0     $     6.8    $      3.9
============================================================================================= ============= =============
</TABLE>

                                      F-B4
<PAGE>
<TABLE>
<CAPTION>

    CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY
    (EXPRESSED IN MILLIONS OF U.S. DOLLARS)
    FOR THE YEARS ENDED DECEMBER 31

========================================================== =============== ============== ============= =============== ===========
                                                                                  Equity
                                                    Common                  component of       Retained    Cumulative
                                                     share    Contributed    convertible       earnings   translation
                                                   capital        surplus     debentures      (Deficit)    adjustments       Total
========================================================== =============== ============== ============= =============== ===========
<S>                                             <C>           <C>           <C>            <C>            <C>            <C>
BALANCE, DECEMBER 31, 2000                      $    913.2    $      12.9   $      117.0   $    (679.2)   $      (23.0)  $    340.9

Issuance of common shares                             32.5              -              -             -               -         32.5
Increase in equity component of convertible
  debentures                                             -              -            7.8          (7.7)              -          0.1
Net loss for the year                                    -              -              -         (36.3)              -        (36.3)
Cumulative translation adjustments                       -              -              -             -            (5.6)        (5.6)
                                              ------------ --------------- -------------- ------------- --------------- -----------

BALANCE, DECEMBER 31, 2001                          945.7            12.9          124.8        (723.2)          (28.6)       331.6

Issuance of common shares and
  common share purchase warrants                    112.8               -              -             -               -        112.8
Increase in equity component of convertible
  debentures                                            -               -            7.5          (7.3)              -          0.2
Net loss for the year                                   -               -              -         (30.9)              -        (30.9)
Cumulative translation adjustments                      -               -              -             -             5.2          5.2
                                              ------------ --------------- -------------- ------------- --------------- -----------

BALANCE, DECEMBER 31, 2002                        1,058.5            12.9          132.3        (761.4)          (23.4)       418.9

Reduction of stated capital                        (761.4)              -              -         761.4               -            -
Issuance of common shares                         1,487.0               -              -             -               -      1,487.0
Increase in equity component of convertible
  debentures                                            -               -            6.7          (6.5)              -          0.2
Redemption of convertible debentures                    -            16.5         (139.0)            -               -       (122.5)
Transfer of fair value of expired
  warrants and options                               (0.6)            0.6              -             -               -            -
Net earnings for the year                               -               -              -           9.7               -          9.7
Cumulative translation adjustments                      -               -              -             -            21.4         21.4
                                              ------------ --------------- -------------- ------------- --------------- -----------

BALANCE, DECEMBER 31, 2003                      $ 1,783.5     $      30.0   $          -   $       3.2    $       (2.0)  $  1,814.7
========================================================== =============== ============== ============= =============== ===========
</TABLE>

                                      F-B5
<PAGE>

    NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
    (ALL TABULAR DOLLAR AMOUNTS ARE IN MILLIONS OF UNITED STATES DOLLARS,
    EXCEPT PER SHARE DATA]
    AS AT DECEMBER 31


1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NATURE OF OPERATIONS

Kinross Gold Corporation and its subsidiaries and joint ventures (collectively,
"Kinross" or the "Company") are engaged in gold mining and related activities,
including exploration and acquisition of gold-bearing properties, extraction,
processing and reclamation. Kinross' gold production and exploration activities
are carried out principally in the United States, Canada, Russia, Brazil, Chile,
Australia and Zimbabwe. Gold, the Company's primary product, is produced in the
form of dore which is shipped to refineries for final processing. Kinross also
produces and sells a limited amount of silver as a by-product of gold mining
activities.

The operating cash flow and profitability of the Company are affected by various
factors, including the amount of gold and silver produced and sold, the market
prices of gold and silver, cash operating costs, interest rates, environmental
costs and the level of exploration and other discretionary costs. Due to the
global nature of the Company's operations, exposure also arises from
fluctuations in foreign currency exchange rates, political risk and varying
levels of taxation. While Kinross seeks to manage the level of risk associated
with its business, many of the factors affecting these risks are beyond the
Company's control.

The United States ("U.S.") dollar is the principal currency of measure of all of
the Company's operations and the reporting currency of the Company's business;
accordingly, these consolidated financial statements are expressed in U.S.
dollars. The consolidated financial statements of Kinross have been prepared in
accordance with Canadian generally accepted accounting principles ("CDN GAAP")
which differ in certain material respects from those generally accepted in the
United States ("U.S. GAAP"), as described in Note 22.

The following is a summary of the accounting policies significant to the
Company:

BASIS OF PRESENTATION

The consolidated financial statements include the accounts of the Company and
its subsidiaries and its proportionate share of assets, liabilities, revenues
and expenses of jointly controlled companies and ventures in which it has an
interest. Effective December 31, 2001, the Company discontinued the
consolidation of its wholly-owned subsidiary in Zimbabwe, which operates the
Blanket mine. Extreme inflationary pressures within Zimbabwe, civil unrest and
currency export restrictions have prevented the Company from exercising control
over the Zimbabwean subsidiary. As a result, Kinross accounts for its investment
in the Blanket mine on the cost basis with amounts received recorded in other
income only upon receipt of dividends or other cash payments (see Note 17).

On January 28, 2003, the shareholders of the Company by way of special
resolution, authorized the consolidation of the issued and outstanding common
shares of the Company on the basis of one consolidated common share for each
three old common shares. The consolidation was made effective on January 31,
2003. All share capital, share and option data give retroactive effect to
reflect the share consolidation (see Note 16).


                                      F-B6
<PAGE>

The following table sets forth the Company's ownership of its mining interests:

<TABLE>
<CAPTION>

================================================================================= ====================
                                                                DECEMBER 31, 2003  December 31, 2002
--------------------------------------------------------------------------------- --------------------
<S>                                                                   <C>                <C>
THROUGH MAJORITY OWNED SUBSIDIARIES
    Fort Knox                                                         100%               100%
    Kubaka (Note 2(b))                                                 98%                55%
    Lupin (Note 2(a))                                                 100%                 -
    Blanket                                                           100%               100%
    Kettle River / Emanuel Creek (Note 2(a))                          100%                 -
--------------------------------------------------------------------------------- --------------------
AS INTERESTS IN UNINCORPORATED JOINT VENTURES
    Round Mountain (Note 2(a))                                         50%                 -
    Porcupine (Note 9)                                                 49%                49%
    Musselwhite (Note 2(a))                                            32%                 -
    New Britannia (Note 2(a))                                          50%                 -
--------------------------------------------------------------------------------- --------------------
AS INTERESTS IN INCORPORATED JOINT VENTURES
    Paracatu (Note 2(a))                                               49%                 -
    La Coipa (Note 2(a))                                               50%                 -
    Crixas  (Note 2(a))                                                50%                 -
    Refugio                                                            50%                50%
================================================================================= ====================
</TABLE>

USE OF ESTIMATES

The preparation of the Company's consolidated financial statements in conformity
with CDN GAAP requires management to make estimates and assumptions that affect
amounts reported in the consolidated financial statements and accompanying
notes. These estimates and assumptions affect the reported amounts of assets and
liabilities and disclosures of contingent assets and liabilities at the date of
the consolidated financial statements and the reported amounts of revenues and
expenses during the reporting period. Changes in estimates of useful lives are
accounted for prospectively from the date of change. Actual results could differ
from these estimates. The assets and liabilities which require management to
make significant estimates and assumptions in determining carrying values
include property, plant and equipment; mineral interests and other intangibles;
inventories; goodwill; site restoration cost accruals; provision for income and
mining taxes; and pension liability.

TRANSLATION OF FOREIGN CURRENCIES

DOMESTIC AND FOREIGN OPERATIONS

As of September 29, 2003, the functional currency of all the Company's
operations is the U.S. dollar. Prior to that date, the currency of measurement
for certain of the Company's operations domiciled in Canada was the Canadian
dollar. On September 29, 2003, the Company repaid all of its outstanding
Canadian dollar denominated debt. All of the Company's revenues are in U.S.
dollars.

Prior to the repayment of its Canadian dollar denominated convertible debentures
(see Note 13), certain of the Company's Canadian dollar amounts were translated
to U.S. dollars for reporting purposes using the current rate method. Under the
current rate method, assets and liabilities were translated at the exchange
rates in effect at the balance sheet date and revenues and expenses were
translated at average rates for the period.

After September 29, 2003, for these operations and for all other foreign
operations, the temporal method is used to translate to U.S. dollars for
reporting purposes. Under the temporal method, all non-monetary items are
translated at historical rates. Monetary assets and liabilities are translated
at exchange rates in effect at the balance sheet date, revenues and expenses are
translated at average rates for the year and gains and losses on translation are
included in income.

The cumulative translation adjustments ("CTA") relate to the unrealized
translation gains and losses on the Company's net investment in self-sustaining
operations, translated using the current rate method, prior to September 29,
2003. Such exchange gains and losses will become realized in income upon the
substantial disposition, liquidation or closure of the mining property or
investment that gave rise to such amounts.


                                      F-B7
<PAGE>

FOREIGN CURRENCY TRANSACTIONS

Monetary assets and liabilities are translated at the rate of exchange
prevailing at the balance sheet date. Non-monetary assets and liabilities are
translated at historical rates. Revenue and expenses are translated at the
average rate of exchange for the year. Exchange gains and losses are included in
income.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents include cash and highly liquid investments with an
original maturity of three months or less. The Company invests cash in term
deposits maintained in high credit quality financial institutions.

MARKETABLE SECURITIES

Marketable securities are carried at the lower of cost and quoted market value.

LONG-TERM INVESTMENTS

Investments in shares of investee companies in which Kinross' ownership is
greater than 20% but not more than 50%, over which the Company has the ability
to exercise significant influence, are accounted for using the equity method.
The cost method is used for entities in which the Company owns less than 20% or
cannot exercise significant influence. The Company periodically reviews the
carrying value of its investments. When a decline in the value of an investment
is other than temporary, the investment is written down accordingly.

INVENTORIES

Expenditures and depreciation, depletion and amortization of assets incurred in
the mining and processing activities that will result in future gold production
are deferred and accumulated as ore in stockpiles, ore on leach pads and
in-process inventories. These deferred amounts are carried at the lower of
average cost or net realizable value ("NRV"). NRV is the difference between the
estimated future gold price based on prevailing and long-term metal prices, and
estimated costs to complete production into a saleable form. Write-downs of ore
in stockpiles, ore on leach pads and inventories resulting from NRV impairments
are reported as a component of current period costs.

ORE IN STOCKPILES

Stockpiles are comprised of coarse ore that has been extracted from the mine and
is available for further processing. Stockpiles are measured by estimating the
number of tonnes (via truck counts and/or in-pit surveys of the ore before
processing) added and removed from the stockpile. Stockpile tonnages are
verified by periodic surveys. Stockpiles are valued based on mining costs
incurred up to the point of stockpiling the ore, including applicable
depreciation, depletion and amortization relating to operations. Costs are added
to stockpiles based on the current mining cost per tonne and removed at the
average cost per tonne.

Ore in stockpiles is processed according to a life of mine plan that is designed
to optimize use of known mineral reserves, present processing capacity and pit
design. The market price of gold does not significantly affect the timing of
processing of ore in stockpiles. While stockpiled ore can be processed earlier
than planned in the event of an unforeseen disruption to mining activities, the
current portion of ore in stockpiles represents the amount expected to be
processed in the next twelve months. Ore in stockpiles not expected to be
processed in the next twelve months is classified as long-term.

ORE ON LEACH PADS

The recovery of gold from certain oxide ores is best achieved through the heap
leaching process. Under this method, ore is placed on leach pads where it is
permeated with a chemical solution, which dissolves the gold contained in the
ore. The resulting recovered solution, which is included in in-process
inventory, is further processed in a plant where gold is recovered. For
accounting purposes, costs are added to leach pads based on current mining
costs, including applicable depreciation, depletion, and amortization relating
to operations. Costs are removed from the leach pad as ounces are recovered in
circuit at the plant based on the average cost per recoverable ounce of gold on
the leach pad.


                                      F-B8
<PAGE>

The engineering estimates of recoverable gold on the leach pads are calculated
from the quantities of ore placed on the pads (measured tonnes added to the
leach pads), the grade of ore placed on the leach pads (based on assay data) and
a recovery percentage (based on the leach process and ore type). While it may
not be uncommon for recoveries to occur on a declining basis over a period of
time in excess of twelve months, economically recoverable gold reflected in the
Company's carrying value for ore on leach pads, based on its current operations,
will be recovered within a period of twelve months or less. Presently, the Round
Mountain mine is the only active heap leach operation. As such, all of the
Company's ore on leach pads is classified as current. In the event that the
Company determined, based on engineering estimates, that a quantity of gold
contained in ore on leach pads was to be recovered over a period exceeding
twelve months, that portion would be classified as long-term.

Although the quantities of recoverable gold placed on the leach pads are
reconciled by comparing the grades of ore placed on the leach pads to the
quantities of gold actually recovered (metallurgical balancing), the nature of
the leaching process inherently limits the ability to precisely monitor
inventory levels. As a result, the metallurgical balancing process is constantly
monitored and the engineering estimates are refined based on actual results over
time. Operating results at the Refugio mine, the Company's only historic
interest in a heap leach operation, were not materially impacted by variations
between the estimated and actual recoverable ounces of gold on its leach pads.
Variances between actual and estimated quantities resulting from changes in
assumptions and estimates that do not result in write-downs to net-realizable
value are accounted for on a prospective basis. The ultimate recovery of gold
from a leach pad will not be known until the leaching process is concluded.

IN-PROCESS INVENTORY

In-process inventories represent materials that are currently in the process of
being converted to a saleable product. Conversion processes vary depending on
the nature of the ore and the specific mining operation, but include mill
in-circuit, leach in-circuit, flotation and column cells, and carbon-in-pulp
inventories. In-process material is measured based on assays of the material fed
to the processing plants and the projected recoveries of the respective plants.
In-process inventories are valued at the average cost of the material fed to the
processing plant attributable to the source material coming from the mines,
stockpiles or leach pads plus the in-process conversion costs, including
applicable depreciation relating to the process facilities, incurred to that
point in the process.

FINISHED METAL

Finished metal inventories, comprised of gold and silver dore and bullion, are
valued at the lower of average production cost and net realizable value. Average
production cost represents the average cost of the respective in-process
inventories incurred prior to the refining process, plus applicable refining
costs.

MATERIALS AND SUPPLIES

Materials and supplies are valued at the lower of average cost and replacement
cost.

PROPERTY, PLANT AND EQUIPMENT

BUILDINGS, PLANT AND EQUIPMENT

New facilities, plant and equipment are recorded at cost and carried net of
depreciation. Mobile and other equipment is amortized, net of residual value,
using the straight-line method, over the estimated productive life of the asset.
Productive lives for mobile and other equipment range from 2 to 5 years, but do
not exceed the related estimated mine life based on proven and probable
reserves. Plant and other facilities, used in carrying out the mine operating
plan, are amortized using the units-of-production ("UOP") method over the
estimated life of the ore body based on recoverable ounces to be mined from
estimated proven and probable reserves. Repairs and maintenance expenditures are
expensed as incurred. Expenditures that extend the useful lives of existing
facilities or equipment are capitalized and amortized over the remaining useful
life of the related asset.


                                      F-B9
<PAGE>

MINERAL EXPLORATION AND MINE DEVELOPMENT COSTS

Mineral exploration costs are expensed as incurred. When it has been determined
that a mineral property can be economically developed as a result of
establishing proven and probable reserves, costs incurred prospectively to
develop the property are capitalized as incurred and are amortized using the UOP
method over the estimated life of the ore body based on recoverable ounces to be
mined from estimated proven and probable reserves.

At the Company's open pit mines, these costs include costs to further delineate
the ore body and remove overburden to initially expose the ore body. The Company
expenses in-pit stripping cost as incurred. At the Company's underground mines,
these costs include the cost of building access ways, shaft sinking and access,
lateral development, drift development, ramps and infrastructure development.

Major development costs incurred after the commencement of production are
amortized using the UOP method based on recoverable ounces to be mined from
estimated proven and probable reserves. Commercial production occurs when an
asset or property is substantially complete and ready for its intended use. The
Company expenses start-up activities including pre-production losses and
organizational costs as incurred.

Ongoing development expenditures to maintain production are charged to
operations as incurred.

MINERAL INTERESTS

Mineral interests include acquired mineral use rights in production, development
and exploration stage properties. The amount capitalized related to a mineral
interest represents its fair value at the time it was acquired, either as an
individual asset purchase or as a part of a business combination. The values of
such mineral use rights are primarily driven by the nature and amount of mineral
interests believed to be contained, or potentially contained, in properties to
which they relate.

Production stage mineral interests represent mineral use rights in operating
properties that contain proven and probable reserves. Development stage mineral
interests represent mineral use rights in properties under development that
contain proven and probable reserves. Exploration stage mineral interests
represent mineral use rights in properties that are believed to potentially
contain (i) other mineralized material such as measured, indicated or inferred
mineral resources with insufficient drill spacing to qualify as proven and
probable reserves which is in close proximity to proven and probable reserves
and within the immediate mine structure; or (ii) around - mine exploration
potential such as inferred mineral resources not immediately adjacent to
existing reserves and mineralization but located within the immediate mine
infrastructure and (iii) other mine-related or greenfields exploration potential
that is not part of measured or indicated resources and is comprised mainly of
material outside of the immediate mine area.

The Company's mineral use rights generally are enforceable regardless of whether
proven and probable mineral reserves have been established. The Company has the
ability and intent to renew mineral use rights where the existing term is not
sufficient to recover all identified and valued proven and probable reserves
and/or undeveloped mineral interests.

AMORTIZATION

Production stage mineral interests are amortized over the life of mine using the
UOP method based on recoverable ounces to be mined from estimated proven and
probable reserves. Development stage mineral interests are not amortized until
such time as the underlying property is converted to the production stage. With
respect to exploration stage mineral interests, the excess of the carrying value
over the residual value is amortized on a straight-line basis over the period
that the Company expects to convert, develop or further explore the underlying
properties. Residual values for exploration stage mineral interests represent
the expected fair value of the interests at the time the Company plans to
convert, develop, further explore or dispose of the interests. The residual
values range from 75% to 90% of the gross carrying value of the respective
exploration stage mineral interests. Residual values are determined for each
individual property based on the fair value of the exploration stage mineral
interest, and the nature of, and the Company's relative confidence in, the
mineralized material believed to be contained, or potentially contained, in the
underlying property. Such values are based on (i) discounted cash flow analyses
for those properties characterized as other mineralized material and around -
mine exploration potential and (ii) recent transactions involving similar
properties for those properties characterized as other mine-related exploration
potential and greenfields exploration potential. Based on its knowledge of the
secondary market that exists for the purchase and sale of


                                     F-B10
<PAGE>

mineral properties, the Company believes that both methods result in a residual
value that is representative of the amount that the Company could expect to
receive if the property were sold to a third party. When an exploration stage
mineral interest is converted to a development or production stage mineral
interest, the residual value is reduced to zero for purposes of calculating UOP
amortization.

The expected useful lives and residual values used in amortization calculations
are determined based on the facts and circumstances associated with the mineral
interest. The useful lives used to amortize production stage mineral interests
range from 3 to 19 years. The Company evaluates the remaining amortization
period and residual value for each individual mineral interest on at least an
annual basis. Any changes in estimates of useful lives and residual values are
accounted for prospectively from the date of the change.

ASSET IMPAIRMENT

LONG-LIVED ASSETS

The Company reviews and evaluates the carrying value of its operating mines and
development properties for impairment when events or changes in circumstances
indicate that the carrying amounts of related assets or groups of assets may not
be recoverable. If the total estimated future cash flows on an undiscounted
basis are less than the carrying amount of the asset, an impairment loss is
measured and recorded. Future cash flows are estimated based on estimated future
recoverable mine production, expected sales prices (considering current and
historical prices, price trends and related factors), production levels, cash
costs of production, capital and reclamation costs, all based on detailed
engineering life-of-mine plans. Future recoverable mine production is determined
from proven and probable reserves and measured, indicated and inferred mineral
resources after taking into account estimated losses during ore processing and
treatment. Estimates of recoverable production from measured, indicated and
inferred mineral interests are risk adjusted based on management's relative
confidence in converting such interests to proven and probable reserves. All
long-lived assets at a particular operation are considered together for purposes
of estimating future cash flows. In the case of exploration stage mineral
interests associated with greenfields exploration potential, cash flows and fair
values are individually evaluated based primarily on recent exploration results
and recent transactions involving sales of similar properties. Assumptions
underlying future cash flow estimates are subject to risks and uncertainties. It
is possible that changes in estimates could occur which may affect the expected
recoverability of the Company's investments in mineral properties.

GOODWILL

Acquisitions are accounted for using the purchase method whereby acquired assets
and liabilities are recorded at fair value as of the date of acquisition. The
excess of the purchase price over such fair value is recorded as goodwill. The
carrying amount of goodwill is then assigned to one or more reporting units at
the date of acquisition and is not amortized. The allocation of goodwill to one
or more specific reporting units is determined by the Company based on unique
synergies and anticipated future benefits related to the generation of
additional proven and probable reserves to be achieved as a result of the
business combination.

The Company evaluates, on at least an annual basis, the carrying amount of
goodwill to determine whether events and circumstances indicate that such
carrying amount may no longer be recoverable. To accomplish this, the Company
compares the fair value of reporting units, to which goodwill was allocated, to
their carrying amounts. If the carrying value of a reporting unit were to exceed
its fair value, the Company would perform the second step of the impairment
test. In the second step, the Company would compare the implied fair value of
the reporting unit's goodwill to its carrying amount and any excess of the
carrying value over the fair value would be charged to earnings. Assumptions
underlying fair value estimates are subject to risks and uncertainties.

FINANCIAL INSTRUMENTS AND HEDGING ACTIVITY

As part of its strategy to manage exposure to fluctuations in metal prices,
foreign currency exchange rates and interest rates, Kinross enters into metals
and currency contracts, including forward contracts, spot deferred contracts and
options. The Company formally documents all relationships between hedging
instruments and hedged items, as well as its risk management objectives and
strategies for undertaking the hedge transactions. This process includes linking
all derivatives to specific assets and liabilities on the balance sheet or to
specific firm commitments or forecasted transactions. Hedge effectiveness is
assessed based on the degree to which the cash flows on the derivative contracts
are expected to offset the cash flows of the


                                     F-B11
<PAGE>

underlying position or transaction being hedged. The Company formally assesses,
both at the hedge's inception and on an ongoing basis, whether the derivatives
that are used in hedging transactions are highly effective in offsetting changes
in fair values or cash flows of hedged items.

For gold and silver production, the use of spot deferred and fixed forward
contracts is intended to hedge the Company's exposure to the risk of falling
commodity prices. Gains or losses on derivative contracts that effectively
establish prices for future production, are deferred and recorded in income when
the underlying hedged transaction, identified at the contract inception, is
completed. Premiums received at the inception of written call options are
recorded as a liability. Changes in the fair value of the liability are
recognized in current earnings. Gains or losses (realized or unrealized) for
derivative contracts which no longer qualify as hedges for accounting purposes
or which relate to a hedged transaction that has been sold or terminated are
recorded in current earnings. Gains or losses on the early settlement of metal
hedging contracts, that were deemed to be effective at the inception of the
contract, are recorded as deferred revenue on the balance sheet and included in
earnings over the original delivery schedule of the hedged production.

Foreign currency forward contracts are used to hedge exposure to fluctuations in
foreign currency denominated anticipated capital and operating expenditures.
Gains or losses on these contracts are recognized in earnings as foreign
exchange gains and losses at the maturity of the contracts. Realized and
unrealized gains or losses associated with foreign exchange forward contracts,
which have been terminated or cease to be effective prior to maturity, are
deferred under other assets or liabilities on the balance sheet and recognized
in income in the period in which the underlying hedged transaction is
recognized. In addition, interest rate swaps may be used to hedge exposure to
changes in interest rates.

In November 2001, the Canadian Accounting Standards Board, ("AcSB") issued
accounting guideline AcG-13, "Hedging Relationships", which establishes the
conditions for applying hedge accounting. AcG-13 is effective for fiscal years
commencing on or after July 1, 2003. The adoption of AcG-13 is not expected to
have a material impact on the Company's financial position and results of
operations.

PENSION, POST-RETIREMENT AND POST-EMPLOYMENT BENEFITS

The Company participates in both defined contribution and defined benefit
pension plans. The costs of defined contribution plans, representing the
Company's required contribution, and the costs of defined benefit pension plans
are charged to earnings in the year incurred. Defined benefit plan pension
expense, based on managements assumptions, consists of the actuarially computed
costs of pension benefits in respect of the current year's service, imputed
interest on plan assets and pension obligations, straight-line amortization of
experience gains and losses, assumption changes and plan amendments over the
expected average remaining service life of the employee group.

The expected costs of post-retirement and post-employment benefits, other than
pensions, to active employees are accrued for in the consolidated financial
statements during the years employees provide service to be entitled to receive
such benefits.

STOCK-BASED INCENTIVE AND COMPENSATION PLANS

The Company has four stock-based incentive and compensation plans which are
described in Note 16 to the consolidated financial statements. The Company has
elected not to early-adopt the fair value method of accounting for stock options
as recommended in the Canadian Institute of Chartered Accountants ("CICA")
handbook section 3870 for stock-based compensation and other stock-based
payments. No compensation expense is recognized under the stock option plan when
shares or share options are issued to employees. Shares issued under this plan
are recorded at the issue price. Any consideration paid by employees on exercise
of stock options or purchases of stock is credited to common share capital.

REVENUE RECOGNITION

Gold revenue is recognized upon shipment to third-party gold refineries, when
the sales price is fixed and title has passed to the customer.

Silver revenue, the Company's only by-product, is included in mining revenue.


                                     F-B12
<PAGE>

SITE RESTORATION COSTS

Estimated costs of site restoration for producing mines are accrued and expensed
over the estimated life of the mine on a unit-of-production basis using proven
and probable reserves. Ongoing environmental protection expenditures are
expensed as incurred. Estimated costs of site restoration for inactive mines are
accrued based on management's best estimate at the end of each year. Changes in
estimate of site restoration costs for inactive mines are charged to income in
the period the estimate is revised. Estimates of the ultimate site restoration
costs are based on current laws and regulations and expected costs to be
incurred (calculated on a undiscounted basis), all of which are subject to
possible changes thereby impacting current determinations.

INCOME AND MINING TAXES

The provision for income and mining taxes is based on the liability method.
Future taxes arise from the recognition of the tax consequences of temporary
differences by applying enacted or substantively enacted statutory tax rates
applicable to future years to differences between the financial statement
carrying amounts and the tax bases of certain assets and liabilities. The
Company records a valuation allowance against any portion of those future tax
assets that it believes will, more likely than not, fail to be realized. On
business acquisitions, where differences between assigned values and tax bases
of assets acquired (other than non-tax deductible goodwill) and liabilities
assumed exist, the Company recognizes the future tax assets and liabilities for
the tax effects of such differences.

Future withholding taxes are provided on the unremitted net earnings of foreign
subsidiaries and joint ventures to the extent that dividends or other
repatriations are anticipated in the future and will be subject to such taxes.

RECLASSIFICATIONS

Certain comparative figures for 2002 and 2001 have been reclassified to conform
to the 2003 presentation.

2. BUSINESS AND PROPERTY ACQUISITIONS

2003

(A) TVX GOLD INC., ECHO BAY MINES LTD. AND THE TVX NEWMONT AMERICAS JOINT
VENTURE

On January 31, 2003, pursuant to a Canadian Plan of Arrangement, Kinross
acquired 100% of TVX Gold Inc. ("TVX") and 100% of Echo Bay Mines Ltd. ("Echo
Bay"). Consideration paid for the TVX common shares was 2.1667 Kinross common
shares for each TVX common share. Consideration paid for the Echo Bay shares was
0.1733 of a Kinross common share for each Echo Bay common share. The exchange
ratio reflects the three for one consolidation of the Company's common shares as
described in Note 16. The purchase price for these acquisitions totaled $1.3
billion, comprised of 177.8 million Kinross common shares, $12.6 million of
direct costs and $29.3 million representing the fair value of common share
purchase warrants and stock options assumed. The value of Kinross shares was
$7.14 per share based on the average market price of the shares over the two-day
period before and after June 10, 2002, being the date Kinross, TVX and Echo Bay
entered into the combination agreement.

In a separate transaction, immediately prior to the business combination, TVX
acquired Newmont Mining Corporation's ("Newmont") 50% non-controlling interest
in the TVX Newmont Americas joint venture ("TVX Newmont JV") for $180.0 million
in cash. The purchase price was satisfied using TVX's available cash of $85.5
million and cash advanced by Kinross to TVX of $94.5 million.

Upon completion of the acquisition of TVX and TVX's purchase of Newmont's
interest in the TVX Newmont JV, Kinross holds various non-operating interests in
gold mines located in Chile (La Coipa - 50%), Brazil (Paracatu - 49% and Crixas
- 50%) and Canada (Musselwhite - 32%), an operating interest in one other
Canadian mine (New Britannia - 50%) and exploration interests in Brazil. Upon
acquiring Echo Bay, Kinross holds operating interests in gold mines located in
the United States (Round Mountain - 50%) and Canada (Lupin - 100%) and interests
in development properties in both in Canada and the United States.


                                     F-B13
<PAGE>

The combination of Kinross, TVX and Echo Bay was undertaken to create the
seventh largest senior primary gold producer in the world, with the financial
and operational base necessary to continue to grow the Company. With an expanded
global operating base, a more than doubling of gold production, increased cash
flow provided from operating activities and a portfolio of development projects,
the Company has an enhanced ability to pursue new growth strategies, previously
unattainable, and undertake significant exploration programs.

The acquisitions were accounted for using the purchase method of accounting
whereby identifiable assets acquired and liabilities assumed were recorded at
their fair market values as of the date of acquisition. The excess of the
purchase price over such fair value was recorded as goodwill and amounted to
$918 million. In accordance with CICA Handbook Section 3062, "Goodwill and Other
Intangible Assets", for purposes of CDN GAAP, and Statement of Financial
Accounting Standards ("SFAS") 142, "Goodwill and Other Intangible Assets", for
purposes of U.S. GAAP, goodwill was assigned to the Company's Exploration and
Acquisitions and Corporate reporting units and will not be amortized. During the
fourth quarter of 2003, the Company finalized the purchase price allocations for
the TVX and Echo Bay acquisitions. In addition, Kinross tested the goodwill for
impairment as at December 31, 2003 and determined that there was no impairment
as at that date.

The following reflects the final purchase price allocation for the acquisition
of 100% of Echo Bay and 100% of TVX (in millions, except per share data):

<TABLE>
<CAPTION>
================================================================================================= ===============
                                                                                        TVX          Echo Bay
------------------------------------------------------------------------------------------------- ---------------
<S>                                                                                  <C>           <C>
Common shares of Kinross issued to Echo Bay and TVX shareholders                            93.9          83.9
Value of Kinross common stock per share                                              $      7.14   $      7.14
------------------------------------------------------------------------------------------------- ---------------
Fair value of the Company's common stock issued                                      $     670.7   $     599.1

Plus - fair value of warrants and options assumed by the Company (100% vested)               6.8          22.5
Plus - direct acquisition costs incurred by the Company                                      6.3           6.3
Plus - the Company's previous 10.6% ownership interest in Echo Bay                             -           7.0
------------------------------------------------------------------------------------------------- ---------------
Total purchase price                                                                 $     683.8   $     634.9

Plus - Fair value of liabilities assumed by Kinross
       Accounts payable and accrued liabilities                                             53.6          23.1
       Long-term debt, including current portion                                             2.2             -
       Site restoration cost accruals, including current portion                            17.5          45.5
       Future income tax liabilities                                                        52.0           0.8
       Other long-term liabilities                                                           0.1             -
       Liability with respect to TVX Newmont JV assets acquired                             94.5             -

Less - Fair value of assets acquired by Kinross
       Cash                                                                                (27.8)        (16.4)
       Restricted cash                                                                     (11.3)        (10.1)
       Marketable securities                                                                (0.5)         (1.9)
       Accounts receivable and other assets                                                (18.2)         (4.6)
       Inventories                                                                         (19.1)        (28.8)
       Property, plant and equipment                                                      (129.1)        (84.6)
       Mineral interests                                                                  (205.5)        (78.4)
       Long-term investments and other non-current assets                                   (5.1)        (48.6)
------------------------------------------------------------------------------------------------- ---------------
Residual purchase price allocated to goodwill                                        $     487.1   $     430.9
================================================================================================= ===============
</TABLE>

With the finalization of the purchase price allocation, there have been several
adjustments to the fair values assigned to the acquired assets and liabilities
from the initial purchase price allocation presented in the Company's 2003
quarterly reports.

Property, plant and equipment was adjusted to estimated fair value based on the
replacement costs as determined through independent appraisals performed by a
third party. Mineral interests, representing acquired mineral use rights and
previously included in property, plant and equipment, were fair valued based on
estimated future cash flows or recent transactions involving sales of similar
properties, depending on the nature of the underlying property. Details of
intangible assets acquired pursuant to the business combination are included in
Note 6, mineral interests. Estimated future cash flows were based on estimated
quantities of gold to be produced at each site, the estimated costs, timing and
capital expenditures associated with


                                     F-B14
<PAGE>

such production, the Company's long-term expectation that a price of $325 would
be realized for each ounce of gold produced, foreign currency exchange rates at
the date of acquisition and a discount rate specific to the Company's cost of
capital, estimated to be equal to 7%.

TVX

The residual purchase price allocated to goodwill increased by $52.6 million
from the preliminary purchase price allocation to $487.1 million in the final
purchase price allocation. The change results primarily from an increase in the
fair values of future income tax liabilities of $10.0 million and an increase in
the estimated exit accruals associated with TVX Hellas of $12.6 million. This
was accompanied by a decrease in the fair values of certain assets including
future income taxes of $13.8 million. Property, plant and equipment decreased by
$208.7 million and mineral interests increased by $205.5 million primarily
representing an allocation of intangible mineral interests to a separate asset
class.

ECHO BAY

The residual purchase price allocated to goodwill decreased by $23.2 million
from the preliminary purchase price allocation to $430.9 million in the final
purchase price allocation. The change results primarily from a net increase in
the fair values associated with mineral interests and long-term assets of $78.4
million and $23.7 million, respectively, offset by a net decrease in the fair
values of property, plant and equipment of $85.0 million. The change in the
allocation of the fair values of property, plant and equipment and mineral
interests was due to allocating the fair value of the intangible to a separate
asset class.

GOODWILL

Kinross has allocated the goodwill arising from the TVX and Echo Bay
acquisitions to its Exploration and Acquisitions ($908.4 million) and Corporate
reporting units ($9.6 million). The Company did not allocate any goodwill to
mine site reporting units, since it is the belief of the Company that there will
not be mine specific synergies resulting from the business combination. Instead,
the assignment of goodwill to the Exploration and Acquisitions and Corporate
reporting units is based on the fact that, following the acquisition, these
reporting units have enhanced abilities to pursue new acquisition based growth
strategies, undertake significant exploration programs and realize synergies in
general and administration expenses. Kinross does not anticipate goodwill
related to these acquisitions will be deductible for tax purposes.

PRO FORMA CONSOLIDATED RESULTS

The combination of Kinross, TVX and Echo Bay was effective on January 31, 2003.
If the combination had been effective as of January 1, 2003, pro forma
consolidated revenues and pro forma consolidated net earnings for the year ended
December 31, 2003, would increase by $28.9 million to $613.5 million and pro
forma consolidated net earnings for the year ended December 31, 2003, would
decrease by $11.9 million to a net loss of $2.2 million. If the combination had
been effective as of January 1, 2002, pro forma consolidated revenues and the
pro forma consolidated net loss for the year ended December 31, 2002, would
increase by $396.0 million to $671.2 million and $63.2 million to $94.1 million,
respectively. These pro forma results were adjusted as depreciation, depletion
and amortization were calculated based on the allocation determined in the final
purchase price equation. The pro forma financial information does not purport to
represent what the Company's results of operations would have been had the
acquisition occurred at the beginning of 2003 or 2002 or to project the
Company's results of operations for any future periods.

(B) OMOLON GOLD MINING CORPORATION

On December 3, 2002, the Company entered into purchase agreements with four of
the five Russian minority shareholders, holding in aggregate, 44.17% of the
shares of Omolon Gold Mining Company ("Omolon"). Omolon agreed to purchase these
shares, from the four shareholders, for $44.7 million, including legal fees. The
transactions were completed in February, 2003 and Omolon subsequently cancelled
these shares. As a result of the share cancellation, the Company increased its
ownership in the outstanding shares of Omolon to 98.1% from 54.7%.


                                     F-B15
<PAGE>

The fair value of the assets and liabilities of the 45.3% interest in Omolon and
the allocation of the purchase consideration are as follows (in millions):

<TABLE>
<CAPTION>
==========================================================================================
<S>                                                                       <C>
FAIR VALUE OF ASSETS ACQUIRED BY KINROSS:
    Cash                                                                  $        26.1
    Accounts receivable                                                             2.9
    Inventories                                                                    12.3
    Property, plant and equipment                                                  13.8
    Other non-current assets                                                        1.9

LESS - FAIR VALUE OF LIABILITIES ASSUMED BY KINROSS:
    Accounts payable and accrued liabilities                                       (5.7)
    Long-term debt, including current portion                                      (2.2)
    Site restoration cost accruals, including current portion                      (3.4)
Non-controlling interest                                                           (1.0)
------------------------------------------------------------------------------------------
Total cash consideration                                                  $        44.7
==========================================================================================
Financed by:
    Cash (including cash acquired - $26.1 million)                        $        44.7
==========================================================================================
</TABLE>

(C) E-CRETE

During 2003, the Company acquired a further 1.2% interest in E-Crete for cash
consideration of $0.1 million, by funding its partner's share of cash calls,
thereby increasing its ownership interest to 90.0%.

2002

(D) E-CRETE

During 2002, the Company acquired a further 2.9% interest in E-Crete for cash
consideration of $0.1 million, by funding its partner's share of cash calls,
thereby increasing its ownership interest to 88.8%.

2001

(E) E-CRETE

During 2001, the Company acquired a further 12.4% interest in E-Crete for cash
consideration of $1.2 million, by funding its partner's share of cash calls,
thereby increasing its ownership interest to 85.9%.

(F) GEORGE/GOOSE LAKE GOLD PROJECT

On December 14, 2001, the Company completed the acquisition of a 100% interest
in the George/Goose Lake gold project in the Nunavut Territory by issuing
1,333,333 common shares of the Company valued at $3.8 million.


                                     F-B16
<PAGE>

The following is a summary of the 2001 acquisitions both of which were accounted
for using the purchase method.

<TABLE>
<CAPTION>
========================================================================== ============= ============
                                                                              GEORGE/
                                                                 E-CRETE    GOOSE LAKE      TOTAL
-------------------------------------------------------------------------- ------------- ------------
<S>                                                              <C>         <C>          <C>
Fair value ascribed to net assets acquired:

    Property, plant and equipment                                $    1.7    $     3.8    $     5.5
    Less: liabilities assumed                                         0.5            -          0.5
-------------------------------------------------------------------------- ------------- ------------
                                                                 $    1.2    $     3.8    $     5.0
========================================================================== ============= ============
    Purchase price:
    Cash                                                         $    1.2    $       -    $     1.2
    Common shares                                                       -          3.8          3.8
-------------------------------------------------------------------------- ------------- ------------
                                                                 $    1.2    $     3.8    $     5.0
========================================================================== ============= ============
</TABLE>

3. ACCOUNTS RECEIVABLE AND OTHER ASSETS

Accounts receivable and other assets are comprised of the following:
<TABLE>
<CAPTION>
=========================================================================================== ==============
                                                                                   2003         2002
------------------------------------------------------------------------------------------- --------------
<S>                                                                             <C>           <C>
    Taxes recoverable, interest and accounts receivable                         $     41.7    $      9.9
    Deferred costs associated with business and property acquisitions                  0.4           5.6
    Marketable securities (quoted market value: 2003 - $0.5; 2002 - $0.1)              0.1           0.1
------------------------------------------------------------------------------------------- --------------
                                                                                $     42.2    $     15.6
=========================================================================================== ==============
</TABLE>

4. INVENTORIES

Inventories are comprised of the following:

<TABLE>
<CAPTION>
=========================================================================================== ==============
                                                                                   2003         2002
------------------------------------------------------------------------------------------- --------------
<S>                                                                             <C>           <C>
    In-process                                                                  $     15.5    $      9.0
    Finished metal                                                                    15.4           3.9
    Ore in stockpiles                                                                 15.3           2.3
    Ore on leach pads                                                                  8.3             -
    Materials and supplies                                                            62.5          26.0
------------------------------------------------------------------------------------------- --------------
                                                                                     117.0          41.2
    Long-term portion of ore in stockpiles (Note 8)                                   (7.8)         (2.3)
------------------------------------------------------------------------------------------- --------------
                                                                                $    109.2    $     38.9
=========================================================================================== ==============
</TABLE>

The most significant amounts of ore in stockpiles represents stockpiled ore at
the Company's Fort Knox mine and its proportionate share of stockpiled ore at
Round Mountain, La Coipa and the Porcupine Joint Venture (2002 - Fort Knox and
the Porcupine Joint Venture).

Ore on leach pads relates entirely to the Company's 50% owned Round Mountain
mine. As at December 31, 2003, the weighted average cost per recoverable ounce
of gold on the leach pads was $120 per ounce.

Based on current mine plans, the Company expects to place the last tonne of ore
on its current leach pad in 2008. The Company expects that all economic ounces
will be recovered within approximately 12 months following the date the last
tonne of ore is placed on the leach pad.


                                     F-B17
<PAGE>

5. PROPERTY, PLANT AND EQUIPMENT

The components of property, plant and equipment are as follows:

<TABLE>
<CAPTION>
====================================================================================== ======================================
                                                          DECEMBER 31, 2003                       DECEMBER 31, 2002
-------------------------------------------------------------------------------------- ---------------------------------------
                                                              ACCUMULATED                             ACCUMULATED
                                                            DEPRECIATION,                           DEPRECIATION,
                                                     COST,      DEPLETION         NET        COST,      DEPLETION         NET
                                                    NET OF            AND        BOOK       NET OF            AND        BOOK
                                                WRITE-DOWN   AMORTIZATION       VALUE   WRITE-DOWN   AMORTIZATION       VALUE
---------------------------------------------------------- --------------- ---------- ------------ --------------- -----------
<S>                                             <C>          <C>            <C>         <C>          <C>            <C>
Producing properties
    Mineral properties                          $        -   $          -   $       -   $      0.2   $          -   $     0.2
    Plant and equipment (amortized on a
      straight-line basis)                            15.0           (5.9)        9.1         16.8           (6.1)       10.7
    Plant and equipment (amortized on
      unit-of-production basis)                    1,074.9         (590.7)      484.2        753.5         (458.6)      294.9
Development properties (i)                            19.5              -        19.5         15.1              -        15.1
Exploration properties (i)                             9.8              -         9.8          9.1              -         9.1
---------------------------------------------------------- --------------- ---------- ------------ --------------- -----------
                                                $  1,119.2   $     (596.6)  $   522.6   $    794.7   $     (464.7)  $   330.0
========================================================== =============== ========== ============ =============== ===========
(i) These properties were owned by Kinross prior to January 1, 2002 when Kinross prospectively adopted CICA Handbook Section
    3062. In accordance with Section 3062 of the CICA Handbook, they have not been reclassified as Mineral Interests (see
    Note 6).
</TABLE>

There were no major asset disposals in 2003 or 2002.

6. MINERAL INTERESTS

The components of mineral interests acquired on the acquisition of TVX and Echo
Bay are as follows:

<TABLE>
<CAPTION>
======================================================================== ========================================
                                                DECEMBER 31, 2003                      DECEMBER 31, 2002
------------------------------------------------------------------------ ----------------------------------------
                                         GROSS                       NET        GROSS                        NET
                                      CARRYING    ACCUMULATED       BOOK     CARRYING    ACCUMULATED        BOOK
                                         VALUE   AMORTIZATION      VALUE        VALUE   AMORTIZATION       VALUE
---------------------------------------------- -------------- ---------- ------------ -------------- ------------
<S>                                 <C>           <C>          <C>         <C>           <C>           <C>
    Production stage                $    176.9    $    (21.0)  $   155.9   $        -    $         -   $       -
    Development stage                     13.9             -        13.9            -              -           -
    Exploration stage                     93.0          (2.7)       90.3            -              -           -
---------------------------------------------- -------------- ---------- ------------ -------------- ------------
                                    $    283.8    $    (23.7)  $   260.1   $        -    $         -   $       -
============================================== ============== ========== ============ ============== ============
</TABLE>

For the purpose of computing the amortization of mineral interests, the
following residual values and amortization periods have been used:

<TABLE>
<CAPTION>
=================================================================================================================
                                                                                  DECEMBER 31, 2003
-----------------------------------------------------------------------------------------------------------------
                                                                            RESIDUAL        WEIGHTED AVERAGE
                                                                             VALUES        AMORTIZATION PERIOD
                                                                                                (IN YEARS)
----------------------------------------------------------------------------------------- -----------------------
<S>                                                                        <C>                           <C>
    Production stage                                                       $        -                    10
    Development stage                                                               -                     -
    Exploration stage                                                            81.3                     8
----------------------------------------------------------------------------------------- -----------------------
    Total weighted average amortization period                                                           10
========================================================================================= =======================
</TABLE>

Currently under Canadian GAAP, pursuant to CICA Handbook Section 1581 (Appendix
A31) "business combinations" and Section 3062 "goodwill and other intangible
assets", mineral use rights are listed as contract-based intangible assets.
These new handbook sections resulted in a conflict between previously issued
accounting standards included in CICA Handbook Section 3061 and EIC-126, which
identify acquired mineral rights as property, plant and equipment.


                                     F-B18
<PAGE>

The Company has elected to account for the mineral use rights it acquired after
January 1, 2002, in accordance with CICA Handbook Section 1581 and 3062. Had the
Company elected to account for acquired mineral use rights in accordance with
CICA Handbook Section 3061 and EIC-126, the Company would increase property,
plant and equipment by $260.1 million and reduce mineral interests by $260.1
million as at December 31, 2003. There would be no effect on reported earnings.

7. LONG-TERM INVESTMENTS

The quoted market value of the Company's long-term investments at December 31,
2003 is $9.0 million (December 31, 2002 - $89.6 million, of which $70.8 million
represented its investment in Echo Bay which was consolidated in 2003). All
long-term investments are recorded at cost. During 2003, the Company sold
certain long-term investments with a book value of $30.2 million for net
proceeds of $56.2 million.

8. DEFERRED CHARGES AND OTHER LONG-TERM ASSETS

Deferred charges and other long-term assets are comprised of the following:

<TABLE>
<CAPTION>
===================================================================================== =============
                                                                             2003         2002
------------------------------------------------------------------------------------- -------------
<S>                                                                       <C>          <C>
    Long-term ore in stockpiles (see Note 4)                              $      7.8   $      2.3
    Deferred charges, net of amortization                                        2.2          1.0
    Long-term receivables                                                        7.1          5.0
    Long-term deposits                                                           2.6          1.7
    Assets held for sale (i)                                                    14.1            -
    Other                                                                        2.1            -
------------------------------------------------------------------------------------- -------------
                                                                          $     35.9   $     10.0
===================================================================================== =============
(i) The Ulu property and airplane hanger in Edmonton, Alberta were disposed of in early 2004 for
    $14.1 million.
</TABLE>

9. JOINT VENTURE INTERESTS

The Company conducts a substantial portion of its business through joint
ventures under which the venturers are bound by contractual arrangements
establishing joint control over the ventures. The Company records its
proportionate share of assets, liabilities, revenue and operating costs of the
joint ventures. As at December 31, 2003, the Company had interests in eight
joint venture projects (December 31, 2002 - three) after acquiring an interest
in six joint ventures as a result of the combination with TVX and Echo Bay, and
the full consolidation of Omolon (a Russian joint stock company) following the
increase in the Company's ownership interest from 54.7% to 98.1% in February of
2003 (see Note 2(b)). Prior to January 1, 2002, E-Crete was considered to be a
joint venture but following the increase in the Company's ownership interest as
described in Note 2, and other changes in conditions between the joint venture
partners, it was fully consolidated. Kamgold, a Russian joint stock company in
which Kinross held a 25% interest, was sold in August 2002.

(A) ROUND MOUNTAIN

The Company owns a 50% interest in the Smoky Valley Common Operation joint
venture, which owns the Round Mountain mine, located in Nye County, Nevada, USA.
Under the joint venture agreement, the Company is the Operator of the Round
Mountain mine.

The Management Committee represents the joint venture partners, authorizes
annual programs and budgets and approves major transactions prior to execution
by site management. The joint venture owners are entitled to their pro-rata
share of production and are obliged to make their pro-rata share of
contributions as requested.


                                     F-B19
<PAGE>

(B) PORCUPINE

The Company owns a 49% interest in the Porcupine Joint Venture ("PJV"), which
conducts mining, milling and exploration operations in the Timmins area of
Ontario. As of July 1, 2002, the Company agreed to transfer to Placer Dome (CLA)
Limited, an undivided 51% interest in various owned and leased mineral
properties, including the Hoyle Pond mine. Placer Dome (CLA) Limited agreed to
transfer to the Company an undivided 49% interest in various owned and leased
mineral properties. Under the PJV agreement, Placer Dome (CLA) Limited is the
Operator.

The Management Committee of the PJV approves annual programs and budgets, and
authorizes major transactions prior to execution by site management. The PJV
participants are entitled to their pro-rata share of production and are obliged
to make their pro-rata share of contributions as requested.

(C) PARACATU

The Company owns a 49% interest in Rio Paracatu Mineracao S.A. ("RPM"). RPM owns
the Brasilia mine located next to the city of Paracatu, Brazil, 200 kilometres
southeast of Brasilia, Brazil's capital city. Under the joint venture agreement,
Rio Tinto Brasil, a subsidiary of Rio Tinto PLC is the Operator.

The Board of Directors of RPM approves annual programs and budgets and
authorizes major transactions prior to execution by site management. The joint
venture participants are entitled to their pro-rata share of profits in the form
of distributions and are obliged to make their pro-rata share of contributions
if required.

(D) LA COIPA

The Company owns a 50% interest in Compania Minera Mantos de Oro ("MDO"), a
Chilean contractual mining company. MDO owns the La Coipa mine, located in
central Chile, 140 kilometres northeast of the city of Copiapo. Under the joint
venture agreement, a wholly-owned subsidiary of Placer Dome Inc. is the
Operator.

The Board of Directors of MDO approves annual programs and budgets and
authorizes major transactions prior to execution by site management. The joint
venture participants are entitled to their pro-rata share of profits in the form
of distributions and are obliged to make their pro-rata share of contributions
if required.

(E) CRIXAS

The Company owns a 50% interest in Mineracao Serra Grande, S.A. ("MSG"). MSG
owns the Crixas mine, located in central Brazil, 260 kilometres northeast of the
city of Brasilia. Under the joint venture agreement, a wholly-owned subsidiary
of AngloGold is the Operator.

The Board of Directors of MSG approves annual programs and budgets, and
authorizes major transactions prior to execution by site management. The joint
venture participants are entitled to their pro-rata share of profits in the form
of distributions and are obliged to make their pro-rata share of contributions
if required.

(F) MUSSELWHITE

The Company owns a 31.93% interest in the Musselwhite joint venture. The mine is
located 430 kilometres north of the city of Thunder Bay, in northwestern
Ontario. Under the joint venture agreement, Placer Dome (CLA) Limited is the
Operator.

The Management Committee of the joint venture approves annual programs and
budgets, and authorizes major transactions prior to execution by site
management. The joint venture participants are entitled to their pro-rata share
of production and are obliged to make their pro-rata share of contributions as
requested.


                                     F-B20
<PAGE>

(G) NEW BRITANNIA

The Company owns a 50% interest in the New Britannia joint venture. The mine is
located in the town of Snow Lake in northern Manitoba, 700 kilometres north of
Winnipeg. Under the joint venture agreement, the Company is the Operator.

The Management Committee of the joint venture approves annual programs and
budgets, and authorizes major transactions prior to execution by site
management. The joint venture participants are entitled to their pro-rata share
of production and are obliged to make their pro-rata share of contributions as
requested. At present, the Company has a loan receivable from its joint venture
partner. Kinross sells all of the production from the mine and on an annual
basis, is entitled to apply its partner's share of any operating surplus against
the outstanding balance of the loan. Both partners are required to fund their
pro-rata share of an annual operating deficit. During 2003, the Company funded
all of the cash requirements of the joint venture and as at December 31, 2003,
the Company has included in accounts receivable, its joint venture partner's
share of the 2003 operating deficit.

(H) REFUGIO

The Company owns a 50% interest in Compania Minera Maricunga ("CMM"), a Chilean
contractual mining company. CMM owns the Refugio mine located in central Chile.
On June 1, 1999, the Company was appointed Operator of the Refugio mine and
continues in that capacity. The Company provides services to CMM in the planning
and conduct of exploration, development and mining, and related operations with
respect to the Refugio Project Properties and the Refugio mine. The investment
in CMM was written off during 2000.

The Board of Directors of CMM approves annual budgets, approves distributions
and authorizes major transactions prior to execution by site management. The
shareholders are entitled to their pro-rata share of profits in the form of
distributions and are obliged to make their pro-rata share of contributions if
required.


                                     F-B21
<PAGE>
<TABLE>
<CAPTION>

(i) Summary of joint venture information:                                          2003
=================================================== ======== ========== ======== ========= ======== ============ =========== =======
                                          ROUND                                                                         NEW
                                          PORCUPINE  REFUGIO  MOUNTAIN  PARACATU  LA COIPA  CRIXAS   MUSSELWHITE  BRITANNIA  TOTAL
--------------------------------------------------- -------- ---------- -------- --------- -------- ------------ ----------- -------
<S>                                       <C>        <C>      <C>       <C>       <C>       <C>      <C>          <C>       <C>
  Revenue                                 $    83.0  $   0.1  $  132.7  $   33.6  $   51.6  $  32.7  $     22.6   $   11.8  $ 368.1
--------------------------------------------------- -------- ---------- -------- --------- -------- ------------ ----------- -------
  Operating costs                              53.4      0.4      76.7      19.9      34.9     10.5        16.5       11.3    223.6
  Depreciation, depletion and
   amortization                                24.1        -      33.7       5.7       8.9      9.1         6.5        2.6     90.6
  Exploration                                   2.5      1.4       2.1         -       0.9      0.5         2.1        0.8     10.3
  Interest/foreign exchange/other                 -      0.2         -      (1.0)      1.5      0.2        (0.5)      (0.4)       -
  Asset write-downs and non-cash charges          -        -         -         -         -        -           -        1.2      1.2
--------------------------------------------------- -------- ---------- -------- --------- -------- ------------ ----------- -------
                                               80.0      2.0     112.5      24.6      46.2     20.3        24.6       15.5    325.7
--------------------------------------------------- -------- ---------- -------- --------- -------- ------------ ----------- -------
  Earnings (loss) before taxes            $     3.0  $  (1.9) $   20.2  $    9.0  $    5.4  $  12.4  $     (2.0)  $   (3.7 ) $ 42.4
=================================================== ======== ========== ======== ========= ======== ============ =========== =======
  Current assets                          $     9.5  $   2.4  $   27.3  $   11.5  $   10.7  $  11.8  $      6.3   $    2.8   $ 82.3
  Property, plant and equipment                68.4      1.5      50.3      39.9      37.8     21.0        21.8          -    240.7
  Mineral interests                               -        -      58.8      87.9       4.4     21.3        52.3          -    224.7
  Deferred charges and other assets             3.2        -       2.0       1.7       1.1      0.1           -          -      8.1
--------------------------------------------------- -------- ---------- -------- --------- -------- ------------ ----------- -------
                                               81.1      3.9     138.4     141.0      54.0     54.2        80.4        2.8    555.8
--------------------------------------------------- -------- ---------- -------- --------- -------- ------------ ----------- -------
  Current liabilities                           9.7      0.8      16.7       4.0       8.7      2.2         1.8        1.1     45.0
  Long-term liabilities                         5.9      5.1      24.3      30.9       3.7     11.0         1.8        0.6     83.3
--------------------------------------------------- -------- ---------- -------- --------- -------- ------------ ----------- -------
                                               15.6      5.9      41.0      34.9      12.4     13.2         3.6        1.7    128.3
--------------------------------------------------- -------- ---------- -------- --------- -------- ------------ ----------- -------
  Net investment in joint ventures        $    65.5  $  (2.0) $   97.4  $  106.1  $   41.6  $  41.0  $     76.8   $    1.1  $ 427.5
=================================================== ======== ========== ======== ========= ======== ============ =========== =======
  Cash flow provided from (used in)
    operating activities                  $    27.2  $  (2.3) $   51.7  $   13.5  $   14.9  $  21.4  $      3.8   $    0.1  $ 130.3
=================================================== ======== ========== ======== ========= ======== ============ =========== =======
  Cash flow used in investing activities  $    (8.3) $  (1.5) $   (6.0) $   (5.0) $   (0.5) $  (3.1) $     (2.7)  $   (1.1) $ (28.2)
=================================================== ======== ========== ======== ========= ======== ============ =========== =======
  Cash flow used in financing activities  $       -  $     -  $      -  $      -  $   (0.7) $  (1.5) $        -   $      -  $  (2.2)
=================================================== ======== ========== ======== ========= ======== ============ =========== =======


                                                                2002                                         2001
=========================================================== ========= ========== ========= ========== ========= ========= ==========


                                                 PORCUPINE    REFUGIO    KUBAKA     TOTAL    E-CRETE   REFUGIO    KUBAKA    TOTAL
----------------------------------------------------------- --------- ---------- --------- ---------- --------- --------- ----------

  Revenue                                        $    28.5   $   14.8   $   69.2  $  112.5  $    0.1   $   19.5  $   67.8  $  87.4
----------------------------------------------------------- --------- ---------- --------- ---------- --------- --------- ----------
  Operating costs                                     21.7        3.3       30.3      55.3       2.5       17.4      37.8     57.7
  Depreciation, depletion and amortization             7.7          -       17.4      25.1       1.1          -      20.5     21.6
  Exploration                                          1.6        0.4        1.3       3.3         -          -       2.1      2.1
  Interest                                               -        0.3        0.5       0.8       0.3        0.3       2.9      3.5
----------------------------------------------------------- --------- ---------- --------- ---------- --------- --------- ----------
                                                      31.0        4.0       49.5      84.5       3.9       17.7      63.3     84.9
----------------------------------------------------------- --------- ---------- --------- ---------- --------- --------- ----------
  Earnings (loss) before taxes                   $    (2.5)  $   10.8   $   19.7  $   28.0  $   (3.8)  $    1.8  $    4.5  $   2.5
=========================================================== ========= ========== ========= ========== ========= ========= ==========
  Current assets                                 $     8.2   $    3.1   $   46.5  $   57.8  $    0.2   $    6.2  $   23.8  $  30.2
  Property, plant and equipment, net                  74.9          -       12.7      87.6       8.2          -      31.2     39.4
----------------------------------------------------------- --------- ---------- --------- ---------- --------- --------- ----------
                                                      83.1        3.1       59.2     145.4       8.4        6.2      55.0     69.6
----------------------------------------------------------- --------- ---------- --------- ---------- --------- --------- ----------
  Current liabilities                                  5.3        6.0        9.5      20.8       0.5        1.7      18.1     20.3
  Long-term liabilities                                3.1        5.1        3.8      12.0       3.4        5.2       4.5     13.1
----------------------------------------------------------- --------- ---------- --------- ---------- --------- --------- ----------
                                                       8.4       11.1       13.3      32.8       3.9        6.9      22.6     33.4
----------------------------------------------------------- --------- ---------- --------- ---------- --------- --------- ----------
  Net investment in joint ventures               $    74.7   $   (8.0)  $   45.9  $  112.6   $   4.5   $   (0.7) $   32.4  $  36.2
=========================================================== ========= ========== ========= ========== ========= ========= ==========
  Cash flow provided from operating activities   $     3.4   $   14.3   $   39.6  $   57.3   $  (4.1)  $    2.2  $   37.7  $  35.8
=========================================================== ========= ========== ========= ========== ========= ========= ==========
  Cash flow used in investing activities         $    (2.9)  $      -   $   (0.1) $   (3.0)  $  (0.2)  $      -  $   (0.4) $  (0.6)
=========================================================== ========= ========== ========= ========== ========= ========= ==========
  Cash flow used in financing activities         $       -   $      -   $   (1.6) $   (1.6)  $     -   $   (0.4) $  (21.5) $ (21.9)
=========================================================== ========= ========== ========= ========== ========= ========= ==========
</TABLE>


                                     F-B22
<PAGE>

10. FINANCIAL INSTRUMENTS

The Company manages its exposure to fluctuations in commodity prices, foreign
exchange rates and interest rates by entering into derivative financial
instrument contracts in accordance with the formal risk management policies
approved by the Company's Board of Directors. The Company does not hold or issue
derivative contracts for speculative or trading purposes.

(A) COMMODITY RISK MANAGEMENT

The profitability of the Company is directly related to the market price of gold
and silver. The Company uses spot deferred contracts and fixed forward contracts
to hedge against changes in commodity prices for a portion of its forecasted
gold and silver production. Spot deferred contracts are forward sale contracts
with flexible delivery dates that enable management to choose to deliver into
the contract on a specific date or defer delivery until a future date. If
delivery is postponed, a new contract price is established based on the old
contract price plus a premium (referred to as "contango").

The Company sells call options to economically hedge exposure to changes in spot
gold prices. The option premium is received at the time call options are sold.
If the gold price is higher than the call option strike price on the expiry date
of the option Kinross sells gold at the strike price of the option. If the gold
price is lower than the strike price of the call option at expiry, the option
expires worthless.

The Company buys put options to protect against lower gold prices, while
participating in higher gold prices. The option premium is paid out at the time
the put options are purchased. If the gold price is lower than the strike price
of the put option on the expiry date, gold is sold at the strike price of the
option. If the gold price is higher than the strike price of the put option, the
option expires worthless.

The outstanding number of ounces, average expected realized prices and
maturities for the gold commodity derivative contracts as at December 31, 2003
are as follows:

<TABLE>
<CAPTION>
==================================================== ============= ============== ============ =========== =============
                                       SPOT DEFERRED                         CALL      AVERAGE PUT OPTIONS    AVERAGE
                                              OUNCES       AVERAGE        OPTIONS       STRIKE      BOUGHT     STRIKE
Expected Year of Delivery                     HEDGED         PRICE  SOLD (OUNCES)        PRICE    (OUNCES)       PRICE
---------------------------------------------------- ------------- -------------- ------------ ----------- -------------
<C>                                          <C>        <C>                <C>       <C>           <C>       <C>
2004                                         137,500    $      277         50,000    $     340     150,000   $     250
2005                                          37,500    $      296              -            -     150,000   $     250
2006                                               -             -              -            -     150,000   $     250
---------------------------------------------------- ------------- -------------- ------------ ----------- -------------
Total                                        175,000    $      281         50,000    $     340     450,000   $     250
==================================================== ============= ============== ============ =========== =============
</TABLE>

As at December 31, 2002, the Company had spot deferred contracts for 312,500
ounces of gold and call options sold for 150,000 ounces of gold.

As at December 31, 2003, the Company has sold 250,000 ounces of silver forward
at a price of $4.92 per ounce. As at December 31, 2002, the Company had no
outstanding silver positions.

In February 2001, the Company closed out 500,000 ounces of spot deferred
contracts that were designated as hedges for 2001 to 2004 and realized a gain of
$16.6 million on proceeds of $21.1 million. This gain has been deferred and is
being included in income over the original delivery schedule of the various
contracts.

(B) FOREIGN CURRENCY RISK MANAGEMENT

All sales revenues for the Company are denominated in U.S. dollars. The Company
is exposed to currency fluctuations on expenditures which are denominated in
Canadian dollars, Russian rubles, Chilean pesos, Brazilian reals and other
currencies. These potential currency fluctuations could have a significant
impact on the cost of producing gold and thereby, the profitability of the
Company. This risk is reduced, from time to time, through the use of foreign
exchange forward contracts to lock in the exchange rates on future revenue
flows.


                                     F-B23
<PAGE>

As at December 31, 2003, the Company has foreign currency forward contracts to
sell U.S. dollars and buy Canadian dollars of CDN $28.4 million at an average
exchange rate of 1.4221 (2002 - CDN $25.8 million at an average exchange rate of
1.5175). These contracts mature over an eighteen month period ending June 2005.

(C) INTEREST RATE RISK MANAGEMENT

The Company is exposed to interest rate risk as a result of its issuance of
variable rate debt. There were no interest rate hedging transactions outstanding
as at December 31, 2002 or December 31, 2003.

(D) ENERGY PRICE RISK

The Company is exposed to changes in crude oil prices as a result of diesel fuel
consumption, primarily at its open pit mines and the remote Lupin underground
mine. The potential fluctuations in crude oil prices could have a significant
impact on the cost of producing gold and the profitability of the Company. This
risk is reduced, from time to time, through the use of crude oil forward
purchase contracts to lock in firmly committed future operating costs.

As at December 31, 2003, the Company had no hedging agreements in place to
purchase fuel. There was no fuel hedging activity during 2002 or 2003.

(E) CREDIT RISK MANAGEMENT

Credit risk relates to accounts receivable and derivative contracts and arises
from the possibility that a counterparty to an instrument fails to perform. The
Company only transacts with highly-rated counterparties and a limit on
contingent exposure has been established for each counterparty based on the
counterparty's credit rating. At December 31, 2003, the Company's gross credit
exposure was $43.6 million (December 31, 2002 -- $9.9 million).

(F) FAIR VALUES OF FINANCIAL INSTRUMENTS

Carrying values for primary financial instruments, including cash and cash
equivalents, bullion settlements and other accounts receivable, marketable
securities, accounts payable and accrued liabilities, approximate fair values
due to their short-term maturities. The carrying value for long-term debt (other
than convertible debentures and redeemable retractable preferred shares)
approximates fair value primarily due to the floating rate nature of the debt
instruments.

The 5.5% subordinated convertible debentures of the Company were redeemed at par
plus accrued interest on September 29, 2003. The fair value of the outstanding
convertible debentures based on the quoted market price of the debentures at
December 31, 2002 was approximately $107.1 million (CDN $169.2 million).

Fair value estimates for derivative contracts are based on quoted market prices
for comparable contracts and represent the amount the Company would have
received from, or paid to, a counterparty to unwind the contract at the market
rates in effect at December 31. The following table represents the fair value
gain (loss) relating to derivative contracts outstanding as at December 31:

<TABLE>
<CAPTION>
================================================================================ =================
                                                                      2003             2002
-------------------------------------------------------------------------------- -----------------
<S>                                                              <C>              <C>
Gold forward sales contracts (i)                                 $      (24.4)    $      (20.3)
Foreign currency contracts (ii)                                           1.8             (0.8)
================================================================================ =================
(i) Based on a spot gold price of $417 and $343 per ounce as at December 31, 2003, and 2002, respectively.
(ii)   Based on a Canadian dollar exchange rate of 1.2924 and 1.5796 at December 31, 2003, and 2002, respectively.
</TABLE>


                                     F-B24
<PAGE>

11. LONG-TERM DEBT

<TABLE>
<CAPTION>
=================================================================================================================
                                                                                             PRINCIPAL REPAYMENT
                                                                                                        SCHEDULE
                                                                                         AS AT DECEMBER 31, 2003
-------------------------------------------------- -------------- ---------- ----------- ------------ -----------
                                                   Interest rates    2002       2003        2004         2005
-------------------------------------------------- -------------- ---------- ----------- ------------ -----------
<S>                                                   <C>          <C>         <C>         <C>          <C>
Kubaka project-financing debt                         Variable     $     2.6   $     2.8   $     2.8    $      -
Fort Knox industrial revenue bonds                    Variable          25.0        25.0        25.0           -
E-Crete project financing debt                        Variable           3.8           -           -           -
Capital leases                                        8.0%-9.5%          4.8         2.3         1.6         0.7
                                                                  ---------- ----------- ------------ -----------
                                                                        36.2        30.1        29.4         0.7
                                                                                         ============ ===========
Less: current portion                                                  (23.3)      (29.4)
----------------------------------------------------------------- ---------- -----------
                                                                   $    12.9   $     0.7
================================================================= ========== ===========
</TABLE>

All long-term debt is denominated in US dollars.

The European Bank for Reconstruction and Development ("EBRD") provides project
financing debt to Omolon, owner of the Kubaka mine. As at December 31, 2002, the
remaining project financing debt was $4.75 million of which Kinross' 54.7%
proportionate share of this obligation was $2.6 million. In June 2003, Omolon
repaid $2.0 million against this project financing debt leaving a balance of
$2.75 million. Kinross fully consolidated its investment in Omolon as at
December 31, 2003 and therefore includes the entire amount of the project
financing debt in its consolidated financial statements. Interest on the project
financing debt is variable based upon LIBOR and as at December 31, 2003 is
approximately 5.6% per annum (December 31, 2002 -- 5.8%). Standard default
covenants apply to the project financing debt and EBRD has a right of first
refusal on any future project debt required by Omolon. The assets of Omolon
secure the project financing debt. The project financing debt final payment is
due on December 15, 2004.

The solid waste disposal facility at the Fort Knox mine was financed by $71.0
million of tax-exempt industrial revenue bonds. As at December 31, 2002 $25.0
million of tax-exempt industrial revenue bonds remained outstanding. There were
no repayments of the tax-exempt industrial revenue bonds made in 2003. The
variable rate tax-exempt industrial revenue bonds mature in May 2009 and are
issued by the Alaska Industrial Development and Export Authority. These
tax-exempt industrial revenue bonds can be prepaid anytime without penalty. The
tax-exempt industrial revenue bonds are secured by a letter of credit issued by
Kinross pursuant to the syndicated credit facility. The letter of credit issued
under the Kinross syndicated credit facility is for $25.5 million and covers the
principle portion outstanding plus an additional amount for accrued and unpaid
interest. The floating interest rate on the bonds is approximately 1.13 % as at
December 31, 2003 (December 31, 2002 -- 1.3%). On January 7, 2004 Kinross repaid
the remaining outstanding balance of the tax-exempt industrial revenue bonds and
the letter of credit issued by Kinross pursuant to the syndicated credit
facility was returned and cancelled.

SYNDICATED CREDIT FACILITY

In March 2000, Kinross arranged a syndicated credit facility for $110.0 million.
The primary purpose of this syndicated credit facility was to provide credit
support that enabled Kinross to issue letters of credit on the industrial
revenue bonds. This syndicated credit facility was scheduled to mature on
October 2, 2003. As at December 31, 2002, this syndicated credit facility had
been reduced to $30.0 million. This facility was replaced with a new syndicated
credit facility on February 27, 2003.

The new syndicated credit facility has a maturity date of December 31, 2005 and
a total committed amount of $125.0 million. The primary purpose of the new
syndicated credit facility is to enable Kinross to issue letters of credit to
various regulatory agencies to satisfy its financial assurance requirements. The
assets of the Fort Knox mine and shares in various wholly owned subsidiaries are
pledged as collateral for this facility.

At December 31, 2003, letters of credit issued under the syndicated credit
facility were $118.2 million. After repayment of the Fort Knox industrial
revenue bonds in January, 2004, committed utilization of the credit facility is
as follows. The Company anticipates additional letters of credit will be
released over the next two years as various closure properties continue to
proceed with final reclamation.


                                     F-B25
<PAGE>
<TABLE>
<CAPTION>
===========================================================================================================
                                                                                At December 31,
-----------------------------------------------------------------------------------------------------------
                                                                         2003         2004         2005
-------------------------------------------------------------------------------- ------------ -------------
<S>                                                                  <C>          <C>           <C>
Credit support for Fort Knox industrial revenue bonds                $      25.5  $         -   $        -
Other financial assurance                                                    5.5          1.5          1.5
Reclamation                                                                 87.2        101.1        113.7
-------------------------------------------------------------------------------- ------------ -------------
Total letters of credit                                              $     118.2  $     102.6   $    115.2
================================================================================ ============ =============
</TABLE>

In the event Kinross were to utilize the credit facility and draw a dollar loan,
the current interest rate on amounts drawn under the syndicated credit facility
is LIBOR plus 1.50%. Letters of credit attract a charge of 1.5%. Kinross is
currently in discussions with the syndicate to extend the credit facility beyond
December 31, 2005. A standby fee of 0.3% applies to undrawn amounts.

This revolving credit facility contains various debt covenants that include
limits on indebtedness, distributions, asset sales and liens. Significant
financial covenants include a minimum tangible net worth of $698 million, an
interest coverage ratio of 4.5 : 1, net debt to operating cash flow of 3.5 : 1,
minimum cash of $45.0 million and minimum proven and probable reserves of 5.0
million ounces of gold. The Company was in compliance with all covenants as at
December 31, 2003.

ECHO BAY CREDIT FACILITY

Echo Bay, a wholly owned subsidiary of Kinross, has a collateralized credit
facility that was in place prior to its acquisition by Kinross. The purpose of
this collateralized credit facility was to issue a letter of credit to a surety
underwriter as collateral to induce it to underwrite a surety bond for the Round
Mountain mine in Nevada. Kinross replaced the surety bond with a letter of
credit issued under its new syndicated credit facility in early 2003 and the
regulatory body has not yet released the original surety bond that it was
provided. Kinross has restricted cash of $4.0 million due to the deposit on hand
with the financial institution as security for issuing this letter of credit.
Kinross expects the letter of credit to be released and cancelled, and the
restricted cash to become unrestricted in 2004. The letter of credit fee for
this facility is 0.75%

CAPITAL LEASES

The Company has capital leases for certain production equipment at its various
operations. Interest on these leases ranges from 8.0%--9.5% per annum. The
underlying equipment secures these leases.

12. SITE RESTORATION COSTS

Although the ultimate amount of site restoration costs is uncertain, the Company
estimates this obligation at $146.3 million based on information currently
available including closure plans and applicable regulations. As at December 31,
2003, the Company has accrued $119.7 million of this estimated obligation
(December 31, 2002 - $57.0 million). In view of uncertainties concerning future
site restoration costs, ultimate costs could differ from the estimated amounts.
Future changes, if any, in regulations and cost assumptions may be significant
and will be recognized when applicable.

13. CONVERTIBLE DEBENTURES

On December 5, 1996, the Company issued unsecured subordinated convertible
debentures in the aggregate principal amount of $146.0 million (CDN $200.0
million). The debentures bore interest at 5.5% per annum, matured on December 5,
2006, and, at the holders' option, were convertible into common shares of the
Company at a conversion price of CDN $40.05 per share, being a rate of 24.9687
common shares per CDN $1,000 principal amount of debentures. Interest was
payable in cash; however, the Company had the right to settle the principal
amount by the issuance of common shares. On or after December 31, 2001, the
debentures were redeemable at par plus accrued and unpaid interest.

The debentures were being accounted for in accordance with their substance and
were presented in the financial statements in their component parts, measured at
their respective fair values at the time of issue. The debt component had been
calculated as the present value of the required interest payments discounted at
a rate approximating the interest rate that would have been applicable to
non-convertible debt at the time the debentures were issued. Interest expense
was determined on the debt component, such component being reduced by the
required semi-annual interest payments. The difference between the debt
component and the face value of the debentures was classified as equity, net of
issue costs adjusted for income taxes. The


                                     F-B26
<PAGE>

equity component of the debentures, net of the value ascribed to the holders'
option, was increased over the term to the full face value by charges to
retained earnings (deficit).

No debentures were redeemed in 2002. On September 29, 2003, Kinross redeemed all
of the outstanding convertible debentures at par plus accrued interest. The
total payment was $146.8 million (CDN $198.3 million), comprised of the
principal amount of $144.8 million (CDN $195.6 million) and accrued interest of
$2.0 million (CDN $2.7 million).

The cost of redemption was allocated based on the respective fair values of the
debt and equity components at the date of redemption. The redemption of the
debentures resulted in a loss on redemption of the debt component of the
debentures of approximately $1.1 million and a net gain on redemption of the
equity component of the debentures of approximately $16.5 million. The loss on
the debt component has been charged against income and the gain on the equity
component has been accounted for as an increase in contributed surplus.

As at December 31, 2003, the outstanding principal amount of the debentures was
$ nil (December 31, 2002 -- $123.8 million (CDN $195.6 million)).

14. REDEEMABLE RETRACTABLE PREFERRED SHARES

As at December 31, 2003 and 2002, 384,613 redeemable retractable preferred
shares are outstanding and held by a senior officer and director of the Company.

The holder of the redeemable retractable preferred shares is entitled to receive
a CDN $0.80 per share fixed cumulative annual preferential cash dividend,
payable in equal quarterly installments and, is entitled at any time to convert
all or any part of the redeemable retractable preferred shares into common
shares on the basis of 2.7518 common shares for each redeemable retractable
preferred share so converted, subject to anti-dilution adjustments. The Company
may at any time redeem, upon a minimum thirty day notice, all or any part of the
redeemable retractable preferred shares at a price of CDN $10.00 per share,
together with unpaid dividends accrued to the date of redemption. The holder of
the redeemable retractable preferred shares is entitled to require the Company
to redeem for cash all or any part of the redeemable retractable preferred
shares at this price.

15. CONVERTIBLE PREFERRED SHARES OF SUBSIDIARY COMPANY

The convertible preferred shares of subsidiary company comprise 1,840,000 shares
of $3.75 Series B Convertible Preferred Shares of Kinam ("Kinam Preferred
Shares"). The Kinam Preferred Shares are convertible into common shares of the
Company at a conversion price of $30.92 per share (equivalent to a conversion
rate of 1.6171 common shares for each preferred share), subject to adjustment in
certain events.

The Kinam Preferred Shares are redeemable at the option of the Company at any
time on or after August 15, 1997, in whole or in part, for cash initially at a
redemption price of $52.625 per share declining ratably annually to $50.00 per
share on or after August 15, 2004, plus accrued and unpaid dividends.

Annual cumulative dividends of $3.75 per share are payable quarterly on each
February 15, May 15, August 15 and November 15, as and if declared by Kinam's
Board of Directors. No dividends were declared or paid on the Kinam Preferred
Shares during 2003 or 2002. Dividend payments on these shares were suspended in
accordance with their terms in August 2000 and continue to remain suspended. The
cumulative dividends in arrears on the Kinam Preferred Shares owned by
non-affiliated shareholders of $2.7 million as at December 31, 2003 have been
accrued and included in the carrying value of the convertible preferred shares
of subsidiary company.

On July 12, 2001, the Company acquired 945,400 Kinam Preferred Shares in
exchange for 8,062,164 common shares of the Company (Note 16). On March 28,
2002, 652,992 Kinam Preferred Share were acquired in a $16.00 per share cash
tender offer and after extending the offer, an additional 17,730 Kinam Preferred
Shares were tendered on April 4, 2002. During 2002, 350 Kinam Preferred Shares
were converted into 566 common shares of the Company. During 2003, 14,700 Kinam
Preferred Shares were acquired at $18.00 per share and a further 1,645 Kinam
Preferred Shares were converted into 2,657 common shares of the Company, leaving
207,183 held by non-affiliated shareholders at December 31, 2003.


                                     F-B27
<PAGE>

If all the Kinam Preferred Shares owned by non-affiliated shareholders were
converted, an additional 335,036 common shares of the Company would be issued.

16. COMMON SHARE CAPITAL

The authorized share capital of the Company is comprised of an unlimited number
of common shares.

A summary of common share transactions for each of the years in the three year
period ended December 31, 2003 is as follows.

<TABLE>
<CAPTION>
=============================================================================================================================
                                                                 2003                     2002                   2001
---------------------------------------------------------------------------- ----------------------- ------------------------
                                                       Number of                Number of              Number of
                                                          shares                   shares                 shares
                                                      (millions)      Amount   (millions)     Amount   (millions)      Amount
---------------------------------------------------------------- ----------- ------------ ---------- ----------- ------------
<S>                                                        <C>     <C>              <C>    <C>             <C>      <C>
Balance, January 1,                                        136.1   $ 1,058.5        111.5  $   945.7       100.3    $   913.2
Issued:
    Reduction of stated capital                                -      (761.4)           -          -           -            -
    Upon acquisition of TVX                                 93.9       670.7            -          -           -            -
    Value ascribed to TVX options and warrants
      assumed by Kinross                                       -         6.8            -          -           -            -
    Upon acquisition of Echo Bay                            83.9       599.1            -          -           -            -
    Value ascribed to Echo Bay options assumed
      by Kinross                                               -         1.5            -          -           -            -
    Upon conversion of Echo Bay warrants                     6.7        55.9            -          -           -            -
    Public offering                                         23.0       145.9         24.3      102.2           -            -
    Upon acquisition of Kinam Preferred Shares                 -           -            -          -         8.1         23.2
    Under restricted share plan                                -           -            -          -           -          0.1
    Under employee share purchase plan                       0.1         1.0          0.2        0.9         0.4          0.8
    Under stock option plan                                  1.8         6.1          0.1        0.3           -            -
    Upon the acquisition of George/Goose Lake
      Gold Project                                             -           -            -          -         1.3          3.8
    Private placement for cash                                 -           -            -          -         1.4          4.6
    Value ascribed to common share purchase warrants           -        (0.6)           -        9.4           -            -
---------------------------------------------------------------- ----------- ------------ ---------- ----------- ------------
Balance, December 31,                                      345.5   $ 1,783.5        136.1  $ 1,058.5       111.5    $   945.7
================================================================ =========== ============ ========== =========== ============
</TABLE>

On January 28, 2003, the shareholders of Kinross, by way of special resolution,
approved the consolidation of the issued and outstanding common shares of the
Company on the basis of one consolidated common share for each three old common
shares, which became effective on January 31, 2003. At the same meeting, the
shareholders of the Company approved the elimination of the Company's deficit
balance at December 31, 2002 of $761.4 million through a reduction of the
Company's stated share capital account. All share capital, share and option data
have been retroactively restated to reflect the share consolidation (see Notes 1
and 2).

On January 31, 2003, the Company issued 93.9 million common shares from treasury
to effect a combination with TVX under a plan of arrangement whereby
shareholders of TVX received 2.1667 common shares of the Company for each TVX
common share. Also pursuant to the arrangement, the Company issued 83.9 million
common shares from treasury to effect a combination with Echo Bay whereby
shareholders of Echo Bay received 0.1733 common shares of the Company for each
Echo Bay common share. The aggregate fair value of the Company's common shares
issued with respect to these acquisitions was $1,269.8 million (see Note 2).

On August 28, 2003, the Company issued 23.0 million common shares from treasury
for total proceeds, before costs of issue, of $152.5 million. The net proceeds
from the offering were used to redeem Kinross' outstanding 5.5% convertible
unsecured subordinated debentures (see Note 13).

During November 2003, the Company issued 6.7 million common shares from treasury
upon the exercise of Echo Bay warrants assumed on the acquisition of Echo Bay
resulting in an increase in common share equity of $55.9 million. This increase
was comprised of $21.0 million being the fair value of warrants assumed at
acquisition and $34.9 million of cash received on the exercise date.

On February 12, 2002, the Company issued 7.7 million common shares from treasury
for total proceeds, before costs of issue, of $19.5 million.


                                     F-B28
<PAGE>

On December 5, 2002, the Company issued 16.6 million common shares and 25.0
million common share purchase warrants, for total proceeds, before costs of
issue, of $97.7 million. Three common share purchase warrants can be exercised
on or before December 5, 2007 for one common share at an exercise price of CDN
$15.00. The fair value of the common share purchase warrants was $9.4 million.

On July 12, 2001, the Company issued 8.1 million common shares valued at $23.2
million to acquire 945,400 Kinam Preferred Shares plus rights to accrued but
unpaid dividends with a book value of $48.9 million (Note 15). The $25.7 million
difference between the fair value of the Company's common stock on the date of
announcement and the book value of the Kinam Preferred Shares owned by the
non-affiliated shareholders was applied against the carrying values of certain
property, plant and equipment.

On September 27, 2001, the Company issued 0.7 million flow-through common shares
under a private placement transaction, for cash consideration of $2.1 million.
On December 10, 2001 an additional 0.8 million flow-through common shares were
issued under a private placement transaction for cash consideration of $2.5
million.

On December 14, 2001, the Company issued 1.3 million common shares to acquire a
100% interest in the George/Goose Lake gold project in Nunavut valued at $3.8
million.

SHARE PURCHASE PLAN:

The Company has an employee share purchase plan whereby employees of the Company
have an opportunity to purchase common shares. The plan allows employees to
contribute up to a maximum of 10% of their base annual salary. In addition, the
Company matches 50% of the employees' contributions. Quarterly, the Company
issues from treasury common shares equal to the employees' contribution and the
Company's contribution. The common shares are purchased based on the average of
the last twenty trading sessions prior to the end of the quarter. The Company
issued from treasury 0.1 million common shares pursuant to the plan during 2003
(2002 -- 0.2 million). Compensation expense is recorded upon issuance of shares.

RESTRICTED SHARE PLAN:

On February 15, 2001, the Company adopted a restricted share plan. The
restricted share plan provides that restricted share rights may be granted to
employees, officers, directors and consultants of the Company. A restricted
share right is exercisable into one common share entitling the holder to acquire
the common share for no additional consideration. Restricted share rights vest
over a three year period. The remaining maximum number of common shares issuable
under the restricted share plan is currently 75,660. As at December 31, 2003,
the Company had 196,007 restricted share rights outstanding. Compensation
expense is recorded over the vesting period.

DEFERRED SHARE UNIT PLAN:

On October 1, 2003, the Company adopted of a Deferred Share Unit ("DSU") Plan
for its outside directors. The DSU plan provides that each outside director
receives, on the date in each quarter which is two business days following the
publication by the Company of its earnings results for the previous quarter, (or
year in the case of the first quarter), that number of DSU's having a value
equal to 50% of the compensation of the outside director for the current
quarter. The number of DSU's granted to an outside director is based on the
closing price of the Company's common shares on the Toronto Stock Exchange on
the business day immediately preceding the date of grant. At such time as an
outside director ceases to be a director, the Company will make a cash payment
to the outside director, equal to the market value of a Kinross common share on
the date of departure, multiplied by the number of DSU's held on that date. As
at December 31, 2003, the Company had 8,874 DSU's outstanding. Compensation
expense is recorded upon issuance of units.

STOCK OPTION PLAN:

The Company has a stock option plan for directors, officers and employees,
enabling them to purchase common shares. The total number of options outstanding
at any time cannot exceed 10% of the total number of outstanding common shares.
Each option granted under the plan is for a maximum term of five years and
options granted before July 20, 2000 are exercisable as to 33.33% each year,
commencing one year after the date of grant. Options granted from July 20, 2000
to September 19,


                                     F-B29
<PAGE>

2001 are exercisable 50% immediately and 50% on or after the first anniversary
date of such grant. Options granted to the Chairman, President and Directors,
subsequent to September 19, 2001 are exercisable as to 33.33% each year
commencing one year after the date of grant. Options granted to all other
officers and employees, subsequent to September 19, 2001, are exercisable as to
50% each year commencing one year after the date of grant. Effective November
24, 2003, all options granted pursuant to the plan are exercisable as to 33.33%
each year commencing one year after the date of grant. The exercise price is
determined by the Company's Board of Directors at the time the option is
granted, subject to regulatory approval and may not be less than the closing
market price of the common shares on the last trading day prior to the grant of
the option. The stock options outstanding at December 31, 2003 expire at various
dates to November 24, 2008. As at December 31, 2003, 0.3 million common shares,
in addition to those outstanding at year-end, were available for granting of
options.

A summary of the status of the stock option plan as at December 31, 2003, 2002,
and 2001, and changes during the years ended on those dates, is as follows:

<TABLE>
<CAPTION>
==============================================================================================
                                                              2003         2002        2001
---------------------------------------------------------------------- ------------ ----------
                                                           (millions)   (millions)  (millions)

<S>                                                            <C>          <C>         <C>
Outstanding at beginning of year                               3.3          4.0         3.8
Assumed on acquisition of TVX and Echo Bay                     2.1            -           -
Exercised                                                     (1.8)        (0.1)          -
Granted                                                        0.7          0.5         0.5
Cancelled                                                     (0.9)        (1.1)       (0.3)
---------------------------------------------------------------------- ------------ ----------
Outstanding at end of year                                     3.4          3.3         4.0
====================================================================== ============ ==========
</TABLE>

The following table summarizes information about the stock options outstanding
at December 31, 2003 (all per share amounts in Canadian dollars):

<TABLE>
<CAPTION>
=========================================================================================== ============================
                                                              Options outstanding                Options exercisable
------------------------------------------------------------------------------------------- ----------------------------
                                                     NUMBER                                         NUMBER
                                                OUTSTANDING           WEIGHTED                 EXERCISABLE
                                                      AS AT            AVERAGE     WEIGHTED          AS AT     WEIGHTED
                                               DECEMBER 31,          REMAINING      AVERAGE   DECEMBER 31,      AVERAGE
                                                       2003        CONTRACTUAL     EXERCISE           2003     EXERCISE
Range of exercise prices                            (000'S)               LIFE        PRICE        (000'S)        PRICE
---------------------------------------------------------- ------------------- ------------ -------------- -------------
<S>                                                  <C>     <C>                  <C>                <C>       <C>
$2.43 - $9.00                                        2,158    1 year, 274 days    $    5.81          2,155     $   5.81
$9.01 - $12.00                                         697   4 years, 277 days    $   10.77            264     $   10.77
$12.01 - $113.24                                       596   3 years, 142 days    $   48.12            596     $   48.12
---------------------------------------------------------- ------------------- ------------ -------------- -------------
                                                     3,451                                           3,015
========================================================== =================== ============ ============== =============
</TABLE>

Effective January 1, 2002, the Company adopted the recommendations of the CICA
for stock-based compensation and other stock-based payments. This recommendation
establishes standards for the recognition, measurement and disclosure of
stock-based compensation and other stock-based payments made in exchange for
goods and services. The standard requires that all stock-based awards made to
non-employees be measured and recognized using a fair value based method. The
standard encourages the use of a fair value based method for all awards granted
to employees, but only requires the use of a fair value based method for direct
awards of stock, stock appreciation rights, and awards that call for settlement
in cash or other assets. Awards that the Company has the ability to settle in
stock are recorded as equity, whereas awards that the Company is required to or
has a practice of settling in cash are recorded as liabilities.

Applying the fair value based method encouraged under CICA Handbook Section
3870, "Stock-based Compensation and Other Stock-based Payments", the Company's
pro forma net earnings (loss) and earnings (loss) per share would be as follows:

<TABLE>
<CAPTION>
===================================================================================================================
                                                                                     Years Ended December 31,
-------------------------------------------------------------------------------------------------------------------
                                                                                 2003         2002         2001
---------------------------------------------------------------------------------------- ------------- ------------
<S>                                                                          <C>          <C>           <C>
Net earnings (loss) applicable to common shares
    As reported                                                              $     19.7   $    (38.2)   $    (44.0)
    Less: Stock compensation cost                                                  (1.1)        (2.0)         (1.1)
---------------------------------------------------------------------------------------- ------------- ------------
    Pro forma                                                                $     18.6   $    (40.2)   $    (45.1)
---------------------------------------------------------------------------------------- ------------- ------------
Earnings (loss) per share, basic and diluted (dollars)
    As reported                                                              $     0.06   $    (0.32)   $    (0.42)
    Pro forma                                                                $     0.06   $    (0.34)   $    (0.43)
======================================================================================== ============= ============
</TABLE>


                                     F-B30
<PAGE>

The weighted average fair value of options granted in 2003, 2002 and 2001 was
$4.53, $4.00 and $2.20 per share, respectively. The fair value of each option
grant is estimated on the date of grant using the Black-Scholes option-pricing
model with the following weighted-average assumptions used for grants in 2003,
2002 and 2001: dividend yield of 0%; expected volatility of 70%, 70% and 61%
respectively; risk-free interest rates varying from 2.9% to 3.2%; and an
expected life of five years.

EARNINGS PER SHARE

Basic earnings (loss) per common share has been calculated using the weighted
average number of common shares outstanding during the year. The 1.0 million
share difference between the 308.6 million basic weighted average common shares
outstanding and the 309.6 million diluted weighted average common shares
outstanding at December 31, 2003, is due to the assumed conversion of 2.2
million employee stock options in accordance with the treasury method.
Approximately 1.2 million employee stock options with exercise prices greater
than the closing price at December 31, 2003 and 1.1 million and 0.3 million
shares that could be issued upon conversion of the redeemable retractable
preferred shares and the convertible preferred shares of subsidiary company,
respectively, were excluded from the December 31, 2003 diluted weighted average
common shares because the effect would have been anti-dilutive. As the Company
reported a loss for the years ended December 31, 2002 and 2001, basic and
diluted weighted average common shares outstanding are the same.

17. ASSET WRITE-DOWNS AND NON-CASH CHARGES

The Company annually reviews the carrying values of its portfolio of investments
and mining development and reclamation properties, including estimated costs for
closure. Through this process the Company determined that certain asset values
had become impaired and certain site restoration cost accruals were
under-accrued. Assets identified as impaired were written down to their
estimated recoverable amounts while accruals were made for certain site
restoration costs.

The components of the asset write-downs and other non-cash charges are as
follows:

<TABLE>
<CAPTION>
======================================================================== =========== ============
                                                                 2003        2002        2001
------------------------------------------------------------------------ ----------- ------------
<S>                                                            <C>         <C>         <C>
Blanket mine-- producing mine                                  $      -    $      -    $   11.8
E-Crete - aerated concrete producer                                 5.2           -           -
Delamar property-- reclamation project                              2.0         5.7         4.3
Haile property-- reclamation project                                0.8         0.6           -
Sleeper property-- reclamation project                                -         0.3           -
Q.R. property-- reclamation project                                   -         1.1           -
Loan receivable from joint venture partner                          1.2           -           -
Marketable securities                                               0.2         0.1           -
Long-term investments                                               0.5         0.1           -
------------------------------------------------------------------------ ----------- ------------
                                                               $    9.9    $    7.9    $   16.1
======================================================================== =========== ============
</TABLE>

In the fourth quarter of 2003, following a comprehensive review of its
investments and properties on the basis set out in Note 1, the Company
determined that the net recoverable amount of its investment in E-Crete, a
producer of aerated concrete located in Phoenix, Arizona, was less than net book
value. Accordingly, the Company recorded a $5.2 million write-down. In addition,
the Company determined that a loan receivable from a joint venture partner was
not collectible and that the liabilities previously accrued to reclaim certain
closure properties were insufficient and required a further $2.8 million
accrual. The 2003 fourth quarter review was performed using a gold price
assumption of $350 per ounce.

In the fourth quarter of 2002, following a comprehensive review of its mining
properties on the basis set out in Note 1, the Company determined that the
liabilities previously accrued to reclaim certain closure properties were
insufficient and required a further $7.7 million accrual. These adjustments were
required due to new and more stringent regulatory requirements for mine
closures. The 2002 fourth quarter review was performed using a gold price
assumption of $325 per ounce.

In the fourth quarter of 2001, following a comprehensive review of its mining
properties on the basis set out in Note 1, the Company determined that the
estimated cost to reclaim the DeLamar property was insufficient and required a
further $4.3 million accrual. This adjustment was required due to a reassessment
of the amount of water to be reclaimed from this site. In


                                     F-B31
<PAGE>

addition, as a result of the extreme inflationary pressures in Zimbabwe,
difficulty in accessing foreign currency to pay for imported goods and services
and the then current civil unrest, the Company recorded a write-down of the
carrying value of the Blanket mine by $11.8 million (including cash of $1.5
million). Furthermore, the political situation in Zimbabwe and the related
social and economic instability have prevented the Company from continuing to
exercise control of its subsidiary in Zimbabwe, which operates the Blanket mine.
Consequently, due to the imposition of severe foreign exchange and currency
export restrictions and the uncertainty as to whether the Zimbabwean subsidiary
had the ability to distribute its earnings, the Company discontinued the
consolidation of the Zimbabwean subsidiary effective December 31, 2001. The
investment in the subsidiary is nil following the write-down of the Blanket mine
described above. The 2001 fourth quarter review was performed using a gold price
assumption of $300 per ounce.

18. INCOME AND MINING TAXES

(a) The provision for (recovery of) income and mining taxes is as follows:

<TABLE>
<CAPTION>
======================================================================== =========== ============
                                                                 2003        2002        2001
------------------------------------------------------------------------ ----------- ------------
<S>                                                            <C>         <C>         <C>
Income taxes
    Current
       Canada (i)                                              $    0.6    $    0.3    $    0.2
       Foreign                                                     16.2         6.2         2.7
    Future
       Canada                                                      (0.7)          -           -
       Foreign                                                     (3.2)          -           -
Mining taxes
    Current-- Canada                                                  -           -           -
    Future-- Canada                                                 0.2           -           -
------------------------------------------------------------------------ ----------- ------------
                                                               $   13.1    $    6.5    $    2.9
======================================================================== =========== ============
    (i) Represents Large Corporations Tax.
</TABLE>

<PAGE>

(b) The reconciliation of the combined Canadian federal and provincial statutory
    income tax rate to the effective tax rate is as follows:

<TABLE>
<CAPTION>

======================================================================== =========== ============
                                                                 2003        2002        2001
------------------------------------------------------------------------ ----------- ------------
<S>                                                            <C>         <C>         <C>
Combined statutory income tax rate                               39.1%      (40.1)%     (41.1)%
Increase (decrease) resulting from:
    Mining taxes                                                 (2.1)          -           -
    Resource allowance and depletion                            (10.9)       (3.7)       (3.3)
    Difference in foreign tax rates                              (9.7)       (7.0)       11.3
    Benefit of losses not recognized                             35.8        78.5        43.6
    Other                                                         2.8         1.4         0.6
------------------------------------------------------------------------ ----------- ------------
Effective tax rate                                               55.0%       29.1%       11.1%
======================================================================== =========== ============
</TABLE>

(c) At December 31, 2003, the Company has Canadian losses carried forward of
    approximately $143.5 million that expire in 2006 through 2010, including
    approximately $97.8 million that are limited in their deduction to income
    from specific operations.

(d) At December 31, 2003, the Company has U.S. net operating loss carryforwards
    of approximately $683.6 million and alternative minimum tax net operating
    losses of approximately $390.3 million expiring in 2004 through 2023. The
    use of the U.S. loss carryforwards will be limited in any given year as a
    result of previous changes in ownership of the Company.

(e) At December 31, 2003, the Company has Chilean net operating loss
    carryforwards of approximately $159.0 million that do not expire.

(f) At December 31, 2003, the Company has Brazilian net operating loss
    carryforwards of approximately $4.4 million that do not expire.


                                     F-B32
<PAGE>

(g) At December 31, 2003, the Company has Australian net operating loss
    carryforwards of approximately $11.3 million that do not expire.

(h) The following information summarizes the principal temporary differences and
    the related future tax effect:

<TABLE>
<CAPTION>
======================================================================== ===============
                                                               2003           2002
------------------------------------------------------------------------ ---------------
<S>                                                        <C>            <C>
Future tax assets
    Accrued expenses and other                             $       10.9   $        4.2
    Site restoration cost accruals                                 26.5            9.3
    Alternative minimum tax credits                                10.4            8.0
    Non-capital loss carryforwards                                324.2          127.0
    Inventory capitalization                                        0.4            0.2
    Property, plant and equipment                                 153.7           39.6
------------------------------------------------------------------------ ---------------
    Gross future tax assets                                       526.1          188.3
    Valuation allowance                                          (465.9)        (129.3)
------------------------------------------------------------------------ ---------------
                                                                   60.2           59.0
------------------------------------------------------------------------ ---------------
Future tax liabilities
    Property, plant and equipment                                 114.3           62.3
------------------------------------------------------------------------ ---------------
    Gross future tax liabilities                                  114.3           62.3
------------------------------------------------------------------------ ---------------
Net future tax liabilities                                 $       54.1   $        3.3
======================================================================== ===============
</TABLE>

19. SEGMENTED INFORMATION

Kinross operates primarily in the gold mining industry. Its activities include
gold production, exploration for gold and the acquisition of gold properties.
The Company's primary mining operations are in North America, South America and
Russia and are supported by two corporate offices, one in Canada and the other
in the United States. The Company's major product is gold. The Company has only
one segment, E-Crete, which is a non-gold investment and therefore shown as a
separate segment. Reportable segments are identified as those individual mine
sites having over 10% of total revenues, earnings (loss) or assets of the
Company. Operations not meeting these thresholds are included in corporate and
other. Segment earnings (loss) do not include general and administrative
expenses or other revenues and expenses of a corporate nature.

The exploration and acquisitions segment is responsible for all activities
involved in the exploration for gold bearing properties, regardless of location
and has the responsibility for additions to the proven and probable reserves of
the Company. In addition, this segment is responsible for the addition of proven
and probable reserves through acquisitions and subsequent exploration of those
acquired properties.


                                     F-B33
<PAGE>

As at December 31, 2003 and for the year ended December 31, 2003:
<TABLE>
<CAPTION>
====================================================================================================================================
                                                                                              Asset
                                                             Depreciation,              write-downs
                                                                 depletion                      and   Segment
                               Ownership   Mining  Operating           and                 non-cash  earnings   Segment      Capital
                     Location   interest  revenue      costs  amortization  Exploration     charges    (loss)    assets expenditures
------------------------------------------------------------------------------------------------------------------------------------
<S>                   <C>         <C>      <C>         <C>          <C>           <C>          <C>     <C>     <C>             <C>
Operated by Kinross                                                                                     (a)
    Fort Knox         Alaska      100.0%   $136.3      $92.9        $ 35.9        $ -          $ -     $  7.5  $  261.2        $26.5
    Kubaka (e)        Russia       98.1%     60.7       30.6          16.7          -            -       13.4      73.3          1.7
    Round Mountain    Nevada       50.0%    131.9       76.7          33.7          -            -       21.5     138.4          5.7
Joint Venture
participant
    La Coipa           Chile       50.0%     51.5       34.9           8.9          -            -        7.7      54.0          0.5
    Crixas            Brazil       50.0%     31.9       10.5           9.1          -            -       12.3      54.2          3.2
    Paracatu          Brazil       49.0%     32.0       19.9           5.7          -            -        6.4     141.0          5.2
    Musselwhite       Ontario      31.9%     22.5       16.5           6.5          -            -       (0.5)     80.4          2.7
    Porcupine Joint
    Venture           Ontario      49.0%     83.0       53.4          24.1          -            -        5.5      81.1          8.3
Other
    E - Crete         Arizona      90.0%     -           2.4           0.5          -           5.2      (8.1)      2.0          -
    Exploration and
    acquisitions                  100.0%     -            -            -           24.3          -      (24.3) (f)908.4          -
    Corporate and
    other (c)                                22.1       49.5          (0.2)         -           4.7     (31.9) (b)348.5         19.6
------------------------------------------------------------------------------------------------------------------------------------
Total                                      $571.9     $387.3        $140.9        $24.3        $9.9    $  9.5  $2,142.5        $73.4
====================================================================================================================================
</TABLE>

As at December 31, 2002 and for the year ended December 31, 2002:
<TABLE>
<CAPTION>
====================================================================================================================================
                                                                                              Asset
                                                             Depreciation,              write-downs
                                                                 depletion                      and   Segment
                               Ownership   Mining  Operating           and                 non-cash  earnings   Segment      Capital
                     Location   interest  revenue      costs  amortization  Exploration     charges    (loss)    assets expenditures
------------------------------------------------------------------------------------------------------------------------------------
<S>                   <C>         <C>      <C>         <C>           <C>          <C>          <C>     <C>     <C>             <C>
Operated by Kinross                                                                                     (a)
    Fort Knox         Alaska      100.0%   $131.6      $99.2         $54.9        $ -          $ -     $(22.5) $  264.4        $15.0
    Kubaka (e)        Russia       54.7%     69.2       28.6          20.1          -            -       20.5      64.4          0.1
Joint Venture
participant
    Porcupine Joint
    Venture (d)       Ontario      49.0%     58.2       38.6          16.4          -            -        3.2      83.1          6.7
Other
    E - Crete         Arizona      88.8%      -          3.2           1.1          -            -       (4.3)      8.3          0.3
    Exploration and
    acquisitions                  100.0%      -           -              -         11.6          -      (11.6)     -             -
    Corporate and
    other (c)                                 2.0        5.2          (7.2)         -           7.9      (3.9) (b)177.8          0.5
------------------------------------------------------------------------------------------------------------------------------------
Total                                      $261.0     $174.8         $85.3        $11.6        $7.9    $(18.6)   $598.0        $22.6
====================================================================================================================================
</TABLE>

As at December 31, 2001 and for the year ended December 31, 2001:
<TABLE>
<CAPTION>
====================================================================================================================================
                                                                                              Asset
                                                             Depreciation,              write-downs
                                                                 depletion                      and   Segment
                               Ownership   Mining  Operating           and                 non-cash  earnings   Segment      Capital
                     Location   interest  revenue      costs  amortization  Exploration     charges    (loss)    assets expenditures
------------------------------------------------------------------------------------------------------------------------------------
<S>                   <C>         <C>      <C>        <C>            <C>           <C>          <C>     <C>     <C>            <C>
Operated by Kinross                                                                                     (a)
    Fort Knox          Alaska     100.0%   $109.0     $ 82.9         $42.9         $ -        $  -     $(16.8)  $ 324.3        $20.2
    Kubaka             Russia      54.7%     67.8       34.1          24.0           -           -        9.7      70.3          0.4
    Hoyle Pond
    mine (d)          Ontario     100.0%     41.7       29.1          13.2           -           -       (0.6)     86.6          7.9
Other
    E - Crete         Arizona      85.9%      -          2.6           1.1           -           -       (3.7)      8.5          0.1
Exploration and
acquisitions                      100.0%      -          -             -            7.9          -       (7.9)      -            -
    Corporate and
    other (c)                                51.6       32.0           4.6           -         16.1      (1.1)  (b)87.9          1.8
------------------------------------------------------------------------------------------------------------------------------------
Total                                      $270.1     $180.7         $85.8         $7.9       $16.1    $(20.4)  $ 577.6        $30.4
====================================================================================================================================
</TABLE>


                                     F-B34
<PAGE>

(a)  Segment earnings (loss) includes asset write-downs and other non-cash
     charges.
(b)  Includes $191.9 million (2002 - $155.4 million, 2001 - $64.4 million) in
     cash and cash equivalents held at the Corporate level.
(c)  Includes Corporate and other non-core mining operations.
(d)  2002 amounts include 100% of the Hoyle Pond mine from January 1 to June 30
     and the 49% interest in the Porcupine Joint Venture from July 1 to December
     31. 2001 amounts include 100% of the Hoyle Pond mine.
(e)  2003 amounts include 54.7% of Kubaka mine results to February 28, 100%
     thereafter.
(f)  Segment assets represent goodwill of $908.4 million allocated to the
     Exploration and acquisition segment with the remainder of $9.6 million of
     goodwill allocated to Corporate and other.

Reconciliation of reportable operating segment earnings (loss) to net earnings
(loss) for the year:

<TABLE>
<CAPTION>
                                                                                  2003                  2002                 2001
====================================================================================================================================
<S>                                                                              <C>                  <C>                    <C>
Segment earnings (loss)                                                          $ 41.4               $(14.7)                $(19.3)
Add (deduct) items not included in segment earnings (loss):
    Corporate and other                                                           (31.9)                (3.9)                  (1.1)
------------------------------------------------------------------------------------------------------------------------------------
                                                                                    9.5                (18.6)                 (20.4)
Interest and other income                                                          12.3                 16.9                    9.3
Mark-to-market gain (loss) on call options                                          0.4                 (2.7)                   3.5
General and administrative                                                        (25.0)               (11.3)                 (10.1)
Gain on sale of assets                                                             29.5                  2.7                    1.2
Foreign exchange                                                                    3.3                 (4.3)                  (0.5)
Interest expense on long-term liabilities                                          (5.1)                (5.0)                  (9.1)
Minority interest                                                                  (0.2)                -                       -
Loss on redemption of convertible debentures                                       (1.1)                -                       -
Share in loss of investee companies                                                -                    (0.6)                  (2.2)
Provision for income taxes                                                        (13.1)                (6.5)                  (2.9)
Dividends on convertible preferred shares of subsidiary company                    (0.8)                (1.5)                  (5.1)
------------------------------------------------------------------------------------------------------------------------------------
Net earnings (loss) for the year                                                 $  9.7               $(30.9)                $(36.3)
====================================================================================================================================
</TABLE>

Enterprise wide disclosure:
Geographic information:

<TABLE>
<CAPTION>
====================================================================================================================================
                                                                                      Property, plant,                Mineral
                                                Mining revenue                         and equipment                 Interests
------------------------------------------------------------------------------------------------------------------------------------
                                       2003          2002           2001            2003           2002         2003            2002
------------------------------------------------------------------------------------------------------------------------------------
<S>                                   <C>           <C>            <C>             <C>            <C>           <C>             <C>
United States                         $268.2        $128.0         $123.3          $296.0         $234.7         $61.4          $ -
Canada                                 127.6          59.5           47.0           110.9           78.9          59.3            -
Russia                                  60.7          69.2           67.8            10.3           11.2           -              -
Chile                                   51.5           4.3           18.7            39.3            -             4.4            -
Brazil                                  63.9           -              -              60.9            -           135.0            -
Other                                    -             -             13.3             5.2            5.2           -              -
------------------------------------------------------------------------------------------------------------------------------------
Total                                 $571.9        $261.0         $270.1          $522.6         $330.0        $260.1          $ -
====================================================================================================================================
</TABLE>

The Company is not economically dependent on a limited number of customers for
the sale of its product because gold can be sold through numerous commodity
market traders worldwide. In 2003, sales to five customers totaled $127.4
million, $118.9 million, $96.2 million, $46.8 million and $43.3 million,
respectively. In 2002, sales to five customers totaled $52.1 million, $41.3
million, $35.7 million, $34.1 million and $27.4 million, respectively. In 2001,
sales to four customers totaled $46.5 million, $43.3 million, $32.0 million, and
$26.8 million, respectively.


                                     F-B35
<PAGE>

20. Employee pension and post-retirement pension plans

Defined contribution pension and retirement plans:

The Company has several defined contribution pension and retirement plans
covering substantially all employees in North America and certain foreign
countries. Under these plans, the Company either contributes a set percentage of
the employee's salary or matches a percentage of the employee's contributions.
The employees are able to direct the contributions into a variety of investment
funds offered by the plans. The Company's contribution to these plans were $3.9
million in 2003, $2.0 million in 2002, and $2.1 million in 2001, respectively.

Defined benefit pension plans:

In Canada, the Company has a defined benefit pension plan covering the former
employees of the Macassa mine. The plan is currently in the process of being
wound up effective November 30, 2001. The Financial Services Commission of
Ontario approved the wind-up report early in 2003 and benefits were partially
settled in 2003. Full settlement of benefits is expected to occur in early 2004.
An additional contribution may be necessary in 2004 to allow all benefits to be
settled and to permit an annuity purchase.

In the United States, defined benefit plans cover former employees of the
Candelaria and DeLamar mines, and certain U.S. employees of the mines previously
owned by Kinam. Prior to the Kinam acquisition, all employees in the U.S.
employed by Kinam were covered by a non-contributory defined benefit pension
plan. That plan was frozen on June 1,1998, and all active employees were
transferred into the Company's defined contribution pension plan. Benefits under
these plans are based on either the employees' compensation prior to retirement
or stated amounts for each year of service with the Company. The Company makes
annual contributions to the U.S. plans in accordance with the requirements of
the Employee Retirement Income Security Act of 1974 (ERISA).

Other benefit plans:

The Company provides certain health care benefits to retired employees in the
United States. The retiree plan covers the former employees of the Candelaria
and DeLamar mines as well as former Kinam employees. Following the acquisition
of the Candelaria and DeLamar mines in August 1993, that retiree plan was frozen
and employees who retired after August 1993, were not eligible to participate in
the plan. Following the merger with Kinam in June 1998 that retiree plan was
also frozen and employees who retired after June 1998, were not eligible to
participate in the plan, absent special circumstances. The post-retirement
health plans are contributory in certain cases based upon years of service, age,
and retirement date. The Company does not fund post-retirement benefits other
than pensions and may modify the plan provisions at its discretion.

The following tables summarize the change in benefit obligations and fair value
of assets as at December 31:

<TABLE>
<CAPTION>
====================================================================================================================================
                                                                                Defined benefit pension plans      Other benefits
------------------------------------------------------------------------------------------------------------------------------------
                                                                                      2003         2002            2003        2002
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                  <C>           <C>             <C>         <C>
Change in benefit obligation
    Benefit obligation, beginning of year                                            $10.9         $11.6           $3.1        $2.9
    Service costs                                                                       -            0.1             -           -
    Interest costs                                                                     0.7           0.8            0.2         0.2
    Plan participants' contributions                                                    -             -             0.1         0.1
    Amendments                                                                        (0.3)           -              -           -
    Actuarial loss (gain)                                                              1.2           1.7           (0.1)        0.2
    Acquisition                                                                          -             -              -          -
    Benefits paid                                                                     (0.4)         (3.3)          (0.4)       (0.4)
------------------------------------------------------------------------------------------------------------------------------------
    Benefit obligation, end of year                                                  $12.1         $10.9           $2.9        $3.0
====================================================================================================================================
</TABLE>

                                     F-B36
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
                                                                                Defined benefit pension plans      Other benefits
------------------------------------------------------------------------------------------------------------------------------------
                                                                                      2003         2002            2003        2002
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                  <C>           <C>             <C>         <C>
Change in plan assets
    Fair value of plan assets, beginning of year                                     $ 9.6         $10.3           $ -         $ -
    Actual return on plan assets                                                       0.9           1.2             -           -
    Acquisition                                                                         -             -              -           -
    Employer contributions                                                             0.4           1.7            0.3         0.2
    Plan participant contributions                                                      -             -             0.1         0.1
    Foreign currency exchange loss                                                      -           (0.3)            -           -
    Benefits paid                                                                     (0.4)         (3.3)          (0.4)       (0.3)
------------------------------------------------------------------------------------------------------------------------------------
    Fair value of plan assets, end of year                                           $10.5         $ 9.6           $ -         $ -
====================================================================================================================================
    Funded status                                                                    $(1.6)        $(1.3)         $(2.9)      $(3.0)
    Unrecognized net actuarial loss                                                    2.6           1.7            0.3         0.3
    Unrecognized prior service cost                                                     -             -              -           -
------------------------------------------------------------------------------------------------------------------------------------
    Net amount recognized                                                            $ 1.0         $ 0.4          $(2.6)      $(2.7)
====================================================================================================================================
</TABLE>

The following table summarizes components of net periodic pension cost for the
fiscal years indicated:

<TABLE>
<CAPTION>
====================================================================================================================================
                                                          Defined benefit pension plans                   Other benefits
------------------------------------------------------------------------------------------------------------------------------------
                                                        2003           2002         2001          2003          2002          2001
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                    <C>           <C>           <C>             <C>          <C>            <C>

Service cost                                           $  -          $  0.1        $ 0.1           $ -          $ -            $ -
Interest cost                                            0.7            0.8          0.7            0.2          0.2            0.2
Expected return on plan assets                          (0.8)          (0.9)        (0.8)            -            -              -
Amortization of prior service costs                       -              -            -              -            -              -
Amortization of net loss                                 0.1            0.8           -              -            -              -
------------------------------------------------------------------------------------------------------------------------------------
Net periodic cost                                      $  -           $ 0.8        $  -            $0.2         $0.2  $        0.2
====================================================================================================================================
</TABLE>

The following table summarizes the assumptions used in measuring the Company's
benefit obligation:

<TABLE>
<CAPTION>
====================================================================================================================================
                                                                                Defined benefit pension plans      Other benefits
------------------------------------------------------------------------------------------------------------------------------------
                                                                                      2003         2002            2003        2002
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                  <C>           <C>             <C>         <C>
Discount rate                                                                        6.00%         6.50%           6.00%       6.50%
Expected long-term return on plan assets                                             6.00%         7.50%           6.00%       7.50%
Rate of compensation increase                                                         n\a           n\a             n\a        n\a
====================================================================================================================================
</TABLE>

The expected long-term rate of return on assets was determined using a weighted
average calculation for the various investments of the plans. For 2003, the
expected yield on bonds, based on the Moodys AA year end rate, was 5.5%. Based
on current short-term investment rates, the yield on cash investments was 2%.
For equities, based on current forecasts and the plans' historical return on
equities, the rate was set at 7.5%.

The following table summarizes the assumed health care trend rates at December
31:

<TABLE>
<CAPTION>
====================================================================================================================================
                                                                                            2003                          2002
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                         <C>                           <C>
Health care cost trend rate assumed for next year                                           9.95%                         10.3%
Rate to which the cost trend rate is assumed to decline
   (Ultimate trend rate)                                                                     5.5%                          5.5%
Year that the rate reaches the ultimate trend rate                                          2016                          2016
====================================================================================================================================
</TABLE>

The assumed health care cost trend rates can have a significant effect on the
amounts reported for the health care plans:

<TABLE>
<CAPTION>
====================================================================================================================================
                                                                                         1 Percentage-               1 Percentage-
                                                                                        Point Increase              Point Decrease
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                            <C>                           <C>
(in thousands of dollars)
Effect on total of service and interest cost                                                   30                            (8)
Effect on post-retirement benefit obligation                                                  331                          (283)
====================================================================================================================================
</TABLE>


                                     F-B37
<PAGE>

Plan Assets

The following table summarizes the defined benefit plan asset weighted-average
asset allocation percentages by asset category:

<TABLE>
<CAPTION>
====================================================================================================================================
Asset category                                                                                         2003                2002
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                                     <C>                <C>
Equities                                                                                                22%                10%
Fixed Income                                                                                            73%                86%
Cash                                                                                                     5%                 4%
Other                                                                                                    -                  -
====================================================================================================================================
</TABLE>

The allocation of plan assets is set forth in the Investment Policy Statement.
The investment policy statement delegates authority to the Employee Benefits
Committee to maintain and establish investment policies relating to the defined
benefit and defined contribution pension plans. These policies and any changes
to these policies are approved by the Kinross Board of Directors. The Company
has adopted the following standards for the Employee Benefits Committee to
follow when deciding how to invest the plan assets.

Assets shall be invested:

(a)  in the sole interest of the plan participants and beneficiaries;
(b)  with the care, skill, prudence and diligence under the circumstances then
     prevailing that a prudent person acting in like capacity and familiar with
     such matters would use in the conduct of an enterprise of a like character
     and of like aims in compliance with Section 404(A) of ERISA, and other
     applicable provisions of ERISA; and
(c)  by diversifying the investments so as to minimize the risk of large losses
     as well as provide a reasonable rate of return on the assets.

The following table summarizes the target asset allocation as of December 31,
2003:

<TABLE>
<CAPTION>
================================================================================
Asset category                                                          2003
--------------------------------------------------------------------------------
<S>                                                                   <C>
Equities                                                              25 - 45%
Fixed Income                                                          60 - 70%
Cash                                                                   5 - 15%
Other                                                                  0 - 15%
================================================================================
</TABLE>

Contributions

The Company expects to contribute $0.2 million to its defined benefit pension
plans and $0.2 million to its post-retirement benefit plans in 2004.

Estimated future benefit payments


                                     F-B38
<PAGE>

The following table summarizes the expected future benefit payments by the years
indicated:

<TABLE>
<CAPTION>
================================================================================
(in thousands of dollars)                    Defined benefit         Other
                                              Pension plan          Benefits
--------------------------------------------------------------------------------
<C>                                              <C>                 <C>
2004                                               240                 189
2005                                               183                 187
2006                                               340                 188
2007                                               493                 187
2008                                               457                 191
2009-2013                                        3,545               1,015
================================================================================
</TABLE>

Post-employment benefits

The Company has a number of post-employment plans covering severance and
disability income. At December 31,2003 and 2002 the Company's liability for
post-employment benefits totaled $1.5 million and $1.4 million, respectively.

21. Operating leases

The Company has a number of operating lease agreements primarily involving
office space. The operating leases for equipment provide that the Company may,
after the initial lease term, renew the lease for successive yearly periods or
may purchase the equipment at its fair market value. One of the operating leases
for office facilities contains escalation clauses for increases in operating
costs and property taxes. The majority of the leases are cancelable and are
renewable on a yearly basis. Future minimum lease payments required to meet
obligations that have initial or remaining non-cancelable lease terms in excess
of one year as of December 31, 2003 are as follows:

<TABLE>
<CAPTION>
================================================================================
Years                                                    Minimum Lease Payments
--------------------------------------------------------------------------------
<C>                                                               <C>
2004                                                              $3.0
2005                                                               3.0
2006                                                               2.6
2007                                                               0.7
--------------------------------------------------------------------------------
                                                                  $9.3
================================================================================
</TABLE>

Rent expense was $3.1 million, $0.5 million and $0.6 million in 2003, 2002 and
2001, respectively.

22. Differences between Canadian and United States generally accepted accounting
principles

The consolidated financial statements have been prepared in accordance with
Canadian generally accepted accounting principles ("CDN GAAP") which differ from
those principles that the Company would have followed had its consolidated
financial statements been prepared in accordance with generally accepted
accounting principles in the United States ("U.S. GAAP").

Material variations between financial statement items under CDN GAAP and the
amounts determined using U.S. GAAP are as follows:


                                     F-B39
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
CONSOLIDATED BALANCE SHEET As at December 31, 2003                      Recognition      Elimination  Property, plant
                                                                        of deferred    of effects of    and equipment
                                                                           exchange   recognition of   & amortization    Reversal of
                                                                   gains and losses equity component      differences       1991 and
                                                             Under   on convertible   of convertible    from applying   2003 deficit
                                                          CDN GAAP       debentures       debentures         SFAS 121   eliminations
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                       <C>             <C>                  <C>            <C>           <C>
Assets                                                                          (a)              (a)              (b)            (c)
    Current assets
    Cash and cash equivalents                             $  245.8        $ -               $    -            $   -         $    -
    Restricted cash                                            5.1          -                    -                -              -
    Accounts receivable and other assets                      42.1          -                    -                -              -
    Inventories                                              109.2          -                    -                -              -
    Marketable securities                                      0.1          -                    -                -              -
                                                             402.3          -                    -                -              -
    Property, plant and equipment                            522.6          -                    -             (28.2)            -
    Mineral interests                                        260.1          -                    -                -              -
    Goodwill                                                 918.0          -                    -                -              -
    Future income and mining taxes                             1.5          -                    -                -              -
    Long-term investments                                      2.1          -                    -                -              -
    Deferred charges and other long-term assets               35.9          -                    -                -              -
------------------------------------------------------------------------------------------------------------------------------------
                                                          $2,142.5        $ -               $    -            $(28.2)       $    -
====================================================================================================================================
Liabilities
    Current liabilities
    Accounts payable and accrued liabilities              $  101.4        $ -               $    -            $   -         $    -
    Current portion of long-term debt                         29.4          -                    -                -              -
    Current portion of site restoration cost accruals         19.2          -                    -                -              -
------------------------------------------------------------------------------------------------------------------------------------
                                                             150.0          -                    -                -              -
    Long-term debt                                             0.7          -                    -                -              -
    Site restoration cost accruals                           100.5          -                    -                -              -
    Future income and mining taxes                            55.6          -                    -                -              -
    Deferred revenue                                           2.2          -                    -                -              -
    Other long-term liabilities                                2.5          -                    -                -              -
    Redeemable retractable preferred shares                    3.0          -                    -                -              -
------------------------------------------------------------------------------------------------------------------------------------
                                                             314.5          -                    -                -              -
------------------------------------------------------------------------------------------------------------------------------------
    Non-controlling interest in subsidiary                     0.7          -                    -                -              -
------------------------------------------------------------------------------------------------------------------------------------
    Convertible preferred shares of subsidiary company        12.6          -                    -                -              -
------------------------------------------------------------------------------------------------------------------------------------
    Common shareholders' equity
    Common share capital and common share purchase
      warrants                                             1,783.5          -                    -                -           766.7
    Contributed surplus                                       30.0          -                    -                -              -
    Retained earnings (deficit)                                3.2          -                    -             (28.2)        (766.7)
    Cumulative translation adjustments                        (2.0)         -                    -                -              -
    Other comprehensive income (loss)                         -             -                    -                -              -
------------------------------------------------------------------------------------------------------------------------------------
                                                           1,814.7          -                    -             (28.2)            -
------------------------------------------------------------------------------------------------------------------------------------
                                                          $2,142.5        $ -               $    -            $(28.2)       $    -
====================================================================================================================================
CONSOLIDATED BALANCE SHEET As at December 31, 2002
Assets                                                                          (a)              (a)              (b)            (c)
    Current Assets
    Cash and cash equivalents                             $  170.6        $ -               $    -            $   -         $    -
    Restricted cash                                           21.1          -                    -                -              -
    Accounts receivable and other assets                      15.5          -                    -                -              -
    Inventories                                               38.9          -                    -                -              -
    Marketable securities                                      0.1          -                    -                -              -
------------------------------------------------------------------------------------------------------------------------------------
                                                             246.2          -                    -                -              -
    Property, plant and equipment                            330.0          -                    -             (34.5)            -
    Long-term investments                                     11.8          -                    -                -              -
    Deferred charges and other long-term assets               10.0          -                   0.8               -              -
------------------------------------------------------------------------------------------------------------------------------------
                                                          $  598.0        $ -               $   0.8           $(34.5)       $    -
====================================================================================================================================
Liabilities
    Current liabilities
    Accounts payable and accrued liabilities              $   35.5        $ -               $    -            $   -         $    -
    Current portion of long-term debt                         23.3          -                    -                -              -
    Current portion of site restoration cost
    accruals                                                  15.0          -                    -                -              -
------------------------------------------------------------------------------------------------------------------------------------
                                                              73.8          -                    -                -              -
    Long-term debt                                            12.9          -                    -                -              -
    Site restoration cost accruals                            42.0          -                    -                -              -
    Future income and mining taxes                             3.3          -                    -                -              -
    Deferred revenue                                           4.5          -                    -                -              -
    Other long-term liabilities                                5.5          -                    -                -              -
    Debt component of convertible debentures                  21.7          -                 102.1               -              -
    Redeemable retractable preferred shares                    2.5          -                    -                -              -
------------------------------------------------------------------------------------------------------------------------------------
                                                             166.2          -                 102.1               -              -
------------------------------------------------------------------------------------------------------------------------------------
    Convertible preferred shares of subsidiary
    company                                                   12.9          -                    -                -              -
------------------------------------------------------------------------------------------------------------------------------------
    Common shareholders' equity
    Common share capital and common share purchase
      warrants                                             1,058.5          -                    -                -             5.3
    Contributed surplus                                       12.9          -                    -                -              -
    Equity component of convertible debentures               132.3         (17.8)            (114.5)              -              -
    Deficit                                                 (761.4)         17.8               13.2            (34.5)          (5.3)
    Cumulative translation adjustments                       (23.4)         -                    -                -              -
    Other comprehensive income (loss)                         -             -                    -                -              -
------------------------------------------------------------------------------------------------------------------------------------
                                                             418.9          -                (101.3)           (34.5)            -
------------------------------------------------------------------------------------------------------------------------------------
                                                          $  598.0        $ -               $   0.8           $(34.5)       $    -
====================================================================================================================================
</TABLE>


                                     F-B40
<PAGE>
<TABLE>
<CAPTION>
============================================================================================================================
CONSOLIDATED BALANCE SHEET As at December 31, 2003
                                                                Gains                             Reclassi-
                                                        on marketable                           fication of
                                                           securities                   Flow     cumulative
                                                        and long-term   Effect of     through   translation   To adjust to
                                                          investments    SFAS 133      shares   adjustments   equity basis
----------------------------------------------------------------------------------------------------------------------------
<S>                                                              <C>       <C>          <C>           <C>            <C>
Assets                                                            (d)         (e)         (f)           (h)            (i)
    Current assets
    Cash and cash equivalents                                    $ -       $   -        $  -          $  -           $  -
    Restricted cash                                                -           -           -             -              -
    Accounts receivable and other assets                           -           -           -             -              -
    Inventories                                                    -           -           -             -              -
    Marketable securities                                         0.3          -           -             -              -
                                                                  0.3          -           -             -              -
    Property, plant and equipment                                  -           -           -             -              -
    Mineral interests                                              -           -           -             -              -
    Goodwill                                                       -           -           -             -              -
    Future income and mining taxes                                 -           -           -             -              -
    Long-term investments                                         6.9          -           -             -              -
    Deferred charges and other long-term assets                    -           -           -             -              -
----------------------------------------------------------------------------------------------------------------------------
                                                                 $7.2      $   -        $  -          $  -           $  -
============================================================================================================================
Liabilities
    Current liabilities
    Accounts payable and accrued liabilities                     $ -       $ 22.7       $  -          $  -           $  -
    Current portion of long-term debt                              -           -           -             -              -
    Current portion of site restoration cost accruals              -           -           -             -              -
----------------------------------------------------------------------------------------------------------------------------
                                                                   -         22.7          -             -              -
    Long-term debt                                                 -           -           -             -              -
    Site restoration cost accruals                                 -           -           -             -              -
    Future income and mining taxes                                 -           -           -             -              -
    Deferred revenue                                               -         (2.2)
    Other long-term liabilities                                    -           -           -             -              -
    Redeemable retractable preferred shares                        -           -           -             -              -
----------------------------------------------------------------------------------------------------------------------------
                                                                   -         20.5          -             -              -
----------------------------------------------------------------------------------------------------------------------------
    Non-controlling interest in subsidiary                         -           -           -             -              -
----------------------------------------------------------------------------------------------------------------------------
    Convertible preferred shares of subsidiary company             -           -           -             -              -
----------------------------------------------------------------------------------------------------------------------------
    Common shareholders' equity
    Common share capital and common share purchase
      warrants                                                     -           -         (1.1)           -              -
    Contributed surplus                                            -           -           -             -              -
    Retained earnings (deficit)                                    -         (1.4)        1.1            -              -
    Cumulative translation adjustments                             -           -           -            2.0             -
    Other comprehensive income (loss)                             7.2       (19.1)         -           (2.0)            -
----------------------------------------------------------------------------------------------------------------------------
                                                                  7.2       (20.5)         -             -              -
----------------------------------------------------------------------------------------------------------------------------
                                                                 $7.2      $   -        $  -          $  -           $  -
============================================================================================================================
CONSOLIDATED BALANCE SHEET As at December 31, 2002
Assets                                                            (d)         (e)         (f)           (h)            (i)
    Current Assets
    Cash and cash equivalents                                    $ -       $   -        $  -         $   -          $(29.4)
    Restricted cash                                                -           -           -             -              -
    Accounts receivable and other assets                           -           -           -             -             1.9
    Inventories                                                    -           -           -             -           (14.2)
    Marketable securities                                         0.1          -           -             -              -
----------------------------------------------------------------------------------------------------------------------------
                                                                  0.1          -           -             -           (41.7)
    Property, plant and equipment                                  -           -           -             -            (9.8)
    Long-term investments                                        77.8          -           -             -            45.9
    Deferred charges and other long-term assets                    -           -           -             -            (2.9)
----------------------------------------------------------------------------------------------------------------------------
                                                                $77.9      $   -        $  -         $   -          $ (8.5)
============================================================================================================================
Liabilities
    Current liabilities
    Accounts payable and accrued liabilities                     $ -       $ 21.1       $  -         $   -          $ (1.8)
    Current portion of long-term debt                              -           -           -             -            (2.6)
    Current portion of site restoration cost
    accruals                                                       -           -           -             -            (0.3)
----------------------------------------------------------------------------------------------------------------------------
                                                                   -         21.1          -             -            (4.7)
    Long-term debt                                                 -           -           -             -              -
    Site restoration cost accruals                                 -           -           -             -            (3.8)
    Future income and mining taxes                                 -           -           -             -              -
    Deferred revenue                                               -         (4.5)         -             -              -
    Other long-term liabilities                                    -           -           -             -              -
    Debt component of convertible debentures                       -           -           -             -              -
    Redeemable retractable preferred shares                        -           -           -             -              -
----------------------------------------------------------------------------------------------------------------------------
                                                                   -         16.6          -             -            (8.5)
----------------------------------------------------------------------------------------------------------------------------
    Convertible preferred shares of subsidiary
    company                                                        -           -           -             -              -
----------------------------------------------------------------------------------------------------------------------------
    Common shareholders' equity
    Common share capital and common share purchase
      warrants                                                     -           -         (1.1)           -              -
    Contributed surplus                                            -           -           -             -              -
    Equity component of convertible debentures                     -           -           -             -              -
    Deficit                                                      42.5        (1.9)        1.1            -              -
    Cumulative translation adjustments                             -           -           -           23.4             -
    Other comprehensive income (loss)                            35.4       (14.7)         -          (23.4)            -
----------------------------------------------------------------------------------------------------------------------------
                                                                 77.9       (16.6)         -             -              -
----------------------------------------------------------------------------------------------------------------------------
                                                                $77.9      $   -        $  -         $   -          $ (8.5)
============================================================================================================================
</TABLE>

                                     F-B41
<PAGE>
<TABLE>
<CAPTION>
=============================================================================================================================
CONSOLIDATED BALANCE SHEET As at December 31, 2003
                                                            Restatement
                                                              to equity
                                                            account for                   Minimum
                                                          investment in    Effect of      pension                       Under
                                                               Echo Bay     SFAS 143    liability                   U.S. GAAP
-----------------------------------------------------------------------------------------------------------------------------
<S>                                                               <C>         <C>          <C>              <C>
Assets                                                              (d)          (j)          (k)
    Current assets
    Cash and cash equivalents                                     $  -        $   -        $   -            $           245.8
    Restricted cash                                                  -            -            -                          5.1
    Accounts receivable and other assets                             -            -            -                         42.1
    Inventories                                                      -            -            -                        109.2
    Marketable securities                                            -            -            -                          0.4
                                                                     -            -            -                        402.6
    Property, plant and equipment                                    -           2.2           -                        496.6
    Mineral interests                                                -            -            -                        260.1
    Goodwill                                                       40.8           -            -                        958.8
    Future income and mining taxes                                   -            -            -                          1.5
    Long-term investments                                            -            -            -                          9.0
    Deferred charges and other long-term assets                      -            -            -                         35.9
-----------------------------------------------------------------------------------------------------------------------------
                                                                  $40.8       $  2.2       $   -                      2,164.5
=============================================================================================================================
Liabilities
    Current liabilities
    Accounts payable and accrued liabilities                      $  -        $   -        $   -            $           124.1
    Current portion of long-term debt                                -            -            -                         29.4
    Current portion of site restoration cost accruals                -            -            -                         19.2
-----------------------------------------------------------------------------------------------------------------------------
                                                                     -            -            -                        172.7
    Long-term debt                                                   -            -            -                          0.7
    Site restoration cost accruals                                   -          11.1           -                        111.6
    Future income and mining taxes                                   -            -            -                         55.6
    Deferred revenue                                                 -            -            -                           -
    Other long-term liabilities                                      -           2.2          3.1                         7.8
    Redeemable retractable preferred shares                          -            -            -                          3.0
-----------------------------------------------------------------------------------------------------------------------------
                                                                     -          13.3          3.1                       351.4
-----------------------------------------------------------------------------------------------------------------------------
    Non-controlling interest in subsidiary                           -            -            -                          0.7
-----------------------------------------------------------------------------------------------------------------------------
    Convertible preferred shares of subsidiary company               -            -            -                         12.6
-----------------------------------------------------------------------------------------------------------------------------
    Common shareholders' equity
    Common share capital and common share purchase
      warrants                                                       -            -            -                      2,549.1
    Contributed surplus                                              -            -            -                         30.0
    Retained earnings (deficit)                                    40.8        (11.1)          -                       (762.3)
    Cumulative translation adjustments                               -            -            -                           -
    Other comprehensive income (loss)                                -            -          (3.1)                      (17.0)
-----------------------------------------------------------------------------------------------------------------------------
                                                                   40.8        (11.1)        (3.1)                    1,799.8
----------------------------------------------------------------------------------------------------------------------------
                                                                  $40.8       $  2.2       $   -                      2,164.5
=============================================================================================================================
CONSOLIDATED BALANCE SHEET As at December 31, 2002
Assets                                                              (d)                                     (restated-note d)
    Current Assets
    Cash and cash equivalents                                    $   -                                      $           141.2
    Restricted cash                                                  -                                                   21.1
    Accounts receivable and other assets                             -                                                   17.4
    Inventories                                                      -                                                   24.7
    Marketable securities                                            -                                                    0.2
-----------------------------------------------------------------------------------------------------------------------------
                                                                     -                                                  204.6
    Property, plant and equipment                                    -                                                  285.7
    Long-term investments                                         (22.5)                                                113.0
    Deferred charges and other long-term assets                      -                                                    7.9
-----------------------------------------------------------------------------------------------------------------------------
                                                                 $(22.5)                                    $           611.2
=============================================================================================================================
Liabilities
    Current liabilities
    Accounts payable and accrued liabilities                      $  -                                      $            54.8
    Current portion of long-term debt                                -                                                   20.7
    Current portion of site restoration cost
    accruals                                                         -                                                   14.7
-----------------------------------------------------------------------------------------------------------------------------
                                                                     -                                                   90.2
    Long-term debt                                                   -                                                   12.9
    Site restoration cost accruals                                   -                                                   38.2
    Future income and mining taxes                                   -                                                    3.3
    Deferred revenue                                                 -                                                     -
    Other long-term liabilities                                      -                                                    5.5
    Debt component of convertible debentures                         -                                                  123.8
    Redeemable retractable preferred shares                          -                                                    2.5
-----------------------------------------------------------------------------------------------------------------------------
                                                                     -                                                  276.4
-----------------------------------------------------------------------------------------------------------------------------
    Convertible preferred shares of subsidiary
    company                                                          -                                                   12.9
-----------------------------------------------------------------------------------------------------------------------------
    Common shareholders' equity
    Common share capital and common share purchase
      warrants                                                       -                                                1,062.7
    Contributed surplus                                              -                                                   12.9
    Equity component of convertible debentures                       -                                                    -
    Deficit                                                        (0.7)                                               (729.2)
    Cumulative translation adjustments                               -                                                    -
    Other comprehensive income (loss)                             (21.8)                                                (24.5)
-----------------------------------------------------------------------------------------------------------------------------
                                                                  (22.5)                                                321.9
-----------------------------------------------------------------------------------------------------------------------------
                                                                 $(22.5)                                    $           611.2
=============================================================================================================================

====================================================================================================================================
CONSOLIDATED STATEMENTS OF OPERATIONS                                   Recognition      Elimination  Property, plant
For the year ended December 31, 2003                                    of deferred    of effects of    and equipment
                                                                           exchange   recognition of   & amortization    Reversal of
                                                                   gains and losses equity component      differences           1991
                                                             Under   on convertible   of convertible    from applying        deficit
                                                          CDN GAAP       debentures       debentures         SFAS 121    elimination
------------------------------------------------------------------------------------------------------------------------------------
                                                                                (a)               (a)             (b)            (c)
Revenue and other income
    Mining revenue                                          $571.9           $   -            $   -             $  -            $ -
    Interest and other income                                 12.3               -                -                -              -
    Mark-to-market gain on call options                        0.4               -                -                -              -
------------------------------------------------------------------------------------------------------------------------------------
                                                             584.6               -                -                -              -
------------------------------------------------------------------------------------------------------------------------------------
Expenses
    Operating                                                387.3               -                -                -              -
    General and administrative                                25.0               -                -                -              -
    Exploration and business development                      24.3               -                -                -              -
    Depreciation, depletion and amortization                 140.9               -                -              (6.3)            -
    Gain on disposal of assets                               (29.5)              -                -                -              -
    Loss on redemption of debt component of
      convertible debentures                                   1.1              0.9             (2.0)              -              -
    Foreign exchange (gain) loss                              (3.3)            16.9               -                -              -
    Interest expense on long-term liabilities                  5.1               -               5.2               -              -
    Accretion expense                                           -                -                -                -              -
    Asset write-downs and non-cash charges                     9.9               -                -                -              -
------------------------------------------------------------------------------------------------------------------------------------
                                                             560.8             17.8              3.2             (6.3)            -
------------------------------------------------------------------------------------------------------------------------------------
Earnings (loss) before taxes and other items                  23.8            (17.8)            (3.2)             6.3             -
Provision for income and mining taxes                        (13.1)              -                -                -              -
Non-controlling interest in subsidiary                        (0.2)
Share of income (loss) of investee companies                    -                -                -                -              -
------------------------------------------------------------------------------------------------------------------------------------
Earnings (loss) before cumulative effect of a change in
 accounting principle and dividends on convertible
 preferred shares of subsidiary company                       10.5            (17.8)            (3.2)             6.3             -
Cumulative effect of a change in accounting principle           -                -                -                -              -
------------------------------------------------------------------------------------------------------------------------------------
Earnings (loss) for the year before dividends on
 convertible preferred shares of subsidiary company           10.5            (17.8)            (3.2)             6.3             -
Dividends on convertible preferred shares of
 subsidiary company                                           (0.8)              -                -                -              -
------------------------------------------------------------------------------------------------------------------------------------
Net earnings (loss) for the year                               9.7            (17.8)            (3.2)             6.3             -
Increase in equity component of convertible debentures        (6.5)              -               6.5               -              -
Gain on redemption of equity component of convertible
  debentures                                                  16.5               -             (16.5)              -              -
------------------------------------------------------------------------------------------------------------------------------------
Net earnings (loss) for the year attributable to common
  shareholders                                              $ 19.7           $(17.8)          $(13.2)           $ 6.3           $ -
====================================================================================================================================
Earnings (loss) per share
    Basic and diluted                                       $ 0.06
Common shares issued and outstanding (millions)
    Weighted average - basic                                 308.6
    Weighted average - diluted                               309.6
Total                                                        345.6
====================================================================================================================================
CONSOLIDATED STATEMENTS OF OPERATIONS                                           (a)              (a)              (b)            (c)
For the year ended December 31, 2002

Revenue and other income
    Mining revenue                                          $261.0           $   -            $   -             $  -            $ -
    Interest and other income                                 16.9               -                -                -              -
    Mark-to-market (loss) on call options                     (2.7)              -                -                -              -
------------------------------------------------------------------------------------------------------------------------------------
                                                             275.2               -                -                -              -
------------------------------------------------------------------------------------------------------------------------------------
Expenses
    Operating                                                174.8               -                -                -              -
    General and administrative                                11.3               -                -                -              -
    Exploration and business development                      11.6               -                -                -              -
    Depreciation, depletion and amortization                  85.3               -                -              (8.1)            -
    Gain on disposal of assets                                (2.7)              -                -                -              -
    Foreign exchange loss                                      4.3              0.3               -                -              -
    Interest expense on long-term liabilities                  5.0               -               4.5               -              -
    Asset write-downs and non-cash charges                     7.9               -                -                -              -
------------------------------------------------------------------------------------------------------------------------------------
                                                             297.5              0.3              4.5             (8.1)            -
------------------------------------------------------------------------------------------------------------------------------------
    Earnings (loss) before taxes and other items             (22.3)            (0.3)            (4.5)             8.1             -
    Provision for income and mining taxes                     (6.5)              -                -                -              -
    Share in income (loss) of investee companies              (0.6)              -                -                -              -
------------------------------------------------------------------------------------------------------------------------------------
    Earnings (loss) for the year before dividends on
     convertible preferred shares of subsidiary company      (29.4)            (0.3)            (4.5)             8.1             -
    Dividends on convertible preferred shares of
     subsidiary company                                       (1.5)              -                -                -              -
------------------------------------------------------------------------------------------------------------------------------------
    Net earnings (loss) for the year                         (30.9)            (0.3)            (4.5)             8.1             -
    Increase in equity component of convertible debentures    (7.3)              -               7.3               -              -
------------------------------------------------------------------------------------------------------------------------------------
    Net earnings (loss) for the year attributable to
     common shareholders                                    $(38.2)          $ (0.3)          $  2.8            $ 8.1           $ -
====================================================================================================================================
    Earnings (loss) per share
       Basic and diluted                                    $(0.32)
    Common shares issued and outstanding (millions)
    Weighted average - basic                                 119.7
    Weighted average - diluted                               119.7
Total                                                        136.1
====================================================================================================================================
</TABLE>

                                     F-B42
<PAGE>
<TABLE>
<CAPTION>
=================================================================================================================================
CONSOLIDATED STATEMENTS OF OPERATIONS
For the year ended December 31, 2003                                Gains                             Reclassi-
                                                            on marketable                           fication of
                                                               securities                   Flow     cumulative
                                                            and long-term   Effect of     through   translation   To adjust to
                                                              investments    SFAS 133      shares   adjustments   equity basis
---------------------------------------------------------------------------------------------------------------------------------
<S>                                                                 <C>         <C>          <C>           <C>          <C>
                                                                      (d)         (e)         (f)           (h)            (i)
Revenue and other income
    Mining revenue                                                  $  -        $ 0.9        $ -           $ -          $ (6.0)
    Interest and other income                                          -         (0.4)         -             -             0.3
    Mark-to-market gain on call options                                -           -           -             -              -
---------------------------------------------------------------------------------------------------------------------------------
                                                                       -          0.5          -             -            (5.7)
---------------------------------------------------------------------------------------------------------------------------------
Expenses
    Operating                                                          -           -           -             -            (2.9)
    General and administrative                                         -           -           -             -              -
    Exploration and business development                               -           -           -             -            (0.1)
    Depreciation, depletion and amortization                           -           -           -             -            (1.2)
    Gain on disposal of assets                                         -           -           -             -              -
    Loss on redemption of debt component of
      convertible debentures                                           -           -           -             -              -
    Foreign exchange (gain) loss                                       -           -           -             -              -
    Interest expense on long-term liabilities                          -           -           -             -              -
    Accretion expense                                                  -           -           -             -              -
    Asset write-downs and non-cash charges                             -           -           -             -              -
---------------------------------------------------------------------------------------------------------------------------------
                                                                       -           -           -             -            (4.2)
---------------------------------------------------------------------------------------------------------------------------------
Earnings (loss) before taxes and other items                           -          0.5          -             -            (1.5)
Provision for income and mining taxes                                  -           -           -             -             0.4
Non-controlling interest in subsidiary
Share of income (loss) of investee companies                           -           -           -             -             1.1
---------------------------------------------------------------------------------------------------------------------------------
Earnings (loss) before cumulative effect of a change in
 accounting principle and dividends on convertible
 preferred shares of subsidiary company                                -          0.5          -             -              -
Cumulative effect of a change in accounting principle                  -           -           -             -              -
---------------------------------------------------------------------------------------------------------------------------------
Earnings (loss) for the year before dividends on
 convertible preferred shares of subsidiary company                    -          0.5          -             -              -
Dividends on convertible preferred shares of
 subsidiary company                                                    -           -           -             -              -
---------------------------------------------------------------------------------------------------------------------------------
Net earnings (loss) for the year                                       -          0.5          -             -              -
Increase in equity component of convertible debentures                 -           -           -             -              -
Gain on redemption of equity component of convertible
  debentures                                                           -           -           -             -              -
---------------------------------------------------------------------------------------------------------------------------------
Net earnings (loss) for the year attributable to common
  shareholders                                                      $  -        $ 0.5        $ -           $ -          $   -
=================================================================================================================================
Earnings (loss) per share
    Basic and diluted
Common shares issued and outstanding (millions)
    Weighted average - basic
    Weighted average - diluted
Total
=================================================================================================================================
CONSOLIDATED STATEMENTS OF OPERATIONS                                 (d)         (e)         (f)           (h)            (i)
For the year ended December 31, 2002

Revenue and other income
    Mining revenue                                                  $  -        $  -         $ -           $ -          $(69.2)
    Interest and other income                                        42.5         2.0         1.1            -             3.1
    Mark-to-market (loss) on call options                              -           -           -             -              -
---------------------------------------------------------------------------------------------------------------------------------
                                                                     42.5         2.0         1.1            -           (66.1)
---------------------------------------------------------------------------------------------------------------------------------
Expenses
    Operating                                                          -           -           -             -           (27.2)
    General and administrative                                         -           -           -             -              -
    Exploration and business development                               -           -           -             -            (1.3)
    Depreciation, depletion and amortization                           -           -           -             -           (17.4)
    Gain on disposal of assets                                         -           -           -             -              -
    Foreign exchange loss                                              -           -           -             -            (0.2)
    Interest expense on long-term liabilities                          -           -           -             -            (0.3)
    Asset write-downs and non-cash charges                             -           -           -             -              -
---------------------------------------------------------------------------------------------------------------------------------
                                                                       -           -           -             -           (46.4)
---------------------------------------------------------------------------------------------------------------------------------
    Earnings (loss) before taxes and other items                     42.5         2.0         1.1            -           (19.7)
    Provision for income and mining taxes                              -           -           -             -             6.2
    Share in income (loss) of investee companies                       -           -           -             -            13.5
---------------------------------------------------------------------------------------------------------------------------------
    Earnings (loss) for the year before dividends on
     convertible preferred shares of subsidiary company              42.5         2.0         1.1            -              -
    Dividends on convertible preferred shares of
     subsidiary company                                                -           -           -             -              -
---------------------------------------------------------------------------------------------------------------------------------
    Net earnings (loss) for the year                                 42.5         2.0         1.1            -              -
    Increase in equity component of convertible debentures             -           -           -             -              -
---------------------------------------------------------------------------------------------------------------------------------
    Net earnings (loss) for the year attributable to
     common shareholders                                            $42.5       $ 2.0        $1.1          $ -          $   -
=================================================================================================================================
    Earnings (loss) per share
       Basic and diluted
    Common shares issued and outstanding (millions)
    Weighted average - basic
    Weighted average - diluted
Total
=================================================================================================================================

=============================================================================================================
CONSOLIDATED STATEMENTS OF OPERATIONS
For the year ended December 31, 2003

                                                                          Minimum
                                                           Effect of      pension                       Under
                                                            SFAS 143    liability                   U.S. GAAP
-------------------------------------------------------------------------------------------------------------
                                                                 (j)          (k)
Revenue and other income
    Mining revenue                                            $   -            -            $           566.8
    Interest and other income                                     -            -                         12.2
    Mark-to-market gain on call options                           -            -                          0.4
-------------------------------------------------------------------------------------------------------------
                                                                  -            -                        579.4
-------------------------------------------------------------------------------------------------------------
Expenses
    Operating                                                   (8.8)          -                        375.6
    General and administrative                                    -            -                         25.0
    Exploration and business development                          -            -                         24.2
    Depreciation, depletion and amortization                     0.8           -                        134.2
    Gain on disposal of assets                                    -            -                        (29.5)
    Loss on redemption of debt component of
      convertible debentures                                      -            -                           -
    Foreign exchange (gain) loss                                  -            -                         13.6
    Interest expense on long-term liabilities                     -            -                         10.3
    Accretion expense                                            9.4           -                          9.4
    Asset write-downs and non-cash charges                      (2.4)          -                          7.5
-------------------------------------------------------------------------------------------------------------
                                                                (1.0)          -                        570.3
-------------------------------------------------------------------------------------------------------------
Earnings (loss) before taxes and other items                     1.0           -                          9.1
Provision for income and mining taxes                             -            -                        (12.7)
Non-controlling interest in subsidiary                                                                   (0.2)
Share of income (loss) of investee companies                      -            -                          0.1
-------------------------------------------------------------------------------------------------------------
Earnings (loss) before cumulative effect of a change in
 accounting principle and dividends on convertible
 preferred shares of subsidiary company                         1.0            -                         (3.7)
Cumulative effect of a change in accounting principle          (12.1)          -                        (12.1)
-------------------------------------------------------------------------------------------------------------
Earnings (loss) for the year before dividends on
 convertible preferred shares of subsidiary company           (11.1)           -                        (15.8)
Dividends on convertible preferred shares of
 subsidiary company                                               -            -                         (0.8)
-------------------------------------------------------------------------------------------------------------
Net earnings (loss) for the year                               (11.1)          -                        (16.6)
Increase in equity component of convertible debentures            -            -                           -
Gain on redemption of equity component of convertible
  debentures                                                      -            -                           -
-------------------------------------------------------------------------------------------------------------
Net earnings (loss) for the year attributable to common
  shareholders                                                $(11.1)        $ -                        (16.6)
=============================================================================================================
Earnings (loss) per share
    Basic and diluted                                                                       $           (0.05)
Common shares issued and outstanding (millions)
    Weighted average - basic                                                                            308.6
    Weighted average - diluted                                                                          309.6
Total                                                                                                   345.6
=============================================================================================================
CONSOLIDATED STATEMENTS OF OPERATIONS                                                       (restated-note d)
For the year ended December 31, 2002

Revenue and other income
    Mining revenue                                                                          $           191.8
    Interest and other income                                                                            65.6
    Mark-to-market (loss) on call options                                                                (2.7)
-------------------------------------------------------------------------------------------------------------
                                                                                                        254.7
-------------------------------------------------------------------------------------------------------------
Expenses
    Operating                                                                                           147.6
    General and administrative                                                                           11.3
    Exploration and business development                                                                 10.3
    Depreciation, depletion and amortization                                                             59.8
    Gain on disposal of assets                                                                           (2.7)
    Foreign exchange loss                                                                                 4.4
    Interest expense on long-term liabilities                                                             9.2
    Asset write-downs and non-cash charges                                                                7.9
-------------------------------------------------------------------------------------------------------------
                                                                                                        247.8
-------------------------------------------------------------------------------------------------------------
    Earnings (loss) before taxes and other items                                                          6.9
    Provision for income and mining taxes                                                                (0.3)
    Share in income (loss) of investee companies                                                         12.2
-------------------------------------------------------------------------------------------------------------
    Earnings (loss) for the year before dividends on
     convertible preferred shares of subsidiary company                                                  18.8
    Dividends on convertible preferred shares of
     subsidiary company                                                                                  (1.5)
-------------------------------------------------------------------------------------------------------------
    Net earnings (loss) for the year                                                                     17.3
    Increase in equity component of convertible debenture                                                  -
-------------------------------------------------------------------------------------------------------------
    Net earnings (loss) for the year attributable to
     common shareholders                                                                    $            17.3
=============================================================================================================
    Earnings (loss) per share
       Basic and diluted                                                                    $            0.14
    Common shares issued and outstanding (millions)
    Weighted average - basic                                                                            119.7
    Weighted average - diluted                                                                          120.6
Total                                                                                                   136.1
=============================================================================================================
</TABLE>

                                     F-B43
<PAGE>
<TABLE>
<CAPTION>
=======================================================================================================================
CONSOLIDATED STATEMENTS OF OPERATIONS                                   Recognition      Elimination  Property, plant
For the year ended December 31, 2003                                    of deferred    of effects of    and equipment
                                                                           exchange   recognition of   & amortization
                                                                   gains and losses equity component      differences
                                                             Under   on convertible   of convertible    from applying
                                                          CDN GAAP       debentures       debentures         SFAS 121
-----------------------------------------------------------------------------------------------------------------------
<S>                                                         <C>                <C>            <C>               <C>
                                                                                (a)              (a)              (b)
Revenue and other income
    Mining revenue                                          $270.1            $  -            $   -             $  -
    Interest and other income                                  9.3               -                -                -
    Mark-to-market gain on call options                        3.5               -                -                -
-----------------------------------------------------------------------------------------------------------------------
                                                             282.9               -                -                -
-----------------------------------------------------------------------------------------------------------------------
Expenses
    Operating                                                180.7               -                -                -
    General and administrative                                10.1               -                -                -
    Exploration and business development                       7.9               -                -                -
    Depreciation, depletion and amortization                  85.8               -                -              (6.1)
    Gain on disposal of assets                                (1.2)              -                -                -
    Foreign exchange loss (gain)                               0.5             (5.9)              -                -
    Interest expense on long-term liabilities                  9.1               -               4.1               -
    Asset write-downs and non-cash charges                    16.1               -                -                -
-----------------------------------------------------------------------------------------------------------------------
                                                             309.0             (5.9)             4.1             (6.1)
-----------------------------------------------------------------------------------------------------------------------
    Loss before taxes and other items                        (26.1)             5.9             (4.1)             6.1
    Provision for income and mining taxes                     (2.9)              -                -                -
    Share in loss of investee companies                       (2.2)              -                -                -
-----------------------------------------------------------------------------------------------------------------------
    Loss for the year before dividends on
     convertible preferred shares of subsidiary
     company                                                 (31.2)             5.9             (4.1)             6.1
    Dividends on convertible preferred shares of
     subsidiary company                                       (5.1)              -                -                -
-----------------------------------------------------------------------------------------------------------------------
    Net loss for the year                                    (36.3)             5.9             (4.1)             6.1
    Increase in equity component of convertible
     debentures                                               (7.7)              -               7.7               -
-----------------------------------------------------------------------------------------------------------------------
    Net loss for the year attributable to
     common shareholders                                    $(44.0)           $ 5.9            $ 3.6            $ 6.1
=======================================================================================================================
    Loss per share
             Basic and diluted                              $(0.42)
    Common shares issued and outstanding (millions)
             Weighted average - basic and diluted            104.5
Total                                                        111.5
=======================================================================================================================
</TABLE>

Statement of Operations Presentation: For U.S. GAAP purposes, the measure
"(Loss) earnings before cumulative effect of a change in accounting principle
and dividends on convertible preferred shares of subsidiary company" is not a
recognized term and would therefore not be presented.

The following table reconciles "(Loss) Earnings before cumulative effect of a
change in accounting principle and dividends on convertible preferred shares of
subsidiary company" to "loss from operations":

<TABLE>
<CAPTION>
====================================================================================================================================
Year ended December 31,                                                                      2003            2002            2001
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                          (restated)
<S>                                                                                        <C>             <C>              <C>
(Loss) earnings before cumulative effect of a change in accounting
principle and dividends on convertible preferred shares of
subsidiary company                                                                         $ (3.7)         $ 18.8           $(27.2)
Add/(deduct):
    Interest and other income                                                               (12.2)          (65.6)            (7.9)
    Mark-to-market (gain) loss on call options                                               (0.4)            2.7             (3.5)
    Interest expense on long-term liabilities                                                10.3             9.2              9.6
    Gain on disposal of assets (1)                                                          (27.6)             -                -
    Write-down of marketable securities                                                       0.2             0.2               -
    Provision for (recovery of) income and mining taxes                                      12.7             0.3             (2.4)
    Minority interest                                                                         0.2              -                -
    Share in loss (income) of investee companies                                             (0.1)          (12.2)             3.0
------------------------------------------------------------------------------------------------------------------------------------
Loss from operations for U.S. GAAP                                                         $(20.6)         $(46.6)          $(28.4)
====================================================================================================================================
</TABLE>

(1)  Gain on disposal of assets includes gains on sales of marketable securities
     and long-term investments of $27.6 million, a component of non-operating
     earnings.

In addition, "dividends on convertible preferred shares of subsidiary" are
required to be presented as a component of non-operating earnings:

For U.S. GAAP purposes, the components of non-operating earnings (loss) are as
follows:

<TABLE>
<CAPTION>
====================================================================================================================================
Year ended December 31,                                                                      2003            2002            2001
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                          (restated)
<S>                                                                                        <C>             <C>              <C>
    Interest and other income                                                              $ 12.2          $ 65.6           $  7.9
    Mark-to-market gain (loss) on call options                                                0.4            (2.7)             3.5
    Minority interest                                                                        (0.2)             -                -
    Share in income (loss) of investee companies                                              0.1            12.2             (3.0)
    Interest expense on long-term liabilities                                               (10.3)           (9.2)            (9.6)
    Gain on disposal of assets (1)                                                           27.6              -                -
    Write-down of marketable securities                                                      (0.2)           (0.2)              -
    Dividends on convertible preferred shares of subsidiary company                          (0.8)           (1.5)            (5.1)
------------------------------------------------------------------------------------------------------------------------------------
    Non-operating earnings (loss) for U.S. GAAP                                            $ 28.8          $ 64.2           $ (6.3)
====================================================================================================================================
</TABLE>

                                     F-B44
<PAGE>
<TABLE>
<CAPTION>
===================================================================================================================================
CONSOLIDATED STATEMENTS OF OPERATIONS
For the year ended December 31, 2003                              Gains                         Reclassi-
                                            Reversal of   on marketable                       fication of
                                                   1991      securities               Flow     cumulative
                                                deficit   and long-term  Effect of  through   translation   To adjust to      Under
                                            elimination     investments   SFAS 133   shares   adjustments   equity basis  U.S. GAAP
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                                 <C>            <C>       <C>       <C>           <C>          <C>        <C>
                                                     (c)            (d)        (e)      (f)           (h)             (i)
Revenue and other income
    Mining revenue                                  $ -            $ -       $  -      $ -           $ -          $(67.8)    $202.3
    Interest and other income                         -              -        (3.9)      -             -             2.5        7.9
    Mark-to-market gain on call options               -              -          -        -             -              -         3.5
-----------------------------------------------------------------------------------------------------------------------------------
                                                      -              -        (3.9)      -             -           (65.3)     213.7
-----------------------------------------------------------------------------------------------------------------------------------
Expenses
    Operating                                         -              -          -        -             -           (34.2)     146.5
    General and administrative                        -              -          -        -             -              -        10.1
    Exploration and business development              -              -          -        -             -            (2.1)       5.8
    Depreciation, depletion and
      amortization                                    -              -          -        -             -           (20.5)      59.2
    Gain on disposal of assets                        -              -          -        -             -              -        (1.2)
    Foreign exchange loss (gain)                      -              -          -        -             -            (0.4)      (5.8)
    Interest expense on long-term
      liabilities                                     -              -          -     -  -             -            (3.6)       9.6
    Asset write-downs and non-cash charges            -              -          -        -             -              -        16.1
-----------------------------------------------------------------------------------------------------------------------------------
                                                      -              -          -     -  -             -           (60.8)     240.3
-----------------------------------------------------------------------------------------------------------------------------------
    Loss before taxes and other items                 -              -        (3.9)      -             -            (4.5)     (26.6)
    Provision for income and mining taxes             -              -          -        -             -             5.3        2.4
    Share in loss of investee companies               -              -          -        -             -            (0.8)      (3.0)
-----------------------------------------------------------------------------------------------------------------------------------
    Loss for the year before dividends on
     convertible preferred shares of
     subsidiary company                               -              -        (3.9)      -             -              -       (27.2)
    Dividends on convertible preferred
     shares of subsidiary company                     -              -          -        -             -              -        (5.1)
-----------------------------------------------------------------------------------------------------------------------------------
    Net loss for the year                             -              -        (3.9)      -             -              -       (32.3)
    Increase in equity component of
     convertible debentures                           -              -          -        -             -              -          -
-----------------------------------------------------------------------------------------------------------------------------------
    Net loss for the year attributable to
     common shareholders                            $ -            $ -       $(3.9)    $ -           $ -          $   -      $(32.3)
===================================================================================================================================
    Loss per share
             Basic and diluted                                                                                               $(0.31)
    Common shares issued and
    outstanding (millions)
             Weighted average -
             basic and diluted                                                                                                104.5
Total                                                                                                                         111.5
===================================================================================================================================
</TABLE>

                                     F-B45
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
CONSOLIDATED STATEMENTS OF CASH FLOWS                                   Recognition      Elimination  Property, plant
For the year ended December 31, 2003                                    of deferred    of effects of    and equipment
                                                                           exchange   recognition of   & amortization    Reversal of
                                                                   gains and losses equity component      differences           1991
                                                             Under   on convertible   of convertible    from applying        deficit
                                                          CDN GAAP       debentures       debentures         SFAS 121    elimination
------------------------------------------------------------------------------------------------------------------------------------
                                                                                (a)              (a)              (b)            (c)
<S>                                                        <C>               <C>               <C>              <C>             <C>
Net inflow (outflow) of cash related to the following
activities:
    Operating:
    Earnings (loss) for the year before dividends on
        convertible preferred shares of subsidiary
        company                                            $  10.5           $(17.8)           $(3.2)           $ 6.3           $ -
    Items not affecting cash:
       Depreciation, depletion and amortization              140.9               -                -              (6.3)            -
       Asset write-downs and non-cash charges                  9.9               -                -                -              -
       Gain on disposal of assets                            (29.5)              -                -                -              -
       Loss on redemption of debt component of
         convertible debentures                                1.1              0.9             (2.0)              -              -
       Future income and mining taxes                         (2.8)              -                -                -              -
       Deferred revenue realized                              (2.3)              -                -                -              -
       Cumulative effect of a change in accounting
         principle                                              -                -                -                -              -
       Accretion expense                                        -                -                -                -              -
       Site restoration cost accruals                          9.4               -                -                -              -
       Share in (income) loss of investee companies             -                -                -                -              -
       Interest on convertible debentures                       -                -               1.0               -              -
       Realized foreign exchange losses on convertible
         debentures                                            4.2             16.9               -                -              -
       Unrealized foreign exchange losses on
        redeemable retractable preferred shares                0.4               -                -                -              -
       Site restoration cash expenditures                    (19.3)              -                -                -              -
    Changes in non-cash operating assets and liabilities:
       Accounts receivable and other assets                   (1.5)              -                -                -              -
       Inventories                                           (11.3)              -                -                -              -
       Marketable securities                                   4.5               -                -                -              -
       Ore in stockpiles                                      (1.4)              -                -                -              -
       Accounts payable and accrued liabilities              (20.1)              -                -                -              -
       Other long-term obligations                              -                -                -                -              -
------------------------------------------------------------------------------------------------------------------------------------
Cash flow provided from operating activities                  92.7               -              (4.2)              -              -
------------------------------------------------------------------------------------------------------------------------------------
    Financing:
       Issuance of common shares                             187.9               -                -                -              -
       Redemption of convertible debentures                 (144.8)              -                -                -              -
       Acquisition of preferred shares of subsidiary
       company                                                (0.3)              -                -                -              -
       Reduction of debt component of convertible
       debentures                                             (4.2)              -               4.2               -              -
       Repayment of debt                                     (10.5)              -                -                -              -
------------------------------------------------------------------------------------------------------------------------------------
Cash flow provided from financing activities                  28.1               -               4.2               -              -
------------------------------------------------------------------------------------------------------------------------------------
    Investing:
       Additions to property, plant and equipment            (73.4)              -                -                -              -
       Business acquisitions, net of cash acquired           (81.9)              -                -                -              -
       Long-term investments and other assets                 57.2               -                -                -              -
       Proceeds from the disposal of property, plant and
       equipment                                               5.9               -                -                -              -
       Decrease in restricted cash                            37.5               -                -                -              -
------------------------------------------------------------------------------------------------------------------------------------
Cash flow used in investing activities                       (54.7)              -                -                -              -
------------------------------------------------------------------------------------------------------------------------------------
Effect of exchange rate changes on cash                        9.1               -                -                -              -
------------------------------------------------------------------------------------------------------------------------------------
Increase in cash and cash equivalents                         75.2               -                -                -              -
Cash and cash equivalents, beginning of year                 170.6               -                -                -              -
------------------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents, end of year                     $ 245.8           $   -             $  -             $  -            $ -
====================================================================================================================================
</TABLE>

                                     F-B46
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the year ended December 31, 2003                               Gains                             Reclassi-
                                                           on marketable                           fication of
                                                              securities                    Flow    cumulative
                                                           and long-term   Effect of     through   translation          To adjust to
                                                             investments    SFAS 133      shares   adjustments          equity basis
------------------------------------------------------------------------------------------------------------------------------------
                                                                 (d)           (e)           (f)          (h)                  (i)
<S>                                                              <C>          <C>            <C>         <C>               <C>
Net inflow (outflow) of cash related to the following
activities:
    Operating:
    Earnings (loss) for the year before dividends on
        convertible preferred shares of subsidiary
        company                                                  $ -          $(0.5)         $ -         $ -                 $   -
    Items not affecting cash:
       Depreciation, depletion and amortization                    -             -             -           -                   (1.2)
       Asset write-downs and non-cash charges                      -             -             -           -                     -
       Gain on disposal of assets                                  -             -             -           -                     -
       Loss on redemption of debt component of
       convertible debentures                                      -             -             -           -                     -
       Future income and mining taxes                              -             -             -           -                     -
       Deferred revenue realized                                   -            0.8            -           -                     -
       Cumulative effect of a change in accounting
       principle                                                   -             -             -           -                     -
       Accretion expense                                           -             -             -           -                     -
       Site restoration cost accruals                              -             -             -           -                     -
       Share in (income) loss of investee companies                -             -             -           -                   (1.1)
       Interest on convertible debentures                          -             -             -           -                     -
       Realized foreign exchange losses on convertible
       debentures                                                  -             -             -           -                     -
       Unrealized foreign exchange losses on
        redeemable retractable preferred shares                    -             -             -           -                     -
       Site restoration cash expenditures                          -             -             -           -                     -
    Changes in non-cash operating assets and liabilities:
       Accounts receivable and other assets                        -             -             -           -                     -
       Inventories                                                 -             -             -           -                     -
       Marketable securities                                       -             -             -           -                     -
       Ore in stockpiles                                           -             -             -           -                     -
       Accounts payable and accrued liabilities                    -           (1.3)           -           -                     -
       Other long-term obligations                                 -             -             -           -                     -
------------------------------------------------------------------------------------------------------------------------------------
Cash flow provided from operating activities                       -             -             -           -                   (2.3)
------------------------------------------------------------------------------------------------------------------------------------
    Financing:
       Issuance of common shares                                   -             -             -           -                     -
       Redemption of convertible debentures                        -             -             -           -                     -
       Acquisition of preferred shares of subsidiary
       company                                                     -             -             -           -                     -
       Reduction of debt component of convertible
       debentures                                                  -             -             -           -                     -
       Repayment of debt                                           -             -             -           -                     -
------------------------------------------------------------------------------------------------------------------------------------
Cash flow provided from financing activities                       -             -             -           -                     -
------------------------------------------------------------------------------------------------------------------------------------
    Investing:
       Additions to property, plant and equipment                  -             -             -           -                     -
       Business acquisitions, net of cash acquired                 -             -             -           -                     -
       Long-term investments and other assets                      -             -             -           -                   31.7
       Proceeds from the disposal of property, plant and
       equipment                                                   -             -             -           -                     -
       Decrease in restricted cash                                 -             -             -           -                     -
------------------------------------------------------------------------------------------------------------------------------------
Cash flow used in investing activities                             -             -             -           -                   31.7
------------------------------------------------------------------------------------------------------------------------------------
Effect of exchange rate changes on cash                            -             -             -           -                     -
------------------------------------------------------------------------------------------------------------------------------------
Increase in cash and cash equivalents                              -             -             -           -                   29.4
Cash and cash equivalents, beginning of year                       -             -             -           -                  (29.4)
------------------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents, end of year                           $ -          $  -           $ -         $ -                 $   -
====================================================================================================================================

==================================================================================================================================
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the year ended December 31, 2003                            Restatement
                                                                  to equity
                                                                account for                      Minimum
                                                              investment in       Effect of      pension            Under
                                                                   Echo Bay        SFAS 143    liability        U.S. GAAP
---------------------------------------------------------------------------------------------------------------------------
                                                                      (d)               (j)          (k)
Net inflow (outflow) of cash related to the following
activities:
    Operating:
    Earnings (loss) for the year before dividends on
        convertible preferred shares of subsidiary
        company                                                      $(1.0)          $(11.1)        $ -          $  (15.8)
    Items not affecting cash:
       Depreciation, depletion and amortization                         -               0.8           -             134.2
       Asset write-downs and non-cash charges                           -              (2.4)          -               7.5
       Gain on disposal of assets                                       -                -            -             (29.5)
       Loss on redemption of debt component of
       convertible debentures                                           -                -            -               -
       Future income and mining taxes                                   -                -            -              (2.8)
       Deferred revenue realized                                        -                -            -              (1.5)
       Cumulative effect of a change in accounting
       principle                                                        -              12.1           -              12.1
       Accretion expense                                                -               9.4           -               9.4
       Site restoration cost accruals                                   -              (9.4)          -               -
       Share in (income) loss of investee companies                    1.0               -            -              (0.1)
       Interest on convertible debentures                               -                -            -               1.0
       Realized foreign exchange losses on convertible
       debentures                                                       -                -            -              21.1
       Unrealized foreign exchange losses on
        redeemable retractable preferred shares                         -                -            -               0.4
       Site restoration cash expenditures                               -                -            -             (19.3)
    Changes in non-cash operating assets and liabilities:
       Accounts receivable and other assets                             -                -            -              (1.5)
       Inventories                                                      -                -            -             (11.3)
       Marketable securities                                            -                -            -               4.5
       Ore in stockpiles                                                -                -            -              (1.4)
       Accounts payable and accrued liabilities                         -                -            -             (21.4)
       Other long-term obligations                                      -               0.6           -               0.6
-------------------------------------------------------------------------------------------------------------------------
Cash flow provided from operating activities                            -                -                           86.2
-------------------------------------------------------------------------------------------------------------------------
    Financing:
       Issuance of common shares                                        -                -            -             187.9
       Redemption of convertible debentures                             -                -            -            (144.8)
       Acquisition of preferred shares of subsidiary
       company                                                          -                -            -              (0.3)
       Reduction of debt component of convertible
       debentures                                                       -                -            -                -
       Repayment of debt                                                -                -            -             (10.5)
-------------------------------------------------------------------------------------------------------------------------
Cash flow provided from financing activities                            -                -            -              32.3
-------------------------------------------------------------------------------------------------------------------------
    Investing:
       Additions to property, plant and equipment                       -                -            -             (73.4)
       Business acquisitions, net of cash acquired                      -                -            -             (81.9)
       Long-term investments and other assets                           -                -            -              88.9
       Proceeds from the disposal of property, plant and
       equipment                                                        -                -            -               5.9
       Decrease in restricted cash                                      -                -            -              37.5
-------------------------------------------------------------------------------------------------------------------------
Cash flow used in investing activities                                  -                -            -             (23.0)
-------------------------------------------------------------------------------------------------------------------------
Effect of exchange rate changes on cash                                 -                -            -               9.1
-------------------------------------------------------------------------------------------------------------------------
Increase in cash and cash equivalents                                   -                -            -             104.6
Cash and cash equivalents, beginning of year                            -                -            -             141.2
-------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents, end of year                               $  -            $   -          $ -          $  245.8
=========================================================================================================================
</TABLE>

                                     F-B47
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
CONSOLIDATED STATEMENTS OF CASH FLOWS                                   Recognition      Elimination  Property, plant
For the year ended December 31, 2002                                    of deferred    of effects of    and equipment
                                                                           exchange   recognition of   & amortization
                                                                   gains and losses equity component      differences    Reversal of
                                                             Under   on convertible   of convertible    from applying   1991 deficit
                                                          CDN GAAP       debentures       debentures         SFAS 121    elimination
------------------------------------------------------------------------------------------------------------------------------------
                                                                                (a)              (a)              (b)            (c)
<S>                                                        <C>               <C>               <C>              <C>             <C>
Net inflow (outflow) of cash related to the following
activities:
    Operating:
    (Loss) earnings for the year before dividends on
        convertible preferred shares of subsidiary
        company                                            $ (29.4)           $(0.3)           $(4.5)           $ 8.1           $ -
    Items not affecting cash:
       Depreciation, depletion and amortization               85.3               -                -              (8.1)            -
       Asset write-downs and non-cash charges                  7.9               -                -                -              -
       Gain on disposal of assets                             (2.7)              -                -                -              -
       Future income and mining taxes                           -                -                -                -              -
       Deferred revenue realized                              (5.1)              -                -                -              -
       Site restoration cost accruals                          3.0               -                -                -              -
       Share in loss of investee companies                     0.6               -                -                -              -
       Interest on convertible debentures                       -                -              (0.6)              -              -
       Unrealized foreign exchange losses on
        convertible debentures                                 0.9              0.3               -                -              -
       Site restoration cash expenditures                     (9.8)              -                -                -              -
    Changes in non-cash operating assets and liabilities:
       Accounts receivable                                    (1.6)              -                -                -              -
       Inventories                                             2.4               -                -                -              -
       Marketable securities                                   2.8               -                -                -              -
       Ore in stockpiles                                      (0.4)              -                -                -              -
       Accounts payable and accrued liabilities                5.6               -                -                -              -
------------------------------------------------------------------------------------------------------------------------------------
Cash flow provided from operating activities                  59.5               -              (5.1)              -              -
------------------------------------------------------------------------------------------------------------------------------------
    Financing:
       Issuance of common shares and common share
         purchase warrants                                   112.8               -                -                -              -
       Acquisition of preferred shares of subsidiary
         company                                             (11.4)              -                -                -              -
       Reduction of debt component of convertible
         debentures                                           (5.1)              -               5.1               -              -
       Repayment of debt                                     (28.5)              -                -                -              -
       Dividends on convertible preferred shares
         of subsidiary company                                  -                -                -                -              -
------------------------------------------------------------------------------------------------------------------------------------
Cash flow provided from financing activities                  67.8               -               5.1               -              -
------------------------------------------------------------------------------------------------------------------------------------
    Investing:
       Additions to property, plant and equipment            (22.6)              -                -                -              -
       Business acquisitions, net of cash acquired            (0.1)              -                -                -              -
       Long-term investments and other assets                  1.8               -                -                -              -
       Proceeds from the disposal of property, plant and
         equipment                                             1.3               -                -                -              -
       (Increase) decrease in restricted cash                (21.1)              -                -                -              -
------------------------------------------------------------------------------------------------------------------------------------
Cash flow used in investing activities                       (40.7)              -                -                -              -
------------------------------------------------------------------------------------------------------------------------------------
Effect of exchange rate changes on cash                        3.0               -                -                -              -
------------------------------------------------------------------------------------------------------------------------------------
Increase in cash and cash equivalents                         89.6               -                -                -              -
Cash and cash equivalents, beginning of year                  81.0               -                -                -              -
------------------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents, end of year                     $ 170.6           $   -             $  -             $  -            $ -
====================================================================================================================================
</TABLE>

                                     F-B48
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the year ended December 31, 2002                                  Gains                             Reclassi-
                                                              on marketable                           fication of
                                                                 securities                   Flow     cumulative
                                                              and long-term   Effect of     through   translation   To adjust to
                                                                investments    SFAS 133      shares   adjustments   equity basis
------------------------------------------------------------------------------------------------------------------------------------
                                                                        (d)         (e)         (f)           (h)            (i)
<S>                                                              <C>          <C>            <C>         <C>              <C>
Net inflow (outflow) of cash related to the following
activities:
    Operating:
    (Loss) earnings for the year before dividends on
        convertible preferred shares of subsidiary
        company                                                  $ 42.5       $ 2.0          $ 1.1         $ -            $   -
    Items not affecting cash:
       Depreciation, depletion and amortization                     -           -              -             -             (17.4)
       Asset write-downs and non-cash charges                       -           -              -             -                -
       Gain on disposal of assets                                 (42.5)        -              -             -                -
       Future income and mining taxes                               -           -              -             -                -
       Deferred revenue realized                                    -          (2.0)           -             -                -
       Site restoration cost accruals                               -           -              -             -              (0.7)
       Share in loss of investee companies                          -           -              -             -             (13.5)
       Interest on convertible debentures                           -           -              -             -                -
       Unrealized foreign exchange losses on
         convertible debentures                                     -           -              -             -                -
       Site restoration cash expenditures                           -           -              -             -                -
    Changes in non-cash operating assets and liabilities:
       Accounts receivable                                          -           -              -             -               3.8
       Inventories                                                  -           -              -             -              (1.4)
       Marketable securities                                        -           -              -             -                -
       Ore in stockpiles                                            -           -              -             -                -
       Accounts payable and accrued liabilities                     -           -             (1.1)          -               4.6
------------------------------------------------------------------------------------------------------------------------------------
Cash flow provided from operating activities                        -           -              -             -             (24.6)
------------------------------------------------------------------------------------------------------------------------------------
    Financing:
       Issuance of common shares and common share
         purchase warrants                                          -           -              -             -                -
       Acquisition of preferred shares of subsidiary
         company                                                    -           -              -             -                -
       Reduction of debt component of convertible
         debentures                                                 -           -              -             -                -
       Repayment of debt                                            -           -              -             -               1.8
       Dividends on convertible preferred shares
        of subsidiary company                                       -           -              -             -                -
------------------------------------------------------------------------------------------------------------------------------------
Cash flow provided from financing activities                        -           -              -             -               1.8
------------------------------------------------------------------------------------------------------------------------------------
    Investing:
       Additions to property, plant and equipment                   -           -              -             -               0.3
       Business acquisitions, net of cash acquired                  -           -              -             -                -
       Long-term investments and other assets                       -           -              -             -              (1.4)
       Proceeds from the disposal of property, plant and
         equipment                                                  -           -              -             -                -
       Increase (decrease) in restricted cash                       -           -              4.6           -                -
------------------------------------------------------------------------------------------------------------------------------------
Cash flow used in investing activities                              -           -              4.6           -              (1.1)
------------------------------------------------------------------------------------------------------------------------------------
Effect of exchange rate changes on cash                             -           -              -             -                -
------------------------------------------------------------------------------------------------------------------------------------
Increase in cash and cash equivalents                               -           -              4.6           -             (23.9)
Cash and cash equivalents, beginning of year                        -           -             (4.6)          -              (5.5)
------------------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents, end of year                           $  -         $ -            $ -           $ -            $(29.4)
====================================================================================================================================

==============================================================================================
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the year ended December 31, 2002                           Restatement
                                                                 to equity
                                                               account for
                                                             investment in               Under
                                                                  Echo Bay           U.S. GAAP
----------------------------------------------------------------------------------------------
                                                                       (d)   (restated-note d)
Net inflow (outflow) of cash related to the following
activities:
    Operating:
    (Loss) earnings for the year before dividends on
        convertible preferred shares of subsidiary
        company                                                      $(0.7)  $            18.8
    Items not affecting cash:
       Depreciation, depletion and amortization                         -                 59.8
       Asset write-downs and non-cash charges                           -                  7.9
       Gain on disposal of assets                                       -                (45.2)
       Future income and mining taxes                                   -                   -
       Deferred revenue realized                                        -                 (7.1)
       Site restoration cost accruals                                   -                  2.3
       Share in loss of investee companies                            0.7                (12.2)
       Interest on convertible debentures                               -                 (0.6)
       Unrealized foreign exchange losses on
        convertible debentures                                          -                  1.2
       Site restoration cash expenditures                               -                 (9.8)
    Changes in non-cash operating assets and liabilities:
       Accounts receivable                                              -                  2.2
       Inventories                                                      -                  1.0
       Marketable securities                                            -                  2.8
       Ore in stockpiles                                                -                 (0.4)
       Accounts payable and accrued liabilities                         -                  9.1
----------------------------------------------------------------------------------------------
Cash flow provided from operating activities                            -                 29.8
----------------------------------------------------------------------------------------------
    Financing:
       Issuance of common shares and common share
         purchase warrants                                              -                112.8
       Acquisition of preferred shares of subsidiary
         company                                                        -                (11.4)
       Reduction of debt component of convertible
         debentures                                                     -                   -
       Repayment of debt                                                -                (26.7)
       Dividends on convertible preferred shares
         of subsidiary company                                          -                   -
----------------------------------------------------------------------------------------------
Cash flow provided from financing activities                            -                 74.7
----------------------------------------------------------------------------------------------
    Investing:
       Additions to property, plant and equipment                       -                (22.3)
       Business acquisitions, net of cash acquired                      -                 (0.1)
       Long-term investments and other assets                           -                  0.4
       Proceeds from the disposal of property, plant and
         equipment                                                      -                  1.3
       Increase (decrease) in restricted cash                           -                (16.5)
----------------------------------------------------------------------------------------------
Cash flow used in investing activities                                  -                (37.2)
----------------------------------------------------------------------------------------------
Effect of exchange rate changes on cash                                 -                  3.0
----------------------------------------------------------------------------------------------
Increase in cash and cash equivalents                                   -                 70.3
Cash and cash equivalents, beginning of year                            -                 70.9
----------------------------------------------------------------------------------------------
Cash and cash equivalents, end of year                               $  -             $  141.2
==============================================================================================
</TABLE>

                                     F-B49
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
CONSOLIDATED STATEMENTS OF CASH FLOWS                                   Recognition      Elimination  Property, plant
For the year ended December 31, 2001                                    of deferred    of effects of    and equipment
                                                                           exchange   recognition of   & amortization
                                                                   gains and losses equity component      differences    Reversal of
                                                             Under   on convertible   of convertible    from applying   1991 deficit
                                                          CDN GAAP       debentures       debentures         SFAS 121    elimination
------------------------------------------------------------------------------------------------------------------------------------
                                                                                (a)              (a)              (b)            (c)
<S>                                                        <C>               <C>               <C>              <C>             <C>
Net inflow (outflow) of cash related to the following
activities:
    Operating:
    Loss for the year before dividends on
        convertible preferred shares of subsidiary
        company                                            $ (31.2)           $ 5.9           $(4.1)           $  6.1           $ -
    Items not affecting cash:
       Depreciation, depletion and amortization               85.8               -                -              (6.1)            -
       Asset write-downs and non-cash charges                 14.6               -                -                -              -
       Gain on disposal of assets                             (1.2)              -                -                -              -
       Future income and mining taxes                           -                -                -                -              -
       Deferred revenue realized                             (17.7)              -                -                -              -
       Site restoration cost accruals                          1.9               -                -                -              -
       Share in loss of investee companies                     2.2               -                -                -              -
       Interest on convertible debentures                       -                -              (1.3)              -              -
       Unrealized foreign exchange gains on
        convertible debentures                                (0.6)            (5.9)              -                -              -
       Proceeds on restructuring of gold forward
        sales contracts                                       21.6
       Site restoration cash expenditures                     (7.1)              -                -                -              -
    Changes in non-cash operating assets and liabilities:
       Accounts receivable                                     5.1               -                -                -              -
       Inventories                                             9.6               -                -                -              -
       Marketable securities                                    -                -                -                -              -
       Accounts payable and accrued liabilities               (8.0)              -                -                -              -
------------------------------------------------------------------------------------------------------------------------------------
Cash flow provided from operating activities                  75.0               -              (5.4)              -              -
------------------------------------------------------------------------------------------------------------------------------------
    Financing:
       Issuance of common shares                               5.4               -                -                -              -
       Reduction of debt component of convertible
         debentures                                           (5.4)              -               5.4               -              -
       Repayment of debt                                     (46.5)              -                -                -              -
       Dividends on convertible preferred shares
         of subsidiary company                                  -                -                -
------------------------------------------------------------------------------------------------------------------------------------
Cash flow used in financing activities                       (46.5)              -               5.4               -              -
------------------------------------------------------------------------------------------------------------------------------------
    Investing:
       Additions to property, plant and equipment            (30.4)              -                -                -              -
       Business acquisitions, net of cash acquired            (1.2)              -                -                -              -
       Long-term investments and other assets                  2.1               -                -                -              -
       Proceeds from the sale of property, plant and
         equipment                                             1.8               -                -                -              -
       Decrease (increase) in restricted cash                  2.9               -                -                -              -
------------------------------------------------------------------------------------------------------------------------------------
Cash flow used in investing activities                       (24.8)              -                -                -              -
------------------------------------------------------------------------------------------------------------------------------------
Effect of exchange rate changes on cash                       (0.5)              -                -                -              -
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in cash and cash equivalents               3.2               -                -                -              -
Cash and cash equivalents, beginning of year                  77.8               -                -                -              -
------------------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents, end of year                     $  81.0           $   -             $  -             $  -            $ -
====================================================================================================================================
</TABLE>


                                     F-B50
<PAGE>
<TABLE>
<CAPTION>
==================================================================================================================================
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the year ended December 31, 2001                                 Gains                             Reclassi-
                                                             on marketable                           fication of
                                                                securities                   Flow     cumulative
                                                             and long-term   Effect of     through   translation   To adjust to
                                                               investments    SFAS 133      shares   adjustments   equity basis
----------------------------------------------------------------------------------------------------------------------------------
                                                                   (d)         (e)           (f)            (h)              (i)
<S>                                                              <C>          <C>            <C>         <C>               <C>
Net inflow (outflow) of cash related to the following
activities:
    Operating:
    Loss for the year before dividends on
        convertible preferred shares of subsidiary
        company                                                  $  -        $(3.9)          $ -          $  -            $  -
    Items not affecting cash:
       Depreciation, depletion and amortization                     -           -              -             -             (20.5)
       Asset write-downs and non-cash charges                       -           -              -             -               -
       Gain on disposal of assets                                   -           -              -             -               -
       Future income and mining taxes                               -           -              -             -               -
       Deferred revenue realized                                    -          3.9             -             -               -
       Site restoration cost accruals                               -           -              -             -              (0.4)
       Share in loss of investee companies                          -           -              -             -               0.8
       Interest on convertible debentures                           -           -              -             -               -
       Unrealized foreign exchange gains on
        convertible debentures                                      -           -              -             -               -
       Proceeds on restructuring of gold forward
        sales contracts                                             -           -              -             -               -
       Site restoration cash expenditures                           -           -              -             -               -
    Changes in non-cash operating assets and liabilities:
       Accounts receivable                                          -           -              -             -              (4.4)
       Inventories                                                  -           -              -             -              (4.7)
       Marketable securities                                        -           -              -             -               -
       Accounts payable and accrued liabilities                     -           -              -             -               1.7
--------------------------------------------------------------------------------------------------------------------------------
Cash flow provided from operating activities                        -           -              -             -             (27.5)
--------------------------------------------------------------------------------------------------------------------------------
    Financing:
       Issuance of common shares                                    -           -              -             -               -
       Reduction of debt component of convertible
         debentures                                                 -           -              -             -               -
       Repayment of debt                                            -           -              -             -              34.6
       Dividends on convertible preferred shares
         of subsidiary company                                      -           -              -             -               -
--------------------------------------------------------------------------------------------------------------------------------
Cash flow used in financing activities                              -           -              -             -              34.6
--------------------------------------------------------------------------------------------------------------------------------
    Investing:
       Additions to property, plant and equipment                   -           -              -             -               0.4
       Business acquisitions, net of cash acquired                  -           -              -             -               -
       Long-term investments and other assets                       -           -              -             -               4.3
       Proceeds from the sale of property, plant and
         equipment                                                  -           -              -             -               -
       Decrease (increase) in restricted cash                       -           -             (3.2)          -               -
--------------------------------------------------------------------------------------------------------------------------------
Cash flow used in investing activities                              -           -             (3.2)          -               4.7
--------------------------------------------------------------------------------------------------------------------------------
Effect of exchange rate changes on cash                             -           -              -             -               -
--------------------------------------------------------------------------------------------------------------------------------
Increase in cash and cash equivalents                               -           -             (3.2)          -              11.8
Cash and cash equivalents, beginning of year                        -           -             (1.4)          -             (17.3)
--------------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents, end of year                           $  -         $ -            $(4.6)       $  -            $ (5.5)
================================================================================================================================
</TABLE>

=====================================================================
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the year ended December 31, 2001


                                                                Under
                                                            U.S. GAAP
---------------------------------------------------------------------

Net inflow (outflow) of cash related to the following
activities:
    Operating:
    Loss for the year before dividends on
        convertible preferred shares of subsidiary
        company                                                $(27.2)
    Items not affecting cash:
       Depreciation, depletion and amortization                  59.2
       Asset write-downs and non-cash charges                    14.6
       Gain on disposal of assets                                (1.2)
       Future income and mining taxes                              -
       Deferred revenue realized                                (13.8)
       Site restoration cost accruals                             1.5
       Share in loss of investee companies                        3.0
       Interest on convertible debentures                        (1.3)
       Unrealized foreign exchange losses on
        convertible debentures                                   (6.5)
       Proceeds on restructuring of gold forward
        sales contracts                                          21.6
       Site restoration cash expenditures                        (7.1)
    Changes in non-cash operating assets and liabilities:
       Accounts receivable                                        0.7
       Inventories                                                4.9
       Marketable securities                                       -
       Accounts payable and accrued liabilities                  (6.3)
---------------------------------------------------------------------
Cash flow provided from operating activities                     42.1
---------------------------------------------------------------------
    Financing:
       Issuance of common shares                                  5.4
       Reduction of debt component of convertible
         debentures                                                -
       Repayment of debt                                        (11.9)
       Dividends on convertible preferred shares
         of subsidiary company                                     -
---------------------------------------------------------------------
Cash flow used in financing activities                           (6.5)
---------------------------------------------------------------------
    Investing:
       Additions to property, plant and equipment               (30.0)
       Business acquisitions, net of cash acquired               (1.2)
       Long-term investments and other assets                     6.4
       Proceeds from the disposal of property, plant and
         equipment                                                1.8
       Decrease in restricted cash                               (0.3)
---------------------------------------------------------------------
Cash flow used in investing activities                          (23.3)
---------------------------------------------------------------------
Effect of exchange rate changes on cash                          (0.5)
---------------------------------------------------------------------
Increase (decrease) in cash and cash equivalents                 11.8
Cash and cash equivalents, beginning of year                     59.1
---------------------------------------------------------------------
Cash and cash equivalents, end of year                         $ 70.9
=====================================================================


                                     F-B51
<PAGE>

Consolidated statements of cash flows presented in accordance with U.S. GAAP
would require the following changes from the consolidated statements of cash
flows prepared in accordance with CDN GAAP:

1.   Within cash flows provided from operating activities, the determination
     should begin with "net earnings (loss)", instead of the "earnings (loss)
     for the year before dividends on convertible preferred shares of subsidiary
     company".

2.   Under U.S. GAAP, the reduction of the debt component of convertible
     debentures is treated as interest expense and as a cash flow from operating
     activities. Under CDN GAAP, the interest expense is classified as a
     financing activity.

Consolidated Statements of Comprehensive Income (Loss): The Company's statements
of comprehensive income (loss) under U.S. GAAP are as follows:

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
Year ended December 31                                                          2003      2002        2001
--------------------------------------------------------------------------------------------------------------------
                                                                                       (restated)
<S>                                                                           <C>        <C>         <C>
    Net (loss) earnings for the period under U.S. GAAP                        $(16.6)    $ 17.3      $(32.3)
    Change in currency translation adjustments                                  21.4        5.2        (5.6)
    Change in unrealized gains on marketable securities
       and long-term investments(d)                                             (6.4)       8.7         4.5
    SFAS No. 133(e)                                                             (4.4)     (23.6)        8.9
    Change in minimum pension liability(k)                                      (3.1)        -           -
                                                                              ------------------------------
    Comprehensive (loss) earnings under U.S. GAAP                             $ (9.1)    $  7.6      $(24.5)
                                                                              ==============================
</TABLE>

(a)  Under CDN GAAP, the convertible debentures, described in Note 13 were
     accounted for in accordance with their substance and, as such, were
     presented in the financial statements in their liability and equity
     component parts. The Company redeemed these convertible debentures on
     September 29, 2003. Under U.S. GAAP, the entire principal amount of the
     convertible debentures plus accrued interest of $146.8 million immediately
     prior to the redemption and $123.8 million at December 31, 2002, was
     treated as debt with interest expense based on the coupon rate of 5.5%.

     In addition, under CDN GAAP, realized and unrealized foreign exchange gains
     and losses on the debt component of the debentures were recognized in
     income. For U.S. GAAP, in addition to including these gains and losses in
     income, realized and unrealized exchange gains and losses related to the
     portion of the convertible debentures included in equity under CDN GAAP
     were also included in income. There was no gain or loss on the redemption
     of the convertible debentures for U.S. GAAP.

(b)  Cumulatively, as a result of applying SFAS 121 "Accounting for the
     Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed
     Of" and following the adoption of SFAS 144 "Accounting for the Impairment
     or Disposal of Long-Lived Assets", property, plant and equipment is reduced
     and the deficit increased by $60.5 million. This difference arose from the
     requirement to discount future cash flows from impaired property, plant and
     equipment under U.S. GAAP and from using proven and probable reserves only.
     At the time of the impairment, future cash flows from impaired property,
     plant and equipment were not discounted under CDN GAAP. Under U.S. GAAP,
     depreciation, depletion and amortization, in periods subsequent to the
     impairment, would be reduced by $6.3 million, $8.1 million and $6.1 million
     during the years ended December 31, 2003, 2002 and 2001, respectively, to
     reflect the above. Cumulatively, as a result of these reductions in
     depreciation, depletion and amortization, property, plant and equipment is
     increased and the deficit decreased by $32.3 million and $26.0 million as
     at December 31, 2003 and 2002, respectively.

(c)  CDN GAAP allows for the elimination of operating deficits by the reduction
     of stated capital attributable to common shares with a corresponding offset
     to the accumulated deficit. For CDN GAAP, the Company eliminated operating
     deficits of $761.4 million and $5.3 million in 2003 and 1991, respectively.
     These reclassifications are not permitted by U.S. GAAP and would require in
     each subsequent year a cumulative increase in share capital and a
     cumulative increase in deficit of $766.7 million.

(d)  Under CDN GAAP, unrealized gains and losses on long-term investments and
     marketable securities are not recorded. Under U.S. GAAP, unrealized gains
     on long-term investments that are classified as securities available for
     sale of $6.9 million and $13.5 million at December 31, 2003 and December
     31, 2002, respectively, and marketable securities of $0.3 million and $0.1
     million at December 31, 2003 and December 31, 2002, respectively are
     included as a component of comprehensive income (loss).


                                     F-B52
<PAGE>

     Furthermore, U.S. GAAP requires that the transaction on April 3, 2002,
     whereby the Company exchanged its investment in debt securities of Echo Bay
     for 57.1 million common shares of Echo Bay, be recorded at fair value with
     the resulting gain included in earnings. Fair value of the Echo Bay common
     shares received, under U.S. GAAP, was $49.1 million, representing 57.1
     million common shares at $0.86 each, being the closing market price of such
     shares on April 3, 2002. Fair value is not discounted for liquidity
     concerns or other valuation considerations. The resulting gain of $42.5
     million, after deducting the $6.6 million carrying value of the debt
     securities exchanged, increased the carrying value of this investment and
     was included in earnings for the year ended December 31, 2002. Under CDN
     GAAP, the cost of the Echo Bay common shares acquired on the exchange was
     recorded at the values of the securities given up. Since the fair value of
     the capital securities given up approximated their carrying value, no gain
     was recorded under CDN GAAP.

     Subsequent to the exchange of debt securities, the Company accounted for
     its share investment in Echo Bay as an available for sale security under
     U.S. GAAP. At January 31, 2003, when the Company acquired the remaining
     outstanding common shares of Echo Bay, the Company retroactively restated
     its 2002 consolidated financial statements, prepared in accordance with
     U.S. GAAP, to account for its share investment in Echo Bay on an equity
     basis. As a result, the Company reversed an unrealized gain of $21.8
     million previously included in other comprehensive income, increased its
     deficit by $0.7 million to reflect its share of equity losses for the
     period ended December 31, 2002 and correspondingly reduced the carrying
     value of its investment. In addition, the Company decreased long-term
     investments and recorded a share of loss in investee company of $1.0
     million for the one month ended January 31, 2003 and increased long-term
     investments and recorded a share of income in investee company of $0.7
     million during the year ended December 31, 2002.

     For U.S. GAAP purposes, as a result of the business combination on January
     31, 2003, the Company recognized an additional $40.8 million of goodwill
     representing the difference in carrying value of its share investment in
     Echo Bay between CDN and U.S. GAAP.

(e)  Under CDN GAAP, derivatives hedging forecasted transactions are off-balance
     sheet until the hedged transaction is recorded. Realized gains and losses
     on derivatives that are closed out early are initially recorded as deferred
     revenue or deferred charges and are recorded as an adjustment to net
     earnings (loss) when the original hedged transaction is recorded.

     On January 1, 2001, the Company adopted Financial Accounting Standards
     Board ("FASB") Statement No. 133, "Accounting for Derivative Instruments
     and Hedging Activities" ("SFAS 133"), and the corresponding amendments
     under FASB Statement No. 138 ("SFAS 138"). SFAS 133 requires that all
     derivative financial instruments be recognized in the financial statements
     and measured at fair value regardless of the purpose or intent for holding
     them. Changes in the fair value of derivative financial instruments are
     either recognized periodically in income or shareholders' equity (as a
     component of other comprehensive income), depending on whether the
     derivative is being used to hedge changes in fair value or cash flows. SFAS
     138 amends certain provisions of SFAS 133 to clarify four areas causing
     difficulties in implementation.

     For derivatives designated as cash flow hedges, the effective portions of
     changes in fair value of the derivative are reported in other comprehensive
     income and are subsequently reclassified into other income when the hedged
     item affects other income. Changes in fair value of the derivative
     instruments used as economic instruments and ineffective portions of hedges
     are recognized in other income in the period incurred. The application of
     SFAS 133 results in a cumulative decrease in deferred revenue of $2.2
     million and $4.5 million, a cumulative increase in accounts payable and
     accrued liabilities of $22.7 million and $21.1 million, a cumulative
     increase in deficit of $1.4 million and $1.9 million, and a cumulative
     decrease in other comprehensive income of $19.1 million and $14.7 million
     at December 31, 2003 and December 31, 2002, respectively. Additionally, as
     a result of applying SFAS 133, there would be an increase in the CDN GAAP
     net earnings of $0.5 million and a decrease in the CDN GAAP net loss of
     $2.0 million for the years ended December 31, 2003 and 2002 respectively.
     On adoption of SFAS 133, the Company did not complete the required
     documentation and effectiveness assessments to achieve hedge accounting for
     the commodity derivatives hedging gold revenues and energy price risk,
     although the contracts are considered to be effective economic hedges and
     they were accounted for as hedges for CDN GAAP purposes. For U.S. GAAP
     only, these derivatives are carried at fair value with the changes in fair
     value recorded as an adjustment to net earnings (loss). The SFAS
     requirements for foreign exchange forward contracts were accounted for as
     cash flow hedges from January 1, 2001. Realized and unrealized derivatives
     gains and losses included in other comprehensive income ("OCI") on
     transition and during 2001 were reclassified into mining revenue for
     cash-flow hedges of forecasted commodity sales and foreign exchange gain
     (loss) for forecasted foreign currency revenues or expenses when the hedged
     forecasted revenue or expense is recorded. During the year ended December
     31, 2003, $9.3 million of derivative losses were reclassified out of other
     comprehensive income (year ended December 31, 2002, $16.3 million of
     comprehensive gain). The Company estimates that $15.3 million of net
     derivatives losses included in other comprehensive income will be
     reclassified into earnings within the next twelve months.


                                     F-B53
<PAGE>

     Beginning January 2002, the Company met the required documentation
     requirements under SFAS 133 relating to the prospective and retrospective
     effectiveness assessments for the commodity derivatives; thus, these
     derivatives were designated as cash flow hedges. The effective portions of
     changes in fair values of these derivatives are now recorded in other
     comprehensive income and are recognized in the income statement when the
     hedged item affects earnings. Ineffective portions of changes in fair value
     of cash flow hedges are recognized in earnings. There was no
     ineffectiveness recorded during 2003, 2002 or 2001.

(f)  Under Canadian income tax legislation, a company is permitted to issue
     shares whereby the company agrees to incur qualifying expenditures and
     renounce the related income tax deductions to the investors. The Company
     accounted for the issue of flow-through shares using the deferral method in
     accordance with CDN GAAP. At the time of issue the funds received were
     recorded as share capital. Qualifying expenditure did not begin to be
     incurred until 2002. For U.S. GAAP, the premium paid in excess of the
     market value of $1.1 million was credited to other liabilities and included
     in income as the qualifying expenditures were made. All of the qualifying
     expenditures were made in 2002. $1.1 million was included in interest and
     other income for the year ended December 31, 2002.

(g)  The terms "proven and probable reserves", "exploration", "development", and
     "production" have the same meaning under both U.S. and CDN GAAP.
     Exploration costs incurred are expensed at the same point in time based on
     the same criteria under both U.S. and CDN GAAP. In addition, mining related
     costs are only capitalized after proven and probable reserves have been
     designated under both U.S. and CDN GAAP.

(h)  Under CDN GAAP, the unrealized translation gains and losses on the
     Company's net investment in self-sustaining operations translated using the
     current rate method accumulated in a separate component of shareholders'
     equity, described as cumulative translation adjustments on the consolidated
     balance sheet. Under U.S. GAAP, the unrealized foreign exchange gains and
     losses would not accumulate in a separate component of shareholders equity
     but rather as an adjustment to accumulated other comprehensive income. As
     indicated in Note 1, the Company changed its accounting policy with respect
     to the translation of foreign currencies during the year. As such, the $2.0
     million accumulated translation loss in other comprehensive income, will
     only become realized in earnings upon the substantial disposition,
     liquidation or closure of the mining property or investment that gave rise
     to such amounts.

(i)  Under CDN GAAP, Kinross proportionately consolidates its interests in the
     following incorporated joint ventures: RPM (Paracatu), MDO (La Coipa), MSG
     (Crixas ) and CMM (Refugio). In addition, the Company proportionately
     consolidates its interests in the following unincorporated joint ventures:
     Round Mountain, Porcupine Joint Venture, Musselwhite and New Britannia.
     Prior to March 1, 2003, the investment in Omolon was also proportionately
     consolidated under CDN GAAP. Effective March 1, 2003, following the
     Company's increase in share ownership to 98.1%, as described in note 2(b),
     Omolon is fully consolidated under both CDN and U.S. GAAP.

     These investments are accounted for using the equity method under U.S.
     GAAP. The Company relies on an accommodation provided for in Item 17(c)
     (2)(vii) of SEC Form 20-F, which permits a company using the equity method
     for U.S. GAAP to omit the differences arising from the use of proportionate
     consolidation under CDN GAAP. Each of the joint ventures listed, except
     Omolon prior to March 1, 2003, qualifies for this accommodation on the
     basis that it is an operating entity, the significant financial and
     operating policies of which are, by contractual arrangement, jointly
     controlled by all parties having an equity interest in the entity.

     With respect to Omolon, the Company concluded that it did not meet the
     criteria outlined for the accommodation. Therefore, the financial
     information of Omolon has been disclosed using the equity method for U.S.
     GAAP purposes for comparative periods prior to March 1, 2003. Under the
     equity method, an investment in common shares is generally shown in the
     balance sheet of an investor as a single amount as "Investment in investee
     company". Likewise, an investor's share of earnings or losses from its
     investment is ordinarily shown in its statement of operations as a single
     amount as "Share of income (loss) of investee company".

(j)  On January 1, 2003, the Company adopted SFAS 143, "Accounting for Asset
     Retirement Obligations" which requires that the fair value of liabilities
     for asset retirement obligations associated with tangible long-lived assets
     be recognized in the period in which they are incurred. For the purposes of
     applying SFAS 143, asset retirement obligations are based principally on
     legal and regulatory requirements associated with the retirement of
     long-lived assets that result from the acquisition, construction,
     development and/or the normal operation of a long-lived asset. When the
     liability is initially


                                     F-B54
<PAGE>

     recorded, a corresponding increase to the carrying amount of the related
     asset is recorded and then depreciated over the useful life of the asset.
     Over time, the liability is increased to reflect an interest element
     (accretion) considered in its initial measurement at fair value. This
     differs from the prior practice in which Kinross accrued for the estimated
     site restoration and closure obligations over the producing life of the
     mine with an annual charge to earnings. Under SFAS 143, accretion is
     charged against earnings during the life of the mine and afterwards until
     all obligations have been settled.

     The Company is not required to re-measure the obligation at fair value each
     period, but is required to evaluate the cash flow estimates at the end of
     each reporting period to determine whether the estimates continue to be
     appropriate. Upon settlement of the liability, the Company will record a
     gain or loss if the actual cost incurred is different than the liability
     recorded. The cumulative effect of adopting SFAS 143 was to increase
     property, plant and equipment by $1.6 million, increase long-term equity
     accounted investments by $0.3 million, increase site restoration cost
     accruals by $14.0 million and to record a one-time charge of $12.1 million
     ($0.04 per share) to earnings in the year ended December 31, 2003.
     Following the adoption of SFAS 143, the total amount of recognized
     liabilities for asset retirement obligations was $66.9 million. If the
     change had occurred on January 1, 2002, the cumulative effect would have
     resulted in no change to property, plant and equipment, an increase of $0.3
     million in long-term equity accounted investments, an increase in site
     restoration cost accruals of $22.5 million and a one-time charge of $22.2
     million ($0.18 per share) to earnings in the year ended December 31, 2002.
     The total amount of recognized liabilities would have been $74.7 million at
     December 31, 2001. For the year ended December 31, 2003, the effect on
     earnings in addition to the cumulative effect of adopting SFAS 143 was a
     decrease in net loss of $1.0 million ($nil per share). For the year ended
     December 31, 2002, the effect of adopting SFAS 143 in addition to the
     cumulative effect, would have been a decrease in net income of $0.1 million
     ($nil per share), an increase in property, plant and equipment of $1.7
     million and a reduction in long-term investments of $0.1 million.

     The following is a reconciliation of the liability for asset retirement
     obligations:

     ===========================================================================
                                                        (unaudited, in millions)
     ---------------------------------------------------------------------------
     Balance as at December 31, 2002                           $ 52.9
     Impact of adoption of SFAS 143                              14.0
     Additions to liabilities(1)                                 68.5
     Liabilities settled                                        (22.4)
     Accretion expense                                            9.4
     Foreign exchange                                             3.4
     Revisions                                                    5.0
     ---------------------------------------------------------------------------
     Balance as at December 31, 2003                           $130.8
     ===========================================================================

     (1)  Properties acquired from Echo Bay and TVX of $45.5 million and $17.5
          million, respectively, and $5.5 million relating to the Kubaka Mine as
          a result of changing accounting for the investment in Omolon from the
          equity method to full consolidation.

(k)  Under U.S. GAAP, if the accumulated pension plan benefit obligation exceeds
     the market value of plan assets, a minimum pension liability for the excess
     is recognized to the extent that the liability recorded in the balance
     sheet is less than the minimum liability. Any portion of this additional
     liability that relates to unrecognized prior service cost is recognized as
     an intangible asset while the remainder is charged to Other Comprehensive
     Income. CDN GAAP does not require the Company to record a minimum liability
     and does not have the concept of Other Comprehensive Income. During the
     year, the Company recorded a minimum pension liability of $3.1 million
     (2002 - $nil) with a corresponding decrease in Other Comprehensive Income.
     None of the additional liability relates to unrecognized prior service
     cost.

<TABLE>
<CAPTION>
=========================================================================================================================
                                                                           Plans where assets                 Plans where
                                                                          exceed accumulated         accumulated benefits
                                                                                     benefits               exceed assets
-------------------------------------------------------------------------------------------------------------------------
Amounts recognized on the consolidated                                 December      December      December      December
balance sheets consist of:                                             31, 2003      31, 2002      31, 2003      31, 2002
-------------------------------------------------------------------------------------------------------------------------
<S>                                                                      <C>          <C>            <C>           <C>
Accrued pension asset (liability)                                        $(0.3)       $ 0.4          $ 1.3         $ -
Additional minimum pension obligation                                      -            -             (3.1)          -
Accumulated other comprehensive income                                     -            -              3.1           -
-------------------------------------------------------------------------------------------------------------------------
Net amount recognized on consolidated balance sheets                     $(0.3)       $ 0.4          $ 1.3         $ -
=========================================================================================================================
</TABLE>


                                     F-B55
<PAGE>

Stock-based compensation

The Company follows Accounting Principles Board ("APB") Opinion No. 25,
"Accounting for Stock Issued to Employees", and its related interpretations in
accounting for stock options. Accordingly, because stock option exercise prices
equal the market value on the date of the grant, no compensation cost has been
recognized at the grant date of the stock options. Had compensation expense for
the stock option plans been determined based upon fair value at the grant date
for awards under these plans consistent with the methodology prescribed under
SFAS No. 123, "Accounting for Stock-Based Compensation" ("SFAS 123"), and SFAS
No. 148 "Accounting for Stock-Based Compensation - Transition and Disclosure, an
amendment to SFAS No. 123" ("SFAS 148"), the Company's pro forma net (loss)
earnings and (loss) earnings per share would be as follows:

<TABLE>
<CAPTION>
=========================================================================================================================
                                                                                       Year ended December 31
-------------------------------------------------------------------------------------------------------------------------
U.S. GAAP                                                                      2003             2002             2001
-------------------------------------------------------------------------------------------------------------------------
<S>                                                                          <C>               <C>              <C>
Net (loss) earnings applicable to common shares                                              (restated)
     As reported                                                             $(16.6)           $ 17.3           $(32.3)
     Add stock compensation cost                                               (1.1)             (2.0)            (1.1)
                                                                             --------------------------------------------
     Pro forma                                                               $(17.7)           $ 15.3           $(33.4)
                                                                             ============================================
(Loss) earnings per share, basic and diluted (dollars)
     As reported (1)                                                         $(0.05)           $  0.14          $ (0.31)
     Pro forma (1)                                                           $(0.06)           $  0.13          $ (0.32)
-------------------------------------------------------------------------------------------------------------------------
</TABLE>

     (1)  Reflects the effects of a three for one share consolidation approved
          January 2003 as described in Note 16.

Other requirements of SFAS 148 are disclosed in Note 16 as prescribed under CICA
Handbook Section 3870, "Stock-based Compensation and Other Stock-based Payments"
("CICA 3870"), which is consistent with the U.S. pronouncement. In addition, for
fiscal years beginning on or after January 1, 2004, CICA 3870 requires fair
value accounting for stock options. Adoption is retroactive, covering all stock
options granted on or after January 1, 2002. The Company has the option to
restate prior periods to include the expense for awards that was included in the
pro forma note disclosure of prior periods or to make an adjustment to the
opening balance of retained earnings of the current period to reflect the
cumulative effect of the change on prior periods.

Other Recent Accounting Pronouncements

Consolidation of Variable Interest Entities

In January 2003, the FASB issued Interpretation No. 46, "Consolidation of
Variable Interest Entities" ("FIN 46"). FIN 46 requires that the assets,
liabilities and results of variable interest entities be consolidated into the
financial statements of the entity that has the controlling financial interest.
FIN 46 also provides the framework for determining whether a variable interest
entity should be consolidated based on voting interest or significant financial
support provided to it. In December 2003, the FASB issued FIN 46(R), amending
the guidance in FIN 46 as well as the transition guidance. As a Foreign Private
Issuer and based on its interpretation of the revised transition guidance, the
Company will be required to adopt the guidance in FIN 46(R) for the first
reporting period that ends after March 15, 2004. The Company is in the process
of assessing the impact of the amended standard on the consolidated financial
statements.

In June 2003, the CICA issued a similar pronouncement, Accounting Guideline No.
15, "Consolidation of Variable Interest Entities" ("AcG-15"). AcG-15 is
effective for reporting periods beginning on or after November 1, 2004. Kinross
is currently evaluating the potential impact of AcG-15.

Hedging Relationships

In 2002, the Accounting Standards Board of the CICA issued Accounting Guideline
No. 13 "Hedging Relationships" ("AcG-13). AcG-13 increases the documentation,
designation and effectiveness criteria to achieve hedge accounting. The
guideline requires the discontinuance of hedge accounting for hedging
relationships established that do not meet the conditions at the date AcG-13 is
first applied. It does not change the method of accounting for derivatives in
hedging relationships, but requires fair value accounting for derivatives that
do not qualify for hedge accounting. The new guideline is applicable for fiscal
years commencing on or after July 1, 2003. The Company does not believe that the
adoption of AcG-13 will have an impact on its results of operations and
financial position.


                                     F-B56
<PAGE>

Impairment of Long-lived Assets

In 2002, the CICA Handbook Section 3063 - "Impairment of long-lived Assets"
("CICA 3063") was amended to harmonize with SFAS 144. CICA 3063 applies to
long-lived assets held for use and is effective on a prospective basis, for
fiscal years beginning on or after April 1, 2003. Early adoption is encouraged.
This standard requires that an impairment loss be recognized when the carrying
amount of an asset held for use exceeds the sum of undiscounted cash flows. The
impairment loss is measured as the amount by which the carrying amount exceeds
the fair value of the asset. The Company does not believe that the adoption of
CICA 3063 will have an impact on its results of operations and financial
position.

Asset Retirement Obligations

In 2003, the CICA issued Handbook Section 3110 - "Asset Retirement Obligations"
("CICA 3110"), which is consistent with SFAS 143, "Accounting for Asset
Retirement Obligations." The standard provides for the recognition, measurement
and disclosure of liabilities for asset retirement obligations and the
associated asset retirement costs. It addresses obligations required to be
settled as a result of an existing law, regulation or contract related to asset
retirements. The new standard is applicable for fiscal years beginning January
1, 2004. Upon adoption, CICA 3110 will require retroactive restatement of all
comparative periods. The Company is currently evaluating the impact this
standard may have on its results of operations and financial position.

Other

In July 2003, the CICA issued Handbook Section 1100 "Generally Accepted
Accounting Principles" ("CICA 1100") and Handbook Section 1400 "General
Standards of Financial Statement Presentation" ("CICA 1400"). CICA 1100
describes what constitutes CDN GAAP and its sources. CICA 1400 clarifies what
constitutes fair presentation in accordance with generally accepted accounting
principles. Both sections are effective for fiscal years beginning on or after
October 1, 2003. The Company is currently evaluating the potential impact these
standards may have on its results of operations, financial position and note
disclosures.

The Emerging Issues Task Force ("EITF") of FASB has as part of its agenda, a
review of a broad range of accounting policies related to the mining industry.
The outcome of this review may result in changes to U.S. GAAP as applied to
these consolidated financial statements. In addition, as a result of an ongoing
harmonization process with U.S. GAAP, the outcome may also result in changes to
CDN GAAP.

Consistent with common industry practice, Kinross has historically classified
mineral lease rights in the same manner as property, plant and equipment on its
balance sheet. However, in accordance with SFAS 141 "Business Combinations" and
SFAS 142 "Goodwill and Intangible Assets", the Company has accounted for mineral
lease rights as intangible assets and recorded them as "Mineral Interests" on
the balance sheet, separate and apart from property, plant and equipment. At its
March 2004 meeting, the EITF is expected to discuss Issue 03-0, "Whether Mineral
Lease Rights are Tangible or Intangible Assets". Depending on the EITF's
resolution of this issue, the Company may be required to change the
classification of its mineral lease rights. Notwithstanding a decision by the
EITF, the classification of mineral lease rights as tangible assets under U.S.
GAAP will require the approval of the FASB and amendments to SFAS 141 and SFAS
142 in order to effect such change.

23. Commitments and contingencies

General

The Company follows Section 3290 of the CICA handbook in determining its
accruals and disclosures with respect to loss contingencies. Accordingly,
estimated losses from loss contingencies are accrued by a charge to income when
information available prior to the issuance of the financial statements
indicates that it is likely that a future event will confirm that an asset has
been impaired or a liability incurred at the date of the financial statements
and the amount of the loss can be reasonably estimated.


                                     F-B57
<PAGE>

Environmental and Site Restoration Costs

The Company's mining, processing and exploration activities are subject to
various federal, state and provincial laws and regulations regarding the
protection of the environment. These laws and regulations are continually
changing and are generally becoming more restrictive. The Company conducts its
operations so as to protect the public health and environment and believes its
operations are in compliance with all applicable laws and regulations. The
Company has made and expects to make, in the future, expenditures to comply with
such laws and regulations. Estimated future site restoration costs are based
principally on legal and regulatory requirements. As at December 31, 2003 and
2002, $119.7 million and $57.0 million, respectively, were accrued for site
restoration costs relating to currently or past producing properties.

In addition, the Company is currently involved in two matters concerning
environmental matters on sites that have been sold. Details about these sites
are discussed below:

Candelaria Mine sale

On October 1, 2001 the Company sold 100% of its investment in Kinross Candelaria
Mining Company to Silver Standard Resources Inc. ("Silver Standard"). As part of
the sales agreement the Company agreed to maintain the financial assurance
provided to the Bureau of Land Management ("BLM"). The financial assurance is in
the form of a letter of credit for $1.7 million. Silver Standard has agreed to
reimburse the Company for the costs of the financial assurance and will provide
an alternative form of financial assurance acceptable to the BLM on or before
April 15, 2004, which will allow the BLM to release the Company from its
financial assurance. The Company expects to be released from this obligation in
2004.

Sleeper Mine sale

On December 31, 2003, the Company sold its remaining 50% ownership interest in
Sleeper Mining Company LLC to a subsidiary of X-Cal Resources Ltd. ("X-Cal"). As
part of the sales agreement, the Company agreed to maintain the financial
assurances provided to the BLM. The financial assurances are in the form of two
letters of credit totalling $8.0 million. In addition, pursuant to the sales
agreement X-Cal escrowed $8.0 million of its own cash until an alternative form
of financial assurance is provided and accepted by the BLM or July 8, 2004. The
Company has agreed to allow X-Cal to utilize $5.2 million of the escrowed cash
as security for an alternative form of financial assurance acceptable to the
BLM. If by July 8, 2004, X-Cal has not provided the alternative form of
financial assurance acceptable to the BLM, X-Cal has arranged for an insurer to
post a surety bond, which would effectively put the Company in the position of
having its obligation collateralized. The Company has the right to utilize the
escrowed funds to pay for the costs of its letter of credit. Kinross expects to
be released from this obligation in 2004.

Export prepayment contracts

A Brazilian Central Bank program enables exporters to borrow US dollars and
commit to conduct export activities. The borrowed amounts are then reinvested
locally at rates in excess of those on the loans. These contracts are referred
to as export prepayment contracts.

The Company's Paracatu joint venture participates in this program and entered
into contracts during 2000 and 2001, which were immediately assigned to a
Brazilian bank. The joint venture receives a premium instead of the higher
interest rate earned by the bank. The lenders of the funds agreed to the
assignment of the borrowed amounts to the local bank. There is no obligation by
the Company to repay any of the borrowed amounts.

The Company has $1.1 million of unearned premium related to these export
prepayment contracts at December 31, 2003. The Company will earn this premium as
it exports gold. As at December 31, 2003, the Company is committed to export
$50.4 million of gold (2004 - $25.9 million, 2005 - $24.5 million).


                                     F-B58
<PAGE>

Other legal matters

Derivative action

In October 1996, a shareholder derivative action was filed in the Court of
Chancery of Delaware on behalf of a Kinam Gold Inc. ("Kinam") formerly Amax Gold
Inc., shareholder, entitled Harry Lewis v. Milton H. Ward, et al., C.A. No.
15255-NC, against Cyprus Amax, Kinam's directors and Kinam as a nominal
defendant. Kinam Gold Inc. is a 100% owned subsidiary of the Company. The
complaint alleges, among other things, that the defendants engaged in
self-dealing in connection with Kinam's entry in March 1996 into a demand loan
facility provided by Cyprus Amax. The complaint seeks, among other things, a
declaration that the demand loan facility is not entirely fair to Kinam and
damages in an unspecified amount. Kinam subsequently filed a motion to dismiss
the action with the court. On October 30, 2003, the Court of Chancery of
Delaware granted Kinam's motion to dismiss the complaint. The plaintiff appealed
this decision on November 30, 2003. The Company and Kinam believe that the
complaint is without merit and will continue to defend the matter as required.
The Company cannot reasonably predict the outcome of this action and the amount
of loss cannot be reasonably estimated, therefore no loss contingency has been
recorded in the financial statements. This derivative action relates to the
Corporate and other segment (see Note 19).

Class action

The Company was named as a defendant in a class action complaint filed on or
about April 26, 2002, entitled Robert A. Brown, et al. v. Kinross Gold U.S.A.,
Inc., et al., Case No. CV-S-02-0605-KJD-RJJ, brought in the United States
District Court for the District of Nevada. Defendants named in the complaint are
the Company, its subsidiaries, Kinross Gold U.S.A., Inc. and Kinam, and Robert
M. Buchan, President and C.E.O. of the Company. The complaint is brought on
behalf of two potential classes, those who tendered their Kinam preferred stock
into the tender offer for the Kinam $3.75 Series B Preferred Stock made by the
Kinross Gold U.S.A. and those who did not. Plaintiffs argue, among other things,
that amounts historically advanced by the Company to Kinam should be treated as
capital contributions rather than loans, that the purchase of Kinam preferred
stock from institutional investors in July 2001 was a constructive redemption of
the preferred stock, an impermissible amendment to the conversion rights of the
preferred stock, or constituted the commencement of a tender offer, that the
Company and its subsidiaries have intentionally taken actions for the purpose of
minimizing the value of the Kinam preferred stock, and that the amount offered
in the tender offer of $16.00 per share was not a fair valuation of the Kinam
preferred stock. The complaint alleges breach of contract based on the governing
provisions of the Kinam preferred stock, breach of fiduciary duties, violations
of the "best price" rule under Section 13(e) of the Securities Exchange Act of
1934, as amended, and the New York Stock Exchange rules, violations of Section
10(b) and 14(e) of the Securities Exchange Act of 1934, as amended, and Rules
10b-5 and 14c-6(a) hereunder, common law fraud based on the acts taken and
information provided in connection with the tender offer, violation of Nevada's
anti-racketeering law, and control person liability under Section 20A of the
Securities Exchange Act of 1934, as amended. A second action seeking
certification as a class action and based on the same allegations was also filed
in the United States District Court for the District of Nevada on or about May
22, 2002. It names the same parties as defendants. This action has been
consolidated into the Brown case and the Brown plaintiffs have been designated
as lead plaintiffs. The plaintiffs seek damages ranging from $9.80 per share,
plus accrued dividends, to $39.25 per share of Kinam preferred stock or, in the
alternative, the issuance of 26.875 to 80.625 shares of the Company for each
Kinam preferred share. They also seek triple damages under Nevada statutes. The
Company brought a motion for judgement on the pleadings with respect to the
federal securities claims based on fraud. Discovery was stayed pending the
resolution of this matter. On September 29, 2003, the Court ruled that
plaintiffs had failed to adequately state a federal securities fraud claim. The
plaintiffs were given an opportunity to amend the complaint to try and state a
claim that would meet the pleading standards established by the Court but, if
they are unable to do so, these claims will be dismissed. The plaintiffs have
filed an amended complaint with the Court in an effort to eliminate the
deficiencies in their original complaint. The Company believes the amended
complaint is without merit and has filed a motion for judgement on the pleadings
seeking dismissal of the securities fraud claims without prejudice. The Company
anticipates continuing to vigorously defend this litigation. The Company cannot
reasonably predict the outcome of this action and the amount of loss cannot be
reasonably estimated, therefore no loss contingency has been recorded in the
financial statements. This class action relates to the Corporate and other
segment (see Note 19).


                                     F-B59
<PAGE>

Settlement in Greece

In January 2003, the Stratoni lead / zinc mine located in Greece, owned by TVX
Hellas S.A. ("TVX Hellas"), a subsidiary of the Company, was shut down pending
the receipt of new mining permits. The TVX Hellas assets and liabilities are
included under the heading Corporate and other in the segmented information (see
Note 19). Revised mining permits were issued on February 18, 2003. However,
operations remained suspended throughout 2003 as the Company worked with the
Greek government and potential investors to develop the appropriate exit
strategy. On December 10, 2003, the Greek government unilaterally terminated the
contract pursuant to which the Company's two subsidiaries, TVX and TVX Hellas,
held title to the Hellenic gold mines, and invited them to enter into a
settlement agreement. A settlement agreement was then executed on December 12,
2003, pursuant to which the Greek government agreed to pay 11 million Euros to
TVX Hellas. The Company agreed to augment the 11 million Euros ($13.6 million),
with an additional 11 million Euros, and to contribute all such amounts in full
satisfaction of labour and trade liabilities of TVX Hellas. On January 30, 2004
the Company advanced TVX Hellas 11 million Euros ($13.6 million) and received a
full release from all liabilities in connection with environmental remediation.
TVX Hellas has settled all labour related claims and has filed for bankruptcy.
Trade and other payables will be settled in the bankruptcy proceedings out of
the remaining funds on hand in Greece. The Company has accrued $13.6 million as
a current payable at December 31, 2003.

The Hellenic Gold Properties litigation

The Ontario Court (General Division) issued its judgement in connection with the
claim against TVX by three individuals (collectively the "Alpha Group") on
October 14, 1998, relating to TVX's interest in the Hellenic Gold Mining assets
in Greece owned by TVX Hellas. The TVX Hellas assets and liabilities are
included under the heading Corporate and other in the segmented information (see
Note 19). The Court rejected full ownership and monetary damage claims but did
award the Alpha Group a 12% carried interest and the right to acquire a further
12% participating interest in the Hellenic Gold assets. TVX filed a notice to
appeal and the Alpha Group filed a notice of cross appeal.

Subsequent to the trial decision in October, 1998, TVX received notification of
two actions commenced by 1235866 Ontario Inc. ("1235866"), the successor to
Curragh Inc., Mineral Services Limited and Curragh Limited, against the Alpha
Group, and others, in Ontario and English Courts, in relation to the claim by
the Alpha Group against TVX for an interest in the Hellenic gold mines. On July
28, 1999, TVX entered into an agreement with 1235866 to ensure that these new
claims would not result in any additional diminution of TVX's interest in the
Hellenic gold mines. 1235866 agreed not to pursue any claim against TVX for an
interest in the Hellenic gold mines beyond the interest awarded to the Alpha
Group by the courts. In the event that 1235866 is successful in its claim
against the Alpha Group, 1235866 would be entitled to a 12% carried interest as
defined in the agreement and the right to acquire a 12% participating interest
upon payment of 12% of the aggregate amounts expended by TVX and its
subsidiaries in connection with the acquisition, exploration, development and
operation of the Hellenic gold mines up to the date of exercise. The TVX appeal,
the Alpha Group cross appeal and a motion by 1235866 were all heard on February
17, 18 and 25, 2000. By judgement released June 1, 2000, the Court of Appeal,
while partially granting the TVX appeal, upheld the trial decision and rejected
the Alpha Group cross appeal. The Court also rejected the motion of 1235866 for
a new trial. As a result, TVX holds, as constructive trustee, a 12% carried
interest and a right to acquire 12% participating interest in the Hellenic gold
mines upon the payment of costs associated with that interest. The action by
1235866 against the Alpha Group continues. TVX and the Alpha Group have been
unable to agree on the definition and application of the 12% carried interest
and the right to acquire a 12% participating interest in the Hellenic gold mines
awarded to Alpha Group in the trial judgement. Accordingly, in June 2001, a new
action was commenced between the Alpha Group and TVX to clarify the award. TVX
anticipates that the hearing with respect to such matter may be held in 2005.

As a result of the settlement agreement the Company executed with the Greek
Government with respect to TVX Hellas S.A., the Alpha group has threatened
further litigation due to an alleged breach of the October 14, 1998 judgement in
the action noted above between the Alpha Group and TVX relating to the Hellenic
Gold mines. The Alpha Group has threatened to expand this claim to include a
claim against the Company for breach of fiduciary duty. In addition, 1235866 has
threatened further litigation for breach of fiduciary duty. The Company cannot
reasonably predict the outcome of this litigation and the threatened litigation
and the amount of loss cannot be reasonably estimated, therefore no loss
contingency has be recorded in the financial statements.

No pleadings have been exchanged with respect to these two threatened actions.


                                     F-B60
<PAGE>

Summa

In September 1992, Summa Corporation ("Summa") commenced a lawsuit against Echo
Bay Exploration Inc. and Echo Bay Management Corporation (together, the
"Subsidiaries"), 100% owned subsidiaries of Echo Bay, alleging improper
deductions in the calculation of royalties payable over several years of
production at McCoy/Cove and another mine, which is no longer in operation. The
assets and liabilities of the Subsidiaries are included under the heading
Corporate and other in the segmented information (see Note 19). The matter was
tried in the Nevada State Court in April 1997, with Summa claiming more than $13
million in damages, and, in September 1997, judgement was rendered for the
Subsidiaries. The decision was appealed by Summa to the Supreme Court of Nevada,
which in April 2000 reversed the decision of the trial court and remanded the
case back to the trial court for "a calculation of the appropriate royalties in
a manner not inconsistent with this order." The case was decided by a panel
comprised of three of the seven Justices of the Supreme Court of Nevada and the
Subsidiaries petitioned that panel for a rehearing. The petition was denied by
the three-member panel on May 15, 2000 and remanded to the lower court for
consideration of other defenses and arguments put forth by the Subsidiaries. The
Subsidiaries filed a petition for a hearing before the full Supreme Court and on
December 22, 2000, the Court recalled its previous decision. Both the
Subsidiaries and their counsel believe that grounds exist to modify or reverse
the decision. Echo Bay has $1.5 million accrued related to this litigation. If
the appellate reversal of the trial decision is maintained and the trial court,
on remand, were to dismiss all of the Subsidiaries' defenses, the royalty
calculation at McCoy/Cove would change and additional royalties would be
payable. Neither the Company, nor counsel to the Subsidiaries, believe it is
possible to quantify the precise amount of liability pursuant to a revised
royalty calculation.

Handy and Harman

On March 29, 2000, Handy & Harman Refining Group, Inc., which operated a
facility used by Echo Bay for the refinement of dore bars, filed for protection
under Chapter 11 of the U.S. Bankruptcy Code. Echo Bay filed a claim for gold
and silver accounts at this refining facility with an estimated market value of
approximately $2.8 million at the time the shipments were made. $0.6 million of
this amount was on behalf of Case, Pomeroy & Company, Inc. ("Case Pomeroy"), who
owned a 25 percent interest in the Round Mountain mine at the time of the
bankruptcy filing. Echo Bay fully provided for its net claim of $2.2 million as
unrecoverable. Further, in March 2002, the liquidating trustee for Handy &
Harman commenced a series of adversary proceedings against numerous creditors,
including two of Echo Bay's subsidiaries, alleging that certain creditors
received preferential payments in metal or otherwise. The preferential payment
claims against the Echo Bay's subsidiaries approximated $9.0 million.

In October 2003, a settlement was reached between the liquidating trustee, Echo
Bay, Homestake Mining Company ("Homestake"), a subsidiary of Barrick Gold
Corporation ("Barrick") and Case Pomeroy. Under the terms of the settlement, the
liquidating agent received payments of $0.2 million from Homestake and $0.1
million from Echo Bay. The liquidating agent agreed to release the Company and
Barrick from any and all future claims. In addition, Echo Bay agreed to waive
the $2.8 million claim against the refinery and to pay $0.2 million to Case
Pomeroy in settlement of their share of its claim. This settlement was recorded
in 2003.

General

The Company is also involved in legal proceedings and claims arising in the
ordinary course of its business. The Company believes these claims are without
merit and is vigorously defending them. In the opinion of management, the amount
of ultimate liability with respect to these actions will not materially affect
Kinross' financial position, results of operations or cash flows.

The Company settled various litigation and included in the statement of
operations was $0.3 million in 2003, $0.6 million in 2002 and $nil million in
2001.

Total accrued liabilities in relation to legal contingencies were $15.1 million,
$nil and $nil at December 31, 2003, 2002 and 2001, respectively.

Income taxes

The Company operates in numerous countries around the world and accordingly is
subject to, and pays annual income taxes under the various regimes in countries
in which it operates. These tax regimes are determined under general corporate
income tax laws of the country. The Company has historically filed, and
continues to file, all required income tax returns and to pay the taxes
reasonably determined to be due. The tax rules and regulations in many countries
are complex and subject to interpretation. From time to time the Company will
undergo a review of its historic tax returns and in connection with such
reviews, disputes can arise with the taxing authorities over the Company's
interpretation of the country's income tax rules. As at December 31, 2003 the
Company has the following disputes and has not accrued any additional tax
liabilities in relation to the disputes listed below:


                                     F-B61
<PAGE>

Russia

In July, 2003, the Company received notice that local taxation authorities in
Russia are seeking a reassessment of the tax paid relating to the Kubaka mine by
Omolon, the Company's 98.1% owned Russian Joint Stock Company in the amount of
$8.5 million, which included penalties and interest. The notice challenged
certain deductions taken by the Company and tax concessions relating to tax
returns filed by the Company in prior years. The Company appealed this notice of
reassessment and on January 27, 2004, the Magadan Arbitration court agreed with
the Company on three of the four major reassessment items. The impact of this
ruling reduced the liability to $3.9 million, which includes interest and
penalties. The Company will appeal the decision, but in the event the decision
of the appellant court is not ruled in the Company's favour, Omolon has enough
unutilized deductions to shelter the additional taxable income. The Company
believes that this reassessment will be resolved with no material adverse to the
Company's financial position, results of operations or cash flows. This
reassessment relates to the Kubaka business segment (see Note 19).

Chile

On September 27, 2001, the Company's 100% owned Chilean mining company, Compania
Minera Kinam Guanaco ("CMKG") received a tax reassessment from the Chilean IRS.
The assets of CMKG are included under the heading Corporate and other in the
segmented information (see Note 19). The reassessment, in the amount of $6.7
million, disallows certain deductions utilized by a third party. The third party
has indemnified the Company for up to $13.5 million in relation to this
reassessment. The Company appealed the reassessment and on January 12, 2004, the
Chilean IRS upheld the tax auditors position. The Company plans to appeal the
reassessment with the Chilean Tax Court. The Company believes this reassessment
will be resolved with no material adverse impact on to the Company's financial
position, results of operations or cash flows.

Brazil

The Company's 50% owned Brazilian mining company, Mineracao Serra Grande S.A.
which owns the Crixas mine received a tax reassessment in November 2003 from the
Brazilian IRS. The reassessment disallowed the claiming of certain sales tax
credits and assessed interest and penalties of which the Company's 50% share
totals $9.5 million. The Company and its joint venture partner believe that this
reassessment will be resolved without any material adverse affect on its
financial position, results of operations or cash flows. This reassessment
relates to the Crixas business segment (see Note 19).

Guarantee of third party contracts

Kinross has no third party contracts that qualify as a guarantee under AcG-14
(which become effective for financial periods ending on or after January 1,
2003) other than what has been disclosed under the Candelaria mine sale and the
Sleeper mine sale discussed above as at December 31, 2003 and 2002,
respectively.

Other commitments and contingencies

Financial assurance

As part of its ongoing business and operations, the Company and its affiliates
are required to provide financial assurance in the form of letters of credit for
environmental and site restoration costs, exploration permitting, workers
compensation and other general corporate purposes. As at December 31, 2003,
there were $118.2 million of letters of credit issued pursuant to the syndicated
credit facility further described in Note 11. The obligations associated with
these instruments are generally related to performance requirements that the
Company addresses through its operations including post closure site
restoration. Upon completion of the underlying performance requirement, the
beneficiary of the associated letter of credit cancels and returns the letter of
credit to the issuing entity. Some of the instruments associated with long-lived
assets will remain outstanding until closure. Generally, financial assurance
requirements associated with environmental regulations are becoming more
restrictive. In addition, the capacity of surety markets for performance bonds
have diminished. The Company has replaced all previously issued surety bonds
with letters of credit in 2003. The Company believes it is in compliance with
all applicable financial assurance requirements and will be able to satisfy all
future financial assurance requirements.

                                     F-B62

<PAGE>

Acquisition of Crown Resources Corporation

On November 20, 2003, the Company announced that it had executed a definitive
acquisition agreement with Crown Resources Corporation ("Crown") whereby it will
acquire Crown and its wholly owned Buckhorn gold deposit located in
north-central Washington State. The Company has agreed to issue approximately
13.6 million common shares in exchange for 100% of the issued and outstanding
common shares of Crown. A registration statement has been filed with the U.S.
Securities and Exchange Commission. Once effective, the shareholders of Crown
will vote on the transaction. This transaction is expected to close in 2004.




                                     F-B63

<PAGE>

Supplementary Information - Quarterly Data
(Expressed in millions of US dollars, except per share amounts) (unaudited)

<TABLE>
<CAPTION>
====================================================================================================================================
                                               March             June             September         December
                                              Quarter           Quarter            Quarter           Quarter           Full Year
Revenue and other income                   2003     2002     2003     2002      2003     2002     2003     2002      2003     2002
------------------------------------------------------------------------------------------------------------------------------------
<S>                                       <C>      <C>      <C>      <C>      <C>       <C>      <C>      <C>      <C>       <C>
Mining revenue                            $117.0   $ 68.8   $157.8   $ 59.2   $ 153.8   $ 56.5   $143.3   $ 76.5   $ 571.9   $261.0
Interest and other income                    1.0      1.2      1.8      6.5       2.4      6.0      7.1      3.2      12.3     16.9
Mark-to-market gain (loss) on call
  options                                    2.1     (1.0)    (0.9)    (0.6)     (0.9)    (0.3)     0.1     (0.8)      0.4     (2.7)
------------------------------------------------------------------------------------------------------------------------------------
                                           120.1     69.0    158.7     65.1     155.3     62.2    150.5     78.9     584.6    275.2
------------------------------------------------------------------------------------------------------------------------------------
Expenses
Operating                                   86.7     46.8    107.6     41.1     107.1     39.0     85.9     47.9     387.3    174.8
General and administrative                   5.8      2.3      6.0      2.5       4.7      3.2      8.5      3.3      25.0     11.3
Exploration and business development         6.2      2.1      7.1      2.0       5.4      2.4      5.6      5.1      24.3     11.6
Depreciation, depletion and amortization    28.2     21.8     40.3     19.6      40.0     19.9     32.4     24.0     140.9     85.3
(Gain) loss on sale of assets               (0.1)    (0.3)     0.5     (1.2)     (0.2)    (0.5)   (29.7)    (0.7)    (29.5)    (2.7)
Loss on redemption of convertible
  debentures                                   -        -        -        -       1.1        -        -        -       1.1        -
Foreign exchange loss (gain)                 0.7      0.8     (1.0)     2.2      (0.5)       -     (2.5)     1.3      (3.3)     4.3
Interest expense on long-term liabilities    1.1      1.5      1.4      1.3       0.6      1.2      2.0      1.0       5.1      5.0
Asset write-downs and other non-cash
  charges                                      -        -      0.1        -         -        -      9.8      7.9       9.9      7.9
------------------------------------------------------------------------------------------------------------------------------------
                                           128.6     75.0    162.0     67.5     158.2     65.2    112.0     89.8     560.8    297.5
------------------------------------------------------------------------------------------------------------------------------------
                                            (8.5)    (6.0)    (3.3)    (2.4)     (2.9)    (3.0)    38.5    (10.9)     23.8    (22.3)
Provision for income and mining taxes       (2.5)    (1.4)    (1.6)    (1.6)     (3.0)    (1.7)    (6.0)    (1.8)    (13.1)    (6.5)
Minority interest                              -        -     (0.1)       -         -        -     (0.1)       -      (0.2)       -
Share in earnings (loss) of associated
  companies                                    -      0.3        -     (0.1)        -     (0.8)       -        -         -     (0.6)
------------------------------------------------------------------------------------------------------------------------------------
Earnings (loss) for the period before
  dividends on convertible preferred
  shares of subsidiary company             (11.0)    (7.1)    (5.0)    (4.1)     (5.9)    (5.5)    32.4    (12.7)     10.5    (29.4)
Dividends on convertible preferred
  shares of subsidiary company              (0.2)    (0.8)    (0.2)    (0.2)     (0.2)    (0.3)    (0.2)    (0.2)     (0.8)    (1.5)
------------------------------------------------------------------------------------------------------------------------------------
Net earnings (loss) for the period         (11.2)    (7.9)    (5.2)    (4.3)     (6.1)    (5.8)    32.2    (12.9)      9.7    (30.9)
Increase in equity component of
  convertible debentures                    (2.1)    (2.1)    (2.2)    (2.1)     (2.2)    (1.3)       -     (1.8)     (6.5)    (7.3)
Gain on redemption of convertible
  debentures                                   -        -        -        -      16.5        -        -        -      16.5        -
------------------------------------------------------------------------------------------------------------------------------------
Net earnings (loss) for the period
  attributable to common shareholders     $(13.3)  $(10.0)  $ (7.4)  $ (6.4)  $   8.2   $ (7.1)  $ 32.2   $(14.7)  $  19.7   $(38.2)
====================================================================================================================================

Earnings (loss) per share - Basic         $(0.05)  $(0.$9)  $(0.02)  $(0.05)  $  0.03   $(0.06)  $ 0.09   $(0.12)  $  0.06   $(0.32)

Operating activities
Earnings (loss) for the period before
  dividends on convertible preferred
  shares of subsidiary company            $(11.0)  $ (7.1)  $ (5.0)  $ (4.1)  $  (5.9)  $ (5.5)  $ 32.4   $(12.7)  $  10.5   $(29.4)
Items not affecting cash                    30.6     20.9     43.4     19.5      40.2     18.6     15.7     30.5     129.9     89.5
------------------------------------------------------------------------------------------------------------------------------------
                                            19.6     13.8     38.4     15.4      34.3     13.1     48.1     17.8     140.4     60.1
Site restoration cash expenditures          (2.1)    (1.1)    (2.9)    (1.5)     (4.8)    (2.4)    (9.5)    (4.8)    (19.3)    (9.8)
Changes in non-cash working capital items   (0.8)     6.8    (16.3)    (4.4)      8.2      6.4    (19.5)     0.4     (28.4)     9.2
------------------------------------------------------------------------------------------------------------------------------------
Cash flow provided from operating
  activities                                16.7     19.5     19.2      9.5      37.7     17.1     19.1     13.4      92.7     59.5
------------------------------------------------------------------------------------------------------------------------------------
Financing activities
Issuance of common shares, net               1.8     19.0      1.5      0.3     147.6      0.2     37.0     93.3     187.9    112.8
Redemption of convertible debentures           -        -        -        -    (144.8)       -        -        -    (144.8)       -
Acquisition of preferred shares of
  subsidiary company                           -    (11.1)       -     (0.3)     (0.2)       -     (0.1)       -      (0.3)   (11.4)
Repayment of debt, net                      (1.0)   (10.5)    (8.2)    (1.7)     (0.8)    (0.2)    (0.5)   (16.1)    (10.5)   (28.5)
Reduction of debt component of
  convertible debentures                    (1.4)    (1.3)    (1.4)    (1.2)     (1.4)    (1.3)       -     (1.3)     (4.2)    (5.1)
------------------------------------------------------------------------------------------------------------------------------------
                                            (0.6)    (3.9)    (8.1)    (2.9)      0.4     (1.3)    36.4     75.9      28.1     67.8
------------------------------------------------------------------------------------------------------------------------------------
Investment activities
Additions to property, plant and
  equipment                                (12.8)    (3.1)   (12.1)    (6.1)    (27.4)    (8.9)   (21.1)    (4.5)    (73.4)   (22.6)
Business acquisitions, net of cash
  acquired                                 (81.4)       -        -        -         -        -     (0.5)    (0.1)    (81.9)    (0.1)
Long-term investments and other assets      (4.2)       -     (3.5)     1.9       1.0      0.2     63.9     (0.3)     57.2      1.8
Proceeds from the sale of property,
  plant and equipment                          -      0.1        -        -       0.2      0.5      5.7      0.7       5.9      1.3
Decrease (increase) in restricted cash      31.8     (4.0)     5.6     (0.4)        -    (17.1)     0.1      0.4      37.5    (21.1)
------------------------------------------------------------------------------------------------------------------------------------
                                           (66.6)    (7.0)   (10.0)    (4.6)    (26.2)   (25.3)    48.1     (3.8)    (54.7)   (40.4)
------------------------------------------------------------------------------------------------------------------------------------
Effect of exchange rate changes on cash      2.3      0.4      1.5      1.6       4.3      0.4      1.0      0.6       9.1      3.0
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in cash and
  equivalents                              (48.2)     9.0      2.6      3.6      16.2     (9.1)   104.6     86.1      75.2     89.6
Cash and equivalents, beginning of year    170.6     81.0    122.4     90.0     125.0     93.6    141.2     84.5     170.6     81.0
------------------------------------------------------------------------------------------------------------------------------------
Cash and equivalents, end of year         $122.4   $ 90.0   $125.0   $ 93.6   $ 141.2   $ 84.5   $245.8   $170.6   $ 245.8   $170.6
====================================================================================================================================
</TABLE>

                                      F-B64
<PAGE>

[LOGO] PRICEWATERHOUSECOOPERS


AUDITORS' REPORT                                    PRICEWATERHOUSECOOPERS LLP
                                                    CHARTERED ACCOUNTANTS
                                                    PO Box 82
TO THE SHAREHOLDER OF                               Royal Trust Tower Suite 3000
TVX GOLD INC.                                       Toronto Dominion Centre
                                                    Toronto Ontario
                                                    Canada M5K 1G8
                                                    Telephone +1 416 863 1133
                                                    Facsimile +1 416 365 8215


We have audited the consolidated balance sheets of TVX Gold Inc. as at December
31, 2002 and 2001 and the consolidated statements of operations, deficit and
cash flows for the years ended December 31, 2002, 2001 and 2000. These
consolidated financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these consolidated
financial statements based on our audits.

We conducted our audits in accordance with Canadian and United States generally
accepted auditing standards. Those standards require that we plan and perform an
audit to obtain reasonable assurance whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation.

In our opinion, these consolidated financial statements present fairly, in all
material respects, the financial position of TVX Gold Inc. as at December 31,
2002 and 2001 and the results of its operations and its cash flows for the years
ended December 31, 2002, 2001 and 2000 in accordance with Canadian generally
accepted accounting principles.


CHARTERED ACCOUNTANTS

Toronto, Ontario
April 16, 2003, except for Note 19(c) which is as of April 28, 2003, and
Note 19(b) which is as of May 5, 2003



(C) 2003 PricewaterhouseCoopers LLP, Canada. "PricewaterhouseCoopers" refers to
PricewaterhouseCoopers LLP, Canada, an Ontario Limited liability partnership,
or, as the context requires, the network of member firms of
PricewaterhouseCoopers International Limited, each of which is a separate and
independent legal entity.


                                      F-C1
<PAGE>

<TABLE>
<CAPTION>

                                         TVX GOLD INC.

                                  CONSOLIDATED BALANCE SHEETS
                               AS AT DECEMBER 31, 2002 AND 2001
                             (thousands of United States dollars)

                                                                                 2002         2001
                                                                              ---------    ---------
                                                                                  $             $
                                         ASSETS
<S>                                                                             <C>          <C>
CURRENT ASSETS
Cash and cash equivalents...................................................    115,212       16,568
Short-term investments......................................................      1,531       28,740
Accounts receivable.........................................................     21,576       25,739
Inventories (note 3)........................................................     16,439       24,299
                                                                              ---------    ---------
                                                                                154,758       95,346
MINING PROPERTY, PLANT AND EQUIPMENT (note 4)...............................    201,830      237,262
RESTRICTED CASH AND CASH EQUIVALENTS (notes 7(d), 11(f) and 16(c))..........      9,123       16,615
EXPORT PREPAYMENT CONTRACTS (note 5)........................................         --       66,983
DEFERRED CHARGES (note 11(d))...............................................      6,579          182
DEFERRED INCOME TAXES (note 12(d))..........................................     13,398       12,473
OTHER ASSETS (note 6).......................................................     12,262       29,434
                                                                              ---------    ---------
                                                                                397,950      458,295
                                                                              =========    =========
                                       LIABILITIES
CURRENT LIABILITIES
Accounts payable and accrued liabilities (notes 5 and 8(b)) ................     30,354       28,266
Current portion of long-term debt (note 7)..................................      1,500       15,401
Current portion of deferred revenue (note 11(d)) ...........................      6,397        5,332
                                                                              ---------    ---------
                                                                                 38,251       48,999
LONG-TERM DEBT (note 7).....................................................         --       58,832
OTHER LIABILITIES (note 8)..................................................     24,423       22,943
DEFERRED INCOME TAXES (note 12(d))..........................................     20,395       20,948
                                                                              ---------    ---------
                                                                                 83,069      151,722

MINORITY INTERESTS AND PARTICIPATION RIGHTS.................................    124,157      132,088
                                                                              ---------    ---------
                                                                                207,226      283,810
                                                                              ---------    ---------
SHAREHOLDERS' EQUITY
CAPITAL STOCK (note 9)......................................................    641,516      594,661
CONTRIBUTED SURPLUS (note 9(d)).............................................     36,255       36,255
DEFICIT.....................................................................   (487,047)    (456,431)
                                                                              ---------    ---------
                                                                                190,724      174,485
                                                                              ---------    ---------
                                                                                397,950      458,295
                                                                              =========    =========
COMMITMENTS AND CONTINGENCIES (notes 7(d) and 16)


      THE ACCOMPANYING NOTES FORM AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.



On behalf of the Board:             "Brian W. Penny"         "Scott A. Caldwell"
                                    Director                  Director


                                            F-C2

</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                                               TVX GOLD INC.

                                 CONSOLIDATED STATEMENTS OF OPERATIONS
                         FOR THE YEARS ENDED DECEMBER 31, 2002, 2001 AND 2000
                   (thousands of United States dollars except for per share amounts)


                                                                                 2002        2001       2000
                                                                               ---------  ---------  ---------
                                                                                   $          $          $
<S>                                                                            <C>        <C>        <C>
REVENUE.......................................................................  184,757    158,340    170,030
                                                                               ---------  ---------  ---------
MINE OPERATING COSTS
Cost of sales.................................................................  121,310    108,148    106,804
Depletion and depreciation....................................................   34,149     40,243     38,000
                                                                               ---------  ---------  ---------
                                                                                155,459    148,391    144,804
                                                                               ---------  ---------  ---------
EARNINGS FROM OPERATIONS BEFORE THE UNDERNOTED................................   29,298      9,949     25,226
OTHER EXPENSES (INCOME)
Mining property, plant and equipment write-downs (note 4).....................    4,071     21,000         --
Non-operating asset write-downs (note 4)......................................   15,000    223,513         --
Other asset write-downs (notes 3 and 6).......................................   12,903         --         --
Corporate administration......................................................    6,297      8,123      6,597
Interest expense..............................................................      555      3,769      3,447
Exploration...................................................................    3,660      3,380      5,497
Transaction costs.............................................................    3,217         --         --
Foreign exchange loss.........................................................    7,345      3,293      2,015
Interest income...............................................................   (4,273)    (5,650)    (9,503)
Other, net....................................................................   (3,118)    (3,883)     5,420
                                                                               ---------  ---------  ---------
                                                                                 45,657    253,545     13,473
                                                                               ---------  ---------  ---------
EARNINGS (LOSS) BEFORE THE UNDERNOTED.........................................  (16,359)  (243,596)    11,753
INCOME TAX (RECOVERY) EXPENSE (note 12).......................................    7,279     (5,634)      (179)
MINORITY INTERESTS AND PARTICIPATION RIGHTS ..................................    6,978    (10,034)      (496)
                                                                               ---------  ---------  ---------
NET EARNINGS (LOSS) FOR THE YEAR..............................................  (30,616)  (227,928)    12,428
                                                                               =========  =========  =========
EARNINGS (LOSS) PER SHARE (notes 2(c) and 9(c))...............................    (0.75)    (10.58)      0.03



          THE ACCOMPANYING NOTES FORM AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.


                                                 F-C3
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                                                  TVX GOLD INC.

                                       CONSOLIDATED STATEMENTS OF DEFICIT
                              For the years ended December 31, 2002, 2001 and 2000
                                      (thousands of United States dollars)


                                                                                 2002       2001       2000
                                                                               ---------  ---------  ---------
                                                                                   $          $          $
<S>                                                                            <C>        <C>        <C>
Deficit, beginning of year-- as originally reported........................... (456,431)  (221,837)  (219,838)
Change in accounting for income taxes (note 2(d)).............................       --         --     (2,102)
Deficit, beginning of year-- restated ........................................ (456,431)  (221,837)  (221,940)
Net earnings (loss) for the year..............................................  (30,616)  (227,928)    12,428
Accretion of convertible notes (note 14)......................................       --     (6,666)   (12,325)
Deficit, end of year.......................................................... (487,047)  (456,431)  (221,837)
                                                                               =========  =========  =========










             THE ACCOMPANYING NOTES FORM AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.



                                                     F-C4
</TABLE>
<PAGE>

<TABLE>
<CAPTION>

                                              TVX GOLD INC.

                                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                          For the years ended December 31, 2002, 2001 and 2000
                                  (thousands of United States dollars)

                                                                                 2002       2001       2000
                                                                               ---------  ---------  ---------
                                                                                   $          $          $
<S>                                                                            <C>        <C>        <C>
OPERATING ACTIVITIES
Net earnings (loss) for the year..............................................  (30,616)  (227,928)    12,428
Non-cash items:
  Depletion and depreciation..................................................   34,149     40,243     38,000
  Gain on sale of other assets................................................   (1,675)        --         --
  Deferred income taxes.......................................................   (1,469)   (10,919)    (4,022)
  Mining property, plant and equipment write-downs............................    4,071     21,000         --
  Non-operating asset write-downs.............................................   15,000    223,513         --
  Other asset write-downs.....................................................   12,903         --         --
  Minority interests and participation rights.................................    6,978    (10,034)      (496)
  Change in reclamation provision.............................................       --     (2,771)        --
  Other.......................................................................    3,218      1,006        326
  Deferred revenue............................................................   (5,332)    (4,608)   (11,020)
  Net proceeds from hedge book restructuring (note 11(e)).....................       --     16,801         --
                                                                               ---------  ---------  ---------
                                                                                 37,227     46,303     35,216
                                                                               ---------  ---------  ---------
Changes in non-cash working capital (note 17(e))..............................    7,179       (520)    (2,659)
                                                                               ---------  ---------  ---------
Cash provided by operating activities.........................................   44,406     45,783     32,557
                                                                               ---------  ---------  ---------

INVESTING ACTIVITIES
Mining property, plant and equipment..........................................  (15,166)   (25,552)   (48,746)
Payment of receivable from High River Gold Mines Ltd (note 6).................    3,319      3,014      1,541
Purchases of short-term investments...........................................  (30,279)   (51,931)  (130,562)
Sales and maturities of short-term investments................................   57,488     81,152    136,612
Export prepayment contracts (note 5)..........................................       --    (24,500)   (42,483)
Proceeds from sale of other assets............................................    4,495         --         --
Decrease (increase) in restricted cash and cash equivalents...................    7,492      1,255     (9,770)
Other.........................................................................      693     (1,495)    (2,569)
                                                                               ---------  ---------  ---------
Cash (used for) provided by investing activities..............................   28,042    (18,057)   (95,977)
                                                                               ---------  ---------  ---------
Financing activities
Long-term debt borrowings.....................................................       --     26,944     45,133
Long-term debt repayments.....................................................   (5,750)   (26,470)   (25,622)
Debenture payable (note 13)...................................................       --    (26,855)    26,855
Minority interest dividends...................................................  (14,909)   (22,666)   (15,963)
Gold linked convertible notes.................................................       --     (9,173)   (10,501)
Contributed surplus...........................................................       --     (1,595)        --
Common shares.................................................................   46,855       (639)      (626)
                                                                               ---------  ---------  ---------
Cash (used for) provided by financing activities..............................   26,196    (60,454)    19,276
                                                                               ---------  ---------  ---------
(Decrease) increase in cash and cash equivalents..............................   98,644    (32,728)   (44,144)
Cash and cash equivalents, beginning of year..................................   16,568     49,296     93,440
                                                                               ---------  ---------  ---------
Cash and cash equivalents, end of year........................................  115,212     16,568     49,296
                                                                               =========  =========  =========



             THE ACCOMPANYING NOTES FORM AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.


                                                  F-C5
</TABLE>

<PAGE>

                                  TVX GOLD INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
               Dollar amounts in thousands of U.S. dollars, except
            amounts per share and per ounce or unless otherwise noted

1.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

       These consolidated financial statements have been prepared in accordance
       with accounting principles generally accepted in Canada which, in the
       Company's case, conform with accounting principles generally accepted in
       the United States ("US"), except as disclosed in note 17. The significant
       accounting policies followed by the Company and its incorporated and
       unincorporated joint ventures are summarized as follows:

a)     BASIS OF CONSOLIDATION

       These consolidated financial statements include the accounts of the
       Company and its subsidiaries. Investments in incorporated and
       unincorporated joint ventures are accounted for by the proportionate
       consolidation method as substantially all of the Company's business is
       conducted through joint ventures.

b)     USE OF ESTIMATES

       The preparation of the financial statements in conformity with generally
       accepted accounting principles requires management to make estimates and
       assumptions that affect the reported amounts of assets and liabilities
       and disclosures of contingent assets and liabilities at the date of the
       financial statements and the reported amounts of revenues and expenses
       during the reporting period. The most significant estimates are related
       to the physical and economic lives and the recoverability of mining
       assets, mineral reserves, site restoration and related obligations,
       commodity contracts and financial instruments and income taxes. Actual
       results could differ from those estimates.

c)     TRANSLATION OF FOREIGN CURRENCIES

       The accounts of the Canadian operations and operations in foreign
       countries have been translated using the temporal method for foreign
       integrated operations. The functional currency of the Company is US
       dollars, as the Company considers the US dollar to be the principal
       currency of its operations. Under the temporal method, monetary assets
       and liabilities have been translated at the end of year exchange rates.
       Non-monetary assets, which primarily comprise mining property, plant and
       equipment, have been translated using historic rates of exchange.
       Revenues and expenses have been translated at the average rates of
       exchange during the years, except for depletion and depreciation, which
       have been translated at the same rates as the related assets. Foreign
       exchange gains and losses on translation are included in the
       determination of earnings.

d)     COMMODITY CONTRACTS AND FINANCIAL INSTRUMENTS

       In the normal course of business, the Company uses agreements with
       financial institutions, principally derivatives, to hedge its exposure to
       fluctuations in metal prices, foreign exchange rates and interest rates.
       The intent is to protect the Company against downside price risk on
       future metal sales and cash flow risk on interest rates and foreign
       exchange.

       The Company mitigates the counterparty credit risk exposure arising from
       these agreements by transacting with what it believes are financially
       sound institutions. Some derivative instruments entered into by the
       Company are subject to margin requirements, beyond varying threshold
       limits, in the event that values of the hedged instruments significantly
       change.

       Commodity derivative hedging transactions include forward sales and
       options contracts. Realized gains and losses, as well as premiums, are
       recognized in revenue as the designated production is delivered. If
       contracts are amended or closed out before the planned delivery of the
       designated production, recognition of any gains or losses is deferred
       until their original designation period. Commodity commitments not
       designated as hedges are marked to market and the resultant gains or
       losses are recorded in earnings in the period.

       The Company has periodically entered into lease rate swap agreements in
       conjunction with commodity contracts. Obligations under lease rate swap
       agreements, entered into expressly to finance options purchased, are
       marked to market at the balance sheet date and the resulting gains or
       losses are deferred until the related production is delivered.

       The Company has periodically entered into foreign exchange contracts to
       hedge the effect of exchange rates on a portion of its future currency
       requirements. Gains and losses are recognized and reported as a component
       of the related transactions.

       The carrying amount of cash and cash equivalents, short-term investments,
       accounts receivable, restricted cash, export prepayment contracts,
       accounts payable and accrued liabilities and current and long-term debt
       approximates their fair value unless otherwise specified.

e)     REVENUE RECOGNITION

       Revenue from the sale of bullion and base metal concentrates is
       recognized when title passes to the purchaser.

                                      F-C6
<PAGE>

f)     INVENTORIES

       Gold and silver bullion inventories, dore, base metal concentrates,
       work-in-process and ore stockpiles are carried at the lower of average
       production cost and net realizable value. Materials and supplies
       inventories are stated at the lower of cost and replacement value.

g)     MINING PROPERTY, PLANT AND EQUIPMENT

       Mining property, plant and equipment is recorded at cost including costs
       associated with acquisition and further development, including costs
       incurred to access ore, of mining properties. Mine development costs
       include costs incurred to expand reserves in existing ore bodies at
       development properties or operating mines. Depletable assets are
       amortized over the life of the mine on a unit-of-production basis. The
       current estimated gold mine lives range from 4 to 17 years with the
       average being 8 years. Depreciable assets are also amortized over the
       life of the mine on a unit-of-production basis except where the useful
       life of a depreciable asset is less than the life of the mine, in which
       case depreciation is recorded on a straight-line basis over its useful
       life. Amortization on a unit-of-production basis is calculated using only
       proven and probable reserves.

       The Company carries out an impairment evaluation when conditions or
       events occur suggesting that an asset has been impaired. Mining assets
       are evaluated by comparing the undiscounted future net cash flows against
       their current carrying value. When the cash flows demonstrate an
       impairment, the Company will write down its value. Operational
       considerations include projected operating cost structures, future
       capital requirements, including mine closure costs, and estimates of mine
       life based on known reserves. Metal prices utilized for the 2002
       evaluation were $300 per ounce (2001 -- $300; 2000 -- $300) for gold and
       $4.75 per ounce (2001 -- $4.50; 2000 -- $5.50) for silver. Lead prices
       utilized for the 2001 and 2000 evaluations were $475 per tonne and $550
       per tonne respectively and zinc prices utilized for the 2001 and 2000
       evaluations were $775 per tonne and $1,200 per tonne, respectively. No
       lead or zinc prices were required for the 2002 evaluations.

h)     EXPLORATION

       Exploration expenditures, excluding property acquisition costs, are
       charged to earnings as incurred. When it has been established that a
       mining property has development potential, further costs incurred prior
       to the start of mining operations, are recorded as deferred development
       costs and amortized in accordance with the policies described under note
       1(g). The development potential of mining properties is established by
       the existence of proven and probable reserves, reasonable assurance that
       the property can be permitted as an operating mine and evidence that
       there are no metallurgical or other impediments to the production of
       saleable metals.

i)     RECLAMATION COSTS

       Expenditures relating to ongoing environmental and reclamation programs
       are charged against earnings as incurred or capitalized and amortized
       depending on their future economic benefit. Estimated future reclamation
       costs, including site restoration, where reasonably determinable are
       charged against earnings over the estimated useful life of the mine based
       on proven and probable reserves. These estimates are based on current
       standards or higher. These standards are subject to future legislative
       changes which will be reflected in the estimates when passed.

j)     FINANCING COSTS

       Debt issue costs are deferred and amortized over the term of the debt.
       Interest and debt issue costs, whether incurred directly or indirectly,
       are capitalized when they arise from indebtedness incurred to finance
       development activities on mining properties and are amortized to earnings
       when production commences.

k)     CASH AND CASH EQUIVALENTS

       Cash and cash equivalents include short-term money market instruments
       which, on acquisition, have a term to maturity of three months or less.
       Short-term investments represent short-term money market instruments with
       maturities, on acquisition, greater than three months and less than one
       year.

l)     STOCK-BASED COMPENSATION PLAN (NOTE 2(A))

       The Company has a stock-based compensation plan which is described in
       note 10. No compensation expense is recognized under the plan when stock
       or stock options are issued under the plan to directors, officers and
       employees. The fair value of options issued to consultants is recognized
       as an expense at the date of issue. Consideration received on exercise of
       stock options is credited to share capital.

2.     CHANGES IN ACCOUNTING POLICIES

       a) Effective January 1, 2002, the Company adopted a new accounting
       standard issued by the Canadian Institute of Chartered Accountants
       ("CICA") relating to stock-based compensation and other stock-based
       payments. This new standard requires either the recognition of
       compensation expense for grants of stock, stock options and other equity
       instruments to employees, or, alternatively, the disclosure of pro forma
       net earnings and net earnings per share data as if stock-based
       compensation had been recognized in earnings. The Company has elected to
       disclose pro forma net earnings and earnings per share data for options
       granted after January 1, 2002. Therefore, there is no effect of adopting
       this standard on the Company's results of operations and financial
       position.

       b) Effective January 1, 2002, the Company adopted retroactively a new
       CICA accounting standard in respect of foreign currency translation that
       eliminates the deferral and amortization of currency translation
       adjustments related to long-term monetary items with a fixed and
       ascertainable life. There is no impact on the Company's results of
       operations and financial position as a result of adoption of this new
       standard.

                                      F-C7

<PAGE>

       c) Effective January 1, 2001, the Company adopted, retroactively, a new
       accounting standard issued by the CICA relating to earnings per share.
       This standard modifies the method of calculating fully diluted earnings
       per share. Diluted earnings per share was unchanged as a result of
       adopting the new standard.

       d) In December 1997, the CICA issued Handbook section 3465, Income Taxes,
       which was effective January 1, 2000. The standard required a change from
       the deferral method of accounting to the asset and liability method of
       accounting for income taxes. Under the asset and liability method, future
       tax assets and liabilities are recognized for the future tax consequences
       attributable to differences between the financial statement carrying
       amounts of existing assets and liabilities and their respective tax
       bases. Future tax assets and liabilities are measured using enacted or
       substantively enacted tax rates expected to apply when the asset is
       realized or the liability settled. The effect on future tax assets and
       liabilities of a change in tax rates is recognized in income in the
       period that substantive enactment or enactment occurs.

       The deficit as at January 1, 2000 was increased by $2,102 and earnings
       for the year ended December 31, 2000 increased by $3,232 as a result of
       this change.

3.     INVENTORIES
<TABLE>
<CAPTION>
                                                                                     DECEMBER 31,
                                                                                 -------------------
                                                                                   2002       2001
                                                                                 --------   --------
                                                                                     $          $
<S>                                                                               <C>        <C>
       Bullion and dore.........................................................   3,345      3,294
       Base metal concentrates (a)..............................................      --      4,199
       Work-in-process..........................................................   2,461      2,257
       Ore stockpiles-- precious metals.........................................   1,649      2,693
       Materials and supplies (a)...............................................   8,984     11,856
                                                                                 --------   --------
                                                                                  16,439     24,299
                                                                                 ========   ========
</TABLE>

       a)     Base metal concentrates of $2,299 and warehouse inventory of
              $2,119, relating to the Stratoni mine, were written off at
              December 31, 2002.

4.     MINING PROPERTY, PLANT AND EQUIPMENT
<TABLE>
<CAPTION>
                                                                                        DECEMBER 31,
                                                                                  ----------------------
                                                                                    2002         2001
                                                                                  ---------    ---------
                                                                                      $            $
<S>                                                                               <C>          <C>
       Producing properties
         Mining property and deferred development...............................   336,465      339,214
         Accumulated depletion..................................................  (240,226)    (226,528)
                                                                                  ---------    ---------
                                                                                    96,239      112,686
                                                                                  ---------    ---------
         Mine plant and equipment...............................................   271,323      265,562
                                                                                  ---------    ---------
         Accumulated depreciation...............................................  (167,837)    (158,965)
                                                                                  ---------    ---------
                                                                                   103,486      106,597
                                                                                  ---------    ---------
         Equipment under capital lease..........................................     4,943        4,943
         Accumulated depreciation...............................................    (2,838)      (1,964)
                                                                                  ---------    ---------
                                                                                     2,105        2,979
                                                                                  ---------    ---------
                                                                                   201,830      222,262
                                                                                  ---------    ---------
       Development properties
         Greek development projects.............................................        --       15,000
                                                                                  ---------    ---------
       Total mining property, plant and equipment...............................   201,830      237,262
                                                                                  =========    =========
<CAPTION>
       The Company wrote down the carrying value of certain assets as follows:

                                                                                      FOR THE YEARS ENDED
                                                                                           DECEMBER 31,
                                                                                ----------------------------------
                                                                                   2002         2001        2000
                                                                                   ----         ----        ----
<S>                                                                                 <C>         <C>          <C>
       Reduction in carrying value of La Coipa Mine............................        --       13,000       --
       Reduction in carrying value of New Britannia Mine.......................        --        8,000       --
       Write-off of carrying value of Stratoni Mine ...........................     4,071           --       --
                                                                                   ------      -------     -------
       Mining property, plant and equipment write-downs........................     4,071       21,000       --
                                                                                   ======      =======     =======
       Write-off of and reduction in carrying value of Skouries development
         project...............................................................    15,000       25,000
       Write-off of carrying value of Olympias development project
         (note 16(b))..........................................................        --      198,513       --
                                                                                   ------      -------     -------
       Non-operating asset write-downs.........................................    15,000      223,513       --
                                                                                   ======      =======     =======
</TABLE>

       Interest capitalized to the Greek development projects during 2002 is
       $nil (2001 -- $671; 2000 -- $1,996).

5.     EXPORT PREPAYMENT CONTRACTS

       A Brazilian Central Bank program enables exporters to borrow US dollars
       which are then immediately reinvested at rates in excess of those on the
       loans.

                                      F-C8
<PAGE>

       The Company's Brasilia joint venture participates in this program and
       entered into contracts during 2000 and 2001 that were immediately
       assigned to a Brazilian bank holding the amounts put on deposit. The
       amounts on deposit were referred to as export prepayment contracts on the
       balance sheet. The joint venture received a premium instead of a higher
       interest rate on the amounts on deposit. Under the terms of the related
       contracts, the bank would make all repayments of principal and interest
       on the export loans as they become due.

       The joint venture received a premium of $1,866 in 2001 and $1,782 in
       2000. The premiums are included in accounts payable and recognized over
       the term of the corresponding commitment to conduct export activities.
       The premiums included in accounts payable total $1,817 as at December 31,
       2002 (2001 -- $2,540).

       During 2002, under an Amended and Restated Debt Assumption Agreement,
       long-term debt in an amount of $66,983 was legally extinguished.
       Consequently, the debt and the related export prepayment contract
       balances were removed from the consolidated balance sheet in a non-cash
       transaction (note 7).

6.     OTHER ASSETS

<TABLE>
<CAPTION>
                                                                             DECEMBER 31,
                                                                        -------------------
                                                                          2002         2001
                                                                        -------      -------
                                                                            $            $
<S>                                                                      <C>          <C>
       Receivable from High River Gold Mines Ltd.(a)...................   9,790       14,867
       Pyrite concentrates (b).........................................      --        8,485
       Other...........................................................   2,472        6,082
                                                                        -------      -------
                                                                         12,262       29,434
                                                                        =======      =======
</TABLE>

       a)     The receivable from High River Gold Mines Ltd., a joint venture
       partner in the New Britannia Mine, bears interest at prime plus 0.625%
       and is repayable from their share of cash flow from the New Britannia
       Mine.

       b)     Pyrite concentrates were written off at December 31, 2002.

7.     LONG-TERM DEBT

<TABLE>
<CAPTION>
                                                                            DECEMBER 31,
                                                                        --------------------
                                                                          2002        2001
                                                                        -------      -------
                                                                           $            $
<S>                                                                     <C>          <C>
       Crixas export loans (a).........................................  1,500        7,250
       Brasilia export loans (b).......................................     --       66,983
                                                                        -------      -------
       Total debt......................................................  1,500       74,233
       Less: Current portion........................................... (1,500)     (15,401)
                                                                        -------      -------
       Long-term debt..................................................     --       58,832
                                                                        =======      =======
</TABLE>

       a)     The Crixas mine received advances against future export
       commitments. These loans are denominated in US dollars and bear interest
       at a rate of 2.7%.

       b)     The Brasilia loan balance had corresponding deposits to match all
       maturities which were included in export prepayment contracts in 2001.
       During 2002, under an Amended and Restated Debt Assumption Agreement,
       long-term debt in an amount of $66,983 was legally extinguished (note 5).

       c)     The Company has an unutilized $2.0 million revolving line of
       credit with Normandy Finance Limited. Amounts drawn on this facility are
       subject to interest at LIBOR plus 2.35% and are collateralized. This
       revolving line of credit was terminated in 2003.

       d)     Letters of credit have been issued against reclamation costs at
       the Mineral Hill mine which was closed in 1996. Cash in an amount of $8.6
       million is pledged against these letters of credit at December 31, 2002
       (2001 -- $8.6 million).

       An additional $0.9 million of letters of credit have been issued relating
to the Musselwhite mine (2001 -- $0.9 million)

       See also note 16(c) regarding Hellenic Gold commitments.

       e)     Interest paid during 2002 amounted to $555 (2001 -- $13,615; 2000
       -- $18,170).

8.     OTHER LIABILITIES

<TABLE>
<CAPTION>
                                                                                      DECEMBER 31,
                                                                                 ----------------------
                                                                                    2002         2001
                                                                                 ---------    ---------
                                                                                     $            $
<S>                                                                                <C>          <C>
       Closure provisions-- operating properties (a)............................   23,554       19,742
       Closure provisions-- non-operating properties (b)........................       --        1,000
       Capital lease (c)........................................................      826        1,901
       Other....................................................................       43          300
                                                                                 ---------    ---------
                                                                                   24,423       22,943
                                                                                 =========    =========
</TABLE>

                                      F-C9
<PAGE>

       a)     Included in closure provisions -- operating properties is $9,466
       (2001 -- $6,960) relating to the Stratoni mine.

       b)     An additional $2.1 million (2001 -- $2.9 million) of accrued
       reclamation costs, relating to the current portion of the reclamation
       accrual for the Mineral Hill mine, are included in accounts payable at
       December 31, 2002.

       c)     The total remaining capital lease obligation of $1,896 bears
       interest at 90 day LIBOR plus 1.5%. Future minimum lease payments are as
       follows:

                                                                        $
                                                                     -------
       2003.......................................................... 1,131
       2004..........................................................   848
                                                                     -------
                                                                      1,979
       Less: Interest................................................   (83)
                                                                     -------
                                                                      1,896
       Less Current portion..........................................(1,070)
                                                                     -------
                                                                        826
                                                                     =======

9.     CAPITAL STOCK

       a)     Authorized

       Unlimited number of common shares without par value.

       b)     Issued

       The Company's issued and outstanding common shares are as follows:

<TABLE>
<CAPTION>

                                                                                  NUMBER OF
                                                                                    SHARES           $
                                                                                 -----------    ---------
<S>                                                                                <C>           <C>
       Outstanding as at December 31, 1999.....................................    3,592,322      385,052
       Shares repurchased and cancelled........................................      (20,080)      (2,152)
       Fractional shares redeemed..............................................           (7)          --
                                                                                 -----------    ---------
       Outstanding as at December 31, 2000.....................................    3,572,235      382,900
       Shares issued on conversion of the Notes (note 14)......................   32,150,118      211,761
                                                                                 -----------    ---------
       Outstanding as at December 31, 2001.....................................   35,722,353      594,661
       Shares issued for cash .................................................    7,422,655       46,855
                                                                                 -----------    ---------
       Outstanding as at December 31, 2002.....................................   43,145,008      641,516
                                                                                 ===========    =========
</TABLE>

       Under a special resolution of the shareholders of the Company on June 27,
       2000, the shareholders authorized the consolidation of share capital on a
       five for one basis. Effective June 30, 2002, the Company further
       consolidated its common shares on a ten for one basis. All share capital,
       share and option data in the consolidated financial statements have been
       retroactively restated to reflect the share consolidations.

       c)     The earnings (loss) per share has been calculated using the
       weighted average number of shares outstanding during the year of
       41,031,231 shares (2001 -- 18,898,593; 2000 -- 3,581,370). For purposes
       of the calculation, the loss is adjusted for charges related to the Notes
       totaling $nil (2001 -- $6,666; 2000 -- $12,325) and the increase in
       contributed surplus resulting from the settlement of the Notes (note 14).
       Diluted earnings (loss) per share has not been presented as it would not
       be dilutive. Diluted earnings (loss) per share would reflect the maximum
       possible dilution from the potential conversion of stock options.

<TABLE>
<CAPTION>
                                                                          2002          2001          2000
                                                                      ------------  ------------   ----------
                                                                            $             $             $
<S>                                                                    <C>           <C>            <C>
       Basic earnings (loss) per share
       Net earnings (loss)..........................................      (30,616)     (227,928)       12,428
       Interest accretion on the Notes..............................           --        (6,666)      (12,325)
       Increase from the settlement of the Notes....................           --        34,729            --
       Net earnings (loss) applicable to common shares..............      (30,616)     (199,865)          103
                                                                      ===========   ===========    ==========
       Weighted average common shares outstanding...................   41,031,231    18,898,593     3,581,370
                                                                      ===========   ===========    ==========
       Basic earnings (loss) per common share.......................        (0.75)       (10.58)         0.03
                                                                      ===========   ===========    ==========
</TABLE>

       d)     During 2000, under the terms of a normal course issuer bid, the
       Company repurchased 20,080 common shares at an average cost of CAN $46.00
       per share. These transactions resulted in contributed surplus of $1,526.
       The restructuring of the Notes during 2001 (note 14) resulted in
       additional contributed surplus of $34,729 in 2001.

       e)     The Company has issued 8,000 warrants outstanding to purchase
       common shares at CAN $66.50 per share expiring August 11, 2003.

10.    STOCK-BASED COMPENSATION PLAN

       The Company has granted common share options to certain directors,
       officers, employees and consultants to attract and retain key personnel.
       Under the Company's 1994 Stock Option Plan, as amended, up to 3.5 million
       common share options for terms up to ten years at a price no lower than
       the

                                     F-C10

<PAGE>

       market price at the time of the grant are available to certain directors,
       officers, employees and consultants. The total number of shares which may
       be purchased under any options granted to insiders of the Company under
       the Stock Option Plan shall be less than a majority of the total number
       of shares available for issuance under the Stock Option Plan.

       At the time of the grant, vesting is at the discretion of the Board of
       Directors. In the event of a fundamental change in the ownership and/or
       capital structure of the Company, all options outstanding will
       automatically vest and become fully exercisable and the options will
       continue until the end of the expiry period. All outstanding options
       vested upon completion of the business combination (note 19(a)). All
       options granted have five-year terms.

       A summary of the status of the stock option plan as at December 31, 2002,
       2001 and 2000 and changes during the years ending on those dates,
       reflecting the share consolidations referred to in note 9(b) is as
       follows:

<TABLE>
<CAPTION>
                                                             2002                  2001                2000
                                                      --------------------  ------------------- --------------------
                                                                WEIGHTED-             WEIGHTED-            WEIGHTED-
                                                                 AVERAGE               AVERAGE              AVERAGE
                                                                EXERCISE              EXERCISE             EXERCISE
                                                       SHARES     PRICE      SHARES     PRICE    SHARES      PRICE
                                                      -------- -----------  -------- ---------- --------  ----------
                                                       (000S)     CAN$       (000S)      CAN$    (000S)       CAN$
<S>                                                    <C>       <C>         <C>       <C>         <C>      <C>
    Outstanding at beginning of year...............    1,242      30.10        267     155.50      328      191.00
    Granted........................................       --         --      1,016       8.50       --          --
    Exercised......................................     (273)      8.50         --         --       --          --
    Expired........................................      (62)    163.21        (41)    204.70      (61)     346.10
                                                        ----     ------      -----     ------     ----     -------
      Outstanding at end of year...................      907      27.46      1,242      30.10      267      155.50
                                                        ====     ======      =====     ======     ====     =======
      Options exercisable at year end..............      257      75.43        546      57.20      198      175.00
                                                        ====     ======      =====     ======     ====     =======

       The following table summarizes information on stock options outstanding
       at December 31, 2002:
<CAPTION>

                                                             OPTIONS OUTSTANDING              OPTIONS EXERCISABLE
                                                    -------------------------------------  -------------------------
                                                                    WEIGHTED
                                                        NUMBER       AVERAGE    WEIGHTED       NUMBER     WEIGHTED
                                                    OUTSTANDING AT  REMAINING    AVERAGE   EXERCISABLE AT  AVERAGE
                                                     DECEMBER 31,  CONTRACTUAL  EXERCISE    DECEMBER 31,  EXERCISE
     RANGE OF EXERCISE PRICES CAN$                       2002      LIFE YEARS     PRICE         2002        PRICE
    ----------------------------------------------- -------------- ----------- ----------  -------------- ----------
                                                        (000s)                    CAN$         (000s)       CAN$
<S>                                                      <C>          <C>        <C>            <C>        <C>
    194.00-- 229.50................................       20          0.17       201.30          20        201.30
    138.00-- 162.50................................       41          0.61       162.00          41        162.00
     66.50--  99.50................................      122          1.61        66.50         122         66.50
      8.50--  12.50................................      724          3.70         8.50          74          8.50
      8.50-- 229.50................................      907          3.20        27.46         257         75.43
</TABLE>

11.    COMMODITY CONTRACTS AND FINANCIAL INSTRUMENTS

       The Company's consolidated precious metals hedging program and deferred
       revenue as at December 31, 2002 are presented below:

       a)     Gold

                                                                   PUTS BOUGHT
                                                               -----------------
                                                                 OUNCES   $/OZ
                                                               --------  -------
       2003...................................................  150,000    260
       2004...................................................  150,000    250
       2005...................................................  150,000    250
       2006...................................................  150,000    250
                                                               --------
                                                                600,000    253
                                                               ========

       The fair value of the gold put option contracts at December 31, 2002 was
       $845.

       b)     Silver

                                                                   CALLS SOLD
                                                               -----------------
                                                                 OUNCES    $/OZ
                                                               ---------  ------
       2003................................................... 2,000,000   6.00
                                                               ---------
                                                               2,000,000   6.00
                                                               =========

       The silver calls sold are not considered to be a hedge and have been
       marked to market at December 31, 2002.

       c)     As at December 31, 2002, a joint venture of TVX had currency
              contracts outstanding up to May 2003 to fix the US dollar amount
              for 14.9 million Brazilian Reals at exchange rates prevailing at
              the inception of the contracts. These contract rates range from
              2.3568 to 3.7535. The contracts have been marked to market as at
              December 31, 2002, and are included in short-term investments.

                                     F-C11

<PAGE>

       d)     Deferred revenue and deferred charges comprise net premiums on
              open calls and put options as well as realized gains and losses on
              hedging transactions. Deferred revenue will be recognized as the
              originally designated hedged production is delivered, and
              reflected in earnings as follows:

<TABLE>
<CAPTION>
                                                                     DEFERRED   DEFERRED     NET
                                                                      REVENUE    CHARGES     TOTAL
                                                                      -------    -------    -------
                                                                         $          $          $
<S>                                                                   <C>       <C>         <C>
       2003........................................................    9,894     (3,497)     6,397
       2004........................................................    9,873     (8,073)     1,800
       2005........................................................    6,416     (8,819)    (2,403)
       2006........................................................    5,624     (8,793)    (3,169)
       2007........................................................       --     (2,807)    (2,807)
                                                                      ------    -------     -------
                                                                      31,807    (31,989)      (182)
                                                                      ======    =======     =======
       Current portion of deferred revenue.........................                         (6,397)
                                                                                            -------
       Deferred charges............................................                          6,579
                                                                                            =======
</TABLE>

       e)     In August 2001, the Company restructured its gold hedging program
       to replace 390,000 ounces of $360 put options financed by lease rate
       swaps with 550,000 ounces of $250 put options maturing from 2003 to 2006.
       The lease rate swaps were repaid. In addition, the 129,600 ounces of $280
       per ounce put options previously financed by lease rate swaps were
       restructured to be puts. The effect of the restructuring was to reduce
       total debt by $17,626 and increase deferred revenue by $14,829. The total
       net cash cost of the restructuring was $825.

       The net gain of $3,658 resulting from the restructuring has been deferred
       to be recognized over the period of the originally designated production
       ending in 2006.

       f)     Certain commodity contracts entered into by the Company require a
       deposit with an intermediary to cover margin calls. This amount
       fluctuates with spot gold and silver prices and at December 31, 2002
       amounted to $523 (2001 -- $515) which is included in restricted cash.

12.    INCOME TAXES

       a)     Details of income tax (recovery) expense for the years ended
       December 31 are as follows:

<TABLE>
<CAPTION>
                                                                  2002      2001      2000
                                                                 ------   -------    ------
                                                                    $         $         $
<S>                                                              <C>       <C>       <C>
       Income taxes
         Current
           Foreign..............................................  8,416     4,863     3,680
           Canada...............................................    332       422       163
                                                                 ------   -------    ------
                                                                  8,748     5,285     3,843
                                                                 ------   -------    ------
         Deferred
           Foreign..............................................   (545)   (7,559)   (3,282)
           Canada...............................................   (924)   (3,360)     (740)
                                                                 ------   -------    ------
                                                                 (1,469)  (10,919)   (4,022)
                                                                 ------   -------    ------
                                                                  7,279    (5,634)     (179)
                                                                 ======   =======    ======
</TABLE>

       Income taxes paid during 2002 amounted to $8,748 (2001 -- $5,285; 2000 --
       $3,843).

       b)     The reconciliation of the combined Canadian federal and provincial
       statutory income tax rates to the effective tax rate on earnings for the
       years ended December 31 is as follows:

<TABLE>
<CAPTION>
                                                                                   2002    2001     2000
                                                                                   ----    ----     ----
                                                                                     %       %        %
<S>                                                                               <C>      <C>      <C>
       Combined Canadian federal and provincial statutory income tax rate.......   38.6    41.7     44.0
       Impact of change in future tax rates.....................................    3.0    (1.0)     2.5
       Non-temporary differences................................................   (4.5)    0.4      3.3
       Tax rates of other jurisdictions.........................................    1.3    (0.5)      --
       Unrecorded (realized) benefit of tax losses..............................  (82.9)  (38.3)   (51.3)
                                                                                  -----   -----    -----
         Effective tax rate.....................................................  (44.5)    2.3    (1.5)
                                                                                  =====   =====    =====
</TABLE>

       The combined Canadian federal and provincial statutory income tax rate
       includes the weighted average of Canadian provincial income tax rates,
       including surtaxes.

       Cumulative withholding taxes of $8,559 (2001 -- $8,559) have been
       provided on unremitted foreign earnings.

                                     F-C12
<PAGE>

       c)     The Company has unutilized tax deductions in Canada totaling
       approximately $22,300 (2001 -- $26,700) which are available to be applied
       against future taxable income. There has been no recognition in the
       financial statements for these tax deductions. Of this amount, $10,100
       will expire in 2008, $3,700 will expire in 2009 and the remainder is not
       subject to expiry.

       d)     Deferred income taxes are provided as a result of temporary
       differences that arise due to differences between the tax values and
       carrying amount of assets and liabilities. The sources of temporary
       differences and the related tax amounts are as follows:

<TABLE>
<CAPTION>
                                                                                       DECEMBER 31,
                                                                                  ---------------------
                                                                                    2002         2001
                                                                                  -------      --------
                                               Assets                                 $            $
<S>                                                                               <C>           <C>
      Depletion and amortization.................................................   2,978          307
      Deferred mining costs.....................................................   14,687       16,680
      Reclamation ..............................................................      467          344
      Net operating losses......................................................   17,153       22,055
      Other.....................................................................    6,003        6,179
                                                                                  -------      -------
      Gross future tax assets...................................................   41,288       45,565
      Valuation allowance.......................................................  (27,890)     (33,092)
                                                                                  -------      -------
      Net future tax assets.....................................................   13,398       12,473
                                                                                  =======      =======

                                            Liabilities
      Depletion and amortization................................................   (2,698)      (3,962)
      Deferred mining costs ....................................................  (11,685)     (11,962)
      Other, including accrued withholding taxes................................   (6,012)      (5,024)
                                                                                  -------      -------
      Future tax liabilities....................................................  (20,395)     (20,948)
                                                                                  =======      =======
</TABLE>

13.    DEBENTURE PAYABLE

       A Brazilian subsidiary of the Company issued a short-term debenture in
       December 2000 in the amount of $26,855. The debenture bore interest at
       7.88% and was repaid on June 25, 2001.

14.    GOLD LINKED CONVERTIBLE NOTES

       On March 14, 1997, the Company issued $250 million of subordinated
       unsecured convertible notes ("Notes"). The Notes bore interest at 5% per
       annum which was payable semi-annually. The original maturity date of the
       Notes was March 28, 2002.

       On July 10, 2001, the Company completed the conversion of the Notes into
       32,150,118 common shares of the Company. The effect of the conversion was
       to increase capital stock by $211,761, increase contributed surplus by
       $34,729, reduce the current portion of long-term debt by $8,403, reduce
       deferred charges by $2,539 and reduce the equity component of gold linked
       convertible notes by $240,626. No gain or loss was recognized on the
       consolidated statement of operations.

       The Notes were accounted for in accordance with CICA Section 3860 whereby
       debt securities which have interest payable in cash and give the issuer
       the right to settle the principal amount in common shares are split into
       a liability and an equity component. The liability component of the debt
       was calculated as the present value of the interest payments discounted
       at a rate estimated to be equivalent to a similar non-convertible debt.
       The net proceeds received from the issuance of the Notes, less the
       liability component, were classified as equity.

       The liability component was reduced by semi-annual interest payments, net
       of changes in the present value of the liability component which were
       charged to earnings. The equity component was increased over time by
       charges to deficit for interest accretion and amortization of issuance
       costs so that at maturity, it would be equal to the face value of the
       Notes.

       During the year ended December 31, 2002, the charges to deficit were $nil
       (2001 -- $6,666; 2000 -- $12,325).

                                     F-C13
<PAGE>

15.    SEGMENTED INFORMATION

       The Company's industry segments are concentrated in the development and
       mining of precious metals in North and South America and in Europe. Gold
       and silver are currently the primary commodities produced. Details of the
       Company's financial information segmented operationally are as follows:

<TABLE>
<CAPTION>
                                                              FOR THE YEAR ENDED DECEMBER 31, 2002
                                -------------------------------------------------------------------------------------------------
                                                               MUSSEL-      NEW     STRATONI
                                LA COIPA  BRASILIA   CRIXAS     WHITE    BRITANNIA  OPERATIONS   GREECE     CORPORATE/
                                 (CHILE)  (BRAZIL)  (BRAZIL)  (CANADA)   (CANADA)   (GREECE)   DEVELOPMENT     OTHER      TOTAL
                                 -------  --------  --------  --------   --------   --------   -----------     -----      -----
                                    $         $        $          $          $          $           $            $          $
<S>                              <C>       <C>       <C>        <C>        <C>         <C>        <C>         <C>         <C>
Revenue.....................     46,252    33,546    30,020     21,384     17,126      31,007          --       5,422     184,757
                                 ------    ------    ------     ------     ------      ------     -------     -------     -------
Cost of sales...............     33,621    18,110     8,417     15,485     11,117      34,560          --          --     121,310
Depletion and depreciation..     12,672     5,447     4,788      4,851      3,343       2,536          --         512      34,149
                                 ------    ------    ------     ------     ------      ------     -------     -------     -------
                                 46,293    23,557    13,205     20,336     14,460      37,096          --         512     155,459
                                 ------    ------    ------     ------     ------      ------     -------     -------     -------
Earnings (loss) from
   operations before the
   undernoted...............        (41)    9,989    16,815      1,048      2,666      (6,089)         --       4,910      29,298
 Mining property, plant and
   equipment  write-downs...         --        --        --         --         --       4,071          --          --      4,071
Non-operating asset
  write-downs...............         --        --        --         --         --          --      15,000          --     15,000
Other asset write-downs.....         --        --        --         --         --       4,418       8,485          --     12,903
Corporate administration....         --        --        --         --         --          --          --       6,297      6,297
Interest expense............        176        76       211         --         --          --          --          92        555
Exploration.................        691        --       484        779      1,053          --          --         653      3,660
Transaction costs...........         --        --        --         --         --          --          --       3,217      3,217
Foreign exchange loss.......       (238)    4,254       541        445        (27)        707          --       1,663      7,345
Interest income.............        (35)   (1,800)     (683)       (36)        --          --          --      (1,719)    (4,273)
Other.......................       (195)      (15)      120         32         --          --          --      (3,060)    (3,118)
                                 ------    ------    ------     ------     ------     -------     -------     -------     -------
                                    399     2,515       673      1,220      1,026       9,196      23,485       7,143     45,657
                                 ------    ------    ------     ------     ------     -------     -------     -------     -------
Earnings (loss) before the
  undernoted................       (440)    7,474    16,142       (172)     1,640     (15,285)    (23,485)     (2,233)   (16,359)
Income taxes................        757       844     1,553         --         --          --          --       4,125      7,279
Minority interests and
  participation rights......       (599)    3,315     7,295        (86)       820          --          --      (3,767)     6,978
                                 ------    ------    ------     ------     ------     -------     -------     -------     -------
Net earnings (loss).........       (598)    3,315     7,294        (86)       820     (15,285)    (23,485)     (2,591)   (30,616)
                                 ======    ======    ======     ======     ======     =======     =======     =======     =======

Cash and cash equivalents...      1,713     2,675     5,246         --        104         399          --     105,075    115,212
Capital expenditures........        836     2,696     1,819      3,656      1,637       1,996          --       2,526     15,166
Mining property, plant and
  equipment.................     62,437    62,206    23,623     45,497      7,927          --          --         140    201,830
Total assets................     72,210    78,696    34,633     49,930     10,762       4,158          --     147,561    397,950
</TABLE>


                                     F-C14
<PAGE>

<TABLE>
<CAPTION>
                                                              FOR THE YEAR ENDED DECEMBER 31, 2001
                                -------------------------------------------------------------------------------------------------
                                                               MUSSEL-      NEW     STRATONI
                                LA COIPA  BRASILIA   CRIXAS     WHITE    BRITANNIA  OPERATIONS   GREECE     CORPORATE/
                                 (CHILE)  (BRAZIL)  (BRAZIL)  (CANADA)   (CANADA)   (GREECE)   DEVELOPMENT     OTHER      TOTAL
                                 -------  --------  --------  --------   --------   --------   -----------     -----      -----
                                    $         $        $          $          $          $           $            $          $
<S>                              <C>       <C>       <C>        <C>        <C>         <C>        <C>         <C>         <C>
Revenue......................    41,404    25,386    26,699     20,122     15,289      24,160          --       5,280     158,340
                                 ------    ------    ------     ------     ------     -------     -------     -------     -------
Cost of sales................    32,128    17,953    10,719     14,281     10,537      22,530          --          --     108,148
Depletion and depreciation...    16,260     5,091     5,007      5,904      5,916       1,871          --         194      40,243
                                 ------    ------    ------     ------     ------     -------     -------     -------     -------
                                 48,388    23,044    15,726     20,185     16,453      24,401          --         194     148,391
                                 ------    ------    ------     ------     ------     -------     -------     -------     -------
Earnings (loss) from
  operations before the
  undernoted.................    (6,984)    2,342    10,973        (63)    (1,164)       (241)         --       5,086       9,949
Mining property, plant and
  equipment write-downs......    13,000        --        --         --      8,000          --          --          --      21,000
Non-operating asset
  write-downs................        --        --        --         --         --          --     223,513          --     223,513
Other asset write-downs......        --        --        --         --         --          --          --          --          --
Corporate administration.....        --        --        --         --         --          --          --       8,123       8,123
Interest expense.............       309       575       534         --         --          --          --       2,351       3,769
Exploration..................       320        --       237        488        466          --          --       1,869       3,380
Foreign exchange loss........        --     2,278       976         94         62          --          --        (117)      3,293
Interest income..............       (28)   (1,682)     (769)       (59)        --          --          --      (3,112)     (5,650)
Other........................       623        (3)     (373)        12         --          --          --      (4,142)     (3,883)
                                 ------    ------    ------     ------     ------     -------     -------     -------     -------
                                 14,224     1,168       605        535      8,528          --     223,513       4,972     253,545
                                 ------    ------    ------     ------     ------     -------     -------     -------     -------
Earnings (loss) before the
  undernoted.................   (21,208)    1,174    10,368       (598)    (9,692)       (241)   (223,513)        114    (243,596)
Income taxes.................       (41)     (215)    1,325         --         --          --          --      (6,703)     (5,634)
Minority interests and
  participation rights.......   (10,584)      695     4,522       (299)    (4,846)         --          --         478     (10,034)
                                 ------    ------    ------     ------     ------     -------     -------     -------     -------
Net earnings (loss)..........   (10,583)      694     4,521       (299)    (4,846)       (241)   (223,513)      6,339    (227,928)
                                 ======    ======    ======     ======     ======     =======     =======     =======     =======
Cash and cash equivalents....     1,133     1,021     5,980         --         14         574          --       7,846      16,568
Capital expenditures.........     5,975     2,004     3,254      4,032      1,298       3,471       5,419          99      25,552
Mining property, plant and
  equipment..................    72,379    63,955    25,503     46,539      9,546       4,111      15,000         229     237,262
Total assets.................    82,639   151,147    35,616     50,490     12,416      13,990      23,485      88,512     458,295
</TABLE>

                                     F-C15
<PAGE>

<TABLE>
<CAPTION>
                                                              FOR THE YEAR ENDED DECEMBER 31, 2000
                                -------------------------------------------------------------------------------------------------
                                                               MUSSEL-      NEW     STRATONI
                                LA COIPA  BRASILIA   CRIXAS     WHITE    BRITANNIA  OPERATIONS   GREECE     CORPORATE/
                                 (CHILE)  (BRAZIL)  (BRAZIL)  (CANADA)   (CANADA)   (GREECE)   DEVELOPMENT     OTHER      TOTAL
                                 -------  --------  --------  --------   --------   --------   -----------     -----      -----
                                    $         $        $          $          $          $           $            $          $
<S>                              <C>       <C>       <C>        <C>        <C>         <C>        <C>         <C>         <C>
Revenue......................    48,902    30,361    26,774     21,892     14,552      16,081         --       11,468     170,030
                                 ------    ------    ------     ------     ------     -------     -------     -------     -------
Cost of sales................    37,256    19,402    10,624     12,526     10,992      16,004         --           --     106,804
Depletion and depreciation...    13,859     8,079     4,897      5,922      4,158       1,003         --           82      38,000
                                 ------    ------    ------     ------     ------     -------     -------     -------     -------
                                 51,115    27,481    15,521     18,448     15,150      17,007         --           82     144,804
                                 ------    ------    ------     ------     ------     -------     -------     -------     -------
Earnings (loss) from
  operations before the
  undernoted.................    (2,213)    2,880    11,253      3,444       (598)       (926)        --       11,386     25,226
Mining property, plant and
  equipment write-downs......        --        --        --         --         --          --         --           --         --
Non-operating asset
  write-downs................        --        --        --         --         --          --         --           --         --
Corporate administration.....        --        13        --         --         --          --         --        6,584      6,597
Interest expense.............       426       505     1,131         --         --          --         --        1,385      3,447
Exploration..................       768        --       584        555        515         146         --        2,929      5,497
Foreign exchange loss........        --       993       539         45         16          --         --          422      2,015
Interest income..............       (44)   (1,872)     (618)        --         --          --         --       (6,969)    (9,503)
Other........................     8,625    (3,194)     (420)       121         12          --         --          276      5,420
                                 ------    ------    ------     ------     ------     -------     -------     -------     -------
                                  9,775    (3,555)    1,216        721        543         146         --        4,627     13,473
                                 ------    ------    ------     ------     ------     -------     -------     -------     -------
Earnings (loss) before the
  undernoted.................   (11,988)    6,435    10,037      2,723     (1,141)     (1,072)        --        6,759     11,753
Income taxes.................    (1,298)      253     2,529         --         --          --         --       (1,663)      (179)
Minority interests and
  participation rights.......    (5,345)    3,091     3,754      1,362       (571)         --         --       (2,787)      (496)
                                 ------    ------    ------     ------     ------     -------     -------     -------     -------
Net earnings (loss)..........    (5,345)    3,091     3,754      1,361       (570)     (1,072)        --       11,209     12,428
                                 ======    ======    ======     ======     ======     =======     =======     =======     =======
Cash and cash equivalents....        24     4,012     2,529        351         48       1,590         --       40,742     49,296
Capital expenditures.........     6,053     2,171     2,912      1,076      1,612       3,258     31,616           48     48,746
<CAPTION>

 GEOGRAPHIC SEGMENTS ARE AS FOLLOWS:

                                                                         FOR THE YEARS ENDED
                                                                             DECEMBER 31,
                                                                   ------------------------------
                                                                     2002        2001        2000
                                                                   -------     -------    -------
                                                                      $           $           $
<S>                                                                <C>         <C>        <C>
Revenue
  Canada........................................................    43,932      40,691     47,912
  Chile.........................................................    46,252      41,404     48,902
  Brazil........................................................    63,566      52,085     57,135
  Greece........................................................    31,007      24,160     16,081
                                                                   -------     -------    -------
                                                                   184,757     158,340    170,030
                                                                   =======     =======    =======
Identifiable assets
  Canada........................................................   101,207     108,576
  Chile.........................................................    75,374      88,430
  Brazil........................................................   113,944     188,148
  Greece........................................................     4,158      37,475
  Other.........................................................   103,267      35,666
                                                                   -------     -------
                                                                   397,950     458,295
                                                                   =======     =======
</TABLE>

16.    COMMITMENTS AND CONTINGENCIES

       A)     ALPHA GROUP LITIGATION

       The Ontario Court (General Division) issued its judgment in connection
       with the claim against TVX Gold Inc. (TVX) by three individuals
       (collectively the "Alpha Group") on October 14, 1998 relating to TVX's
       interest in the Hellenic Gold mining assets in Greece (the "Hellenic Gold
       Assets").

       The Court rejected full ownership and monetary damages claims but did
       award the Alpha Group a 12% carried interest and a right to acquire a
       further 12% participating interest in the Hellenic Gold Assets. TVX filed
       a notice to appeal and the Alpha Group filed a notice of cross-appeal.

       Subsequent to the trial decision, the Company received notification of
       two actions commenced by 1235866 Ontario Inc. ("1235866") the successor
       to Curragh Inc. ("Curragh"), Mineral Services Limited ("Mineral") and
       Curragh Limited ("Curragh Ltd.") against the Alpha Group, and others, in
       Ontario and English Courts, in relation to the claim by the Alpha Group
       against the Company for an interest in the Hellenic Gold Assets.

       On July 28, 1999, the Company entered into an agreement with 1235866 to
       ensure that these new claims would not result in any additional
       diminution of the Company's interest in the Hellenic Gold Assets. 1235866
       agreed not to pursue any claim against the Company for an interest in the
       Hellenic Gold Assets beyond the interest which had been awarded to the
       Alpha Group. In the event that 1235866 is successful in its claim against
       the Alpha Group, 1235866 would be entitled to a 12% carried interest as
       defined in the agreement (being an economic interest) and the right to
       acquire a 12% participating interest upon payment of 12% of the aggregate
       amounts expended by the Company and its subsidiaries in connection with

                                     F-C16

<PAGE>

       the acquisition, exploration, development and operation of the Hellenic
       Gold Assets up to the date of exercise.

       The Company's appeal, the Alpha Group cross-appeal and the 1235866 motion
       were all heard on February 17, 18 and 25, 2000. By judgment released on
       June 1, 2000, the Court of Appeal, while partially granting the TVX
       appeal, essentially upheld the trial decision, rejected the Alpha Group
       cross-appeal and denied the 1235866 motion for a new trial. The result is
       that TVX holds, as constructive trustee, a 12% carried interest and a
       right to acquire a 12% participating interest in the Hellenic Gold Assets
       upon payment of costs associated with that interest. 1235866 continues
       its separate action against the Alpha Group.

       TVX and the Alpha Group have been unable to agree on the definition and
       application of the interests awarded in the trial judgment. Accordingly,
       in June, 2001, a new action was commenced between the Alpha Group and TVX
       to clarify the award. TVX anticipates that the hearing with respect to
       this matter may be held in 2004. The amount of a loss, if any, cannot be
       determined at this time.

       B)     LITIGATION IN GREECE

       On March 1, 2002, the Conseil d'Etat, the Greek Supreme Court, issued its
       judgment which annulled the purportedly valid permits issued by the Greek
       Government to TVX Hellas with respect to the Olympias project. The
       Conseil D'Etat ruling effectively prohibits development of the Olympias
       project. TVX is reviewing its options, including legal remedies, with
       respect to recovery of its investment in Greece. As a result of the
       judgment, the Company wrote off the carrying value of Olympias in 2001
       (note 4).

       On February 15, 2002, a new mining permit, allowing for the continuation
       of mining beneath the village of Stratoniki was issued to TVX Hellas. A
       local action group filed a Petition of Annulment against the Greek
       Government to have the new permit annulled. This action was heard on June
       7, 2002. On December 9, 2002, the Conseil D'Etat released its decision on
       the challenge to the Stratoni mining permits. The Company was informed
       that the court ruled that TVX Hellas is not required to submit a new
       environmental impact study to support the relevant mine permits. The
       court also ruled, however, that the Greek Government had improperly
       issued the new mining permits because the Ministry of Development had not
       obtained a joint ministerial decision signed by five relevant ministries
       prior to issuing the permits. On January 9, 2003 the Company was informed
       by the Greek Ministry of Development instructing that mining beneath the
       village of Stratoniki be suspended until the new mining permits were
       signed by the five relevant ministries.

       Operations were suspended on January 9, 2003 and did not re-commence once
       the revised permits were issued on February 18, 2003. Kinross is
       currently assessing its future plans for the Stratoni base metal
       operations. The amount of a loss, if any, cannot be determined at this
       time (note 19(b)).

       C)     HELLENIC GOLD COMMITMENTS

       Pursuant to the acquisition contract of the Hellenic Gold assets in 1995
       the Company has the obligation to fulfill the following: (1) Gold Plant
       Guarantee -- the Company is obligated to construct a gold plant within
       two years from receiving all applicable licenses, which may be extended
       by a further eight months under certain circumstances. The Company
       pledged an amount of $7.5 million to satisfy a GRD2.6 billion guarantee;
       (2) employment must be offered by the construction contractor to 150
       former employees of Hellenic Gold for a period of 18 months, during the
       construction of the gold plant. In 2002 the Greek State released the
       Company from the Gold Plant Guarantee and the relevant bank released the
       pledged amount; (3) the Company is also obligated to employ at least 477
       employees for a period of 10 years to maintain its eligibility for
       government grants.

       D)     BRASILIA MINE

       In September 2001, Rio Tinto Brasil Ltda. ("Rio Tinto Brasil"), a
       subsidiary of Rio Tinto PLC, purported to terminate the shareholders
       agreement relating to Rio Paracatu Mineracao S.A., the operating
       corporation which holds the Brasilia mine. Rio Tinto Brasil also caused
       Rio Paracatu to call a meeting of its shareholders to amend its Articles
       of Association. The proposed amendments would permit Rio Tinto Brasil to
       have sole decision-making authority over Rio Paracatu through its 51%
       interest. Rio Tinto Brasil alleged that the transaction resulting in the
       formation of the TVX Newmont Americas joint venture (formerly TVX
       Normandy Americas joint venture) in June 1999 and the resignation of the
       former Chairman and Chief Executive Officer of TVX in April 2001 had
       triggered rights of first refusal under the shareholders agreement in
       favor of Rio Tinto Brasil and as such rights were not made available to
       Rio Tinto Brasil, it was permitted to terminate the shareholders
       agreement.

       The TVX Newmont Americas joint venture disagrees with Rio Tinto Brasil's
       interpretation of the shareholders agreement and was successful in
       obtaining an injunction against Rio Paracatu from holding the proposed
       shareholders meeting. Following the granting of the injunction in
       November 2001, the TVX Newmont Americas joint venture commenced a claim
       in Brazil against Rio Tinto Brasil and Rio Paracatu to declare that the
       shareholders agreement continues to be valid. Rio Tinto Brasil and the
       TVX Newmont Americas joint venture have each filed pleadings with respect
       to this action. In October 2002, Rio Tinto Brasil again caused Rio
       Paracatu to call a meeting of its shareholders and TVX Newmont Americas
       was successful in obtaining another injunction. Subsequently, Rio Tinto
       Brasil and TVX Newmont Americas agreed to freeze litigation activities
       until the end of January 2003 which date coincides with the termination
       date specified in the combination agreement among Kinross, TVX and Echo
       Bay (note 19(c)).

                                     F-C17

<PAGE>

       In the event that Rio Tinto Brazil is successful in having the court rule
       that its termination of the shareholders agreement was valid, TVX would
       not be able to exercise joint control of Rio Paracatu under the terms of
       the agreement. In the event of such outcome, TVX will evaluate other
       legal remedies with respect to the management of Rio Paracatu. If TVX is
       not able to retain joint control of Rio Paracatu, management of Rio
       Paracatu, and operation of the Brasilia mine would be subject to the
       discretion of Rio Tinto Brasil. Further, upon a loss of joint control,
       TVX would no longer proportionately consolidate its interest in Rio
       Paracatu and would account for its interest using the equity method under
       Canadian and US GAAP. The termination of the shareholders agreement would
       not effect TVX's current ownership interest in Rio Paracatu and the
       amount of a loss, if any, cannot be determined at this time.

       NORMANDY INTERNATIONAL HOLDINGS (PTY) LTD. ("NORMANDY") INDEMNIFICATION

       Effective July 1, 1999, the Company conveyed 50% of its interests in five
       operating mines to Normandy for net proceeds of $180,953. As part of the
       transaction, the Company agreed to indemnify Normandy until June 2005 for
       up to $15 million of unforeseen, pre-existing environmental liabilities
       associated with the assets transferred. These assets were reacquired
       under the terms of the transaction described in note 19(a).

       GENERAL

       Various lawsuits are pending against the Company. The actual liability
       with respect to these lawsuits is not determinable, but management
       believes, based on the opinion of counsel, that any liability will not
       materially affect the Company's consolidated financial position.

17.    DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED
       ACCOUNTING PRINCIPLES

       The Company prepares its financial statements in accordance with
       accounting principles generally accepted in Canada ("Canadian GAAP")
       which generally conform to generally accepted accounting principles in
       the United States ("US GAAP") except for the following significant
       differences that affect the Company:

       a)   (i)   Effective January 1, 2000, the Company adopted the asset and
       liability method of accounting for income taxes under Canadian GAAP (note
       2(d)). This change was made without restatement of the 1999 comparative
       figures.

            Prior to 2000, under Canadian GAAP, deferred income taxes were
       determined using the deferral method whereby deferred income taxes were
       provided for timing differences based on tax rates in effect when the
       timing difference arose. Under US GAAP, income taxes are determined using
       the liability method whereby deferred income taxes are provided for
       temporary differences using tax rates expected to apply when the
       differences reverse (notes 2(d) and 12).

       (ii)   The income tax expense (recovery) adjustment results from the tax
       effects of US GAAP adjustments described in note 17 and the application
       of the accounting policy described in note 17(a)(i) for the period prior
       to January 1, 2000.

       b)     Under Canadian GAAP, the Notes (note 14) were accounted for under
       a components approach whereby the Notes were presented with both
       liability and equity components as explained in note 14. Under US GAAP,
       these Notes were treated as long-term debt and all interest amounts (to
       the extent not capitalized to development projects) and amortization of
       debt issue costs were included in income.

       On July 10, 2001, the Company completed the conversion of the Notes into
       32,150,118 common shares of the Company valued at $211,761.

       As explained above, prior to the conversion, the Notes were accounted for
       under a components approach under Canadian GAAP. The effects of the
       conversion under Canadian GAAP are described in note 14.

       Under US GAAP, these Notes were treated as long-term debt. In accordance
       with US GAAP, an extraordinary gain of $34,181 net of income taxes of
       $nil, was recorded on this extinguishment of debt. The gain is comprised
       of the difference between the carrying value of the Notes and the value
       of the common shares issued less related transaction costs and the
       write-off of unamortized debt issue costs.

       c)     Under US GAAP, start-up costs are expensed as incurred. Under
       Canadian GAAP, start-up costs are deferred and amortized over the mine
       life.

       d)     Under Canadian GAAP, capital assets are written down to net
       recoverable amount when the expected undiscounted future cash flows from
       their use are less than the asset carrying amount (note 4). Under US
       GAAP, when the expected undiscounted future cash flows show a deficiency,
       the asset is written down to fair value. Fair value has been estimated
       using discounted expected future cash flows. In 2002 under Canadian GAAP,
       the Company wrote down a capital asset which had already been written
       down under US GAAP. This resulted in a reduction in the write down
       recorded under US GAAP in 2002.

       An adjustment to the deferred tax liability resulted from the US GAAP
adjustment.

       e)     Under US GAAP, the components of changes in non-cash working
              capital are to be disclosed. They are as follows:

                                     F-C18
<PAGE>

<TABLE>
<CAPTION>
                                                                    FOR THE YEAR ENDED
                                                                        DECEMBER 31,
                                                                 --------------------------
                                                                  2002      2001       2000
                                                                  ----      ----       ----
                                                                   $         $          $
<S>                                                              <C>       <C>        <C>
       Accounts receivable....................................   4,163    (7,065)    (4,070)
       Inventories............................................   3,442     8,913      5,034
       Accounts payable.......................................    (426)   (2,368)    (3,623)
                                                                 -----      ----     ------
                                                                 7,179      (520)    (2,659)
                                                                 =====      ====     ======

</TABLE>
       f)     Effective January 1, 2001, the Company adopted Statement of
       Financial Accounting Standards ("SFAS") No. 133, "Accounting for
       Derivative Instruments and Hedging Activities", as amended by SFAS No.
       138, "Accounting for Certain Derivative Instruments and Certain Hedging
       Activities" ("the Standards"). These Standards require companies to
       record derivatives on the balance sheet as assets or liabilities,
       measured at their fair value. If the derivative is designated as a fair
       value hedge, the effective portions of the changes in the fair value of
       the derivative, and changes in the fair value of the hedged item
       attributable to the hedged risk, are recognized in the income statement.
       If the derivative is designated as a cash flow hedge, the effective
       portion of the changes in fair value of the derivative are recorded in
       other comprehensive income ("OCI") and are recognized in the income
       statement when the hedged item is recognized. Accordingly, ineffective
       portions of changes in the fair value of hedging instruments are
       recognized in earnings immediately. Gains or losses arising from hedging
       activities, including the ineffective portion, are reported in the same
       income statement caption as the hedged item. Gains or losses from
       derivative instruments for which hedge accounting is not applied are
       reported in other income.

       In accordance with the transition provisions of the Standards, the
       Company recorded the following after-tax cumulative adjustments on
       January 1, 2001 as a result of recording all derivative financial
       instruments on the consolidated balance sheet at fair value:

              -      an increase in OCI of $17.5 million, net of future income
                     taxes of $nil;

              -      an increase in assets of $12.5 million; and

              -      a decrease in liabilities of $5 million.

       The Company has entered into the following types of derivative
       instruments:

       (See note 11 for details on the Company's commodity contracts and
       financial instruments).

       i)     Certain gold put options, lease rate swaps and lead and zinc
              forward contracts

       Prior to adoption of the Standards, these instruments were accounted for
       as cash flow hedges of future metals sales under both US and Canadian
       GAAP. On adoption of the Standards, the Company elected not to designate
       these contracts as hedges for US accounting purposes with the effect that
       the contracts were recognized at their fair value on January 1, 2001,
       with an offsetting amount in OCI. Changes in the fair value of these
       derivative instruments subsequent to January 1, 2001, have been reflected
       in current period earnings under US GAAP.

       ii)    Written silver call options and certain gold put options

       Prior to the adoption of the Standards, these derivative instruments were
       recorded at their fair value on the balance sheet with subsequent changes
       in fair value reflected in current period earnings. The adoption of the
       Standards did not result in any change in the accounting treatment for
       these derivative instruments and does not represent a US GAAP difference
       as the Company records these instruments at fair value for Canadian
       reporting purposes.

       iii)   Foreign currency contracts

       Prior to the adoption of the Standards, these contracts were recorded at
       their fair value in the balance sheet with subsequent changes in fair
       value reflected in current period earnings. The adoption of the Standards
       did not result in any change in the US accounting treatment for the
       contracts. Under Canadian GAAP, foreign currency contracts are recorded
       when the corresponding hedge-designated period is reached.

       The Company estimates that $7.3 million of gains, net of future income
       taxes of $nil, will be reclassified from OCI to current period earnings
       within the next twelve months.

       A reconciliation of changes in OCI attributed to hedging activities is as
       follows:

<TABLE>
<CAPTION>
                                                                                                                  DECEMBER 31,
                                                                                                                ---------------
                                                                                                                 2002     2001
                                                                                                                ------   ------
                                                                                                                   $        $
<S>                                                                                                             <C>      <C>
       Hedging gains, net of future income taxes of $nil, beginning of period................................   10,985   17,544
       Hedging gains at beginning of period reclassified to earnings, net of future income taxes of $nil.....    8,025    6,559
                                                                                                                ------   ------
       Total hedging gains net of future income taxes of $nil................................................    2,960   10,985
                                                                                                                ======   ======
</TABLE>

       g)     The minority interests and participation rights adjustment arises
              from the minority interests and participation rights impacts of
              the US GAAP adjustments described in note 17.

       h)     The La Coipa, Brasilia and Crixas mines are proportionately
              consolidated under Canadian GAAP. These mines would be accounted
              for using the equity method under US GAAP. An accommodation is
              available under certain conditions pursuant to Item 17(c)(2)(vii)
              of SEC Form 20-F which permits the omission of differences in
              classification or display that result from using proportionate
              consolidation in the reconciliation to

                                     F-C19

<PAGE>

       US GAAP. The Company has evaluated the criteria and has determined that
       the La Coipa, Brasilia and Crixas mines qualify for this accommodation as
       these joint ventures are operating entities, the significant financial
       and operating policies of which are, by contractual arrangement, jointly
       controlled by all parties having an equity interest in these entities.

       i)     For purposes of this US GAAP reconciliation, the terms "proven and
              probable reserves," "exploration," "development," and "production"
              have the same meaning under both US and CAN GAAP.

       Exploration costs incurred are expensed at the same point in time based
       on the same criteria under both US and CAN GAAP. In addition, mining
       related costs are only capitalized after proven and probable reserves
       have been designated under both US and CAN GAAP.

       As a result of the above, the following would be US GAAP information for
the years ended December 31:

<TABLE>
<CAPTION>

    INCOME STATEMENT

                                                                                         2002       2001       2000
                                                                                       -------    --------     ------
                                                                                          $           $          $
<S>                                                                                    <C>        <C>          <C>
    Earnings (loss) in accordance with Canadian GAAP................................   (30,616)   (227,928)    12,428
    Mining property write-downs (d).................................................        --     (51,185)        --
    Depletion and depreciation (c)(d)...............................................     4,046       2,830      3,410
    Interest expense (b)............................................................        --      (1,107)    (2,101)
    Income tax expense (recovery) (a)...............................................      (602)      3,650      2,092
    Minority interests and participation rights (g).................................    (1,722)      2,160     (1,705)
    Foreign exchange gain (loss) (f)(iii)...........................................        21      (1,821)     1,800
    Non-operating asset write-downs (d).............................................     9,900          --         --
    Other income (f)(i).............................................................    (3,235)        967         --
                                                                                       -------    --------     ------
    Earnings (loss) in accordance with US GAAP, before extraordinary gain...........   (22,208)   (272,434)    15,924
    Extraordinary gain (net of tax) (b).............................................        --      34,181         --
                                                                                       -------    --------     ------
    Earnings (loss) in accordance with US GAAP......................................   (22,208)   (238,253)    15,924
                                                                                       =======    ========     ======
    Earnings (loss) per share under US GAAP, before extraordinary gain..............     (0.54)     (14.42)      4.45
    Earnings (loss) per share under US GAAP.........................................     (0.54)     (12.61)      4.45
<CAPTION>

    BALANCE SHEET

                                                                                             2002         2001
                                                                                           -------       ------
                                                                                              $             $
<S>                                                                                        <C>          <C>
    Current assets (f).................................................................    154,758       95,454
    Mining property, plant and equipment (b), (c), (d).................................    198,511      219,997
    Deferred charges (f)...............................................................      4,925        6,694
    Current liabilities (f)............................................................     35,906       43,688
    Deferred tax liability (a).........................................................     17,347       17,298
    Long-term debt (b).................................................................         --       58,832
    Minority interests and participation rights (g)....................................    120,002      126,211
    Contributed surplus (b)............................................................      1,526        1,526
    Deficit............................................................................   (450,702)    (428,494)
    Other comprehensive income (f).....................................................      2,959       10,985
<CAPTION>

    STATEMENT OF CASH FLOWS

                                                                                         2002       2001       2000
                                                                                       -------    --------     ------
                                                                                          $           $          $
<S>                                                                                    <C>        <C>          <C>
    Cash provided from operations...................................................    44,406      45,783     32,557
    Cash used for investing activities (b)..........................................    28,042     (27,230)  (106,478)
    Cash provided from (used for) financing activities (b)..........................    26,196     (51,281)    29,777
    Net cash, end of year...........................................................   115,212      16,568     49,296
</TABLE>

18.    COMPARATIVE FIGURES

       Certain comparative figures have been reclassified to conform to the
       presentation used in the current year.

                                     F-C20
<PAGE>

19.    SUBSEQUENT EVENTS

       A)     ACQUISITION AND MERGER

       TVX, Echo Bay Mines Ltd. ("Echo Bay") and Kinross Gold Corporation
       ("Kinross") entered into a combination agreement dated June 10, 2002, as
       amended as of July 12, 2002 and November 19, 2002, for the purpose of
       combining the ownership of their respective businesses. The combination
       was to be effected by way of a plan of arrangement under the Canada
       Business Corporations Act ("CBCA").

       In a separate transaction, TVX and a subsidiary of TVX entered into two
       agreements dated June 10, 2002, each as amended as of November 19, 2002,
       with a subsidiary of Newmont Mining Corporation ("Newmont"). Pursuant to
       these agreements, TVX acquired Newmont's 50% non-controlling interest in
       the TVX Newmont Americas joint ventures (shown as "Minority interests and
       participation rights" in the December 31, 2002 TVX balance sheet) for an
       aggregate price of $180 million with an effective date of January 31,
       2003.

       On January 31, 2003, the shareholders of TVX approved the Plan of
       Arrangement allowing the combination of the TVX, Echo Bay and Kinross
       businesses. Subsequent to this, on January 31, 2003, the Superior Court
       of Justice, Ontario approved the Plan of Arrangement.

       Upon completion, on January 31, 2003, of the Plan of Arrangement and the
       purchase of Newmont's interest in the TVX Newmont Americas joint venture,
       and taking into account the Kinross three old for one new share
       consolidation approved by Kinross shareholders at the January 28, 2003
       Special Meeting of Kinross Shareholders, TVX shareholders received 2.1667
       shares of Kinross for each TVX share.

       B)     GREECE

       On January 9, 2003, the Greek Ministry of Development ordered TVX Hellas
       to suspend mining beneath the village of Stratoniki. The suspension at
       the Stratoni mine took immediate effect and would be released upon the
       receipt of new mining permits signed by the five relevant ministries of
       the Greek Government. Pursuant to the order, operations were suspended
       and did not re-commence once the revised permits were issued on February
       18, 2003 as Kinross attempted to negotiate a settlement and possible exit
       strategy with the Greek Government.

       The Greek Government undertook initiatives to put together a viable
       long-term structure for the re-opening of the Stratoni mine.
       Representatives of the participants of the new plan will meet in order to
       set in motion the legal processes for the completion of the new
       structure.

       The new structure includes a major Greek mining enterprise, a group of
       Greek construction companies and Kinross, as well as local Prefectural
       and Municipal Authorities.

       As part of the overall agreement, and with Kinross' commitment of $10
       million for the support of the new plan, Kinross will retain the mineral
       rights at Skouries, with the prospect of conducting a systematic
       exploration and evaluation of the deposit.

       For the transitional period and until the undertaking of the mines by the
       new structure, Kinross has pledged to the Greek Government that it will
       maintain the operation of the water treatment plant for the protection of
       the environment, thus safeguarding public health and safety in the
       region. In the meantime, TVX Hellas, in order to protect its interest,
       has filed a petition for suspension of payments.

       C)     BRASILIA MINE

       With respect to the dispute between Rio Tinto Brasil and TVX Newmont
       Americas, as more fully described in note 16(d), the freeze date for
       litigation was extended to April 22, 2003. On April 28, 2003, a TVX
       subsidiary received notification from Rio Tinto Brasil stating that they
       preserve their right to litigate in respect of the alleged breach of the
       shareholders agreement and alleging that the combination (note 19(a))
       breached the shareholders agreement as well.

       D)     NEW CREDIT FACILITY

       In February 2003, Kinross and three of its wholly-owned subsidiaries
       ("the Borrowers") entered into a new syndicated credit facility. The new
       syndicated credit facility has a maturity date of December 31, 2005 and a
       total committed amount of $125.0 million. The primary purpose of the
       credit facility is to enable the Borrowers to issue letters of credit to
       various regulatory agencies to satisfy financial assurance requirements.
       The shares of TVX Gold Inc. and 13 wholly owned subsidiaries have been
       pledged as collateral for this credit facility.

                                     F-C21

<PAGE>


REPORT OF INDEPENDENT CHARTERED ACCOUNTANTS




The Board of Directors
Echo Bay Mines Ltd.

We have audited the consolidated balance sheets of Echo Bay Mines Ltd. as at
December 31, 2002 and 2001 and the consolidated statements of operations,
deficit and cash flow for each of the years in the three-year period ended
December 31, 2002. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
financial statements based on our audits.

We conducted our audits in accordance with Canadian and United States generally
accepted auditing standards. Those standards require that we plan and perform an
audit to obtain reasonable assurance whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of the Company as at
December 31, 2002 and 2001 and the results of its operations and its cash flows
for each of the years in the three-year period ended December 31, 2002 in
accordance with Canadian generally accepted accounting principles.



                                                          /s/ Ernst & Young LLP
Edmonton, Canada
February 7, 2003, except for note 18(c),
as to which the date is March 26, 2003                    Chartered Accountants


                                      F-D1
<PAGE>

<TABLE>
<CAPTION>

                                          ECHO BAY MINES LTD.

                                      CONSOLIDATED BALANCE SHEETS

                                              December 31

(thousands of U.S. dollars)                                                  2002             2001
---------------------------------------------------------------------------------------------------------
<S>                                                                       <C>              <C>
ASSETS
Current assets:
   Cash and cash equivalents                                              $    22,967      $    12,351
   Short-term investments                                                       7,183            1,910
   Interest and accounts receivable                                             4,177            3,645
   Inventories (note 2)                                                        20,834           29,506
   Prepaid expenses and other assets                                            1,954            3,725
---------------------------------------------------------------------------------------------------------
                                                                               57,115           51,137

Plant and equipment (note 3)                                                  100,576          120,969
Mining properties (note 3)                                                     29,017           32,903
Long-term investments and other assets (note 4)                                36,982           55,795
---------------------------------------------------------------------------------------------------------
                                                                          $   223,690      $   260,804
=========================================================================================================

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
   Accounts payable and accrued liabilities                               $    24,813      $    24,284
   Income and mining taxes payable                                              3,793            3,570
   Debt and other financings (note 5)                                              --           17,000
   Reclamation and mine closure liabilities (note 8)                            4,560            3,841
   Deferred income (note 6)                                                        --              876
---------------------------------------------------------------------------------------------------------
                                                                               33,166           49,571

Debt and other financings (note 5)                                                 --            6,714
Deferred income (note 6)                                                        6,393           47,042
Reclamation and mine closure liabilities (note 8)                              46,512           49,726
Deferred income taxes                                                             945              925

Commitments and contingencies (notes 8, 16 and 17)

Shareholders' equity:
   Capital stock (note 12), no par value, unlimited number
   authorized; issued and outstanding - 541,272,675 shares                  1,042,571          713,343
   Capital securities (note 7)                                                     --          157,453
   Deficit                                                                   (879,238)        (734,665)
   Foreign currency translation                                               (26,659)         (29,305)
---------------------------------------------------------------------------------------------------------
                                                                              136,674          106,826
---------------------------------------------------------------------------------------------------------
                                                                          $   223,690      $   260,804
=========================================================================================================

See accompanying notes.
On behalf of the Board:              "Brian W. Penny"                   "Scott A. Caldwell"
                                           Director                            Director
</TABLE>

                                      F-D2
<PAGE>

<TABLE>
<CAPTION>
                                               ECHO BAY MINES LTD.

                                      CONSOLIDATED STATEMENTS OF OPERATIONS

                                             Year ended December 31


(thousands of U.S. dollars,
except for per share data)                                                2002             2001            2000
---------------------------------------------------------------------------------------------------------------------
<S>                                                                   <C>              <C>             <C>
Revenue                                                               $    206,529     $    237,684    $    280,976
---------------------------------------------------------------------------------------------------------------------
Expenses:
   Operating costs                                                         128,136          175,341         173,435
   Royalties (note 17)                                                       7,799            7,597           8,034
   Production taxes                                                          1,222              177           2,460
   Depreciation and amortization                                            35,271           42,101          50,664
   Reclamation and mine closure                                              5,066            6,098          10,572
   General and administrative                                                9,141            5,623           5,650
   Exploration and development                                               8,554            3,466          10,336
   Interest and other (note 9)                                              13,420            6,106           3,012
   Loss on retirement of capital securities (note 12)                        5,461               --              --
---------------------------------------------------------------------------------------------------------------------
                                                                           214,070          246,509         264,163
---------------------------------------------------------------------------------------------------------------------
Earnings (loss) before income taxes                                         (7,541)          (8,825)         16,813
Income tax expense (recovery) (note 10)                                        149           (3,147)         (1,748)
---------------------------------------------------------------------------------------------------------------------
Net earnings (loss)                                                  $     (7,690)    $      (5,678)  $      18,561
---------------------------------------------------------------------------------------------------------------------

Net earnings (loss) attributable to common shareholders (note 7)     $    (144,573)   $     (22,985)  $       3,164
=====================================================================================================================

Earnings (loss) per share - basic and fully diluted                  $       (0.34)   $       (0.16)  $        0.02
=====================================================================================================================
Weighted average number of shares outstanding (thousands)
   - basic and diluted                                                     429,783          140,607         140,607
=====================================================================================================================

                                          CONSOLIDATED STATEMENTS OF DEFICIT

Year ended December 31


(thousands of U.S. dollars)                                                   2002             2001            2000
---------------------------------------------------------------------------------------------------------------------
Balance, beginning of year                                           $    (734,665)   $    (711,680)  $    (714,844)

Net earnings (loss)                                                         (7,690)          (5,678)         18,561

Loss on  retirement  of capital  securities,  net of nil tax effect       (132,302)              --              --
(note 7)
Interest on capital securities, net of nil tax effect (note 7)              (4,581)         (17,307)        (15,397)
---------------------------------------------------------------------------------------------------------------------
Balance, end of year                                                 $    (879,238)   $    (734,665)  $    (711,680)
=====================================================================================================================

See accompanying notes.
</TABLE>

                                      F-D3
<PAGE>

<TABLE>
<CAPTION>
                                                     ECHO BAY MINES LTD.

                                            CONSOLIDATED STATEMENTS OF CASH FLOW

                                                   Year ended December 31


(thousands of U.S. dollars)                                                        2002            2001            2000
-----------------------------------------------------------------------------------------------------------------------------
<S>                                                                             <C>            <C>             <C>
CASH PROVIDED FROM (USED IN):
OPERATING ACTIVITIES
Net earnings (loss)                                                            $    (7,690)    $    (5,678)    $    18,561
Add (deduct):
   Depreciation                                                                     27,572          31,093          32,457
   Amortization                                                                      7,699          11,008          18,207
   Amortization of mining costs                                                      2,328           6,118           4,202
   Loss on retirement of capital securities                                          5,461              --              --
   Deferred income included in revenue (note 6)                                    (30,733)        (18,609)        (24,473)
   Deferred income included in operating costs (note 6)                                 --          (2,846)         (3,149)
   Deferral of gains on restructuring of hedge commitments                              --              --           4,287
   Deferred income taxes                                                                --          (3,358)         (2,400)
   Net gain on sale of other assets (note 9)                                        (1,242)           (700)           (432)
   Unrealized losses on share investments                                               --             150              28
   Provision for impaired assets (note 9)                                            7,000           4,384              --
   Provision for deferred gains and losses on modified hedge contracts
       (note 9)                                                                      3,098              --              --
   Allowance for bad debts (note 9)                                                  1,509              --              --
   Other                                                                               245             588          (1,084)
Change in cash invested in operating assets and liabilities:
   Interest and accounts receivable                                                 (2,035)           (648)            (85)
   Inventories                                                                       6,884           8,780          (2,869)
   Prepaid expenses and other assets                                                   (56)            166             (31)
   Accounts payable and accrued liabilities                                         (1,174)          3,304             496
   Income and mining taxes payable                                                     266          (2,174)          2,790
-----------------------------------------------------------------------------------------------------------------------------
                                                                                    19,132          31,578          46,505
-----------------------------------------------------------------------------------------------------------------------------

INVESTING ACTIVITIES
Mining properties, plant and equipment                                             (12,581)        (22,817)        (11,589)
Long-term investments and other assets                                              (4,518)         (1,879)           (524)
Proceeds on sale of plant and equipment                                              1,872             943             332
Other                                                                                1,194            (243)            894
-----------------------------------------------------------------------------------------------------------------------------
                                                                                   (14,033)        (23,996)        (10,887)
-----------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Debt repayments                                                                    (17,000)         (9,500)        (36,750)
Debt borrowings                                                                         --              --          12,000
Units offering, net of issuance costs (note 12 )                                    25,513              --              --
Warrants exercised                                                                       4              --              --
Costs of capital securities retirement                                              (3,000)             --              --
-----------------------------------------------------------------------------------------------------------------------------
                                                                                     5,517          (9,500)        (24,750)
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash and cash equivalents                                10,616          (1,918)         10,868
Cash and cash equivalents, beginning of year                                        12,351          14,269           3,401
-----------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents, end of year                                         $    22,967     $    12,351     $    14,269
=============================================================================================================================

See accompanying notes.
</TABLE>

                                      F-D4
<PAGE>

                               ECHO BAY MINES LTD.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
               Dollar amounts in thousands of U.S. dollars, except
            amounts per share and per ounce or unless otherwise noted

1.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

GENERAL

Echo Bay Mines Ltd. ("Echo Bay" or the "Company") is engaged in the production
of gold and silver and related activities including exploration, development,
mining and processing. These activities are conducted principally in the United
States and Canada. Gold accounted for 96% and silver 4% of 2002 revenue
respectively. The Company has two operating mines: Round Mountain in Nevada,
United States and Lupin in Nunavut Territory, Canada. The Company's Kettle River
mine in Washington, United States was placed on care and maintenance in October
2002. The Company operated a fourth mine, McCoy/Cove in Nevada, United States,
until March 31, 2002, at which date mining and processing activities were
completed. The Company holds a 100% interest in its Kettle River and Lupin mines
and a 50% interest in its Round Mountain, which it operates, with the remaining
50% interest held by affiliates of Barrick Gold Corporation. The Company's
McCoy/Cove mine was conveyed to a subsidiary of Newmont Mining Corporation
effective February 7, 2003 as described in note 18.

The Company's financial position and operating results are directly affected by
the market price of gold in relation to the Company's production costs. Silver
price fluctuations also affect the Company's financial position and operating
results, although to a lesser extent. Gold and silver prices fluctuate in
response to numerous factors beyond the Company's control.

The consolidated financial statements are prepared on the historical cost basis
in accordance with accounting principles generally accepted in Canada and, in
all material respects, conform with accounting principles generally accepted in
the United States, except as described in note 13. The statements are expressed
in U.S. dollars.

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.

Certain of the comparative figures have been reclassified to conform to the
current year's presentation.

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements include the accounts of the Company and
its subsidiaries. Interests in joint ventures, each of which by contractual
arrangement is jointly controlled by all parties having an equity interest in
the joint venture, are accounted for using the proportionate consolidation
method to consolidate the Company's share of the joint venture's assets,
liabilities, revenues and expenses.


                                      F-D5
<PAGE>

1.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd.)

SHARE INVESTMENTS

Short-term investments, comprised of publicly traded common shares, are recorded
at the lower of cost or quoted market prices, with unrealized losses included in
income. Long-term common share investments are recorded at cost. A provision for
loss is recorded in income if there is a decline in the market value of a
long-term share investment that is other than temporary. If the Company's share
investment represents more than 20% ownership interest and the Company can
exercise significant influence over the investee, the equity method of
accounting is used. The equity method reports the investment at cost adjusted
for the Company's pro rata share of the investee's undistributed earnings or
losses since acquisition.

FOREIGN CURRENCY TRANSLATION

The Company's self-sustaining Canadian operations are translated into U.S.
dollars using the current-rate method, which translates assets and liabilities
at the year-end exchange rate and translates revenue and expenses at average
exchange rates. Exchange differences arising on translation are recorded as a
separate component of shareholders' equity. The change in the balance is
attributable to fluctuations in the exchange rate of U.S. dollars to Canadian
dollars.

REVENUE RECOGNITION

Revenue is recognized when title to delivered gold or silver and the risks and
rewards of ownership pass to the buyer.

EARNINGS (LOSS) PER SHARE

Earnings (loss) per share are calculated based on the weighted average number of
common shares outstanding during the year. For per share calculations, the
amount of capital securities interest and loss on conversion that is charged
directly to the deficit decreases the earnings, or increases the loss,
attributable to common shareholders. Fully diluted earnings (loss) per share are
the same as basic earnings (loss) per share because the Company's outstanding
options are not dilutive.

CASH AND CASH EQUIVALENTS

The Company considers all highly liquid debt instruments purchased with a
maturity of three months or less to be cash equivalents.



                                      F-D6
<PAGE>

1.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd.)

INVENTORIES

Precious metals and in-process inventories are valued at the lower of cost,
using the "first-in, first-out" method, or net realizable value. Materials and
supplies are valued at the lower of average cost or replacement cost.

PLANT AND EQUIPMENT

Plant and equipment are recorded at cost. Plant and equipment that have useful
lives shorter than the mine life are depreciated using the straight-line method
over each asset's estimated remaining economic life to a current maximum of 4
years.

MINING PROPERTIES - PRODUCING MINES' ACQUISITION AND DEVELOPMENT COSTS

Mining properties are recorded at cost of acquisition. Mine development costs
include expenditures incurred to develop new ore bodies, to define further
resources in existing ore bodies and to expand the capacity of operating mines.
These expenditures are amortized against earnings on the unit-of-production
method based on estimated recoverable ounces of gold. Estimated recoverable
ounces of gold include proven and probable reserves and non-reserve material
when sufficient objective evidence exists to support a conclusion that it is
probable the non-reserve material will be produced.

For the purpose of preparing financial information in accordance with United
States generally accepted accounting principles, only proven and probable
reserves are considered when applying the unit-of-production method. Non-reserve
material was not used in the periods covered by these financial statements when
applying the unit-of-production method under both Canadian and U.S. generally
accepted accounting standards.





                                      F-D7

<PAGE>

1.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd.)

DEVELOPMENT PROPERTIES

At properties identified as having the potential to add to the Company's proven
and probable reserves, the direct costs of acquisition and development are
capitalized only if there is sufficient objective evidence to indicate that it
is probable that the property will become an operating mine. Factors considered
in making this assessment include the existence and nature of known resources
and proven and probable reserves, whether the proximity of the property to
existing mines and ore bodies increases the probability of developing an
operating mine, the results of recent drilling on the property and the existence
of feasibility studies or other analyses demonstrating the existence of
commercially recoverable ore. Capitalized costs are evaluated for recoverability
when events or circumstances indicate that investment in the property may be
impaired and are written off if it is determined that the project is not
commercially feasible in the period in which this determination is made. The
assessment of cost recoverability is based on proven and probable reserves on
the property, if any, as well as resources which do not meet the criteria for
classification as a proven or probable reserve. If production commences,
capitalized costs are transferred to "producing mines' acquisition and
development costs" and amortized as described above.

For the purpose of preparing financial information in accordance with United
States generally accepted accounting principles, all costs associated with a
property that has the potential to add to the Company's proven and probable
reserves are expensed until a final feasibility study demonstrating the
existence of proven and probable reserves is completed. No costs have been
capitalized in the periods covered by these financial statements that do not
meet the criteria for capitalization under both Canadian and U.S. generally
accepted accounting standards.

DEFERRED MINING COSTS

Mining costs incurred to remove ore and waste from an open pit and to access new
production areas in an underground mine are capitalized as long-term deferred
costs. These costs are deferred because they relate to gold that will be
produced in future years and they are charged to operating costs in the period
that the related production occurs.

For open pit operations, mining costs are capitalized on an individual mine
basis, using the ratio of total tons of waste and ore to be mined to total gold
ounces to be recovered over the life of the mine. Costs are capitalized in
periods when the ratio of tons mined to gold produced exceeds the expected
average for the mine. Amortization occurs in periods when the ratio is less than
the expected average. This accounting method considers variations in grade and
recovery in addition to waste-to-ore ratios and results in the recognition of
mining costs evenly over the life of the mine as gold is produced.




                                      F-D8
<PAGE>

1.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd.)

For underground mining operations, the costs of accessing and developing new
production areas are deferred and expensed as operating costs in the period in
which the related production occurs.

EXPLORATION COSTS

The costs of exploration programs are expensed as incurred.

RECLAMATION AND MINE CLOSURE COSTS

Estimated site restoration and closure costs for each producing mine are charged
against operating earnings on the unit-of-production method based on estimated
recoverable ounces of gold.

INCOME TAXES

The Company uses the liability method of accounting for income taxes whereby
deferred income taxes are based on applying statutory tax rates to the
differences between the carrying amounts of assets and liabilities for
accounting and tax purposes. A valuation adjustment is provided against deferred
income tax assets unless they are considered more likely than not to be
realized.

PROPERTY EVALUATIONS

The Company annually reviews detailed engineering life-of-mine plans for each
mine. Long-lived assets are evaluated for impairment when events or changes in
circumstances indicate that the related carrying amounts may not be recoverable.
Expected future undiscounted cash flows are calculated using estimated
recoverable ounces of gold (considering proven and probable mineral reserves and
mineral resources expected to be converted into mineral reserves), future sales
prices (considering current and historical prices, price trends and related
factors), operating costs, capital expenditures, reclamation and mine closure
costs. Reductions in the carrying amount of long-lived assets, with a
corresponding charge to earnings, are recorded to the extent that the estimated
future cash flows are less than the carrying amount.

The Company's estimates of future cash flows are subject to risks and
uncertainties. It is possible that changes may occur which could affect the
recoverability of the Company's long-lived assets.

For the purpose of preparing financial information in accordance with United
States generally accepted accounting principles, estimated recoverable ounces of
gold include proven and probable reserves. Impairment amounts reported in these
financial statements under Canadian or U.S. generally accepted accounting
standards are not affected by this difference.



                                      F-D9

<PAGE>

1.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd.)

RESERVE RISKS

If the Company were to determine that its reserves and future cash flows should
be calculated at a significantly lower gold price than the $300 per ounce price
used at December 31, 2002, there would likely be a material reduction in the
amount of gold reserves. In addition, if the price realized by the Company for
its gold or silver bullion were to decline substantially below the price at
which mineral reserves were calculated for a sustained period of time, the
Company potentially could experience material write-downs of its investment in
its mining properties. Under certain of such circumstances, the Company might
discontinue the development of a project or mining at one or more of its
properties or might temporarily suspend operations at a producing property and
place that property in a "care and maintenance" mode. Reserves could also be
materially and adversely affected by changes in operating and capital costs and
short-term operating factors such as the need for sequential development of ore
bodies and the processing of new or different ore grades and ore types.

Significant changes in the life-of-mine plans can occur as a result of mining
experience, new ore discoveries, changes in mining methods and rates, process
changes, investments in new equipment and technology, and other factors. Changes
in the significant assumptions underlying future cash flow estimates, including
assumptions regarding precious metals prices, may have a material effect on
future carrying values and operating results.

CAPITALIZATION OF INTEREST

Interest cost is capitalized on construction programs until the facilities are
ready for their intended use.

EMPLOYEE BENEFIT PLANS

Obligations and related costs under defined contribution employee benefit plans
are accrued as the benefits are earned by the employees. The Company does not
have any defined benefit plans.

STOCK-BASED COMPENSATION PLANS

The Company has three stock-based compensation plans, which are described in
note 12. No compensation expense is recognized for these plans when the stock or
stock options are issued to employees. Any consideration paid by employees on
the exercise of stock options is credited to share capital.


                                     F-D10
<PAGE>

1.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd.)

HEDGING ACTIVITIES

The Company's profitability is subject to changes in gold and silver prices,
exchange rates, interest rates and certain commodity prices. To reduce the
impact of such changes, the Company locks in the future value of certain of
these items through hedging transactions. These transactions are accomplished
through the use of derivative financial instruments, the value of which is
derived from movements in the underlying prices or rates.

The gold- and silver-related instruments used in these transactions include
forward sales contracts and options. These forward sales contracts obligate the
Company to sell gold or silver at a specific price on a future date. Call
options give the holder the right, but not the obligation to buy gold or silver
at a specific future date at a specific price. These tools reduce the risk of
gold and silver price declines, but also could limit the Company's participation
in increases of gold and silver prices. The Company engages in forward
currency-exchange contracts to reduce the impact on the Lupin mine's operating
costs caused by fluctuations in the exchange rate of U.S. dollars to Canadian
dollars.

Gains and losses resulting from hedging activities are recognized in earnings on
a basis consistent with the hedged item. When hedged production is sold, revenue
is recognized in amounts implicit in the commodity loan, delivery commitment or
option agreement. Gains or losses on foreign currency are recorded in operating
costs, or capitalized in the cost of assets, when the hedged Canadian dollar
transactions occur. Gains and losses on early termination of hedging contracts
are deferred until the formerly hedged items are recognized in earnings.
Premiums paid or received on gold and silver option contracts purchased or sold
are deferred and recognized in earnings on the option expiration dates. Call
options written after October 24, 2000 are carried at fair value in accordance
with Emerging Issues Committee Abstract 113, "Accounting by Commodity Producers
for Written Call Options."





                                     F-D11
<PAGE>


2.     INVENTORIES

                                                   2002              2001
-------------------------------------------------------------------------------
Precious metals bullion                       $      5,239      $     12,215
In-process                                           4,332             5,720
Materials and supplies                              11,263            11,571
-------------------------------------------------------------------------------
                                              $     20,834      $     29,506
===============================================================================

3.     PROPERTY, PLANT AND EQUIPMENT

<TABLE>
<CAPTION>

NET BOOK VALUE                                                                              2002             2001
--------------------------------------------------------------------------------------------------------------------
                                                   Plant and            Mining          Net Book         Net Book
Property and percentage owned                      Equipment        Properties             Value            Value
--------------------------------------------------------------------------------------------------------------------
<S>                                             <C>               <C>               <C>              <C>
Round Mountain (50%)                            $     48,868      $     14,149      $     63,017     $     76,001
McCoy/Cove (100%)                                      7,507                --             7,507           10,104
Lupin (100%)                                          13,914             1,925            15,839           22,193
Aquarius (100%)                                       29,994            12,943            42,937           43,680
Other                                                    293                --               293            1,894
--------------------------------------------------------------------------------------------------------------------
                                                $    100,576      $     29,017      $    129,593     $    153,872
====================================================================================================================

PLANT AND EQUIPMENT                                                       2002                               2001
--------------------------------------------------------------------------------------------------------------------
                                                                      Net Book                           Net Book
                                                        Cost             Value              Cost            Value
--------------------------------------------------------------------------------------------------------------------
Land improvements and utility systems           $     69,062      $      2,047      $     72,977     $      3,220
Buildings                                            157,597            20,496           153,779           25,466
Equipment                                            391,157            47,029           385,086           53,371
Construction in progress                              37,005            31,004            43,337           38,912
--------------------------------------------------------------------------------------------------------------------
                                                $    654,821      $    100,576      $    655,179     $    120,969
====================================================================================================================

MINING PROPERTIES                                                                           2002             2001
--------------------------------------------------------------------------------------------------------------------
Producing mines' acquisition and development costs                                  $    283,641     $    280,545
Less accumulated amortization                                                            267,567          260,365
--------------------------------------------------------------------------------------------------------------------
                                                                                          16,074           20,180
Development properties' acquisition and development costs                                 12,943           12,723
--------------------------------------------------------------------------------------------------------------------
                                                                                    $     29,017     $     32,903
====================================================================================================================
</TABLE>

During 2002, the Company wrote down the carrying values of the Lupin mine.
During 2001, the Company wrote down the carrying values of the Kettle River mine
(note 9).

                                     F-D13

<PAGE>

4.     LONG-TERM INVESTMENTS AND OTHER ASSETS

<TABLE>
<CAPTION>

                                                                           2002            2001
------------------------------------------------------------------------------------------------------
<S>                                                                    <C>             <C>
Modification of hedging contracts                                      $     16,291    $     29,305
Deferred mining costs                                                        10,362          15,648
Reclamation and other deposits                                               10,144          10,485
Premiums paid on gold and silver option contracts                                --           1,871
Other                                                                           185             357
------------------------------------------------------------------------------------------------------
                                                                             36,982          57,666
Less current portion included in prepaid expenses and other assets               --           1,871
------------------------------------------------------------------------------------------------------
                                                                       $     36,982    $     55,795
======================================================================================================
</TABLE>

       MODIFICATION OF HEDGING CONTRACTS
       Losses on the early termination or other restructuring of gold and silver
hedging contracts are deferred until the formerly hedged items are recognized in
earnings. The remaining deferred losses relate to gold to be produced at the
Lupin mine and are expected to be recognized as follows: $5.2 million in 2003
and $11.1 million in 2004. Refer to note 6 for a discussion of the deferral of
gains on the modification of hedging contracts and note 9 for a discussion on
the provision for deferred losses previously relating to 2005 to 2008.

       DEFERRED MINING COSTS
       Deferred mining costs include $10.4 million (2001 - $13.8 million) in
respect of deferred stripping at the Round Mountain mine and $nil (2001 - $1.9
million) in respect of underground costs at the Lupin mine. The deferred mining
ratio for the Round Mountain mine in 2002 was 95 tons per ounce recovered (2001
- 112 tons, 2000 - 127 tons). During 2002, the Company wrote off the remaining
deferred mining costs for the Lupin mine (note 9).

       PREMIUMS PAID ON GOLD AND SILVER HEDGING CONTRACTS
       Premiums paid on gold and silver hedging contracts are deferred and
recognized in earnings on their expiration dates. These deferred premiums were
recognized in 2002. Refer to note 6 for a discussion of the deferral of premiums
received on gold and silver option contracts sold.

5.     DEBT AND OTHER FINANCINGS

                                                     2002            2001
------------------------------------------------------------------------------
Revolving credit facility                         $       --      $   17,000
Capital securities (note 7)                               --           6,714
------------------------------------------------------------------------------
                                                          --          23,714
Less current portion                                      --          17,000
------------------------------------------------------------------------------
                                                  $       --      $    6,714
==============================================================================

CURRENCY LOANS

In May 2002, the Company repaid the remaining $17.0 million on its revolving
credit facility.

OTHER INFORMATION

The Company had $19.2 million in outstanding surety bonds and letters of credit
at December 31, 2002, primarily related to the bonding of future reclamation
obligations. At December 31, 2002, annual fees on the letters of credit range
from 0.5% to 1.25%.

Interest payments were $0.3 million in 2002, $1.8 million in 2001 and $4.3
million in 2000.

                                     F-D13
<PAGE>

6.     DEFERRED INCOME

<TABLE>
<CAPTION>
                                                                  2002              2001
-----------------------------------------------------------------------------------------------
<S>                                                            <C>              <C>
Modification of hedging contracts                             $      6,393      $     47,042
Premiums received on gold and silver hedging contracts                  --               876
-----------------------------------------------------------------------------------------------
                                                                     6,393            47,918
Less current portion                                                    --               876
-----------------------------------------------------------------------------------------------
                                                              $      6,393      $     47,042
===============================================================================================
</TABLE>

       MODIFICATION OF HEDGING CONTRACTS
       Gains on the early termination or other restructuring of gold, silver and
foreign currency hedging contracts are deferred until the formerly hedged items
are recognized in earnings. The remaining deferred gains relate to gold to be
produced at the Lupin mine are expected to be recognized as follows: $2.5
million in 2003 and $3.9 million in 2004. Refer to note 4 for a discussion of
the deferral of losses on the modification of hedging contracts and note 9 for a
discussion on the provision for deferred gains previously relating to 2005 and
2006.

       PREMIUMS RECEIVED ON GOLD AND SILVER OPTION CONTRACTS
       Premiums received on gold and silver option contracts sold are deferred
and recognized in earnings on the option expiration dates. These deferred
premiums were recognized in 2002. Refer to note 4 for a discussion of the
deferral of premiums paid on gold and silver hedging contracts.

7.     CAPITAL SECURITIES

In 1997, the Company issued $100.0 million of 11% capital securities due in
April 2027. The effective interest rate on the capital securities was 11%, or
12% compounded semi-annually during a period of interest deferral.

On April 3, 2002 the Company issued 361,561,230 common shares in exchange for
all of its capital securities (note 12). Prior to the exchange, the present
value of the capital securities' principal amount was classified as debt (note
5) and the present value of the future interest payments plus deferred accrued
interest was classified within a separate component of shareholders' equity.
Interest on the debt portion of the capital securities was classified as
interest expense on the consolidated statement of earnings and interest on the
equity portion of the capital securities was charged directly to deficit on the
consolidated balance sheet. The loss on conversion of the capital securities was
charged proportionately between earnings and deficit (note 12). For purposes of
per share calculations, the equity portions of interest and the loss on
conversion decreases the earnings attributable to common shareholders. See note
13 for a discussion of differences in treatment of the capital securities under
generally accepted accounting principles in the United States.

                                     F-D14
<PAGE>

8.     RECLAMATION AND MINE CLOSURE LIABILITIES
                                                         2002            2001
--------------------------------------------------------------------------------
Round Mountain                                        $   16,862     $   13,674
McCoy/Cove                                                11,186         17,546
Lupin                                                     11,405          9,584
Kettle River                                               9,251          9,119
Sunnyside                                                  2,368          3,644
--------------------------------------------------------------------------------
                                                          51,072         53,567
Less current portion                                       4,560          3,841
--------------------------------------------------------------------------------
                                                      $   46,512     $   49,726
================================================================================

At December 31, 2002, the Company's estimate of future reclamation and mine
closure costs is $61.6 million, which it believes will meet current regulatory
requirements. The aggregate obligation accrued to December 31, 2002 was $51.1
million, including accruals of $5.1 million in 2002, $7.4 million in 2001, and
$10.6 million in 2000. Effective February 7, 2003, McCoy/Cove and its associated
reclamation obligation were conveyed to Newmont as described in note 18. Any
unused accrual will be taken into income at that time. Remaining requirements
including $14.5 million at Round Mountain and $3.1 million at Lupin, will be
accrued on the unit-of-production method over the remaining life of each mine.
In addition, the Company has posted bonds, cash deposits and letters of credit
totaling $30.6 million and corporate guarantees totaling $33.3 million as
required by various regulatory agencies. Assumptions used to estimate
reclamation and mine closure costs are based on the work that is required under
currently applicable permits, laws and regulations. These estimates may change
based on future changes in operations, cost of reclamation activities and
regulatory requirements.

9.     INTEREST AND OTHER

<TABLE>
<CAPTION>
                                                                           2002            2001           2000
--------------------------------------------------------------------------------------------------------------------
<S>                                                                    <C>              <C>             <C>
Interest income                                                        $       (441)    $      (760)    $     (964)
Interest expense                                                                719           2,560          5,194
Gain on sale of plant and equipment                                          (1,242)           (700)          (251)
Reclamation provision (recovery)                                              1,424           1,338         (2,048)
Provision for impaired assets                                                 7,000           3,046             --
Provision for deferred gains and losses on modified hedge contracts           3,098              --             --
Allowance for bad debts (note 17)                                             1,509              --             --
Other                                                                         1,353             622          1,081
--------------------------------------------------------------------------------------------------------------------
                                                                       $     13,420     $     6,106     $    3,012
====================================================================================================================
</TABLE>

PROVISION FOR IMPAIRED ASSETS
The recoverability of the Company's carrying values of its operating and
development properties are assessed by comparing carrying values to estimated
future net cash flows from each property when conditions are present indicating
impairment may exist. In 2002, the Company recorded a $7.0 million provision for
impaired assets relating to its Lupin mine including $4.0 million of plant and
equipment and $3.0 million of deferred mining costs due to higher than
anticipated costs resulting from unexpected development challenges and changes
in future expectations of the strength of the Canadian dollar relative to the
United States dollar. In 2001, the Company recorded a $3.1 million provision for
impaired assets and a $1.3 million reclamation provision relating to its Kettle
River mine due to an unexpected decrease in reserves.

PROVISION FOR DEFERRED GAINS AND LOSSES ON MODIFIED HEDGE CONTRACTS
Gains and losses on the early termination or other restructuring of gold hedging
contracts are deferred until the formerly hedged items are recognized in
earnings to the extent that future mine production is available to meet the
original hedge commitments. Should circumstances change such that formerly
hedged anticipated future production is no longer considered likely to occur,
the related deferred gains and losses are recognized in earnings in the period
in which this determination is made. As a result, deferred losses of $4.6
million, $1.9 million, $0.7 million and $0.9 million relating to 2005, 2006,
2007 and 2008 respectively and deferred gains of $3.7 million and $1.3 million
relating to 2005 and 2006 respectively, have been recognized in 2002 with
respect to the Lupin mine.

                                     F-D15

<PAGE>

10.    INCOME TAX EXPENSE

GEOGRAPHIC COMPONENTS

The geographic components of earnings before income tax expense and income tax
expense were as follows.

<TABLE>
<CAPTION>
                                                                      2002              2001             2000
--------------------------------------------------------------------------------------------------------------------
<S>                                                               <C>               <C>              <C>
Earnings (loss) before income taxes:
   Canada                                                         $    (30,583)     $        952     $        637
   United States and other                                              23,042            (9,777)          16,176
--------------------------------------------------------------------------------------------------------------------
                                                                  $     (7,541)     $     (8,825)    $     16,813
====================================================================================================================
Current income tax expense:
   Canada                                                         $        149      $        166     $        201
   United States and other                                                  --                45              451
--------------------------------------------------------------------------------------------------------------------
                                                                           149               211              652
--------------------------------------------------------------------------------------------------------------------
Deferred income tax expense (recovery):
   Canada                                                                   --            (3,358)          (2,400)
   United States and other                                                  --                --               --
--------------------------------------------------------------------------------------------------------------------
                                                                            --            (3,358)          (2,400)
--------------------------------------------------------------------------------------------------------------------
Income tax expense (recovery)                                     $        149      $     (3,147)    $     (1,748)
====================================================================================================================
</TABLE>

EFFECTIVE TAX RATE

The effective tax rate on the Company's earnings differed from the combined
Canadian federal and provincial corporate income tax rates of 41.2% for 2002 and
43.1% for 2001 and 2000 for the following reasons.

<TABLE>
<CAPTION>

                                                                      2002              2001             2000
--------------------------------------------------------------------------------------------------------------------
<S>                                                               <C>               <C>              <C>
Earnings (loss) before income taxes                               $     (7,541)     $     (8,825)    $     16,813
====================================================================================================================
Income tax effect of:
   Expected Canadian federal and provincial corporate
     income taxes                                                 $     (8,679)     $     (3,805)    $      7,246
   Utilization of net operating loss                                        --                --           (5,760)
   Operating loss from which no tax benefit is derived                   8,650             3,964               --
   Canadian resource allowance and earned depletion                        304              (172)             113
   Foreign earnings subject to different income tax rates                   --               965           (1,326)
   Other items                                                            (126)           (4,099)          (2,021)
--------------------------------------------------------------------------------------------------------------------
Income tax expense (recovery)                                     $        149      $     (3,147)    $     (1,748)
====================================================================================================================
Effective tax rate (current and deferred)                               (2.0%)             35.7%            (10.4%)
====================================================================================================================
</TABLE>

LOSS CARRYFORWARDS

At December 31, 2002, the Company had U.S. net operating loss carryforwards of
approximately $419 million to apply against future taxable income and $215
million to apply against future alternative minimum taxable income. These loss
carryforwards do not include the provisions for impaired assets, which have not
yet been recognized fully for income tax purposes. The net operating loss
carryforwards expire at various times from 2003 to 2022. Additionally, the
Company has Canadian non-capital loss carryforwards of approximately $89 million
and net capital loss carryforwards of approximately $204 million. The
non-capital loss carryforwards expire at various times from 2003 to 2009. The
net capital loss carryforwards have no expiration date.

                                     F-D16
<PAGE>

10.    INCOME TAX EXPENSE (cont'd.)

DEFERRED TAX LIABILITIES AND ASSETS

Significant components of the Company's deferred tax liabilities and assets are
as follows.

<TABLE>
<CAPTION>

                                                                            2002                                   2001
------------------------------------------------------------------------------------ ------------------------------------
                                                                U.S.                                  U.S.
millions of U.S. dollars                          Canada    and other      Total        Canada     and other     Total
------------------------------------------------------------------------------------ ------------------------------------
<S>                                             <C>          <C>         <C>           <C>          <C>        <C>
Deferred tax liabilities:
   Tax over book depreciation and depletion     $     --     $    --     $     --      $    3.3    $    --     $    3.3
   Other tax liabilities                             0.9          --          0.9           2.7         --          2.7
------------------------------------------------------------------------------------ ------------------------------------
Total deferred tax liabilities                       0.9          --          0.9           6.0         --          6.0
------------------------------------------------------------------------------------ ------------------------------------
Deferred tax assets:
   Net operating loss and other carryforwards      120.7        148.7       269.4         120.3       147.9       268.2
   Book over tax depreciation and depletion         36.0         23.7        59.7          33.0        21.3        54.3
   Accrued liabilities                               5.7          8.3        14.0           5.1        17.6        22.7
   Other tax assets                                  3.1          4.7         7.8           1.8         4.7         6.5
------------------------------------------------------------------------------------ ------------------------------------
Total deferred tax assets before allowance         165.5        185.4       350.9         160.2       191.5       351.7
Valuation allowance for deferred tax assets       (165.5)      (185.4)     (350.9)       (155.1)     (191.5)     (346.6)
------------------------------------------------------------------------------------ ------------------------------------
Total deferred tax assets                             --          --           --           5.1         --          5.1
------------------------------------------------------------------------------------ ------------------------------------
Net deferred tax liabilities                    $    0.9     $    --     $    0.9      $    0.9    $    --     $    0.9
==================================================================================== ====================================
</TABLE>

The net increase in the valuation allowance for deferred tax assets was $4.3
million for 2002 and $6.1 million for 2001.

INCOME TAX PAYMENTS

Income tax payments were $0.1 million in 2002, $0.7 million in 2001 and $0.2
million in 2000.

11.    PREFERRED SHARES

The Company is authorized to issue an unlimited number of preferred shares,
issuable in series. Each series is to consist of such number of shares and to
have such designation, rights, privileges, restrictions and conditions as may be
determined by the directors. No preferred shares are currently issued.

12.    CAPITAL STOCK

<TABLE>
<CAPTION>

                                                                             Units             Amount
-----------------------------------------------------------------------------------------------------------
<S>                                                                       <C>               <C>
COMMON SHARES
Balance, December 31, 2001 and 2000                                       140,607,145       $    713,343
Issued in exchange for capital securities and accrued interest            361,561,230            303,711
Units offering, net of issuance costs                                      39,100,000             23,236
Issued upon exercise of warrants                                                4,300                  4
-----------------------------------------------------------------------------------------------------------
Balance, December 31, 2002                                                541,272,675       $  1,040,294
===========================================================================================================
WARRANTS
Balance, December 31, 2001                                                         --       $         --
Units offering, net of issuance costs                                      39,100,000              2,277
Warrants exercised                                                             (4,300)                --
-----------------------------------------------------------------------------------------------------------
Balance, December 31, 2002                                                 39,095,700       $      2,277
===========================================================================================================
</TABLE>

                                     F-D17

<PAGE>

12.    CAPITAL STOCK (cont'd.)

CAPITAL SECURITIES RETIREMENT
On April 3, 2002 the Company issued 361,561,230 common shares, representing
approximately 72% of the outstanding common shares after giving effect to such
issuance, in exchange for all of its $100 million aggregate principal amount of
11% junior subordinated debentures due 2027, plus accrued and unpaid interest
thereon (the "capital securities").

Following this issuance of common shares, and as at April 3, 2002, the principal
holders of the Company's common shares and their respective ownership positions
in the Company were Newmont Mining Corporation of Canada Limited ("Newmont
Canada") (48.8%) and Kinross (11.4%). In connection with the completion of the
capital securities exchange, three directors of the Company resigned from the
board of directors. Two of the vacancies created by these resignations were
filled by executive officers of Newmont Canada.

As a result of eliminating the capital securities, the Company recorded an
increase to common shares of $303.7 million, based on their quoted market value
at the date of issue. The quoted market value of the common shares issued
exceeded the book value of the capital securities by $134.8 million. This
difference, along with transaction costs of $3.0 million, were recorded
proportionately between interest expense ($5.5 million) and deficit ($132.3
million) in the second quarter of 2002 based on the debt and equity
classifications of the capital securities.

UNITS OFFERING
In May 2002, the Company sold a total of 39,100,000 units at a price of $0.70
per unit for aggregate gross proceeds of approximately $27.4 million. Each unit
consisted of one common share and one share purchase warrant. The common shares
and the warrants comprising the units separated upon closing and trade
separately on the Toronto Stock Exchange and the American Stock Exchange. As a
consequence of the business combination described in note 18, each warrant,
previously entitling the holder to purchase one common share of the Company, now
entitles the holder to purchase 0.1733 of a post-consolidated Kinross common
share at a price of $0.90, at any time prior to November 14, 2003.

DELISTING OF COMMON SHARES
In connection with the business combination described in note 18, the common
shares of the Company were delisted from the Toronto Stock Exchange on February
5, 2003 and from the American Stock Exchange on January 31, 2003. Consequently,
all of the common shares of the Company are owned by Kinross. The warrants
continue to trade on both these exchanges until November 14, 2003.

DIVIDENDS
The Company has not paid dividends since 1996.

RESTRICTED SHARE GRANT PLAN
Effective February 1997, the Company adopted a restricted share grant plan to
provide incentive to officers of the Company. As at December 31, 2002, the
Company has reserved an aggregate of 750,000 common shares for issuance under
the plan, but no grants are outstanding. In connection with the business
combination described in note 18, no shares will be granted under this plan.

EMPLOYEE SHARE INCENTIVE PLAN AND DIRECTOR EQUITY PLAN
These plans provide for the granting of options to purchase common shares to
officers and employees (under the Employee Share Incentive Plan) and to eligible
directors (under the Director Equity Plan). Outstanding share options under the
plans are exercisable at prices equal to the market value on the date of grant.
The option holder may exercise each share option over a period of 10 years from
the date of grant. Options generally vest in 25% increments on the first,
second, third and fourth year anniversaries following the grant date. Option
prices are denominated in Canadian dollars. No more grants are to be made under
the Director Equity Plan.


                                     F-D18
<PAGE>

12.    CAPITAL STOCK (cont'd.)

EFFECT OF BUSINESS COMBINATION ON SHARE OPTIONS
In connection with the business combination described in note 18, no more grants
are to be made under the Employee Share Incentive Plan. All outstanding options
vested effective January 31, 2003, with each being converted into 0.1733 of a
Kinross share option. These Kinross share options are exercisable at prices
disclosed below multiplied by 5.7703 giving effect to the conversion ratio,
described in note 18, into common shares of Kinross. All options outstanding
under the Employee Share Incentive Plan expire on January 31, 2004 while options
outstanding under the Director Equity Plan remain outstanding in accordance with
the original terms of the plan. As at January 31, 2003, there were 584,854
Kinross share options outstanding and exercisable at a weighted average price of
$51.60 under the Employee Share Incentive Plan and 39,409 Kinross share options
outstanding and exercisable at a weighted average price of $66.00 under the
Director Equity Plan. Kinross share option prices are denominated in Canadian
dollars.

Changes in the number of options outstanding during the three years ended
December 31, 2002 were as follows.

<TABLE>
<CAPTION>
                                              Employee Share Incentive Plan                   Director Equity Plan
                                              -----------------------------                   --------------------

                                                                     Weighted                             Weighted
                                                   Number of          Average        Number of             Average
                                                      Shares   Exercise Price           Shares      Exercise Price
--------------------------------------------- ----------------------------------- ----------------------------------
<S>                                                <C>              <C>                <C>             <C>
Options outstanding, December 31, 1999             5,493,686        C$    8.82         240,450         C$   11.14
2000:   Options granted                                   --                --              --                 --
        Options expired                             (100,458)            12.88              --                 --
        Options forfeited                         (1,021,417)             8.92           (13,000)            5.85
--------------------------------------------- ----------------- ----------------- ---------------- -----------------
Options outstanding, December 31, 2000             4,371,811        C$    8.71         227,450         C$   11.44
2001:   Options granted                                   --                --              --                 --
        Options expired                              (64,655)             8.88              --                 --
        Options forfeited                           (666,589)             8.66         --                      --
--------------------------------------------- ----------------- ----------------- ---------------- -----------------
Options outstanding, December 31, 2001             3,640,567        C$    8.72         227,450         C$   11.44
2002:   Options granted                                   --                --              --                 --
        Options expired                              (37,100)             5.75              --                 --
        Options forfeited                           (133,295)             5.10              --                 --
--------------------------------------------- ----------------- ----------------- ---------------- -----------------
Options outstanding, December 31, 2002             3,470,172        C$    8.89         227,450         C$   11.44
============================================= ================= ================= ================ =================
</TABLE>

The number and weighted average price of shares exercisable under the Employee
Share Incentive Plan are 3,270,047 at C$9.27 at December 31, 2002; 3,076,154 at
C$9.80 at December 31, 2001; and 3,389,484 at C$10.41 at December 31, 2000. The
number and weighted average price of shares exercisable under the Director
Equity Plan are 227,450 at C$11.44 at December 31, 2002; 217,700 at C$11.78 at
December 31, 2001; and 196,575 at C$12.40 at December 31, 2000.


                                     F-D19
<PAGE>

12.    CAPITAL STOCK (cont'd.)

Options outstanding at December 31, 2002 had the following characteristics.

<TABLE>
<CAPTION>

                                                     Weighted         Weighted                          Weighted
       Number of                             Average Exercise          Average     Number of    Average Exercise
          Shares                 Exercise     Price of Shares      Years Until        Shares     Price of Shares
     Outstanding              Price Range         Outstanding       Expiration   Exercisable         Exercisable
-------------------- ---------------------- ------------------ --------------- --------------- --------------------
 Employee Share Incentive Plan
 -----------------------------
<S>    <C>            <C>      <C> <C>              <C>                    <C>     <C>               <C>
       1,331,444      C$2.55   -   C$3.59          C$   2.94                6      1,131,319          C$    3.01
       1,391,815         6.75  -    13.75              10.49                4      1,391,815               10.49
         746,913        15.75  -    19.63              16.51                2        746,913               16.51
 Director Equity Plan
 --------------------
         143,000       C$3.70  -  C$12.50          C$   8.67                4        143,000          C$    8.67
          84,450        14.63  -    18.25              16.13                2         84,450               16.13
-------------------- ---------------------- ------------------ --------------- --------------- --------------------
</TABLE>

13.    DIFFERENCES BETWEEN CANADIAN AND U.S. GENERALLY ACCEPTED ACCOUNTING
       PRINCIPLES (GAAP)

U.S. GAAP FINANCIAL STATEMENTS

The Company prepares its consolidated financial statements in accordance with
accounting principles generally accepted in Canada, which differ in some
respects from those in the United States, as described below.

In accordance with Canadian GAAP, the present value of the principal amount of
the capital securities issued in 1997 was classified as debt within gold and
other financings, while the present value of the future interest payments was
classified as a separate component of shareholders' equity (note 7). The
deferred accrued interest was classified within this equity component as the
Company had the option to satisfy the deferred interest by delivering common
shares. The related issuance costs were allocated proportionately to deferred
financing charges and retained earnings based on the debt and equity
classifications. Interest on the capital securities had been allocated
proportionately to interest expense and deficit based on the debt and equity
classifications. Under U.S. GAAP, the face value of the securities would be
classified entirely as debt within gold and other financings; the related
issuance costs would be classified as deferred financing charges within
long-term investments and other assets and would be amortized to interest
expense over the life of the securities; and the interest on the capital
securities would be classified entirely as interest expense. The loss on the
retirement of the capital securities was recorded proportionately between
interest expense and deficit under Canadian GAAP while the entire loss has been
presented as a current period extraordinary item for U.S. GAAP.

In accordance with Canadian GAAP, certain long-term foreign exchange contracts
are considered to be hedges of the cost of goods to be purchased in foreign
currencies in future periods. Gains and losses related to changes in market
values of such contracts are recognized as a component of the cost of goods when
the related hedged purchases occur. In 2001, the Company recognized $2.8 million
in deferred foreign exchange gains. Under U.S. GAAP, foreign exchange contracts
would be carried at market value and changes included in current earnings.

In accordance with Canadian GAAP, the Company's short-term share investments are
carried at the lower of cost or market based on quoted market prices. Under U.S.
GAAP, these investments would have been marked to market, with unrealized gains
or losses excluded from earnings and reported as accumulated other comprehensive
income in shareholders' equity, net of tax.

In accordance with U.S. GAAP, gold call options sold would not qualify for hedge
accounting and therefore would be marked to market at each period end. As a
result, the Company recorded a loss of $0.8 million in 2001 and a gain of $3.0
million in 2000 under U.S. GAAP.

                                     F-D20
<PAGE>

13.    DIFFERENCES BETWEEN CANADIAN AND U.S. GENERALLY ACCEPTED ACCOUNTING
       PRINCIPLES (GAAP) (cont'd.)

In accordance with Canadian GAAP, capitalized mine development costs include
expenditures incurred to develop new ore bodies, to define further resources in
existing ore bodies and to expand the capacity of operating mines. The Company
capitalized development costs of $2.2 million in 2001 and $1.2 million in 2000
for the extension to the K-2 deposit at the Kettle River mine. Under U.S. GAAP,
development costs are capitalized only when converting mineralized material to
reserves or for further delineation of existing reserves. The development
expenditures resulted in additions to mineralized material but did not add to
mineral reserves. Therefore under U.S. GAAP, the expenditures would be
classified as exploration expense.

The effects on the consolidated statement of earnings of the above differences
would have been as follows.

<TABLE>
<CAPTION>

                                                                     2002               2001               2000
------------------------------------------------------------------------------------------------------------------------
<S>                                                              <C>                <C>                <C>
Net earnings (loss) under Canadian GAAP                          $     (7,690)      $     (5,678)      $     18,561
Additional interest expense on capital securities                      (4,739)           (17,307)           (15,397)
Loss on conversion of capital securities                                5,461                 --                 --
Modification of derivative contracts realized in net earnings             814                 --                 --
Change in market value of foreign exchange contracts                      384                426                948
Amortization of deferred financing costs on  capital securities            --               (634)              (633)
Change in market value of option contracts                                 --             (1,291)             2,964
Amortization of deferred foreign exchange gains                            --             (2,846)            (3,149)
Transition adjustment on adoption of FAS 133                               --             (3,090)                --
Unrealized loss on short-term investments                                  --                150                 28
Kettle River exploration expense                                           --             (2,234)            (1,229)
Kettle River amortization expense                                          --              2,103                163
Provision for impaired Kettle River assets                                 --              1,305                 --
------------------------------------------------------------------------------------------------------------------------
Net earnings (loss) under U.S. GAAP before
   extraordinary loss                                            $     (5,770)      $    (29,096)      $      2,256
Loss on retirement of capital securities, net of nil tax effect      (137,763)                --                 --
------------------------------------------------------------------------------------------------------------------------
Net earnings (loss) under U.S. GAAP                              $   (143,533)      $    (29,096)      $      2,256
========================================================================================================================
Earnings (loss) per share under U.S. GAAP
- basic and diluted
   - before extraordinary loss                                   $      (0.01)      $      (0.21)      $       0.02
   - extraordinary loss                                                 (0.32)                 --                --
------------------------------------------------------------------------------------------------------------------------
   - after extraordinary loss                                    $      (0.33)      $      (0.21)      $       0.02
========================================================================================================================
Weighted average number  of shares outstanding (thousands)
   - basic                                                            429,783            140,607            140,607
   -diluted                                                           429,783            140,607            140,607
------------------------------------------------------------------------------------------------------------------------
</TABLE>





                                     F-D21
<PAGE>

13.    DIFFERENCES BETWEEN CANADIAN AND U.S. GENERALLY ACCEPTED ACCOUNTING
       PRINCIPLES (GAAP) (cont'd.)

The effects of the GAAP differences on the consolidated balance sheet would have
been as follows.

<TABLE>
<CAPTION>

                                         Canadian    Short-term    Derivative                      U.S.
December 31, 2002                            GAAP   Investments     Contracts       Other          GAAP
-------------------------------------------------------------------------------------------------------------
<S>                                    <C>           <C>           <C>            <C>           <C>
Short-term investments                 $    7,183    $   17,490    $       --     $       --    $   24,673
Long-term investments and other
  assets                                   36,982            --       (15,766)            --        21,216
Deferred income                             6,393            --        (6,393)            --            --
Common shares                           1,042,571            --            --         36,428     1,078,999
Deficit                                  (879,238)          178        (2,224)       (36,428)     (917,712)
Foreign currency translation              (26,659)           --            --         26,659            --
Accumulated other comprehensive loss           --        17,312        (7,149)       (26,659)      (16,496)
Shareholders' equity (deficit)            136,674        17,490        (9,373)            --       144,791
-------------------------------------------------------------------------------------------------------------

                                         Canadian     Capital      Derivative                      U.S.
December 31, 2001                            GAAP    Securities     Contracts       Other          GAAP
-------------------------------------------------------------------------------------------------------------
Short-term investments                 $    1,910    $       --    $       --     $    2,636    $    4,546
Long-term investments and other
  assets                                   55,795           158       (29,305)           141        26,789
Accounts payable and accrued
  liabilities                              24,284            --           691             --        24,975
Debt and other financings                  23,714        93,286            --             --       117,000
Deferred income                            47,918            --       (47,918)            --            --
Accrued interest on capital
  securities                                   --        64,167            --             --        64,167
Common shares                             713,343            --            --         36,428       749,771
Capital securities                        157,453      (157,453)           --             --            --
Deficit                                  (734,665)          158        (3,563)       (36,109)     (774,179)
Foreign currency translation              (29,305)           --            --         29,305            --
Accumulated other comprehensive loss           --            --        21,485        (26,847)       (5,362)
Shareholders' equity (deficit)            106,826      (157,295)       17,922          2,777       (29,770)
-------------------------------------------------------------------------------------------------------------
</TABLE>

The continuity of shareholders' equity (deficit) from December 31, 2001 to
December 31, 2002 under U.S. GAAP would have been as follows.

-------------------------------------------------------------------------------
Balance, beginning of year                                    $    (29,770)
Net loss                                                          (143,533)
Common shares issued in exchange for capital securities            303,711
Units offering, net of issuance costs                               25,513
Common shares issued upon exercise of warrants                           4
Other comprehensive loss                                           (11,134)
-------------------------------------------------------------------------------
Balance, end of year                                          $    144,791
===============================================================================


                                     F-D22
<PAGE>

13.    DIFFERENCES BETWEEN CANADIAN AND U.S. GENERALLY ACCEPTED ACCOUNTING
       PRINCIPLES (GAAP) (CONT'D.)

The following statement of comprehensive income (loss) would be disclosed in
accordance with U.S. GAAP.

<TABLE>
<CAPTION>
                                                                        2002             2001            2000
-------------------------------------------------------------------------------------------------------------------
<S>                                                               <C>              <C>             <C>
Net earnings (loss) under U.S. GAAP                               $    (143,533)   $     (29,096)  $       2,256
-------------------------------------------------------------------------------------------------------------------
Other comprehensive income (loss), after a nil income tax effect:
   Unrealized gain on share investments arising during period            14,854            1,726             732
   Foreign currency translation adjustments                               2,646           (4,351)         (2,940)
   Transition adjustment on adoption of FAS 133                              --           39,234              --
   Modification of derivative contracts realized in net income          (28,634)         (17,749)             --
-------------------------------------------------------------------------------------------------------------------
Other comprehensive income (loss)                                       (11,134)          18,860          (2,208)
-------------------------------------------------------------------------------------------------------------------
Comprehensive income (loss)                                       $    (154,667)   $     (10,236)  $          48
-------------------------------------------------------------------------------------------------------------------

Additionally, under U.S. GAAP, the equity section of the balance sheet would
present a subtotal for accumulated other comprehensive loss, as follows.

                                                              2002              2001
--------------------------------------------------------------------------------------
Unrealized gain on share investments                  $     17,312      $      2,458
Modification of derivative contracts                        (7,149)           21,485
Foreign currency translation                               (26,659)          (29,305)
--------------------------------------------------------------------------------------
Accumulated other comprehensive loss                  $    (16,496)     $     (5,362)
--------------------------------------------------------------------------------------
</TABLE>

STOCK-BASED COMPENSATION
Financial Accounting Standards Board (FASB) Statement No. 123, "Accounting for
Stock-Based Compensation," gives the option to either follow fair value
accounting or to follow Accounting Principles Board Opinion No. 25, "Accounting
for Stock Issued to Employees" ("APB No. 25") and related Interpretations. The
Company has determined that it will elect to continue to follow APB No. 25 and
related Interpretations in accounting for its employee and director stock
options in financial information prepared in conformity with U.S. GAAP.

In accordance with Canadian GAAP and U.S. GAAP (under APB No. 25), the Company
does not recognize compensation expense for stock option grants in the earnings
statement, as the market prices of the underlying stock on the grant dates do
not exceed the exercise prices of the options granted.

                                     F-D23
<PAGE>

13.    DIFFERENCES BETWEEN CANADIAN AND U.S. GENERALLY ACCEPTED ACCOUNTING
       PRINCIPLES (GAAP) (CONT'D.)

Had the Company adopted Statement No. 123 for its U.S. GAAP disclosure, the
following net earnings and losses would have been reported.

<TABLE>
<CAPTION>
                                                                 2002               2001               2000
-------------------------------------------------------- ------------------ ------------------ ------------------
<S>                                                         <C>                <C>                <C>
Net earnings (loss) under U.S. GAAP                         $   (143,533)      $    (29,096)      $      2,256
Pro forma stock compensation expense,
   after a nil income tax effect                                    (323)              (405)              (929)
-------------------------------------------------------- ------------------ ------------------ ------------------
Pro forma net earnings (loss) under U.S. GAAP               $   (143,856)      $    (29,501)      $      1,327
-------------------------------------------------------- ------------------ ------------------ ------------------
Pro forma earnings (loss) per share under U.S. GAAP         $      (0.33)      $      (0.21)      $       0.01
-------------------------------------------------------- ------------------ ------------------ ------------------
</TABLE>

The Company has utilized the Black-Scholes option valuation model to estimate
the fair value of options granted, assuming a weighted average option life of
six years, a risk-free interest rate of 6.25%, a zero dividend yield and a
volatility factor of 60% for 1999 grants. The weighted average fair value of
options granted was estimated at $1.08 per share in 1999. There were no grants
in 2002, 2001 or 2000.

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
On January 1, 2001, the Company implemented FASB Statement No. 133, "Accounting
for Derivative Instruments and Hedging Activities" and Statement No. 138
"Accounting for Certain Derivative Instruments and Certain Hedging Activities."
The Company has designated its gold forward contracts as normal sales as defined
by Statement No. 138 and these contracts are therefore excluded from the scope
of Statement No. 133. Foreign exchange contracts and gold call options have not
been designated as hedges for U.S. GAAP purposes and are recognized at fair
value on the balance sheet with changes in fair value recorded in earnings.
Gains and losses on the early termination or other restructuring of gold, silver
and foreign currency hedging contracts are deferred in accumulated other
comprehensive income until the formerly hedged items are recorded in earnings.
The transition adjustment recorded under U.S. GAAP at January 1, 2001 decreased
assets by $18.3 million, liabilities by $54.4 million and net earnings by $3.1
million, and increased accumulated other comprehensive income by $39.2 million.


                                     F-D24
<PAGE>

13.    DIFFERENCES BETWEEN CANADIAN AND U.S. GENERALLY ACCEPTED ACCOUNTING
       PRINCIPLES (GAAP) (CONT'D.)

RECENT ACCOUNTING PRONOUNCEMENTS
In June 2001, the Financial Accounting Standards Board ("FASB") issued Statement
of Financial Accounting Standards No. 143, "Accounting for Asset Retirement
Obligations" ("SFAS 143"), which addresses financial accounting and reporting
for obligations associated with the retirement of tangible long-lived assets and
the associated asset retirement costs. It applies to legal obligations
associated with the retirement of long-lived assets that result from the
acquisition, construction, development and (or) the normal operation of a
long-lived asset, except for certain obligations of lessees. SFAS 143 amends
SFAS 19, "Financial Accounting and Reporting by Oil and Gas Producing
Companies," and requires entities to record the fair value of a liability for an
asset retirement obligation in the period in which it is incurred. When the
liability is initially recorded, an entity capitalizes the cost by increasing
the carrying amount of the related long-lived assets. Over time, the liability
is accreted to its present value each period, and the capitalized cost is
amortized over the useful life of the related asset. Upon settlement of the
liability, an entity either settles the obligation for its recorded amount or
incurs a gain or loss upon settlement. SFAS 143 is effective for financial
statements issued for fiscal years beginning after June 15, 2002 with earlier
application encouraged. The Company will adopt SFAS 143 in 2003. The Company has
not yet determined the impact of this Statement on its financial statements.

In June 2002, the FASB issued Statement No. 146, "Accounting for Costs
Associated with Exit or Disposal Activities." This pronouncement is effective
for exit or disposal activities that are initiated after December 31, 2002 and
requires these costs to be recognized when the liability is incurred and not at
project initiation. The Company is reviewing the provisions of the Statement,
but has not yet determined the impact of this Statement on its financial
statements.

In January 2003, the FASB issued Interpretation No. 46, "Consolidation of
Variable Interest Entities" ("FIN 46"). FIN 46 clarifies the application of
Accounting Research Bulletin No. 51 - Consolidated Financial Statements to those
entities defined as "Variable Interest Entities" (more commonly referred to as
special purpose entities) in which equity investors do not have the
characteristics of a "controlling financial interest" or do not have sufficient
equity at risk for the entity to finance its activities without additional
subordinated financial support from other parties. FIN 46 applies immediately to
all Variable Interest Entities created after January 31, 2003, and by the
beginning of the first interim or annual reporting period commencing after June
15, 2003 for Variable Interest Entities created prior to February 1, 2003. The
Company does not conduct any transactions through variable interest entities and
does not expect FIN 46 to have an impact on its financial statements.

In 2002, the CICA Handbook Sections 3063 - Impairment of Long Lived Assets and
3475 - Disposal of Long Lived Assets and Discontinued Operations were harmonized
with SFAS 144. The standards will require an impairment loss to be recognized
when the carrying amount of an asset held for use exceeds the sum of estimated
undiscounted future net cash flows. The impairment loss would be measured as the
amount by which the carrying amount exceeds the fair value of the asset. An
asset held for sale is to be measured at the lower of carrying cost or fair
value less cost to sell. In addition, this guidance broadens the concept of a
discontinued operation and eliminates the ability to accrue operating losses
expected between the measurement date and the disposal date. Section 3063 is
effective for fiscal years beginning on or after April 1, 2003, and Section 3475
applies to disposal activities initiated by an enterprise's commitment to a plan
on or after May 1, 2003. The sections will be applied prospectively with early
adoption encouraged.

In 2002, the Accounting Standards Board of the CICA issued Accounting Guidelines
No. 13 that increases the documentation, designation and effectiveness criteria
to achieve hedge accounting. The guideline requires the discontinuance of hedge
accounting for hedging relationships established that do not meet the conditions
at the date it is first applied. It does not change the method of accounting for
derivatives in hedging relationships. The new guideline is applicable for fiscal
years commencing July 1, 2003. The Company is evaluating the impact this
standard might have on its results of operations and financial position.

In November 2002, the FASB issued Interpretation No. 45 "Guarantor's Accounting
and Disclosure Requirements for Guarantees, Including Indirect Guarantees of
Indebtedness of Others" ("FIN 45"), which is effective for financial periods
ending after December 15, 2002. FIN 45 defines guarantees to include
indemnifications granted pursuant to contractual arrangements as well as
contingent consideration.

                                     F-D25
<PAGE>

13.    DIFFERENCES BETWEEN CANADIAN AND U.S. GENERALLY ACCEPTED ACCOUNTING
       PRINCIPLES (GAAP) (CONT'D.)

In 2003, the Accounting Standards Board of the CICA issued Accounting Guideline
No. 14 - Disclosure of Guarantee. The guideline requires the disclosure of
guarantees including indemnification pursuant to contractual arrangement. This
guideline is consistent with FIN 45 described above.

OTHER
The estimated fair values of cash and cash equivalents, short-term investments
and currency loans approximate their book values. The fair values were
determined from quoted market prices or estimated using discounted cash flow
analysis. See note 16 for further disclosure regarding estimated fair values of
financial instruments.

14.    JOINT VENTURES

Summarized below is the Company's 50% interest in the Round Mountain mine,
accounted for by the proportionate consolidation method.

<TABLE>
<CAPTION>
                                                             2002                2001                 2000
------------------------------------------------------------------------------------------------------------------
<S>                                                      <C>                 <C>                  <C>
Revenues                                                 $    114,297        $    105,450         $     90,633
Expenses:
   Operating costs                                             68,323              72,049               60,231
   Royalties                                                    7,618               6,881                5,585
   Production taxes                                             1,653                 664                  470
   Depreciation and amortization                               21,579              20,570               18,978
   Reclamation and mine closure                                 3,400               3,361                2,880
   Exploration                                                  1,009                 663                  529
   Other                                                         (440)               (761)                (753)
------------------------------------------------------------------------------------------------------------------
Earnings before income taxes                             $     11,155        $      2,023         $      2,713
------------------------------------------------------------------------------------------------------------------

                                                                 2002                2001                 2000
------------------------------------------------------------------------------------------------------------------
Current assets                                           $     40,371        $     40,224         $     33,425
Non-current assets                                             96,555              96,376              109,211
Current liabilities                                           (15,487)            (15,154)             (11,244)
Non-current liabilities                                       (19,399)            (15,311)             (18,023)
------------------------------------------------------------------------------------------------------------------
Equity                                                   $    102,100        $    106,135         $    113,369
------------------------------------------------------------------------------------------------------------------

                                                                 2002                2001                 2000
------------------------------------------------------------------------------------------------------------------
Net cash provided from (used in):
   Operating activities                                  $     15,578        $     15,146         $     10,849
   Investing activities                                        (8,584)            (15,046)              (4,664)
   Financing activities                                            --                  --                   --
------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash                          $      6,994        $        100         $      6,185
------------------------------------------------------------------------------------------------------------------
</TABLE>


                                     F-D26
<PAGE>

15.    SEGMENT INFORMATION

The Company's management regularly evaluates the performance of the Company by
reviewing operating results on a minesite by minesite basis. As such, the
Company considers each producing minesite to be an operating segment. The
Company has two operating mines: Round Mountain in Nevada, United States and
Lupin in Nunavut Territory, Canada. The Company ceased mining operations at its
Kettle River in Washington, United States in October 2002 and at its McCoy/Cove
mine in Nevada, United States at March 31, 2002. The Company recommenced
operations at its Lupin mine in the Nunavut Territory, Canada in April 2000. All
are 100% owned except for Round Mountain, which is 50% owned.

The Company's management generally monitors revenues on a consolidated basis.
Information regarding the Company's consolidated revenues is provided below.

<TABLE>
<CAPTION>
                                                             2002                2001                 2000
------------------------------------------------------------------------------------------------------------------
<S>                                                      <C>                 <C>                  <C>
Total gold and silver revenues                           $    206,529        $    237,684         $    280,976
Average gold price realized per ounce                    $        361        $        305         $        319
Average silver price realized per ounce                  $       4.36        $       4.70         $       5.28
------------------------------------------------------------------------------------------------------------------

In making operating decisions and allocating resources, the Company's management
specifically focuses on the production levels and operating costs incurred by
each operating segment, as summarized in the following tables.

Gold Production (ounces)                                             2002             2001              2000
------------------------------------------------------------------------------------------------------------------
Round Mountain (50%)                                                377,747          373,475           320,064
Lupin                                                               113,835          139,327           117,729
Kettle River                                                         30,626           50,349            94,086
McCoy/Cove                                                           16,501           94,633           162,784
------------------------------------------------------------------------------------------------------------------
Total gold                                                          538,709          657,784           694,663
------------------------------------------------------------------------------------------------------------------

Silver Production (ounces)                                             2002             2001              2000
------------------------------------------------------------------------------------------------------------------
Total silver-all from McCoy/Cove                                  1,470,094        6,451,425        12,328,297
------------------------------------------------------------------------------------------------------------------
</TABLE>


                                     F-D27
<PAGE>

15.    SEGMENT INFORMATION (CONT'D.)

<TABLE>
<CAPTION>

Operating costs                                                    2002             2001              2000
------------------------------------------------------------------------------------------------------------------
<S>            <C>                                             <C>              <C>               <C>
Round Mountain (50%)                                           $     68,323     $     72,049      $     60,501
Lupin                                                                37,194           34,722            22,883
Kettle River                                                          9,166           15,555            20,131
McCoy/Cove                                                           13,453           53,015            69,920
------------------------------------------------------------------------------------------------------------------
Total operating costs per financial statements                 $    128,136     $    175,341      $    173,435
------------------------------------------------------------------------------------------------------------------

Royalties                                                              2002             2001              2000
------------------------------------------------------------------------------------------------------------------
Round Mountain (50%)                                           $      7,618     $      6,880      $      5,585
Kettle River                                                            140              504             1,221
McCoy/Cove                                                               41              213             1,228
------------------------------------------------------------------------------------------------------------------
Total royalties per financial statements                       $      7,799     $      7,597      $      8,034
------------------------------------------------------------------------------------------------------------------

Depreciation and amortization                                          2002             2001              2000
------------------------------------------------------------------------------------------------------------------
Round Mountain (50%)                                           $     21,578     $     20,570     $      18,978
Lupin                                                                 5,112            5,226             4,874
Kettle River                                                          2,508            2,011             2,637
McCoy/Cove                                                            4,519           12,638            21,539
Depreciation of non-minesite assets                                   1,554            1,656             2,636
------------------------------------------------------------------------------------------------------------------
Total depreciation and amortization per financial              $     35,271     $     42,101     $      50,664
statements
------------------------------------------------------------------------------------------------------------------

Total assets                                                           2002             2001
-----------------------------------------------------------------------------------------------
Minesites:
     Round Mountain (50%)                                      $    101,633     $    110,864
     Lupin                                                           24,166           31,199
     Kettle River                                                     1,506            5,351
     McCoy/Cove                                                       7,832           21,256
Development properties:
     Aquarius                                                        43,312           44,048
Non-minesite assets                                                  45,241           48,086
-----------------------------------------------------------------------------------------------
Total assets                                                   $    223,690     $    260,804
-----------------------------------------------------------------------------------------------
</TABLE>


                                     F-D28
<PAGE>

15.    SEGMENT INFORMATION (CONT'D.)

<TABLE>
<CAPTION>

Capital expenditures                                            2002              2001             2000
----------------------------------------------------------------------------------------------------------
<S>                                                      <C>               <C>              <C>
Round Mountain (50%)                                     $     8,589       $    15,033      $     4,620
Lupin                                                          2,443             2,622            4,642
Kettle River                                                   1,584             4,150            1,402
McCoy/Cove                                                        12             1,002              670
----------------------------------------------------------------------------------------------------------

Deferred (applied) mining expenditures                          2002              2001             2000
----------------------------------------------------------------------------------------------------------
Round Mountain (50%)                                     $    (3,419)      $    (5,323)     $       411
Lupin                                                          1,091             1,452              449
McCoy/Cove                                                        --            (2,247)          (5,062)
----------------------------------------------------------------------------------------------------------

Financial information regarding geographic areas is set out below.

                                                                2002              2001             2000
----------------------------------------------------------------------------------------------------------
Revenue:
   Canada                                                $    41,420       $    53,160      $    44,370
   United States                                             165,109           184,524          236,606
----------------------------------------------------------------------------------------------------------
Total revenue                                            $   206,529       $   237,684      $   280,976
----------------------------------------------------------------------------------------------------------

                                                                2002              2001
----------------------------------------------------------------------------------------
Assets:
   Canada                                                $    88,679       $   108,824
   United States                                             134,686           150,089
   Other                                                         325             1,891
----------------------------------------------------------------------------------------
Total assets                                             $   223,690       $   260,804
----------------------------------------------------------------------------------------
</TABLE>


                                     F-D29
<PAGE>

16.    HEDGING ACTIVITIES AND COMMITMENTS

The Company periodically reduces the risk of future gold price declines by
hedging a portion of its production. The principal hedging tools used are gold
forward sales contracts and options.

The Company assesses the exposure that may result from a hedging transaction
prior to entering into the commitment, and only enters into transactions which
it believes accurately hedge the underlying risk and could be safely held to
maturity. The Company does not engage in the practice of trading derivative
securities for profit. The Company regularly reviews its unrealized gains and
losses on hedging transactions.

Credit risk is the risk that a counterparty might fail to fulfill its
performance obligations under the terms of a derivative contract. The Company's
credit risk related to all hedging activities is limited to the unrealized gains
on outstanding contracts based on current market prices. The Company minimizes
its credit risk by entering into transactions with large credit-worthy financial
institutions, limiting the amount of its exposure to each counterparty, and
monitoring the financial condition of its counterparties. The counterparties for
the Company's current hedge positions do not require margin deposits. In
addition, the Company deals only in markets it considers highly liquid to allow
for situations where positions may need to be reversed. Gains and losses on the
early termination or other restructuring of gold, silver and foreign currency
hedging contracts are deferred until the formerly hedged items are recognized in
earnings (notes 4 and 6).

Premiums paid or received on gold and silver options contracts purchased or sold
are deferred and recognized in earnings on the option expiration dates (notes 4
and 6).

GOLD COMMITMENTS
As at December 31, 2002, the Company has no outstanding commitments relating to
precious metals.

CURRENCY POSITION
At December 31, 2002, the Company had an obligation under foreign currency
exchange contracts to purchase CDN $45.1 million in 2003 at an exchange rate of
CDN $1.61 to U.S. $1.00.


                                     F-D30
<PAGE>

16.    HEDGING ACTIVITIES AND COMMITMENTS (CONT'D.)

Shown below are the carrying amounts and estimated fair values of the Company's
outstanding hedging instruments at December 31, 2002 and 2001.

<TABLE>
<CAPTION>
                                                            December 31, 2002                    December 31, 2001
                                            -----------------------------------  ------------------------------------
                                                    Carrying         Estimated           Carrying         Estimated
                                                      Amount         Fair Value            Amount         Fair Value
-------------------------------------------------------------------------------  ------------------------------------
<S>                                             <C>               <C>                <C>               <C>
   Gold forward sales                           $         --      $         --       $         --      $      2,000
   Gold options - calls sold                              --                --               (630)             (700)
   Foreign currency contracts                             --               100                 --               100
-------------------------------------------------------------------------------  ------------------------------------
                                                                  $        100                         $      1,400
-------------------------------------------------------------------------------  ------------------------------------

Fair values are estimated for the contract settlement dates based on market
quotations of various input variables. These variables are used in valuation
models that estimate the fair market value.

The fair value of the Company's hedged position can be affected by market
conditions beyond the Company's control. The effect of a U.S.$ 0.01 change in
the exchange rate for Canadian would be approximately $0.5 million.

Hedging gains and losses represent the difference between spot or market prices
and realized amounts. The hedging gains (losses) recognized in earnings are as
follows.

                                                              2002                2001                 2000
------------------------------------------------------------------------------------------------------------------
Revenue:
   Gold loans and swaps                                    $       --          $      703           $    1,289
   Gold forward sales                                           7,119              22,245               25,754
   Silver forward sales                                            --               3,426                3,333
   Gold and silver options                                       (995)               (402)                (506)
Operating costs:
   Foreign currency contracts                                    (824)             (2,113)              (1,179)
------------------------------------------------------------------------------------------------------------------
                                                           $    5,300          $   23,859           $   28,691
------------------------------------------------------------------------------------------------------------------
</TABLE>

17.    OTHER COMMITMENTS AND CONTINGENCIES

ROYALTIES
Round Mountain mine production is subject to a net smelter return royalty
ranging from 3.53% at gold prices of $320 per ounce or less to 6.35% at gold
prices of $440 per ounce or more. Its production is also subject to a gross
revenue royalty of 3.0%, reduced to 1.5% after $75.0 million has been paid. For
the period from the date that the royalty commenced through December 31, 2002,
cumulative royalties of $33.1 million have been paid.

A portion of production from the K-2 area production at Kettle River is subject
to a 5% gross proceeds royalty and a net smelter return royalty ranging from 2%
at gold prices of $300 per ounce or less to 3% at gold prices of $400 per ounce
or more.

OPERATING LEASE COMMITMENTS
The Company's principal lease commitments are for equipment and office premises.
The Company incurred $1.4 million in rental expense in 2002, net of $1.8 million
in rental income related to office subleases. The Company's commitments under
the remaining terms of the leases are approximately $4.7 million, payable as
follows: $1.6 million in 2003, $1.5 million in 2004, $1.0 million in 2005, $0.1
million in 2006, $0.1 million in 2007 and $0.4 million thereafter.


                                     F-D31
<PAGE>

17.    OTHER COMMITMENTS AND CONTINGENCIES (CONT'D.)

SUMMA
In September 1992, Summa Corporation commenced a lawsuit against two indirect
subsidiaries of the Company, Echo Bay Exploration Inc. and Echo Bay Management
Corporation (together the "Subsidiaries") alleging improper deductions in the
calculation of royalties payable over several years of production at McCoy/Cove
and another mine, which is no longer in operation. The matter was tried in the
Nevada State Court in April 1997, with Summa claiming more than $13 million in
damages, and, in September 1997, judgment was rendered for the Subsidiaries. The
decision was appealed by Summa to the Supreme Court of Nevada, which in April
2000 reversed the decision of the trial court and remanded the case back to the
trial court for "a calculation of the appropriate [royalties] in a manner not
inconsistent with this order." The case was decided by a panel comprised of
three of the seven Justices of the Supreme Court of Nevada and the Subsidiaries
petitioned that panel for a rehearing. The petition was denied by the three
member panel on May 15, 2000 and remanded to the lower court for consideration
of other defenses and arguments put forth by the Subsidiaries. The Subsidiaries
filed a petition for a hearing before the full Supreme Court and on December 22,
2000, the Court recalled its previous decision.

Both the Subsidiaries and their counsel believe that grounds exist to modify or
reverse the decision. The Company has $1.5 million accrued related to this
litigation. If the appellate reversal of the trial decision is maintained and
the trial court, on remand, were to dismiss all of the Subsidiaries' defenses,
the royalty calculation at McCoy/Cove would change and additional royalties
would be payable. Neither the Company, nor counsel to the Subsidiaries believe
it is possible to quantify the precise liability pursuant to a revised royalty
calculation.

HANDY AND HARMAN
On March 29, 2000, Handy & Harman Refining Group, Inc., which operated a
facility used by the Company for the refinement of dore bars, filed for
protection under Chapter 11 of the U.S. Bankruptcy Code. The Company has filed a
claim for gold and silver accounts at this refining facility with an estimated
market value of approximately $2.2 million at the time the shipments were made.
The Company has fully provided for this amount as unrecoverable including a
charge of $1.5 million in 2002. Further, in March 2002, the liquidating trustee
for Handy & Harman commenced a series of adversary proceedings against numerous
creditors, including two Company subsidiaries, alleging that certain creditors
received preferential payments in metal or otherwise. The preferential payment
claims against the Company's subsidiaries approximate $9.0 million. The ultimate
amount recoverable or payable will depend on the success or failure of the
liquidating trustee in prosecuting these claims. The ultimate percentage payout
by the liquidating trustee will also be affected by the success or failure of
the trustee in prosecuting preferential payment claims against all creditors.
The trustee currently projects the ultimate distribution of funds to be 50% to
60% of amounts owed to creditors. Based on this range, the maximum liability to
the Company would be $3.4 million assuming a 50% payout to creditors and no
success in defending any of the preferential payment claims while the maximum
amount recoverable would be $1.3 million assuming a 60% payout to creditors and
success in defending itself against all of the preferential payment claims. The
Company intends to oppose the preferential payment claims vigorously. The
outcome of these proceedings is uncertain at this time. As such, the Company has
not made any provision with respect to the preferential payment claims.

OTHER
In November 2001, two former employees of the Corporation brought a claim
against the Company pursuant to the CLASS PROCEEDINGS ACT (British Columbia) as
a result of the temporary suspension of operations at the Company's Lupin mine
in the spring of 1998 and the layoff of employees at that time. The Company does
not know at this time the amount being claimed by the former employees nor
whether the claim is appropriate for certification as a class action. On August
12, 2002, the Supreme Court of British Columbia decided it had such
jurisdiction. The Company is appealing the decision. No determination has been
made by this Court as to whether this action is suitable for certification as a
class action and no decision has been rendered with respect to the merits of the
action.

SECURITY FOR RECLAMATION
Certain of the Company's subsidiaries have provided corporate guarantees and
other forms of security to regulatory authorities in connection with future
reclamation activities. Early in 2001, regulators in Nevada called upon two of
the Company's subsidiaries to provide other security to replace corporate
guarantees that had been given in respect of the Round Mountain and McCoy/Cove
operations. The McCoy/Cove complex and the associated reclamation obligation was
conveyed to a subsidiary of Newmont on February 7, 2003 as described in note 18.
The regulatory request, relevant to operations at Round Mountain, seeks
replacement security of approximately $16 million to bring the total to
approximately $22 million, the Company's 50% share. The Company disagrees with
the regulators' position and believes that the subsidiary qualifies under the
criteria set out for corporate guarantees and will oppose the regulatory
position. Although the outcome cannot be predicted, the Company and their
counsel believe that the Company will prevail.


                                     F-D32
<PAGE>

18.    SUBSEQUENT EVENTS

(A)  BUSINESS COMBINATION
On June 10, 2002, the Company, Kinross Gold Corporation ("Kinross") and TVX Gold
Inc. ("TVX") announced they had entered into an agreement providing for the
proposed combination of the companies (the "Kinross Combination"). In a
concurrent transaction, TVX agreed to acquire from Newmont Mining Corporation
("Newmont") the interest in the TVX Newmont Americas joint venture that it did
not already own. The combination of the companies was conditional upon the
completion of this purchase. On January 31, 2003 the purchase from Newmont and
the proposed combination were completed. As such, shareholders of Echo Bay
(other than Kinross) received 0.1733 of a Kinross common share for each Echo Bay
common share after giving effect to a one-for-three share consolidation of the
outstanding common shares of Kinross immediately prior to the combination. As a
result, the Company and its subsidiaries are now wholly-owned subsidiaries of
Kinross. Common shares of the Company were delisted from the Toronto and
American Stock Exchanges and outstanding warrants are exercisable for Kinross
common stock as described in note 12.

(B)  DISPOSITION OF MCCOY/COVE
On June 9, 2002, Echo Bay Exploration Inc. and Echo Bay Minerals Company, two
subsidiaries of the Company, entered into an asset purchase agreement with
Newmont USA, a subsidiary of Newmont, providing for the conveyance of the
McCoy/Cove complex in Nevada, U.S.A.. The agreement replaces a letter agreement
dated February 13, 2002 related to the conveyance of the McCoy/Cove complex
which called for a payment to the seller of $6 million and the assumption by
Newmont of all reclamation and closure obligations. Under the February 13, 2002
letter agreement, Newmont had no obligation to complete the transaction. Newmont
indicated it was willing to proceed with the conveyance of the McCoy/Cove
complex only if the Kinross Combination was completed and the cash payment was
eliminated. Accordingly, a new agreement was reached expressly containing these
two conditions. The closing of the transaction was subject to, among other
conditions, the completion of the Kinross Combination. The Kinross Combination
was completed January 31, 2003 and the McCoy/Cove assets were conveyed to
Newmont on February 7, 2003. In consideration, Newmont has agreed to assume all
liabilities and obligations relating to the reclamation or remediation required
for the McCoy/Cove complex.

(C)  NEW CREDIT FACILITY
On February 27, 2003, Round Mountain Gold Corporation, a wholly-owned subsidiary
of the Company along with Kinross and two of its wholly-owned subsidiaries ("the
Borrowers"), entered into a new syndicated credit facility. The new syndicated
credit facility has a maturity date of December 31, 2005 and a total committed
amount of $125.0 million. The primary purpose of the credit facility is to
enable the Borrowers to issue letters of credit to various regulatory agencies
to satisfy financial assurance requirements. Shares of Round Mountain Gold
Corporation along with various other assets of Kinross are pledged as collateral
for this facility.


                                     F-D33
<PAGE>

INDEPENDENT AUDITORS' REPORT
----------------------------

To the Board of Directors and Stockholders
  of Crown Resources Corporation
Wheat Ridge, Colorado


We have audited the consolidated balance sheets of Crown Resources Corporation
and subsidiaries (Crown) as of December 31, 2003 and 2002, and the related
consolidated statements of operations, stockholders' equity and comprehensive
income (loss), and cash flows for each of the three years in the period ended
December 31, 2003. These financial statements are the responsibility of Crown's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, such consolidated financial statements present fairly, in all
material respects, the financial position of Crown as of December 31, 2003 and
2002, and the results of its operations and its cash flows for each of the three
years in the period ended December 31, 2003 in conformity with accounting
principles generally accepted in the United States of America.

As discussed in Note 1 to the consolidated financial statements, on January 1,
2002 Crown adopted Statement of Financial Accounting Standards No. 142. Also as
discussed in Note 1 to the consolidated financial statements, on January 1, 2003
Crown adopted Statement of Financial Accounting Standards No. 145.

As discussed in Note 12, the accompanying 2002 and 2001 consolidated financial
statements have been restated.

Deloitte & Touche LLP

/s/ Deloitte & Touche LLP

Denver, Colorado
April 12, 2004


                                      F-E1
<PAGE>
<TABLE>
<CAPTION>

                                      CROWN RESOURCES CORPORATION
                                      CONSOLIDATED BALANCE SHEETS


                                                                                   December 31,
                                                                            -------------------------
(in thousands, except share and per share amounts)                            2003             2002
                                                                            --------         --------
                                                                                          (as restated,
                                                                                          see Note 12)
<S>                                                                         <C>              <C>
ASSETS
CURRENT ASSETS:
   Cash and cash equivalents                                                $  2,365         $  1,033
   Restricted short-term investments                                              22               48
   Marketable equity securities, at fair value                                   190              170
   Receivable from Solitario Resources Corporation                                25               73
   Prepaid expenses and other                                                     23               30
                                                                            --------         --------
     TOTAL CURRENT ASSETS                                                      2,625            1,354
                                                                            --------         --------

MINERAL PROPERTIES                                                             8,678            6,612

MINERAL INTERESTS, NET                                                        20,982           19,102
OTHER ASSETS:
   Investment in Solitario Resources Corporation                               2,004            2,477
   Other                                                                         157               99
                                                                            --------         --------
     TOTAL OTHER ASSETS                                                        2,161            2,576
                                                                            --------         --------
                                                                            $ 34,446         $ 29,644
                                                                            ========         ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
   Accounts payable                                                         $    378         $    250
   Accrued liabilities                                                            40               38
   Current portion of long-term debt                                              49               70
   Accrued interest payable                                                       76              203
                                                                            --------         --------
     TOTAL CURRENT LIABILITIES                                                   543              561
                                                                            --------         --------

LONG-TERM LIABILITIES:
   Convertible senior notes payable, net of discounts                            226               83
   Convertible senior notes payable, related party, net of discounts              91               34
   Convertible secured notes payable, net of discounts                           -                847
   Convertible subordinated notes payable                                        -              4,000
   Long-term note payable                                                         36               73
   Asset retirement obligation                                                    21              -
   Deferred income taxes                                                       3,285            4,887
                                                                            --------         --------
      TOTAL LONG-TERM LIABILITIES                                              3,659            9,924
                                                                            --------         --------

COMMITMENTS AND CONTINGENCIES (NOTES 2, 3, 5 AND 8)

STOCKHOLDERS' EQUITY
   Preferred stock, $0.01 par value; authorized 40,000,000
     shares; none outstanding                                                    -                -
   Common stock, $0.01 par value: authorized 100,000,000
     shares; issued and outstanding; 22,321,306 and 3,851,162
     shares at December 31, 2003 and 2002, respectively                          223               39
   Additional paid-in capital                                                 57,177           41,178
   Treasury stock, 373,191 and 75,086 shares at December 31,
      2003 and 2002, respectively                                               (306)             (76)
   Unearned compensation                                                      (2,149)            (293)
   Accumulated deficit                                                       (24,717)         (21,728)
   Accumulated other comprehensive income                                         16               39
                                                                            --------         --------
     TOTAL STOCKHOLDERS' EQUITY                                               30,244           19,159
                                                                            --------         --------
                                                                            $ 34,446         $ 29,644
                                                                            ========         ========
</TABLE>

See notes to consolidated financial statements


                                      F-E2
<PAGE>
<TABLE>
<CAPTION>

                                             CROWN RESOURCES CORPORATION
                                        CONSOLIDATED STATEMENTS OF OPERATIONS


(in thousands, except per                                                           Year Ended December 31,
   share amounts)                                                           2003             2002             2001
                                                                          --------         --------         --------
                                                                                         (as restated,    (as restated,
                                                                                          see Note 12)     see Note 12)
<S>                                                                       <C>              <C>              <C>
REVENUES AND PROPERTY SALES:
   Gain on sale of assets                                                 $    -           $    171         $    214
                                                                          --------         --------         --------

COSTS, EXPENSES AND OTHER:
   Exploration expense                                                          27               58               36
   Depreciation and amortization                                                15                7               11
   General and administrative                                                  995              432              828
   Variable option compensation expense                                      3,126              175              -
   Interest income                                                             (25)             (35)             (34)
   Gain on discharge of convertible debentures                                 -             (8,684)             -
   Equity in loss of Solitario Resources Corporation                           571              873            1,512
   Gain on debt extinguishment                                                 -                -                (41)
                                                                                                            --------
   Reorganization costs                                                        -                387              -
                                                                          --------         --------         --------
                                                                             4,709           (6,787)           2,312
                                                                          --------         --------         --------

INCOME (LOSS) BEFORE INCOME TAXES                                           (4,709)           6,958           (2,098)
Income tax benefit (expense)                                                 1,720           (4,867)             -
                                                                           -------         --------         --------
NET INCOME (LOSS)                                                         $ (2,989)        $  2,091         $ (2,098)
                                                                          ========         ========         ========

PER SHARE:
  BASIC INCOME (LOSS) PER SHARE                                           $  (0.45)        $   0.65         $  (0.72)
                                                                          ========         ========         ========
  DILUTED INCOME (LOSS) PER SHARE                                         $  (0.45)        $   0.10         $  (0.72)
                                                                          ========         ========         ========
NUMBER OF SHARES USED IN CALCULATION OF EARNINGS (LOSS) PER SHARE:
  BASIC                                                                      6,575            3,207            2,911
                                                                          ========         ========         ========
  DILUTED                                                                    6,575           19,917            2,911
                                                                          ========         ========         ========
</TABLE>

See notes to consolidated financial statements.


                                                        F-E3
<PAGE>
<TABLE>
<CAPTION>

                                           CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                                                   AND COMPREHENSIVE INCOME (LOSS)
                                                For December 31, 2003, 2002, and 2001


                                                                                                             Accumulated
                                          Common Stock      Additional                                           Other
(in thousands, except                     ------------       Paid-in   Treasury     Unearned    Accumulated  Comprehensive
  share amounts)                         Shares    Amount    Capital     Stock    Compensation    Deficit    Income (loss)    Total
                                       ---------- --------  ---------  ---------  ------------   ---------   -------------  --------
<S>                                     <C>        <C>       <C>        <C>        <C>           <C>          <C>           <C>
BALANCE JANUARY 1, 2001 (1)             2,910,660  $    29   $ 35,162   $      -   $         -   $ (21,721)   $         -   $13,470
Issuance of warrants                            -        -        379          -             -           -              -       379
Additional paid-in capital arising
   from sale of shares by investee              -        -          5          -             -           -              -         5
Acquisition of Crown shares by
  Solitario Resources Corporation (1)           -        -          -        (45)            -           -              -       (45)
Comprehensive loss:                             -        -          -          -             -           -              -         -
  Net loss (1)                                  -        -          -          -             -      (2,098)             -    (2,098)
  Net unrealized loss on
    marketable equity securities
    held by investee (1)                        -        -          -          -             -           -            (81)      (81)
                                       ---------- --------  ---------  ---------  ------------   ---------   -------------  --------
Comprehensive loss (1)                          -        -          -          -             -           -              -    (2,179)
                                       ---------- --------  ---------  ---------  ------------   ---------   -------------  --------
BALANCE, DECEMBER 31, 2001 (1)          2,910,660       29     35,546        (45)            -     (23,819)           (81)   11,630
Issuance of shares for interest         1,007,082       10        400          -             -           -              -       410
Shares cancelled in bankruptcy            (66,580)       -          -          -             -           -              -         -
Acquisition of Crown shares by
  Solitario Resources Corporation (1)           -        -          -        (31)            -           -              -       (31)
Beneficial conversion feature on
  debt issued                                   -        -      4,478          -             -           -              -     4,478
Fair value of warrants issued                                     286          -             -           -              -       286
Intrinsic value of variable plan
  options issued                                -        -        468          -          (468)          -              -         -
Compensation expense for
  variable plan options                         -        -          -          -           175           -              -       175
Comprehensive income:
  Net income (1)                                -        -          -          -             -       2,091              -     2,091
  Net unrealized gain on
    marketable equity securities
    net of tax of $(20) (1)                     -        -          -          -             -           -            120       120
                                       ---------- --------  ---------  ---------  ------------   ---------   -------------  --------
Comprehensive income (1)                        -        -          -          -             -           -              -     2,211
                                       ---------- --------  ---------  ---------  ------------   ---------   -------------  --------
BALANCE, DECEMBER 31, 2002 (1)          3,851,162       39     41,178        (76)         (293)    (21,728)            39    19,159
Issuance of shares for interest         1,752,886       17      1,501          -             -           -              -     1,518
Issuance on exercise of Warrants        2,024,127       20        688          -             -           -              -       708
Issuance of shares on conversion
  of Secured notes                      5,697,131       57      1,937          -             -           -              -     1,994
Issuance of shares on conversion
  of Subordinated notes                 5,333,333       53      3,947          -             -           -              -     4,000
Issuance of shares on conversion
  of Subordinated B notes               3,606,667       36      2,669          -             -           -              -     2,705
Issuance of shares on exercise of
  Options                                  56,000        1         80          -             -           -              -        81
Acquisition of Crown shares by
  Solitario Resources Corporation               -        -          -       (230)            -           -              -      (230)
Intrinsic value of variable plan
  options issued                                -        -      4,924          -        (4,924)          -              -         -
Variable plan option Compensation               -        -          -          -         3,068           -              -     3,068
Additional paid-in capital arising
  from sale of shares by investee                                 253          -             -           -              -       253
Comprehensive loss:
  Net loss                                      -        -          -          -             -      (2,989)             -    (2,989)
  Net unrealized loss on
    marketable equity securities
    net of tax of $12                           -        -          -          -             -           -            (23)      (23)
                                       ---------- --------  ---------  ---------  ------------   ---------   -------------  --------
Comprehensive loss                              -        -          -          -             -           -              -    (3,012)
                                       ---------- --------  ---------  ---------  ------------   ---------   -------------  --------
BALANCE , DECEMBER 31, 2003            22,321,306  $   223   $ 57,177   $   (306)  $    (2,149)  $ (24,717)  $         16   $30,244
                                       ========== ========  =========  =========  ============   =========   =============  ========
</TABLE>

(1)  As restated, see Note 12

See notes to consolidated financial statements.


                                                                F-E4
<PAGE>
<TABLE>
<CAPTION>

                                         CROWN RESOURCES CORPORATION
                                    CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                                         Year Ended December 31,
                                                                 ----------------------------------------
(in thousands)                                                     2003            2002            2001
                                                                 --------        --------        --------
                                                                               (as restated,  (as restated,
                                                                                see note 12)  see note 12)
<S>                                                              <C>             <C>             <C>
OPERATING ACTIVITIES:
   Net income (loss)                                             $(2,989)        $ 2,091         $(2,098)
   Adjustments to reconcile net income (loss) to cash
    used in operating activities:
      Depreciation and amortization                                   15               7              11
      Compensation expense for variable options                    3,126             175               -
      Equity in loss of Solitario Resources Corporation              571             873           1,512
      Deferred income taxes                                       (1,720)          4,867               -
      Gain on sale of assets                                           -            (171)           (214)
      Gain on discharge of convertible debentures                      -          (8,684)              -
      Gain on debt extinguishment                                      -               -             (41)
   Changes in operating assets and liabilities:
      Prepaid expenses and other                                      54             (21)             24
      Accounts payable and other current liabilities                 130             134              43
                                                                 --------        --------        --------
         Net cash used in operating activities                      (813)           (729)           (763)
                                                                 --------        --------        --------
INVESTING ACTIVITIES:
   Additions to mineral properties                                  (226)           (564)           (340)
   Additions to mineral interests                                   (942)              -            (284)
   Proceeds from asset sales                                           -               -             211
   Increase in restricted investments                                (60)              -               -
                                                                 --------
   Decrease (increase) in other assets                                13             (18)             (5)
                                                                 --------        --------        --------
         Net cash used in investing activities                    (1,215)           (582)           (418)
                                                                 --------        --------        --------
FINANCING ACTIVITIES:
   Payments on long-term note payable                                (70)            (50)            (30)
   Proceeds from issuance of Subordinated B Notes                  2,705               -               -
   Proceeds from exercise of warrants                                708               -               -
   Proceeds from exercise of options                                  23               -               -
   Payment to redeem Secured notes                                    (6)              -               -
   Proceeds from Senior Notes                                          -           3,284             350
   Payment on discharge of convertible debentures                      -          (1,000)              -
                                                                 --------        --------        --------
         Net cash provided by financing activities                 3,360           2,234             320
                                                                 --------        --------        --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS               1,332             923            (861)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                       1,033             110             971
                                                                 --------        --------        --------
CASH AND CASH EQUIVALENTS, END OF YEAR                           $ 2,365         $ 1,033         $   110
                                                                 ========        ========        ========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
  Non-cash transactions:
     Debt converted to shares of common stock                    $ 8,699         $     -         $     -
     Securities received for mineral interest transaction              -             171               -
     Non-cash interest capitalized                                 2,758             996             615
     Issuance of securities on discharge of convertible
       debentures:
        Secured notes payable                                          -           2,000               -

        Subordinated notes payable                                     -           4,000               -
         Warrants                                                      -             286               -
     Cash placed in escrow from secured note financing                 -               -           3,250
     Long-term debt assumed in mineral interest
       transactions                                                    -               -             237

   Issuance of warrants                                                -               -             379
</TABLE>

See notes to consolidated financial statements.


                                                    F-E5
<PAGE>

                           CROWN RESOURCES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2003, 2002 (AS RESTATED),
                             AND 2001 (AS RESTATED)


1.      BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

BUSINESS

Crown Resources Corporation and its subsidiaries ("Crown") engage principally in
the acquisition, exploration and development of mineral interests, which
presently exist in the western United States. Crown indirectly holds properties
in Latin America through Solitario Resources Corporation ("Solitario"), of which
Crown owns 9,633,585 shares of Solitario common stock or 38.7% as of December
31, 2003. Crown's operations constitute a single business segment.

Crown has historically derived its revenues principally from interest income,
the option and sale of property interests and to a lesser extent from payments
on royalty interests and the sale of its share of gold produced from its
properties.

On November 20, 2003 Crown executed a definitive agreement to merge with Kinross
Gold Corporation ("Kinross"), a Canadian corporation, as more fully described in
Note 2 (the "Merger"). The Merger is subject to the approval of Crown's
shareholders and customary closing conditions. Crown currently has no source of
recurring revenue and Crown anticipates any future recurring revenue would only
occur after the successful development of its Buckhorn Mountain Project. The
successful development of the Buckhorn Mountain Project is dependent on several
factors, many of which are beyond the control of Crown. Crown cannot provide any
assurance that the Merger with Kinross will be completed as planned, or that it
will be able to successfully permit and develop the Buckhorn Mountain Project in
the event the Merger is not completed (see Note 3).

Crown currently has limited financial resources and, accordingly is not engaged
directly in any significant exploration or development activity other than at
its Buckhorn Mountain Project. Crown's current objective is to complete the
permitting process for development of the Buckhorn Mountain Project in
conjunction with Kinross (see Note 3). Unless Crown is successful in these
objectives, it is unlikely that Crown will be in a position in the foreseeable
future to pursue additional exploration or development projects. Furthermore, in
the event the Merger with Kinross is not consummated, Crown will need
significant additional financial resources to develop the Buckhorn Mountain
Project and Crown cannot assure you that it will be able to obtain such
financial resources. Crown currently estimates the initial capital cost for the
Buckhorn Mountain Project will require up to $32.6 million. Based upon Crown's
current business plan, Crown estimates its current financial resources are
sufficient to fund its operations through 2005.

CORPORATE REORGANIZATION

On March 8, 2002, Crown filed a voluntary petition for protection under Chapter
11 of the United States Bankruptcy Code (the "Bankruptcy") in the United States
Bankruptcy Court for the District of Colorado (the "Court"). As part of the
Bankruptcy, Crown filed a Plan of Reorganization (the "Plan") and a Disclosure
Statement with the Court on March 25, 2002. On May 30, 2002, the Court confirmed
the Plan, which became effective on June 11, 2002 (the "Effective Date").
Accordingly, Crown was in Bankruptcy a total of 84 days (March 8, 2002 through
May 30, 2002). While the Plan resulted in a change in ownership of greater than
fifty percent, the reorganization value of the assets of Crown immediately
before the Effective Date was greater than the total of all post-petition
liabilities and allowed claims. As a result, Crown did not adopt fresh start
reporting and continues to recognize its historical basis of accounting.

As part of the Plan, Crown restructured its existing $15 million 5.75%
Convertible Subordinated Debentures due August 2001 (the "Debentures"). The
restructuring was completed through an exchange of outstanding Debentures,
including any accrued interest thereon for the following consideration, which
was proportionally distributed to each Debenture holder:

        (i)     $1,000,000 in cash;

        (ii)    $2,000,000 in 10% Convertible Secured Notes (the "Secured
                Notes") convertible into Crown common shares at $0.35 per share.
                The Secured Notes were pari-passu to and had essentially


                                      F-E6
<PAGE>

                           CROWN RESOURCES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2003, 2002 (AS RESTATED),
                             AND 2001 (AS RESTATED)


                the same terms as the Senior Notes (see Note 5), including a 10%
                interest rate payable in cash or common stock at Crown's option,
                and a maturity date of October 2006. The number of shares of
                Crown's common stock that could have been issued in satisfaction
                of accrued interest is calculated by dividing the value of the
                accrued interest obligation at the stated interest rate by the
                conversion price of $0.35 per share. On November 21, 2003 the
                Secured Notes were called for redemption, and substantially all
                outstanding Secured Notes were converted to common stock as of
                December 31, 2003 (see Note 5).

        (iii)   Warrants, which expire in October 2006 that entitled the holders
                the right to purchase, in the aggregate, 5,714,285 shares of
                Crown common stock at an exercise price of $0.75 per share; and

        (iv)    $4,000,000 of convertible unsecured subordinated notes (the
                "Subordinated Notes") convertible into Crown common shares at
                $0.75 per share. The Subordinated Notes paid interest at 10% in
                cash or common stock at Crown's option, and matured on the same
                date as the Secured Notes. The number of shares of Crown's
                common stock that could have been issued in satisfaction of
                accrued interest is calculated by dividing the value of the
                accrued interest obligation at the stated interest rate by the
                conversion price of $0.75 per share. On November 5, 2003, all
                outstanding Subordinated Notes were automatically converted into
                common stock.

In order to effect the Plan on the Effective Date, Crown entered into a Custody
and Disbursing Agreement with Wells Fargo Bank, Minnesota N.A. (the "Disbursing
Agent") as well as trust indentures with Deutsche Bank Trust Company, Americas,
as Trustee on the Secured Notes and with Wells Fargo Bank Minnesota, N.A. as
Trustee on the Subordinated Notes. Crown also transferred $1,000,000 to the
Disbursing Agent on the Effective Date. As of December 31, 2003, the Disbursing
Agent had delivered $983,667 in cash, $1,967,333 in Secured Notes, $3,934,666 in
Subordinated Notes (including accrued and paid interest from June 11, 2002) and
Warrants to purchase 5,620,952 shares of Crown common stock to Debenture holders
who had presented $14,755,000 in Debenture certificates. As of March 19, 2004,
$245,000 in Debenture certificates have not been presented. If all of these
Debentures are presented, the disbursing agent will distribute $16,000 in cash,
93,333 shares of Crown common stock from the converted Secured Notes (plus
accrued interest since June 11, 2002), 87,111 shares of Crown common stock from
the converted Subordinated Notes (plus accrued interest since June 11, 2002),
and warrants to acquire 93,333 shares of Crown common stock with an exercise
price of $0.75 per share. The Debenture holders have until June 2007 to present
their certificates, at which time any undistributed cash, stock and warrants
will revert to Crown.

The Plan provided that all other liabilities of Crown would be paid in the
normal course.

As part of the Plan Crown effected a one for five reverse split on the Effective
Date of the currently outstanding common stock, while maintaining the conversion
and exercise prices of the Senior Notes, the Secured Notes, the Subordinated
Notes and the related warrants. Under the Plan, any shareholder holding less
than 500 shares prior to the one for five reverse split and the holder of
Crown's Preferred Stock would receive no distribution. Accordingly, 66,580
shares of common stock and the outstanding Preferred Stock, held by a wholly
owned subsidiary, which had previously been eliminated in consolidation, were
cancelled.

The Plan, which was approved by the shareholders, also included the 2002 Crown
Stock Incentive Plan (the "2002 Plan") as of the Effective Date. Under the 2002
Plan Crown may grant options to purchase up to an aggregate maximum of 5 million
shares to employees, consultants and directors. As part of the Plan, Crown filed
Restated Articles of Incorporation with the Secretary of State of the State of
Washington.


                                      F-E7
<PAGE>

                           CROWN RESOURCES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2003, 2002 (AS RESTATED),
                             AND 2001 (AS RESTATED)


FINANCIAL REPORTING

The consolidated financial statements include the accounts of Crown and its
wholly and majority-owned subsidiaries. All significant intercompany accounts
and transactions have been eliminated in consolidation. Undivided interests in
mineral interests are accounted for by the proportionate consolidation method in
accordance with standard practice in the mining industry.

Crown accounts for its investment in Solitario under the equity method of
accounting. Crown records as treasury stock its proportionate share of
Solitario's recorded cost basis for Solitario's investments in the equity
securities of Crown. Crown's proportionate interest in Solitario's gains and
losses associated with changes in the fair value of Solitario's investment in
Crown warrants and Solitario's investment in Crown common stock are not
recognized in Crown's statement of operations, or as a component of
comprehensive income (loss), respectively. See Notes 4 and 5.

Crown accounts for sales of common stock by Solitario as equity transactions. In
2003 and 2001, Solitario had sales of common stock that resulted in an increase
in Crown's carrying amount of its investment in Solitario of $253,000 and
$5,000, respectively, which Crown recorded as an increase in additional paid-in
capital as disproportionate share on sale of unconsolidated subsidiary stock for
these sales in 2003 and 2001.

USE OF ESTIMATES

The preparation of financial statements, in conformity with accounting
principles generally accepted in the United States of America, requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates and the differences could be material.

CASH EQUIVALENTS

Cash equivalents include investments in highly liquid debt securities with
maturities of three months or less when purchased.

RESTRICTED INVESTMENTS

All amounts classified as short term investments in the consolidated balance
sheets for the years ended December 31, 2003 and 2002 relate to cash bonds under
which Crown has completed its reclamation activities. Crown anticipates these
bonds will be released during the next year. Included in non-current assets at
December 31, 2003 and 2002 are $61,000 and $31,000, respectively of restricted
investments.

MINERAL PROPERTIES AND INTERESTS

On January 1, 2002, Crown adopted Statement of Financial Accounting Standards
("SFAS") No. 142, "Goodwill and Other Intangible Assets," which, among other
things, required the reclassification of Crown's land and leasehold costs from
mineral properties to mineral interests (intangible assets). Crown's mineral
interests represent mineral use rights for parcels of land not owned by Crown.
Crown's mineral interests relate to its Buckhorn Mountain Project and the value
of such intangible assets is primarily determined by the nature and amount of
economic minerals believed to be contained, or potentially contained therein. At
January 1, 2002, Crown reclassified $18,474,000 from mineral properties to
mineral interests. Crown amortizes mineral interests over their expected useful
lives or until it has been determined the mineral interest contains proven and
probable reserves. As all of our capitalized costs since January 1, 2002, have
related to the Buckhorn Mountain Project that has proven and probable reserves.
Crown has not recorded any amortization of those costs.


                                      F-E8
<PAGE>

                           CROWN RESOURCES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2003, 2002 (AS RESTATED),
                             AND 2001 (AS RESTATED)


Land and leasehold acquisition costs and development costs on mineral interests
with proven and probable reserves are capitalized and will be depleted using the
units-of-production method over the estimated life of the reserves. If there are
insufficient reserves to use as a basis for depleting such costs, they are
written off as a mineral property or mineral interest impairment in the period
in which the determination is made. Interest costs are capitalized on mineral
properties and mineral interests in development. Interest is capitalized by
applying a weighted average interest rate, including the effects of any
discounts, to the average capitalized costs during a period, up to a maximum of
total interest costs incurred during the period. Crown capitalized interest
costs of $3,068,000, $996,000 and $1,046,000 for the years ended December 31,
2003, 2002 and 2001, respectively. At December 31, 2003 and 2002 a total of
$13,885,000 and $10,817,000, respectively, of interest costs have been
capitalized as mineral interests and mineral properties at the Buckhorn Mountain
Project.

Crown expenses all exploration costs incurred on its mineral interests, other
than acquisition costs, prior to the establishment of proven and probable
reserves. Development costs incurred on mineral interests with proven and
probable reserves are capitalized as mineral properties. Crown regularly
performs evaluations of its investment in mineral interests to assess the
recoverability and or the residual value of its investments in these assets. All
mineral interests and mineral properties are reviewed for impairment whenever
events or circumstances change which indicate the carrying amount of an asset
may not be recoverable, utilizing established guidelines based upon undiscounted
future net cash flows from the asset or upon the determination that certain
exploration properties do not have sufficient potential for economic
mineralization. There were no mineral interest or mineral property impairments
in 2003, 2002 or 2001.

At December 31, 2003 and 2002, Crown has capitalized costs, net of amortization,
of $29,660,000 and $25,714,000, respectively, related entirely to the Buckhorn
Mountain Project. These costs will be amortized on the units-of-production
method over the life of the proven and probable reserves. The recoverability of
these costs is dependent on, among other things, the successful permitting and
development of the Project.

MARKETABLE EQUITY SECURITIES

Crown's investment in marketable equity securities are classified as
available-for-sale and are carried at fair value. The cost of marketable equity
securities sold is determined by the specific identification method. Changes in
fair value are recorded in accumulated other comprehensive income (loss) within
stockholders' equity, unless a decline in market value is considered other than
temporary, which is recognized as a loss in the statement of operations.

In January 2001, Crown sold its entire holding in its 100% owned-subsidiary,
Judith Gold Corporation (which held certain royalty interests), to Canyon
Resources Corporation ("Canyon") for 200,000 shares of Canyon common stock.
Crown had completely amortized its investment in Judith Gold Corporation as of
December 31, 2000 and recorded a gain on sale of approximately $200,000 during
2001. In June 2001, Crown sold its Canyon stock to Solitario for $200,000.

During the years ended December 31, 2003, 2002, 2001 there were no realized
gains or losses from sales of marketable equity securities and unrealized gains
and (losses) of $(23,000), $120,000 and $(81,000), respectively, were recorded
in accumulated other comprehensive income (loss) in the statement of
stockholders' equity.

LONG-TERM DEBT DISCOUNTS

Long-term debt discounts have been recorded to recognize the fair value of
warrants issued in conjunction with debt issuances, and beneficial conversion
features on convertible debt instruments. The fair value of the warrants and the
intrinsic value of the beneficial conversion features at the time of the debt
issuance are recorded as reductions to the carrying value of the related debt
instruments and increases in additional paid in capital. These debt discounts
are amortized to interest expense using the effective interest method over the
term of the debt. Debt discounts for instruments that are converted or redeemed
prior to their scheduled maturity are charged to interest cost upon the
conversion or redemption. (see Note 5) Debt discounts are included in
determining the interest rate to be used for capitalization of interest costs.
Through December 31, 2003, all debt discounts have been included in capitalized
interest.


                                      F-E9
<PAGE>

                           CROWN RESOURCES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2003, 2002 (AS RESTATED),
                             AND 2001 (AS RESTATED)


INCOME TAXES

Income taxes are provided for the tax effects of transactions reported in the
financial statements and consist of taxes currently due plus deferred taxes
related to certain income and expenses recognized in different periods for
financial and income tax reporting purposes. Deferred tax assets and liabilities
represent the future tax consequences of those differences, which will either be
taxable or deductible when the assets and liabilities are recovered or settled.
Deferred taxes also are recognized for operating losses and tax credits that are
available to offset future taxable income and income taxes, respectively. A
valuation allowance is provided if it is more likely than not that some or all
of the deferred tax assets will not be realized.

COMPREHENSIVE INCOME (LOSS)

Comprehensive income or loss includes changes between the cost basis and the
fair value of marketable equity securities unless a decline in the fair value of
the marketable equity security is deemed permanent. Crown records any gain or
loss in its consolidated statement of operations upon the sale of marketable
equity securities in the period in which the security is sold.

REVERSE STOCK SPLIT

Crown effected a one for five reverse split of its common stock in connection
with the Plan on the Effective Date. All share and per share amounts have been
adjusted to give retroactive effect to the reverse stock split for all periods
presented.

EARNINGS (LOSS) PER SHARE

The calculation of basic and diluted earnings (loss) per share is based on the
weighted average number of common shares outstanding during the years ended
December 31, 2003, 2002, and 2001, net of the weighted average number of
treasury shares. Weighted average shares outstanding are reduced by Crown's
proportionate share of Solitario's holdings of Crown common stock. Stock
options, warrants and convertible debt securities that could potentially dilute
earnings per share but were excluded from the computation of per share amounts
as their inclusion would have been anti-dilutive, were approximately 27,269,000
shares in 2003, 18,800,000 shares in 2002, and 24,100,000 shares in 2001. The
calculation of diluted earnings per share is detailed below:

<TABLE>
<CAPTION>

(in thousands except per share amounts)           For the year ended December 31
                                         -------------------------------------------------
                                              2003             2002               2001
                                         -------------     -------------     -------------
<S>                                       <C>               <C>               <C>
Net income (loss)                         $    (2,989)      $     2,091       $    (2,098)
  Effect of Dilutive Securities:
    Convertible debentures                          -                 -                 -
    Options                                         -                 -                 -
                                         -------------     -------------     -------------
Diluted net income                        $    (2,989)      $     2,091       $    (2,098)
                                         =============     =============     =============
Shares:
  Basic weighted average shares
     outstanding, net of treasury stock         6,575             3,207             2,911
  Effect of Dilutive Securities:
    Convertible debentures                          -            16,631                 -
    Options                                         -                79                 -
                                         -------------     -------------     -------------
Diluted weighted average shares
     outstanding, net of treasury stock         6,575            19,917             2,911
                                         =============     =============     =============
Basic earnings per share                  $     (0.45)      $      0.65       $     (0.72)
                                         =============     =============     =============
Diluted earnings per share                $     (0.45)      $      0.10       $     (0.72)
                                         =============     =============     =============
</TABLE>


                                     F-E10
<PAGE>

                           CROWN RESOURCES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2003, 2002 (AS RESTATED),
                             AND 2001 (AS RESTATED)


EMPLOYEE STOCK COMPENSATION PLANS

Crown follows Accounting Principles Board Opinion No. 25, "Accounting for Stock
Issued to Employees." ("APB 25"). Under the terms of Crown's stock option plans,
the exercise price of options issued to employees and directors equals the
quoted market price of the stock on the date of grant. As a result of repricing
options under Crown's 1988 Stock Benefit Plan (the "1988 Plan") and Crown's 1991
Stock Incentive Plan (the "1991 Plan") in 1998 and 1999, Crown began to account
for those options grants using variable plan accounting as of July 1, 2000. The
Plan of Reorganization rejected both the 1991 Plan and the 1988 Plan and all
option awards were canceled. The Plan approved Crown's 2002 Stock Incentive Plan
(the "2002 Plan"). In July 2002 Crown's Board of Directors granted options to
purchase 3,375,000 shares of Crown common stock under the 2002 Plan. Of these,
2,600,000 were deemed replacement options for cancelled options awards and Crown
accounts for these options as variable awards. Accordingly Crown accounts for
increases and decreases in the intrinsic value of the 2,600,000 options as
compensation expense in accordance with APB 25.

In December 2002, the Financial Accounting Standards Board (the "FASB") issued
Statement of Financial Accounting Standards No. 148, "Accounting for Stock-Based
Compensation - Transition and Disclosure - an amendment of FASB Statement No.
123" ("SFAS No. 148"). SFAS No. 148 amends the disclosure requirements of SFAS
No. 123 to require prominent disclosures in both annual and interim financial
statements about the method of accounting for stock-based employee compensation
and the effect of the method used on reported results.

Pro forma information, in accordance with SFAS No. 148, has been computed as if
Crown had accounted for its stock options under the fair value method prescribed
by SFAS No. 123. The fair values of these options were estimated at the date of
grant using a Black-Scholes option pricing model with the following assumptions
for 2003, 2002 and 2001 grants, respectively; risk-free interest rates of 3.09%,
3.85%, and 4.74%; dividend yields of 0%; volatility factors of the expected
market price of Crown's common stock of 89%, 88%, and 69%; and a weighted
average expected life of the options of 3.5 years in 2003, 3.5 years in 2002,
and 4.2 years in 2001. The weighted average fair values of the options granted
are estimated at $0.27, $0.24, and $0.15 per share in 2003, 2002 and 2001,
respectively. Had Crown accounted for its stock options under the fair value
method of SFAS No. 123, the following results would have been reported:

<TABLE>
<CAPTION>

(in thousands except per share amounts)                          For the year ended December 31
                                                        -------------------------------------------------
                                                            2003              2002               2001
                                                        -------------     -------------     -------------
<S>                                                      <C>               <C>               <C>
Net income (loss) as reported                            $    (2,989)      $     2,091       $    (2,098)
Add: Stock-based compensation expense included
    in reported net income (loss), net of related tax
    effects                                                    2,063               115                 -
Deduct: Total stock-based employee compensation
    expense determined under fair value based
    method for all awards, net of related tax effects           (134)             (452)              (37)
                                                        -------------     -------------     -------------
Pro forma net income (loss)                              $    (1,060)      $     1,754       $    (2,061)
                                                        =============     =============     =============
Basic earnings (loss) per share:
   As reported                                           $     (0.45)      $      0.65       $     (0.72)
   Pro forma                                             $     (0.16)      $      0.55       $     (0.71)
Diluted earnings (loss) per share:
   As reported                                           $     (0.45)      $      0.10       $     (0.72)
   Pro forma                                             $     (0.16)      $      0.09       $     (0.71)
</TABLE>

Recent accounting pronouncements

In May 2003, the FASB issued SFAS No. 150 "Accounting for Certain Financial
Instruments with Characteristics of both Liabilities and Equity," which
clarifies the classification as liabilities for certain financial instruments
including equity shares that are mandatorily redeemable, or a financial
instrument other than equity shares that has an obligation to repurchase the
instrument with equity shares, including a conditional obligation to settle the
financial instrument with equity shares. SFAS No. 150 has been adopted by Crown
and is effective for financial instruments entered into after May 31, 2003. The
adoption of this statement has not had a material effect on Crown's consolidated
financial position or results of operations.


                                     F-E11
<PAGE>

                           CROWN RESOURCES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2003, 2002 (AS RESTATED),
                             AND 2001 (AS RESTATED)


In April 2003, the FASB issued SFAS No. 149 "Amendment of Statement 133 on
Derivative Instruments and Hedging Activities" to amend and clarify financial
accounting and reporting for derivative instruments, including certain
derivative instruments embedded in other contracts and for hedging activities.
The changes in this statement are intended to improve financial reporting by
requiring that contracts with comparable characteristics be accounted for
similarly to achieve more consistent reporting of contracts as either derivative
or hybrid instruments. SFAS No. 149 has been adopted by Crown and will be
applied prospectively for contracts entered into or modified after June 30,
2003. The adoption of this statement has not had a material effect on Crown's
consolidated financial position or results of operations.

In January 2003, the FASB issued FASB Interpretation No. 46, "Consolidation of
Variable Interest Entities" ("FIN 46") and in December 2003 issued FIN 46R. FIN
46 requires the consolidation of variable interest entities which have one or
both of the following attributes (1) the equity investment at risk is not
sufficient to permit the entity to finance its activities without additional
financial support from other parties which is provided by other parties that
will absorb some or all of the expected losses of the entity, (2) the equity
investors lack controlling financial interest as evidenced by (i) the ability to
make decisions regarding the entity's activities through voting or similar
rights (ii) the obligation to absorb expected losses, which make it possible for
the entity to finance its activities and (iii) the right to receive expected
residual returns of the entity if they occur, which is the compensation for
absorbing the expected losses. FIN 46 was immediately effective for variable
interest entities formed after January 31, 2003. FIN 46R requires the adoption
of either FIN 46 or FIN 46R in financial statements of public entities that have
interests in structures that are commonly referred to as special purpose
entities for periods ending after December 15, 2003. Application for all other
types of variable interest entities is required in financial statements for
periods ending after March 15, 2004. Crown did not have any investments in or
relationships with variable interest entities at December 31, 2003. The adoption
of FIN 46R is not expected to have a material effect on Crown's consolidated
financial position or results of operations.

In November 2002, the FASB issued FASB Interpretation No. 45, "Guarantor's
Accounting and Disclosure Requirements for Guarantees, Including Indirect
Guarantees of Indebtedness of Others" ("FIN 45"). FIN 45 requires the disclosure
by guarantors of (a) the nature of any guarantee, (b) maximum potential amount
of future payments associated therewith, (c) carrying amounts of liabilities, if
any, related to the guarantor's obligations under the guarantee and (d) the
nature and extent of any recourse or collateral for recovery of any amounts paid
under the guarantee. FIN 45 also requires guarantors to recognize at the
inception of a guarantee within its scope a liability for the fair value of
obligations undertaken in issuing the guarantee, including the obligation to
stand ready to perform over the term of guarantee. Crown has applied the
provisions of FIN 45 for interim and annual periods ending after December 15,
2002 and the effect of adopting this interpretation was not material to its
consolidated financial position or results of operations.

In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs Associated
with Exit or Disposal Activities," which addresses financial accounting and
reporting for costs associated with exit or disposal activities and generally
requires that a liability for a cost associated with an exit or disposal
activity be recognized and measured initially at its fair value in the period in
which the liability is incurred. SFAS No. 146 does not apply to costs associated
with the retirement of long-lived assets covered by SFAS No. 143. Crown has
adopted the provisions of SFAS No. 146 effective for exit or disposal activities
initiated after December 31, 2002. The adoption of this statement has not had a
material effect on Crown's consolidated financial position or results of
operations.

In April 2002, the FASB issued SFAS No. 145, "Rescission of FASB Statements No.
4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections."
SFAS No. 145 eliminates inconsistencies between the accounting for
sale-leaseback transactions and the required accounting for certain lease
modifications. This statement requires that gains and losses from debt
extinguishments should be classified as extraordinary items only if they meet
the criteria of Accounting Principles Board Opinion No. 30. This Statement also
amends existing authoritative pronouncements to make various technical
corrections, clarify meanings or describe their meanings under changed
conditions. Crown has adopted SFAS No. 145 as of January 1, 2003. As a result of
the adoption of this Statement, Crown has reclassified a $8,684,000 gain in 2002
on the discharge of its Convertible Debentures from an extraordinary item net of
taxes, to a gain before related tax effects in its 2002 consolidated statement
of operations. The adoption of this Statement has not had any other material
effects on Crown's financial position or results of operations.


                                     F-E12
<PAGE>

                           CROWN RESOURCES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2003, 2002 (AS RESTATED),
                             AND 2001 (AS RESTATED)


On January 1, 2002, Crown adopted SFAS No. 141 and SFAS No. 142, which among
other things required the reclassification of Crown's capitalizes land and lease
acquisition costs from mineral properties to mineral interest (intangible
assets). The excess of the cost of each mineral interest over its estimated
residual value is amortized over the proven and probable reserves on a units of
production basis. Since January 1, 2002, all of Crown's mineral interests relate
to its Buckhorn Mountain Project, which is in development and will be amortized
over its proven and probable reserves. Accordingly, no amortization has been
recorded on these assets. Beginning January 1, 2002, Crown reclassified
$18,474,000 of these costs from mineral properties to mineral interests.

In June 2001, the FASB issued SFAS No. 143 "Accounting for Asset Retirement
Obligations." Under SFAS No. 143, the fair value of a liability for an asset
retirement obligation covered under the scope of SFAS No. 143 would be
recognized in the period in which the liability is incurred, with an offsetting
increase in the carrying amount of the related long-lived asset. Over time, the
liability would be accreted to its present value, and the capitalized cost would
be depreciated over the useful life of the related asset. Upon settlement of the
liability, an entity would either settle the obligation for its recorded amount
or incur a gain or loss upon settlement. Crown adopted Statement 143 as of
January 1, 2002. The adoption of this Statement has not had a material effect on
Crown's consolidated financial position or results of operations.

Reclassifications

Certain reclassifications have been made to the 2002 and 2001 consolidated
financial statements to conform to the 2003 presentation.

2.      MERGER AGREEMENT

On November 20, 2003, Crown executed a definitive agreement entitled
"Acquisition Agreement and Agreement and Plan of Merger" (the "Merger
Agreement") with Kinross Gold Corporation ("Kinross"), a Canadian corporation,
whereby each of the outstanding shares of common stock of Crown will be
exchanged for 0.2911 shares of Kinross common stock at closing (the "Merger").
The Merger is subject to the approval of two thirds of Crown's shareholders and
customary closing conditions. Until the Merger is completed, Crown is required
to operate its business in the ordinary course, and is restricted from engaging
in certain significant business and financing transactions, or changes in
corporate structure.

Crown intends, and the Merger Agreement contemplates, that all or some portion
of the common stock of Solitario held by Crown will be distributed to Crown's
shareholders prior to the effective time of the Merger. Crown has agreed to use
its commercially reasonable efforts to cause Solitario to make all filings and
obtain all regulatory approvals required by the United States and Canadian
securities laws and rules of the Toronto Stock Exchange ("TSX") in connection
with the distribution by Crown of the Solitario common stock to the shareholders
of Crown and to reasonably cooperate in providing all information to Solitario
necessary to complete such filings.

The Merger Agreement further contemplates that the Crown Board of Directors will
take action as permitted under the Crown 2002 Stock Incentive Plan so that all
outstanding stock options to purchase Crown common stock will either be
exercised or terminated prior to the effective time of the Merger. Additionally,
holders of unexercised warrants to purchase shares of Crown common stock will be
allowed to elect to exchange the warrant for 0.2911 shares of Kinross common
stock for each share of Crown common stock that would have been issued on the
exercise of the warrant immediately prior to the effective time of the Merger on
a cashless basis, or absent making this election, the warrant will represent the
right to acquire Kinross common shares in accordance with the terms and
conditions of the warrant as amended pursuant to the Merger Agreement.

The Merger Agreement may be terminated by either party if the transaction has
not been consummated by September 30, 2004 subject to certain conditions, by
mutual written consent, or upon the failure of Crown to obtain the approval of
its shareholders. Both Crown and Kinross may also terminate the Merger Agreement
upon the occurrence of a material breach of the agreement by the other party as
defined in the Merger Agreement. Should Crown fail to complete the Merger as a
result of receiving a superior proposal within six months of the date of the
Merger Agreement, Crown will be obligated to pay Kinross a termination fee of
$2.0 million plus Kinross' documented, reasonable third-party, out-of-pocket
expenses in connection with the Merger Agreement. Crown has


                                     F-E13
<PAGE>

                           CROWN RESOURCES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2003, 2002 (AS RESTATED),
                             AND 2001 (AS RESTATED)


further agreed to use its commercially reasonable efforts to amend or redeem its
outstanding convertible notes prior to the effective time of the Merger. See
Notes 5 and 10.

3.      MINERAL PROPERTIES AND INTERESTS:

BUCKHORN MOUNTAIN PROJECT

The Buckhorn Mountain Project is located on approximately 2,000 acres 24 miles
east of Oroville, Washington. Crown currently owns 100% of the Buckhorn Mountain
Project, which was held in a joint venture with Battle Mountain Gold Corporation
("Battle Mountain") prior to July 2001. During Crown's joint venture with Battle
Mountain, the Buckhorn Mountain Project was known as the Crown Jewel Project.
Battle Mountain merged with Newmont Gold Corporation (both companies referred to
as "Newmont") on January 10, 2001. The Buckhorn Mountain Project has reported
reserves of 991,000 ounces of contained gold in 3,076,000 tons of ore, based on
a December 2003 feasibility study (the "SRK Feasibility Study"). Crown
previously reported reserves of 839,000 ounces based upon a 2000 study by Mine
Reserves Associates, Inc. of Wheat Ridge, Colorado.

The Buckhorn Mountain Project is held by a combination of fee ownership, fee
land for which leases are held with options to purchase, and unpatented mining
claims. The ore deposit lies primarily on unpatented claims owned by Crown.
Royalties on mineral property controlled by Crown payable to third parties vary
from a 2% net smelter return royalty to an 8.33% net profits royalty on certain
unpatented mining claims. The ore body as currently defined is subject only to a
sliding-scale royalty payable to Newmont of 0.5% to 4%, depending on the price
of gold. The Newmont royalty may be purchased in its entirety for $2.0 million
at any time before July 23, 2006.

In July 2001, Crown completed an agreement (the "Termination Agreement") with
Newmont to terminate its joint venture on the Buckhorn Mountain Project, under
which Newmont was entitled to earn a 54% interest in the Buckhorn Mountain
Project by building a 3,000-ton per day milling facility. During 2002 Crown
began seeking regulatory approval and permits to operate a primarily underground
mining operation at the Buckhorn Mountain Project, which Crown believes
significantly reduces the environmental impacts compared to the open-pit mining
plan proposed by Newmont.

On November 11, 2003, Crown entered into a toll milling agreement (the "Toll
Milling Agreement") with Echo Bay Minerals Co. ("Echo Bay Minerals"), a
wholly-owned subsidiary of Kinross, whereby Crown would deliver ore from its
Buckhorn Mountain Project deposit to Echo Bay Minerals' Kettle River mill, which
is located approximately 57 miles from the Buckhorn Mountain Project. Under the
terms of the Toll Milling Agreement, Echo Bay Minerals agreed to process up to
1,500 tons per day of ore (the "Production Ores") at a cost to Crown of $20 per
ton. In addition Crown agreed to pay a one-time capital charge of $5 million to
Echo Bay Minerals on or before the last day of the calendar month following the
first delivery of Production Ores to the Kettle River Mill. The agreement is
subject to Crown obtaining the necessary permits to mine and deliver the
Production Ores, standard toll-milling terms regarding (among other terms)
grade, delivery, commingling and refining, and regulatory approval.

As a result of signing the Toll Milling Agreement with Echo Bay Minerals, Crown
has prepared an amended Buckhorn Mountain Project Plan of Operations to
accommodate this change in operation. Crown is unaware of any legal impediments
to permitting a mining operation as proposed in the Amended Buckhorn Mountain
Project Plan of Operations. Although Crown is not aware of any laws or
regulations which would be violated by the mine design proposed in the SRK
feasibility study, until all permits are received there will continue to be
uncertainty regarding the ability of Crown to obtain the necessary permits to
develop the Buckhorn Mountain Project in a timely manner, if ever. Construction
of the Buckhorn Mountain Project may not begin prior to the successful issuance
of the remaining permits.

On April 16, 1992, we filed a patent application with the United States
Department of the Interior. The Mining Law of 1872 of the United States allows
owners of unpatented mining claims that demonstrate economic viability of
mineralization discovered on such claims to apply for patent of the unpatented
claim. Patenting involves the transfer of surface ownership from the U.S.
Government to the successful patent applicant. Certain opposition groups filed a
protest to our patent application with the Department of Interior. We filed a
response to the protest. The Department of Interior has not set a time frame for
granting the patents or responding to the protest.


                                     F-E14
<PAGE>

                           CROWN RESOURCES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2003, 2002 (AS RESTATED),
                             AND 2001 (AS RESTATED)


Approval of this patent application will not change the ultimate ownership of
the reserves at the Buckhorn Mountain Project. Currently the mineral rights
under the unpatented claims are subject to meeting certain annual maintenance
work requirements and payment of an annual claim fee. The U.S. Government owns
the surface rights on our unpatented claims. Approval of the patent application
will eliminate the annual maintenance and fee requirement as well as combine
perfected title to us regarding the surface rights on our existing unpatented
claims. If the Department of the Interior does not grant the patents on our
existing unpatented claims, it will not affect our rights to mine on the
unpatented claims nor require us to modify our currently planned mining
operation.

CORD RANCH

In 2002, Crown sold its interest in the Cord Ranch properties to Royal Standard
Minerals, Inc. ("Royal Standard") for one million shares of common stock of
Royal Standard. Crown recorded a gain on sale of $171,000, which equaled the
market value of the shares received on the date of sale, as Crown had no
carrying value for its interest in the Cord Ranch Properties. As of December 31,
2003 and 2002, the shares of Royal Standard common stock are reflected on
Crown's accompanying consolidated balance sheets as marketable equity securities
available for sale.

KINGS CANYON

The Kings Canyon property in Utah consists of 360 acres of unpatented claims.
Crown holds a 100% interest in the property, subject to a 4% net smelter royalty
to third parties. There are no capitalized costs related to the Kings Canyon
property as of December 31, 2003. Crown intends to maintain the property and may
seek a joint venture partner to further evaluate and develop the Kings Canyon
property.

Capitalized costs

        Mineral interests and mineral properties costs are comprised of the
following:

                                                         As of December 31,
(in thousands)                                           2003          2002
                                                         ----          ----
Mineral interests:
  Land and leasehold costs                            $  21,583     $  19,703
    Less accumulated depreciation, depletion and
    amortization                                           (601)         (601)
                                                      ---------     ---------
  Land and leasehold costs, net                       $  20,982     $  19,102
                                                      =========     =========
Mineral properties:
  Development costs                                   $   8,678     $   6,612
                                                      =========     =========

All amounts in the table above relate to Crown's Buckhorn Mountain Project,
which contains all of Crown's total proven and probable gold reserves and its
only property in development. Crown had no foreign assets at December 31, 2003
and 2002.


                                     F-E15
<PAGE>

                           CROWN RESOURCES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2003, 2002 (AS RESTATED),
                             AND 2001 (AS RESTATED)


4.      INVESTMENT IN SOLITARIO RESOURCES CORPORATION:

As discussed in Note 1, Crown accounts for its investment in Solitario under the
equity method of accounting. The fair value, based on the quoted market price,
of Crown's 9,633,585 shares of Solitario common stock was approximately
$13,198,000 and $3,973,000 at December 31, 2003 and 2002, respectively.
Condensed financial information of Solitario is as follows:

<TABLE>
<CAPTION>

BALANCE SHEETS                                                              As of December 31,
                                                                            ------------------
   (in thousands)                                                         2003               2002
                                                                       ----------         ----------
<S>                                                                    <C>                <C>
ASSETS
Current assets                                                         $    3,993         $    1,952
Mineral interests, net                                                      2,760              3,216
Investment in Crown warrant, at fair value                                  5,591                153
Note receivable from Crown                                                    937                915
Other                                                                           7                140
                                                                       ----------         ----------
  Total assets                                                         $   13,288         $    6,376
                                                                       ==========         ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities                                                    $      763         $       99
Deferred income taxes                                                         591                  -
Stockholders' equity                                                       11,934              6,277
                                                                       ----------         ----------
  Total liabilities and stockholders' equity                           $   13,288         $    6,376
                                                                       ==========         ==========

STATEMENTS OF OPERATIONS                                                  Year Ended December 31,
                                                                 ----------------------------------------
   (in thousands)                                                   2003           2002           2001
                                                                 ----------     ----------     ----------
Unrealized gain (loss) on derivative instruments                 $    5,438     $      105     $      (63)
Other costs and expenses                                             (2,084)        (2,184)        (3,670)
                                                                 ----------     ----------     ----------
Net income (loss)                                                $    3,354     $   (2,079)    $   (3,733)
                                                                 ==========     ==========     ==========
</TABLE>

The following is a reconciliation of Solitario's reported stockholders' equity
to amounts reported by Crown as its investment in Solitario:

<TABLE>
<CAPTION>

                                                                            As of December 31,
                                                                            ------------------
   (in thousands)                                                         2003               2002
                                                                       ----------         ----------
<S>                                                                    <C>                <C>
Solitario stockholders' equity, as reported                            $   11,934         $    6,277
Adjustments:
  Less Solitario's book value of Crown securities, recorded as
      treasury Stock                                                          793                185
  Less Solitario's other comprehensive income, related to gains
      on Crown common stock, net of 607,000 of tax in 2003                  1,144                 31
  Less Solitario's unrealized gain on derivative instruments,
     related to gain on Crown warrants, net of 669,000 of tax in 2003       4,812                 43
                                                                       ----------         ----------
Solitario adjusted stockholder's equity                                     5,185              6,018
Crown percentage                                                            38.7%              41.2%
                                                                       ----------         ----------
Crown's investment in unconsolidated subsidiary                        $    2,004         $    2,477
                                                                       ==========         ==========
</TABLE>

        The following is a reconciliation of Solitario's reported net income
(loss) to amounts reported by Crown as its equity in loss of Solitario:

<TABLE>
<CAPTION>

                                                                      For the year ended December 31,
                                                                 ----------------------------------------
   (in thousands)                                                   2003           2002           2001
                                                                 ----------     ----------     ----------
<S>                                                              <C>            <C>            <C>
Solitario net income (loss) as reported                          $   3,354      $  (2,079)     $  (3,733)
Adjustments:
  Solitario's derivative (gains) and losses recorded in its
     statement of operations for its holdings of Crown
     warrants, net of $669,000 of tax in 2003                       (4,769)          (105)             63
  Other, net                                                             -             63               3
                                                                 ----------     ----------     ----------
Solitario adjusted loss                                             (1,415)        (2,121)         (3,673)
                                                                 ----------     ----------     ----------
Crown weighted average percentage (1)                                 40.4%          41.2%          41.2%
                                                                 ----------     ----------     ----------
Crown's equity in loss of unconsolidated subsidiary              $    (571)     $    (873)     $  (1,512)
                                                                 ==========     ==========     ==========
</TABLE>

(1)     The weighted average interest of Crown in Solitario's net income or loss
        for the year ended December 31, 2003 reflects the dilution of Crown's
        ownership interest resulting from Solitario's sale of its common stock
        to a third party in November 2003. As discussed below, this transaction
        reduced Crown's investment in Solitario to 38.7% as of December 31,
        2003.


                                     F-E16
<PAGE>

                           CROWN RESOURCES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2003, 2002 (AS RESTATED),
                             AND 2001 (AS RESTATED)


For purposes of calculating its investment in Solitario and its equity in
Solitario's earnings and losses, Crown has excluded the amounts reported by
Solitario with respect to its investment in Crown warrants and Crown common
stock.

On November 4, 2003, Solitario completed a private placement to certain Canadian
based funds managed by Sprott Asset Management of Toronto, Ontario of 1,500,000
of Solitario common shares at a price of Cdn $1.20 per share for total proceeds
of Cdn $1,800,000, or approximately $1,310,000 (net). The additional shares
reduced Crown's interest in Solitario to 38.7% at December 31, 2003 from 41.2%
at September 30, 2003. Crown's proportionate interest in this sale, net of
taxes, has been recorded as an increase in Crown's investment in Solitario, and
an increase in additional paid-in capital.

On October 8, 2003, Crown announced that it intends to distribute its holdings
of 9,633,585 shares of Solitario's common stock prior to the completion of the
proposed Merger with Kinross. When Solitario sold shares in a Canadian public
offering in 1994, the Toronto Stock Exchange (the "TSX") required that the
issued and outstanding shares of Solitario held by Crown be held in escrow
pursuant to an escrow agreement (the "Escrow Agreement") to, among other things,
prevent Crown from selling too large a volume of Solitario shares shortly after
the public offering. Over the next three years sixty percent of the shares held
in escrow were released to Crown pursuant to the Escrow Agreement. On December
29, 2003, as required by the TSX, Solitario's disinterested shareholders (which
excluded Solitario's officers, directors and Crown) voted to approve the release
of the remaining 3,140,162 shares of Solitario held in escrow. The shares were
released from escrow on January 15, 2004. This will enable Crown to distribute
substantially all of the 9,633,585 shares of Solitario's common stock to the
shareholders of Crown in anticipation of closing the Merger with Kinross. No
fractional shares will be issued and no cash payments will be made in lieu of
fractional shares. Crown plans to retain any shares not distributed as
fractional shares. Crown estimates the total number of Solitario shares from
undistributed fractional shares will be less than 1,000 shares.

5.      LONG-TERM DEBT:

SENIOR NOTES

In October 2001 Crown issued $3,600,000 of 10% convertible secured promissory
notes due in October 2006 (the "Senior Notes"). Crown used $1,000,000 of the
proceeds to pay the cash component due the former Debenture holders described in
Note 1. The remaining proceeds were used by Crown for general corporate
purposes. The Senior Notes are secured by all of the assets of Crown on a
pari-passu basis with the Secured Notes, discussed below. At December 31, 2003,
these assets consist primarily of Crown's interest in the Buckhorn Mountain
Project and its 38.7% investment in Solitario.

The Senior Notes have a five-year term and carry a 10% interest rate, payable
quarterly in cash or Crown common stock at the conversion prices of $0.35 and
$0.2916 per share at the election of Crown. Originally, proceeds of $3,250,000
from the Senior Notes were placed in escrow pending restructuring of the
Debentures (the specific Senior Notes related to the proceeds placed in escrow
are also referred to as "Escrowed Notes"). Solitario invested $650,000 in these
Escrowed Notes. The Escrowed Notes are convertible into Crown common shares at a
conversion price of $0.35 per share, subject to adjustment. In addition, the
Escrowed Note holders have been issued a five-year warrant for every share into
which the Escrowed Notes are convertible. The warrants were exercisable upon
issuance. Each warrant is exercisable into a Crown common share at $0.75 per
share, subject to adjustment. All funds in escrow were released on the Effective
Date. Solitario also invested in a separate Senior Note, (referred to as the
"Solitario Note") for the remaining $350,000 of the Senior Notes. These funds
were made immediately available to Crown for general corporate purposes. The
Solitario Note is convertible into Crown common shares at a conversion price of
$0.2916 per share, subject to adjustment. In addition, Solitario has been issued
a five-year warrant to acquire 1,200,000 shares of Crown common stock at $0.60
per share, subject to adjustment. The terms of the Solitario Note and the
related warrant are otherwise identical to the terms of the Escrowed Notes and
warrants.

On the date of issuance, the warrants described above had an estimated fair
value of $379,000, which was recorded as a discount to the Senior Notes and
credited to additional paid-in capital. This discount is being amortized over
the life of the Senior Notes and charged to capitalized interest cost, using the
effective interest method.


                                     F-E17
<PAGE>

                           CROWN RESOURCES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2003, 2002 (AS RESTATED),
                             AND 2001 (AS RESTATED)


Under generally accepted accounting principles, any intrinsic value of the
conversion feature (market price of the stock less the effective conversion
price) of the Senior Notes must also be recorded as a discount to the Senior
Notes. At October 19, 2001, there was no intrinsic value associated with the
conversion feature of the Senior Notes and no discount was recorded thereon.
However, when the Bankruptcy Court approved the Plan of Crown on May 30, 2002,
the terms of the Senior Notes were effectively changed, since the conversion
price remained unchanged despite the 1 for 5 reverse split required by the Plan.
Based upon these revised terms, the intrinsic value of the conversion feature of
the Senior Notes as of their issuance date was $3,221,000. Effective May 30,
2002, this amount was recorded as a discount to the Senior Notes and credited to
additional paid-in capital. This conversion feature discount is being amortized
over the remaining life of the Senior Notes as of May 30, 2002 and is being
charged to capitalized interest cost.

A summary of the Senior Notes as of December 31, 2003 is as follows:

<TABLE>
<CAPTION>
                                                                                                  Total
                                                              Related          Other              Senior
                                                               Party           Senior              Notes
                                                               Notes           Notes              Payable
                                                               -----           -----              -------
<S>                                                         <C>             <C>               <C>
    Face value of Senior Notes                              $ 1,000,000     $ 2,600,000       $ 3,600,000
    Unamortized warrant discount                                (64,000)       (156,000)         (220,000)
    Unamortized beneficial conversion feature discount         (845,000)     (2,218,000)       (3,063,000)
                                                            -----------     -----------       -----------
      Senior Notes balance                                  $    91,000     $   226,000       $   317,000
                                                            ===========     ===========       ===========
</TABLE>

A summary of the Senior Notes as of December 31, 2002 is as follows:

<TABLE>
<CAPTION>
                                                                                                  Total
                                                              Related          Other              Senior
                                                               Party           Senior              Notes
                                                               Notes           Notes              Payable
                                                               -----           -----              -------
<S>                                                         <C>             <C>               <C>
    Face value of Senior Notes                              $ 1,000,000     $ 2,600,000       $ 3,600,000
    Unamortized warrant discount                                (86,000)       (208,000)         (294,000)
    Unamortized conversion feature discount                    (880,000)     (2,309,000)       (3,189,000)
                                                            -----------     -----------       -----------
      Senior Notes balance                                  $    34,000     $    83,000       $   117,000
                                                            ===========     ===========       ===========
</TABLE>

SECURED NOTES

As discussed in Note 1, Crown issued $2,000,000 in 10% convertible Secured Notes
as part of the Corporate Reorganization. The Secured Notes carried a 10%
interest rate payable quarterly in cash or Crown common stock at the election of
Crown. The number of shares of Crown's common stock that could have been issued
in satisfaction of accrued interest is calculated by dividing the value of the
accrued interest obligation at the stated interest rate by the conversion price
of $0.35 per share. The Secured notes mature in October 2006 and are convertible
into Crown common shares at $0.35 per share. The Secured Notes were secured by
all of the Assets of Crown on a pari-passu basis with the Senior Notes. In
addition, the Secured Note holders have been issued a warrant, which expires in
2006 for every share into which the Secured Notes are convertible. The warrants
were exercisable upon issuance. Each warrant is exercisable into a Crown common
share at $0.75 per share, subject to adjustment.

Crown recorded a discount of $1,257,000 to the Secured Notes for the intrinsic
value of the conversion feature on May 30, 2002 and credited additional paid-in
capital for that amount. On the same date, the warrants associated with the
Secured Notes had an estimated value of $286,000, which was also recorded as
consideration for the exchange of the Debentures and credited to paid-in
capital. The beneficial conversion feature was being amortized over the
remaining life of the Secured Notes as of May 30, 2002 and charged to
capitalized interest cost, using the effective interest method.


                                     F-E18
<PAGE>

                           CROWN RESOURCES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2003, 2002 (AS RESTATED),
                             AND 2001 (AS RESTATED)


On November 21, 2003 the Secured Notes were called for redemption, and all but
$6,000 of outstanding Secured Notes were converted into 5,679,142 shares of
Crown common stock as of December 31, 2003, with the remainder being redeemed
for cash. The remaining unamortized discount of $940,000 was charged to
capitalized interest cost during 2003 upon conversion of the Secured Notes.

A summary of the Secured Notes at December 31, 2002 is as follows:

        Face value of Secured Notes                            $ 2,000,000
        Unamortized conversion feature discount                 (1,153,000)
                                                               -----------
          Secured Notes balance                                $   847,000
                                                               ===========

SUBORDINATED NOTES

As discussed in Note 1, Crown issued $4,000,000 in 10% convertible Subordinated
Notes as part of the Debenture restructuring. The Subordinated Notes carried a
10% interest rate payable quarterly in cash or Crown common stock at the
conversion price at the election of Crown. The Subordinated Notes mature in
October 2006 and were convertible into Crown common shares at $0.75 per share.
The conversion feature of the Subordinated Notes had no intrinsic value on the
issuance date and accordingly, there was no discount recorded thereon. In
October 2003 and November 2003 a total $839,331 of Subordinated Notes were
converted into 1,119,108 shares of common stock prior to the automatic
conversion on November 5, 2003. On November 5, 2003 the remaining $3,160,669 of
Subordinated Notes were automatically converted into 4,214,225 shares of common
stock. The automatic conversions were in accordance with the provisions of the
Subordinated Notes whereby the Subordinated Notes automatically convert into
common stock if the price of the common stock trades above 233% of the
conversion price of $0.75, or $1.75, for twenty consecutive days. The shares
related to the automatic conversion are deemed issued and outstanding as of the
date of the automatic conversion.

SUBORDINATED B NOTES

On February 21, 2003, Crown issued $2,705,000 of 10% Convertible Subordinated
Promissory Notes due 2006, Series B (The "Subordinated B Notes"). The
Subordinated B Notes were convertible into common stock of Crown at $0.75 per
share. There was no beneficial conversion feature for the Subordinated B Note as
the market price was below the conversion price at issuance. The Subordinated B
Notes pay interest at 10% in stock or cash at Crown's option, and mature in
October 2006. Solitario invested $400,000 in the Subordinated B Notes on the
same terms as all other investors. On November 5, 2003, $2,705,000 of
Subordinated B Notes were automatically converted into 3,606,667 shares of
common stock. The automatic conversions were in accordance with the provisions
of the Subordinated B Notes whereby the Subordinated B Notes automatically
convert into common stock if the price of the common stock trades above 233% of
the conversion price of $0.75, or $1.75, for twenty consecutive days. The shares
related to the automatic conversion are deemed issued and outstanding as of the
date of the automatic conversion.

KEYSTONE NOTE

In July 2001, as part of the termination of the joint venture with Newmont,
Crown assumed a note with a face value of $250,000 due February 22, 2002 (the
"Keystone Note"). Crown recorded the Keystone Note at its discounted fair value
of $237,000. On December 18, 2001 Crown amended the terms of the Keystone Note,
by paying the holders of the Keystone Note $30,000 and extending the term of the
Keystone Note for a period of four years, with a payment, including interest, of
$20,000 due in June 2002 and four annual payments, including interest, of
$50,000 beginning in December 2002. As a result of this amendment to the terms
of the Keystone note, Crown recorded a discount of $41,000 to its recorded value
of the Keystone note for the present value of the remaining payments, and other
income of the same amount. This discount is being amortized to capitalized
interest cost over the remaining term of the note. Crown recorded capitalized
interest cost of $13,000 during 2003 and $17,000 during 2002 for amortization of
its discount on the Keystone note. In December 2002, Crown amended the terms of
the Keystone Note to extend payment of $20,000 of the note from December 2002 to
June 2003. The effect of this amendment was not material. At December 31, 2003,
the current portion of the Keystone Note was $49,000.


                                     F-E19
<PAGE>

                           CROWN RESOURCES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2003, 2002 (AS RESTATED),
                             AND 2001 (AS RESTATED)


INTEREST

Interest costs are capitalized on mineral property and mineral interest in
development. Interest is capitalized by applying a weighted average interest
rate to the average capitalized costs during a period, up to a maximum of total
interest costs incurred during the period. Crown capitalized all of its interest
costs of $3,068,000, $996,000 and $1,046,000 for the years ended December 31,
2003, 2002 and 2001, respectively. At December 31, 2003 and 2002 a total of
$13,885,000 and $10,817,000, respectively, of interest costs have been
capitalized as mineral property at the Buckhorn Mountain Project.

Crown may pay interest on the Senior Notes, the Secured Notes and the
Subordinated Notes in cash or Crown common shares, at its election. Crown
accrues interest at the nominal rate of 10% during the period the notes are
outstanding. For interest paid in Crown common shares, capitalized interest cost
is adjusted on the interest payment date to the market value of the common
shares issued on that date. Accrued interest up to the date of conversion on
notes converted during 2003 of $65,000 has been charged to capitalized interest
cost and credited to additional paid-in capital.

Crown recorded the following amounts to capitalized interest cost related to
long-term debt:

<TABLE>
<CAPTION>
                                                                    Year ended December 31,
                                                   2003                                       2002                       2001
                             ---------------------------------------------    ----------------------------------  ------------------
(in thousands)                                   Subor-    Subor-                                Subor-
                              Senior   Secured   dinated  dinated             Senior   Secured   dinated           Senior
Notes:                        Notes     Notes     Notes   B Notes    Total     Notes    Notes     Notes    Total    Notes    Total
                              -----     -----     -----   -------    -----     -----    -----     -----    -----    -----    -----
<S>                           <C>      <C>        <C>     <C>       <C>        <C>      <C>       <C>      <C>      <C>    <C>
  Stated interest             $ 360    $  185     $ 339   $   191   $1,075     $ 359    $ 111     $ 222    $ 692    $  72  $     72
  Warrant discount
     amortization                74         -         -         -       74        72        -         -       72       12        12
  Beneficial conversion
     feature discount
     amortization               125       213         -         -      338        32      104         -      136        -         -
  Unamortized discount
     charged to interest
     cost upon conversion         -       940         -         -      940         -        -         -        -        -         -
  Increase (decrease) in
     interest cost from
     shares issued for
     interest                   373       200        27        28      628       (98)      10       (64)    (152)       -        -
                              -----    ------     -----   -------   ------     -----    -----     -----    -----    -----   ------
Total                         $ 932    $1,538     $ 366   $   219    3,055     $ 365    $ 225     $ 158      748    $  84       84
                              =====    ======     =====   =======              =====    =====     =====             =====
Convertible debentures                                                   -                                   231               953
Keystone Note                                                           13                                    17                 9
                                                                    ------                                 -----            ------
  Total capitalized
    interest Cost                                                   $3,068                                 $ 996            $1,046
                                                                    ======                                 =====            ======
</TABLE>

For the years ended December 31, 2003, 2002 and 2001, interest income of
$25,000, $35,000 and $34,000, respectively, has been recorded as reductions in
net interest expense in Crown's consolidated statements of operations.

Future minimum payments

The following shows the future minimum payments on long-term debt:

(in thousands)                 2004      2005      2006      Total
                             --------  --------  --------  --------
Senior Notes                 $      -  $      -  $  3,600  $  3,600
Keystone Note                      50        50         -       100
                             --------  --------  --------  --------
  Total payments             $     50  $     50  $  3,600  $  3,700
                             ========  ========  ========  ========


                                     F-E20
<PAGE>

                           CROWN RESOURCES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2003, 2002 (AS RESTATED),
                             AND 2001 (AS RESTATED)


6.      INCOME TAXES:

Crown's income tax expense (benefit) from continuing operations consists of the
following:

(in thousands)                                  2003        2002        2001
                                              --------    --------    --------
Deferred:
  U.S.                                        $   (457)   $    (55)   $   (388)
  Foreign                                            -           -           -
Operating loss and credit carryovers:
  U.S.                                          (1,263)      4,922         388
  Foreign                                            -           -           -
                                              --------    --------    --------
Income tax expense (benefit)                  $ (1,720)   $  4,867    $      -
                                              ========    ========    ========

During 2003, income tax expense of $130,000 related to Crown's additional
paid-in capital arising from Solitario's share issuances was charged to
stockholders' equity.

During 2003 and 2002, Crown recognized other comprehensive income (loss) related
to unrealized gains (losses) on marketable equity securities of ($35,000) and
$59,000, respectively. Other comprehensive income has been credited (charged) in
the amounts of $12,000 and ($20,000), respectively, for the income tax benefit
(expense) associated with these gains (losses).

The net deferred tax liabilities in the accompanying December 31, 2003 and 2002
balance sheets include the following components:

(in thousands)                                             2003        2002
                                                         --------    --------
Deferred tax assets:
 Net operating loss ("NOL") carryovers                   $  2,339    $  1,076
 Investment in Solitario                                    1,981       1,933
 Variable option compensation                               1,103          60
 Other                                                         71           7
                                                         --------    --------
Deferred tax assets                                         5,494       3,076
                                                         --------    --------

Deferred tax liabilities:
 Exploration, development and mineral interests costs       8,513       7,500
 Depreciation and  amortization                               266         463
                                                         --------    --------
Deferred tax liabilities                                    8,779       7,963
                                                         --------    --------
Net deferred tax liabilities                             $  3,285    $  4,887
                                                         ========    ========

A reconciliation of expected federal income tax expense (benefit) from
continuing operations at the U.S. statutory rates with the expense (benefit) for
income taxes is as follows:

(in thousands)                                  2003        2002        2001
                                              --------    --------    --------

Income tax at statutory rates                  ($1,601)   $  2,357    $   (704)
Section 382 limitation                               -       5,751           -
Change in valuation allowance                        -      (3,241)        631
Other                                             (119)          -          73
                                              --------    --------    --------
Income tax expense/(benefit)                  $ (1,720)   $  4,867    $      -
                                              ========    ========    ========

In connection with the confirmation of the Plan, Crown had a greater than
fifty-percent change of ownership as defined in Section 382 of the Internal
Revenue Code. Pursuant to Section 382, the amount of future taxable income
available to be offset by Crown's carryovers is limited to approximately
$121,000 per year.

At December 31, 2003 Crown had unused NOL carryovers of approximately
$6,880,000, which begin to expire commencing in 2021.


                                     F-E21
<PAGE>

                           CROWN RESOURCES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2003, 2002 (AS RESTATED),
                             AND 2001 (AS RESTATED)


7.      FAIR VALUE OF FINANCIAL INSTRUMENTS:

For certain of Crown's financial instruments, including cash and cash
equivalents, and short-term investments, the carrying amounts approximate fair
value due to their short maturities. The estimated fair value at December 31,
2003, based on quoted market prices, of Crown's Senior Notes was $26,514,000.
The estimated fair value at December 31, 2002, based on quoted market prices, of
Crown's Senior, Secured and Subordinated Notes was $4,500,000, $2,500,000 and
$3,400,000, respectively.

8.      COMMITMENTS AND CONTINGENCIES:

In acquiring its interests in mineral claims and leases, Crown has entered into
lease agreements, which generally may be canceled at its option. Crown is
required to make work commitments and minimum rental payments in order to
maintain its interests in certain claims and leases. Crown estimates its 2004
mineral property rentals and option payments to be approximately $17,000.
Additionally, Crown has no estimated work commitments for 2004.

Crown has a defined-contribution retirement plan covering all full-time U.S.
employees. The plan provides for Company matching, at the rate of 75%, of
employee savings contributions of up to 9% of compensation, subject to ERISA
limitations. The cost of Company contributions in 2003, 2002 and 2001 was
$38,000, $40,000, and $43,000, respectively.

Crown leases office space under non-cancelable operating leases providing for
minimum annual rent payments of $32,690 in 2004, $32,690 in 2005, and $27,242 in
2006. Rent expense for all leases was $55,000, $70,000, and $73,000, for the
years ended December 31, 2003, 2002 and 2001, respectively.

Effective January 1, 2002, Crown has adopted the provisions of SFAS 143
"Accounting for Asset Retirement Obligations." During 2003, Crown acquired nine
monitoring wells related to its permitting at its Buckhorn Mountain Project.
Under Crown's proposed plan of operations these wells not be reclaimed prior to
the closure of the Buckhorn Mountain Project after mining. Crown recorded
$21,000, the estimated present value of its cost to reclaim these wells as costs
associated with the Buckhorn Mountain Project, and has reflected the related
obligation as "asset retirement obligation" on its 2003 consolidated balance
sheet. Due to the nature of its exploration activities that are currently
reclaimed, and the limited nature of its activities at its Buckhorn Mountain
Project, which have been primarily related to permitting and completion of its
feasibility study, Crown did not have any reclamation liability at December 31,
2002.

9.      STOCK OPTION PLANS AND WARRANTS:

The 2002 Crown Stock Incentive Plan (the "2002 Plan") reserved 5,000,000 shares
of Crown common stock for grants under the 2002 Plan. The 2002 Plan provides
that the Board of Directors may: (a) grant incentive stock options, as defined
in Section 422 of the Internal Revenue Code of 1986; (b) grant options other
than incentive stock options ("non-qualified stock options); (c) award stock
bonuses; (d) sell and issue shares pursuant to certain restrictions under the
2002 Plan; and (e) award performance based awards as defined under the 2002
Plan. All options granted expire five years from the date of grant and vest 25
percent on the date of grant, and 25 percent on each anniversary of the date of
grant for the next three years. All options vest upon a change in control of
Crown as defined in the 2002 Plan. As of December 31, 2003, 56,000 options have
been exercised and no options have expired from the 2002 Plan.


                                     F-E22
<PAGE>

                           CROWN RESOURCES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2003, 2002 (AS RESTATED),
                             AND 2001 (AS RESTATED)


The activity in the 2002 Stock Incentive Plan for the years ended December 31,
2003 and 2002 was as follows:

<TABLE>
<CAPTION>
                                                       2003                         2002
                                            --------------------------   --------------------------
                                                             Weighted                   Weighted
                                             Number of        Average     Number of      Average
                                              Shares           Price        Shares        Price
                                              ------           -----        ------        -----
<S>                                           <C>              <C>         <C>           <C>
Outstanding, beginning of year                3,375,000        $0.40               -      $   -
Granted                                          60,000         0.45       3,375,000       0.40
Exercised                                       (56,000)        0.40               -          -
Cancelled / forfeited                                 -            -               -          -
Expired                                               -            -               -          -
                                              ---------         ----       ---------       ----
Outstanding, end of year                      3,379,000        $0.40       3,375,000      $0.40
                                              =========         ====       =========       ====
Exercisable, end of year                      1,681,500        $0.40         843,750      $0.40
                                              =========         ====       =========       ====
</TABLE>

Crown's 1988 Stock Benefit Plan (the "1988 Plan") and Crown's 1991 Stock
Incentive Plan (the "1991 Plan") had terms and conditions similar to the 2002
Plan, except that members of the Board of Directors could only receive formula
grants under the 1991 Plan. Up to 1,500,000 shares were reserved for grant under
both the 1988 Plan and the 1991 Plan (for a total of 3,000,000 shares). All
options outstanding under the 1988 Plan expired in February 2002. The Plan
rejected both the 1988 Plan and the 1991 Plan and all related option awards were
cancelled. As of December 31, 2002, there are no outstanding options for shares
under the 1988 Plan or the 1991 Plan.

The activity in the 1988 Plan for the year ended December 31, 2002 and 2001 was
as follows:

<TABLE>
<CAPTION>
                                                       2002                         2001
                                            --------------------------   --------------------------
                                                             Weighted                   Weighted
                                             Number of        Average     Number of      Average
                                              Shares           Price        Shares        Price
                                              ------           -----        ------        -----
<S>                                           <C>              <C>         <C>           <C>
Outstanding, beginning of   year                497,000        $2.18         545,000      $2.14
Granted                                               -            -               -          -
Exercised                                             -            -               -          -
Cancelled / forfeited                          (497,000)        2.18               -          -
Expired                                               -            -         (48,000)      1.75
                                              ---------         ----       ---------       ----
Outstanding, end of year                              -        $   -         497,000      $2.18
                                              =========         ====       =========       ====
Exercisable, end of year                              -        $   -         497,000      $2.18
                                              =========         ====       =========       ====
</TABLE>

The activity in the 1991 Plan for the year ended December 31, 2002 and 2001 was
as follows:

<TABLE>
<CAPTION>
                                                       2002                         2001
                                            --------------------------   --------------------------
                                                             Weighted                   Weighted
                                             Number of        Average     Number of      Average
                                              Shares           Price        Shares        Price
                                              ------           -----        ------        -----
<S>                                           <C>              <C>         <C>           <C>
Outstanding, beginning of   year              1,109,150        $1.25       1,099,875      $1.71
Granted                                               -            -         250,850       0.26
Exercised                                             -            -               -          -
Cancelled / forfeited                        (1,109,150)        1.25               -          -
Expired                                               -            -        (241,575)      2.33
                                              ---------         ----       ---------       ----
Outstanding, end of year                              -        $   -       1,109,150      $1.25
                                              =========         ====       =========       ====
Exercisable, end of year                              -        $   -         911,900      $1.34
                                              =========         ====       =========       ====
</TABLE>

As a result of the repricing of existing options in 1999 and 1998, (under both
the 1988 and 1991 Option Plans) Crown began to account for the awards as
variable as of July 1, 2000, in accordance with FASB Interpretation No. 44,
("FIN 44") "Accounting for Certain Transactions involving Stock Compensation,
(an interpretation of APB 25)." Accordingly, an increase in the current market
price of Crown common stock above the higher of the option strike price and the
market price of Crown's common stock subsequent to July 1, 2000, multiplied by
vested options outstanding will be recorded as compensation expense in the
period of the price increase. A subsequent reduction in the current market
price, to the extent of previously recorded compensation expense will be
credited as a reduction of compensation expense. In July 2002 Crown's Board of
Directors granted options to purchase 3,375,000 shares under the 2002 Plan. Of
these, options to purchase 2,600,000 shares were deemed replacement options for
cancelled options awards with variable plan accounting. Accordingly, Crown
accounts for increases and decreases in the intrinsic value of the 2,600,000
options as compensation expense in accordance with APB No. 25 and FIN No. 44.
During 2003 and 2002 Crown recorded $3,126,000 and $175,000, respectively, of
compensation expense related to the vested portion of the 2002 option awards.
Additionally, Crown recorded $1,856,000 and $293,000, respectively, of unearned
compensation related to the unvested portion of these options. This amount will
be amortized to compensation expense using the straight-line method over the
remaining vesting term. There was no compensation


                                     F-E23
<PAGE>

                           CROWN RESOURCES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2003, 2002 (AS RESTATED),
                             AND 2001 (AS RESTATED)


expense recorded during 2001 or 2000 as a result of variable plan accounting as
there was no intrinsic value in the options because the quoted market price of
shares of Crowns common stock was below the exercise price of the options.

The following table summarizes Crown's stock options as of December 31, 2003


               Options Outstanding                         Options Exercisable
--------------------------------------------------       -----------------------
                          Weighted
                          Average      Weighted                         Weighted
                          Remaining    Average                          Average
Exercise                  Contractual  Exercise          Number         Exercise
Price         Number      Life         Price             Exercisable    Price
-----         ------      ----         -----             -----------    -----
  $0.40      3,319,000      4.5        $0.40               1,651,500    $0.40
  $0.45         60,000      4.0        $0.45                  30,000    $0.45

The activity in outstanding warrants for the year ended December 31, 2003, 2002
and 2001 was as follows:

<TABLE>
<CAPTION>
                                                      Weighted                     Weighted                    Weighted
                                        Warrants       Average       Warrants       Average      Warrants       Average
                                      Exercisable     Exercise     Exercisable     Exercise     Exercisable    Exercise
                                       For Shares       Price       For Shares       Price      For Shares       Price
                                       ----------       -----       ----------       -----      ----------       -----
<S>                                    <C>              <C>         <C>              <C>        <C>              <C>
Outstanding, beginning of year         16,200,000       $0.35       10,485,714       $0.35               -       $   -
Issued                                          -           -        5,714,286        0.75      10,485,714        0.35
Exercised                              (2,024,127)       0.75                -           -               -           -
Cancelled / forfeited(1)                 (772,063)       0.75                -           -               -           -
Expired                                         -           -                -           -               -           -
                                       ----------       -----       ----------       -----      ----------       -----
Outstanding, end of year               13,403,810       $0.43       16,200,000       $0.49      10,485,714       $0.35
                                       ==========       =====       ==========       =====      ==========       =====
</TABLE>

(1)     During 2003, holders of warrants for 1,851,425 shares exercised their
        warrants on a cashless basis at market prices between $1.50 and 2.50 per
        share for 1,079,362 shares of Crown common stock. Holders also exercised
        warrants for 944,765 shares for cash at the exercise price of $0.75 per
        share.

10.     RELATED PARTY TRANSACTIONS

At December 31, 2003 Crown owned 38.7% of Solitario. Crown provides management
and technical services to Solitario under a management and technical services
agreement originally signed in April 1994 and modified in April 1999, December
2000 and July 2002. Under the modified agreement Solitario reimburses Crown for
direct out-of-pocket expenses; payment of 25% of Crown corporate administrative
costs for executive and technical salaries benefits and expenses, 50% of Crown
corporate administrative costs for financial management and reporting salaries,
benefits and expenses and 75% of Crown corporate administrative costs for
investor relations salaries, benefits and expenses. These allocations are based
upon estimated time and expenses spent by Crown management and employees on
Crown activities and Solitario's activities. Management believes these
allocations are reasonable and the allocations are periodically reviewed by
management and approved by independent Board members of both Crown and
Solitario. Management service fees are billed monthly, due on receipt and are
generally paid within thirty days. Management service fees paid by Solitario
were $351,000, for 2003, $499,000 for 2002 and $590,000 for 2001. We anticipate
the management and technical services agreement will be terminated if our
pending Merger with Kinross is completed.

Crown entered into a Voting Agreement dated as of April 15, 2002 among Zoloto
Investor's, LP ("Zoloto") and Solitario, who are each stockholders of Crown (the
"Signing Shareholders"). Pursuant to the Voting Agreement, Solitario and Zoloto
agreed that they will each vote their owned shares during the term of the Voting
Agreement for the election of three designees of Zoloto and one designee of
Solitario (the "Designee Directors") to the Board of Directors of Crown. The
Signing Shareholders agreed that any shares received by either Signing
Shareholder would be subject to the Voting Agreement during its term and any
successor, assignee or transferee of shares from either Signing Shareholder
would be subject to the terms of the Voting Agreement during its term. The
Voting Agreement terminates on June 26, 2006. As of December 31, 2003, the
Signing Shareholders collectively held 1,733,866 shares or approximately 10.1%
of the outstanding shares of Crown.

In October 2001, Solitario invested in two Senior Notes, which totaled
$1,000,000 of the $3,600,000 principal amount of Senior Notes issued. The
proceeds of $350,000 from the first note (the "Solitario Note") were delivered
to Crown. The Solitario Note was convertible into shares of Crown commons stock
at $0.2916 per share. The


                                     F-E24
<PAGE>

                           CROWN RESOURCES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2003, 2002 (AS RESTATED),
                             AND 2001 (AS RESTATED)


proceeds from the second note from Solitario (the "$650,000 Note"), and the
remaining Senior Notes of $2,600,000, or $3,250,000 in total, were placed in
escrow pending the outcome of Crown's Bankruptcy. The $650,000 Note was
convertible into shares of Crown common stock at $0.35 per share. In March 2002
an additional $200,000 was advanced to Crown out of escrow of which Solitario's
share of the advance was $56,000. Crown's Plan was confirmed on May 30, 2002 and
the remaining balance of the proceeds plus interest was released to Crown on the
Effective Date. The independent Board members of both Crown and Solitario
approved the transaction. The terms of the transaction on the Escrowed Notes
were the same as given to other senior lenders of Crown (the "Senior Lenders")
and, with regard to the terms of the $350,000 Solitario Note, the terms were
negotiated with and approved by the other Senior Lenders.

In June 2001, Solitario acquired 200,000 shares of Canyon Resources Corporation
common stock as an investment from Crown at its fair market value of $200,000 at
that date. The transaction was approved by independent Board members of both
Crown and Solitario.

On February 21, 2003, Solitario invested $400,000 in Crown's Subordinated B
Notes on the same terms and conditions as all other investors. On November 5,
2003 Solitario's Subordinated B Notes were automatically converted into 533,333
shares of Crown common stock, as discussed in Note 5. During 2003 and 2002,
Crown issued to Solitario 249,718 and 182,440 shares of Crown's common stock,
with a fair value of $207,000 and $75,000, respectively, in satisfaction of
Crown's accrued interest obligations to Solitario under the Senior and
Subordinated B Notes. See Note 5.

As of December 31, 2003, Solitario owns 965,491 shares of Crown common stock,
has warrants to acquire 3,057,143 shares of Crown common stock at between $0.60
and $0.75 per share and could also acquire up to 3,057,143 additional shares of
Crown common stock through conversion of its Senior Notes.


                                     F-E25
<PAGE>

                           CROWN RESOURCES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2003, 2002 (AS RESTATED),
                             AND 2001 (AS RESTATED)


11.     SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED):

<TABLE>
<CAPTION>

(in thousands, except per share)                                            2003 (1)
                                   ------------------------------------------------------------------------------------------------
                                     March 31,   March 31,   June 30,    June 30,    Sept. 30,     Sept. 30,    Dec. 31,
                                        As          As          As          As          As            As
                                    previously   restated   previously   restated   previously     restated
                                     reported                reported                reported
                                   ------------------------------------------------------------------------------------------------
<S>                                   <C>         <C>         <C>         <C>         <C>         <C>           <C>
Revenues and property sales (3)       $     -     $     -     $     -     $     -     $     -     $     -       $    -
Net loss                              $  (661)    $  (423)    $  (690)    $  (271)    $(1,223)    $  (813)(4)   $(1,482)(4)
Loss per share:
  Basic and diluted                   $ (0.15)    $ (0.10)    $ (0.14)    $ (0.06)    $ (0.22)    $    (0.15)   $    (0.12)
Weighted shares outstanding:
  Basic and diluted                     4,303       4,201       4,904       4,769       5,533          5,361        11,886


(in thousands, except per share)                                            2002 (1)
                                   ------------------------------------------------------------------------------------------------
                                     March 31,   March 31,   June 30,    June 30,    Sept. 30,     Sept. 30,   Dec. 31,   Dec. 31,
                                        As          As          As          As          As            As          As         As
                                    Previously   restated   Previously   restated   PREVIOUSLY     restated   PREVIOUSLY  restated
                                     reported               reported(2)              reported                  reported
                                   ------------------------------------------------------------------------------------------------
Revenues and property sales (3)       $     -     $     -    $      -     $     -     $   171       $   171    $      -    $     -
Net income (loss)                     $  (606)    $  (374)   $  6,295     $ 2,905     $  (282)      $  (142)   $   (472)   $  (298)
Income (loss) per share
  Basic                               $ (0.21)    $ (0.13)   $   2.16     $  1.00     $ (0.09)      $ (0.04)   $  (0.15)   $ (0.08)
  Diluted                             $ (0.21)    $ (0.13)   $   0.40     $  0.19     $ (0.09)      $ (0.04)   $  (0.15)   $ (0.08)
Weighted shares outstanding
  Basic                                 2,952       2,947       2,920       2,909       3,243         3,207       3,762      3,693
  Diluted                               2,952       2,947      15,712      15,702       3,243         3,207       3,762      3,693
</TABLE>

(1)     The operating results for each of the four quarters in the year ended
        December 31, 2002 and each of the three quarters during the nine months
        ended September 30, 2003 have been restated as discussed in Note 12.
(2)     As adjusted for the reclassification of gain on discharge of convertible
        debentures from extraordinary item to costs expenses and other as
        required by SFAS No. 145.
(3)     As adjusted for the reclassification of interest income to costs,
        expenses and other in the statement of operations.
(4)     Crown recorded option compensation expense of $848,000 (before tax)
        during the third quarter of 2003, compared to $188,500 (before tax) in
        the second quarter of 2003, which accounted for the increase in the
        third quarter loss and Crown recorded option compensation expense of
        $1,616,000 (before tax) during the fourth quarter of 2003 and incurred
        significant additional legal and accounting costs during the fourth
        quarter of 2003 related to its pending merger with Kinross which
        accounted for the increased loss in the quarter compared to the prior
        quarter.

12.     RESTATEMENT

Subsequent to the issuance of Crown's consolidated financial statements for the
years ended December 31, 2002 and 2001, Crown determined it had not properly (i)
capitalized interest costs related to the development of its Buckhorn Mountain
Project; (ii) adopted the provisions of SFAS No. 142 in relation to the
classification of mineral interests; (iii) accounted for certain costs that had
been capitalized relating to annual land and leasehold payments that should have
been expensed as incurred; (iv) treated discounts associated with warrants and
beneficial conversion features related to outstanding debt as permanent
differences in its tax provision; (v) recorded Crown's interest in Solitario's
ownership of Crown's equity securities as treasury stock; (vi) recorded Crown's
equity interest in certain adjustments made by Solitario required by SFAS No.
142; and (vii) recorded a gain on the restructuring of its Keystone Note as a
discount to be amortized over the remaining life of the Keystone Note when the
note was renegotiated in December 2001, as discussed below.

        (i)     Crown's Buckhorn Mountain Project has been in development since
Crown acquired the project in 1989. Since August 1991 Crown has been incurring
interest costs on long-term debt, which had not been capitalized as required by
SFAS No. 34, "Capitalization of Interest Cost" ("SFAS No. 34"). SFAS No. 34
requires capitalization of interest costs utilizing a weighted average rate on
outstanding debt and applying that rate to the average outstanding balance of
capitalized costs on projects in development, up to the total interest cost for
the period.

        (ii)    Effective January 1, 2002, SFAS 142 requires mineral interests
in the form of exploration concessions to be classified as intangible assets and
amortized over their expected useful lives. In its previously issued 2002
financial statements, Crown had classified its mineral interests as mineral
properties.


                                     F-E26
<PAGE>

                           CROWN RESOURCES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2003, 2002 (AS RESTATED),
                             AND 2001 (AS RESTATED)


        (iii)   As a result of the withdrawal of Crown's joint venture partner
associated with the Buckhorn Mountain Project in 2001, Crown began to incur
directly certain annual costs associated with its mineral interests. During
2003, Crown reviewed its cost capitalization policies and determined that
certain annual concession fees, taxes and other costs that had been capitalized
during 2002 and 2001 should have been charged to exploration expense as
incurred.

        (iv)    In connection with recording discounts associated with warrants
and beneficial conversion features related to its Senior and Secured Notes,
Crown recorded a deferred tax liability and reduction to additional paid-in
capital. Subsequently, as these note discounts were being amortized, Crown
recorded a reversal of this deferred tax liability and recognized an income tax
benefit in the period of the amortization. Crown has subsequently determined
that these discounts represented a permanent difference for which deferred taxes
should not have been recognized.

        (v)     During 2003, Crown determined that it should record as treasury
stock its proportionate share of the value of Solitario's recorded cost basis
for Solitario's investments in the equity securities of Crown.

        (vi)    Subsequent to the issuance of Solitario's consolidated financial
statements for the year ended December 31, 2002, Solitario determined that it
had not properly adopted the provisions of SFAS No. 142 in relation to the
classification of mineral interests, and that Solitario had capitalized certain
costs that should have been expensed as incurred.

        (vii)   During 2003, Crown determined that it should have accounted for
the renegotiation of the Keystone Notes (See Note 5) as a debt extinguishment
and recognized a gain it its 2001 statement of operations, to the extent of the
difference between the present value of the Keystone Note payments before and
after the renegotiation.

As a result, the accompanying consolidated financial statements for the years
ended December 31, 2002 and 2001 have been restated from the amounts previously
reported. A summary of the significant effects of the restatement is as follows:

BALANCE SHEET INFORMATION
                                                    As of December 31, 2002
                                                --------------------------------
(in thousands)                                   As previously
                                                   reported        As restated
                                                ---------------  ---------------
ASSETS:
   Mineral properties                               $ 14,980        $  6,612
   Mineral interests, net                                  -          19,102
   Equity in Solitario Resources Corporation           2,800           2,477
                                                    --------        --------
TOTAL ASSETS                                        $ 19,233        $ 29,644
                                                    ========        ========
LIABILITIES AND STOCKHOLDERS' EQUITY:
   Liabilities:
     Deferred income taxes                          $  2,975        $  4,887
   Stockholders' equity:
     Additional paid-in capital                       39,541          41,178
     Treasury stock                                        -             (76)
     Accumulated deficit                             (28,709)        (21,728)
     Accumulated other comprehensive income               59              39
                                                    --------        --------
  TOTAL STOCKHOLDERS' EQUITY                        $ 10,637        $ 19,159
                                                    ========        ========


                                     F-E27
<PAGE>

                           CROWN RESOURCES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2003, 2002 (AS RESTATED),
                             AND 2001 (AS RESTATED)

<TABLE>
<CAPTION>

STATEMENT OF OPERATIONS INFORMATION
                                                             Year ended December 31, 2002       Year ended December 31, 2001
                                                             ----------------------------       ----------------------------
                                                              As previously                      As previously
(in thousands except per share amounts)                         reported      As restated          reported      As restated
                                                                --------      -----------          --------      -----------
<S>                                                             <C>              <C>               <C>             <C>
Costs and expenses:
  Exploration expense                                           $      4         $     58          $      5        $      36
  Interest expense                                                   980                -             1,046                -
  Equity in loss of Solitario Resources Corporation                  662              873             1,506            1,512
  Gain on debt extinguishment                                          -                -                 -              (41)
Income (loss) before income tax                                    6,243            6,958            (3,148)          (2,098)
Income tax (expense) benefit                                      (1,308)          (4,867)                -                -
Net income                                                         4,935            2,091            (3,148)          (2,098)
Earnings (loss) per common share:
   Basic                                                        $   1.52         $   0.65          $  (1.08)       $   (0.72)
   Diluted                                                      $   0.26         $   0.10          $  (1.08)       $   (0.72)
</TABLE>

As discussed in (i) above, the consolidated financial statements were restated
for capitalized interest commencing in 1991. This resulted in an adjustment to
accumulated deficit at January 1, 2001 of $8,775,000.


                                     F-E28

</TEXT>
</DOCUMENT>
