<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>tex99-1.txt
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<PAGE>

                                                                    Exhibit 99.1


RESTATED MANAGEMENT'S DISCUSSION AND ANALYSIS OF OPERATING RESULTS AND FINANCIAL
CONDITION

This  restated  Management's  Discussion  and Analysis of Operating  Results and
Financial  Condition  ("MD&A")  should be read in conjunction  with the restated
interim consolidated  financial statements of Kinross for the period ended March
31,  2004.  Readers  are  cautioned  that  this  MD&A  contains  forward-looking
statements  and that  actual  events  may vary from  management's  expectations.
Readers are encouraged to consult Kinross' restated audited financial statements
for the year ended  December 31, 2003 included in the financial  statements  for
the year ended December 31, 2004 filed with securities regulatory authorities in
all provinces of Canada for additional details. The audited financial statements
are available on the Company's website www.kinross.com and on www.sedar.com. The
consolidated  financial  statements  and MD&A are presented in U.S.  dollars and
have been prepared in accordance  with Canadian  generally  accepted  accounting
principles  ("CDN GAAP").  Reconciliation  to United States  generally  accepted
accounting   principles  is  provided  annually  as  a  note  to  the  financial
statements.  All amounts  expressed  herein are in U.S. dollars unless otherwise
stated.  This  discussion   addresses  matters  we  consider  important  for  an
understanding of our financial condition and results of operations as of and for
the three months ended March 31, 2004, as well as our outlook.

As  discussed  herein,  this MD&A has been  amended at November 18, 2005 to give
effect  to  the  restatement  as  described  in   "Restatement"   below  and  in
"Restatement" in Note 2 of the restated  consolidated  financial  statements for
the three months ended March 31, 2004.  Apart from revisions  resulting from the
restatement, this MD&A does not reflect events subsequent to March 31, 2004.

OVERVIEW

The  profitability  of the Company and its  competitors  is subject to the world
prices of gold and silver and the costs  associated  with:  the  acquisition  of
mining interests;  exploration and development of mining  interests;  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 the  Company's  control.  In order to
minimize the impact of price movements,  management continually strives to be an
efficient,  cost effective producer.  This discussion is based on issues,  which
the Company can control, and references to the Company's progress in meeting its
primary  objective for 2004 of producing between 1.70 and 1.75 million ounces of
gold equivalent.

On January 31, 2003, the Company  combined its operations with those of TVX Gold
Inc.  ("TVX") and Echo Bay Mines Ltd.  ("Echo Bay").  This  transaction is fully
described in the December 31, 2003 financial statements,  the accompanying notes
and the annual MD&A. As a result,  comparative  numbers for the first quarter of
2003  include  only two  months of  operations  of the mines  acquired  from the
combination.  This transaction had a material impact on the Company's operations
and its balance sheet rendering  comparisons  rather  meaningless  except in the
discussion of the operations of each mine.

RESTATEMENT

Following comments from, and discussions with, regulatory  authorities,  Kinross
has restated its consolidated  financial  statements for the year ended December
31,  2003  and  interim  consolidated  financial  statements  in  2004  and  the
comparable periods in 2003, as described in Note 2 to the financial  statements.
Changes were made to the purchase  price  allocation,  allocation of goodwill to
reporting units and subsequent  impairment testing of the assets and liabilities
acquired in the TVX and Echo Bay  transaction  on January 31, 2003.  The interim
consolidated  financial  statements for 2004 have also been restated for changes
to the  accounting  of hedging  relationships.  Effective  January 1, 2004,  the
Company adopted  Accounting  Guideline 13 ("AcG-13"),  "Hedging  Relationships",
which provides guidance concerning  documentation and effectiveness  testing for
derivative  contracts.  Derivative  instruments  that do not  qualify as a hedge
under  AcG-13,  or are not  designated  as a hedge,  are recorded on the balance
sheet at fair value with changes in fair value recognized in earnings.  Upon the
adoption of AcG-13,  certain  derivative  instruments  that had been  previously
accounted  for as hedges  failed to meet the  requirements  of AcG-13 for formal
hedge accounting.


                                       1
<PAGE>

RESULTS SUMMARY

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
                                                                               Three months ended March 31,
------------------------------------------------------------------------------------------------------------------------
Summary of First Quarter Consolidated Results                              2004            2003        Change (a)
------------------------------------------------------------------------------------------------------------------------
<S>                                                                        <C>                    <C>             <C>
Attributable gold equivalent production - ounces                             397,011              326,812         21%
Revenues (millions)                                                    $       154.8        $       117.0         32%
Net earnings (loss) for the period (millions)                          $         6.2        $       (15.0)        nm
Net earnings (loss) attributable to common shareholders (millions)     $         6.2        $       (17.1)        nm
Basic and diluted earnings (loss) per share                            $        0.02        $       (0.07)        nm

------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a) "nm" refers to not meaningful.

The Company's  share of attributable  gold  equivalent  production for the first
quarter of 2004 was 397,011  ounces,  an  increase of 21% over the 326,812  gold
equivalent  ounces produced in the  corresponding  period in 2003. The principal
reason for the  increase  is that the first  quarter of 2003  includes  only two
months  of  operations   for  the  mines  acquired  in  the  TVX  and  Echo  Bay
combinations.

Revenue  from gold and  silver  sales in the first  quarter  of 2004 was  $154.8
million compared to $117.0 million in first quarter of 2003, an increase of 32%.
The Company  sold 374,126  ounces of gold in the quarter at an average  realized
price of $400 per ounce  while the  average  spot gold price for the quarter was
$408 per  ounce.  This  compares  to  330,022  ounces  of gold sold in the first
quarter of 2003 at an average realized price per ounce of gold of $342 per ounce
($352 per ounce average spot price).  There is discussion  later  concerning the
Company's  hedge(1)  position,  which causes the difference between the realized
price and the average spot price for gold.

Cash flow provided from  operating  activities for the quarter was $15.0 million
in 2004  compared to $16.0 million in 2003.  Cash flow  provided from  operating
activities  increased due to higher  production and gold sales and decreased due
to an increase in working capital  requirements.  Two significant factors in the
use of cash were:  $12.9 million  related to winter road  resupply  purchases at
Kubaka and Lupin;  and $13.6 million of reduction in accrued  liabilities due to
payments  associated with the completion of the settlement  agreement  regarding
TVX Hellas.

Net earnings  for the quarter was $6.2 million or $0.02 per share  compared to a
net loss of $15.0  million (a net loss of $17.1 million or $0.07 per share after
the  convertible  debenture  impact) for the first quarter of 2003. The net loss
for the first  quarter of 2003 has been  restated to reflect the adoption of the
Canadian  Institute  of Chartered  Accountants  ("CICA")  Handbook  Section 3110
"Asset retirement  obligations" ("Section 3110"). This restatement increased the
net loss  attributable to common  shareholders  for the first quarter of 2003 by
$0.8 million to $17.1 million and increased the basic and diluted loss per share
by $0.01 to $0.07.  The bottom line improvement in the first quarter of 2004 was
principally  due to higher  production  levels  coupled with higher gold selling
prices.

The  Company's  first  quarter  plan called for gold  equivalent  production  of
389,800 ounces. The actual results for the quarter exceeded plan.

Due to poor  economic  performance,  Kinross  Management  and our joint  venture
partner, High River Gold, have made the decision to suspend all underground mine
development  work.  Mining and milling of developed ore will continue until late
in the third quarter of 2004.

----------
(1) The use of the word  "hedge" or "hedging"  throughout  the MD&A refers to an
economic  hedge,  which is not  necessarily  a hedge from a financial  statement
perspective as defined in Accounting Guideline 13, "Hedging Relationships".


                                       2
<PAGE>

OPERATING RESULTS

SEGMENT EARNINGS (LOSS)

-------------------------------------------------------------------------------
in US$ millions                  Three months ended
                                       March 31,             2004 VS 2003
                                --------------------
                                  2004       2003 (a)      Change      Change %
-------------------------------------------------------------------------------
OPERATING SEGMENTS
Fort Knox                       $ 5.7        $ (1.2)       $ 6.9           nm
Paracatu                          2.5           0.4          2.1         525%
Round Mountain                    8.2          (0.6)         8.8           nm
Porcupine Joint Venture           1.4          (0.4)         1.8           nm
La Coipa                          2.4          (0.5)         2.9           nm
Crixas                            3.4           0.7          2.7         386%
Musselwhite                      (1.1)         (2.0)         0.9         (45%)
Kubaka (b)                        2.2           2.7         (0.5)        (19%)
Other operations (c)             (2.2)         (5.6)         3.4         (61%)
CORPORATE & OTHER               (13.1)         (8.2)        (4.9)         60%
-------------------------------------------------------------------------------
Segment earnings (loss)         $ 9.4       $ (14.7)      $ 24.1           nm
-------------------------------------------------------------------------------


(a)  Segment  earning  (loss) for the three  months ended March 31, 2003 include
     only 2 months of operating and financial  results for the mines acquired in
     the TVX/Echo Bay transaction.
(b)  Segment earnings (loss) for 2003 included the Company's portion of Kubaka's
     financial results (54.7% until February 28, 2003, and 100% thereafter).
(c)  Other operations  include Kettle River,  Refugio,  Lupin and New Britannia.
     Segment  earnings  (loss)  for  2003  included  the  Company's  portion  of
     financial  results of Lupin and Kettle  River at 100% and New  Britannia at
     50% since February 1, 2003.

OPERATIONS

FORT KNOX (100% OWNERSHIP AND OPERATOR) - U.S.A

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
                                                 Three months ended
                                                      March 31,                    2004 VS 2003
                                               -----------------------
                                                 2004           2003          Change        Change %
-----------------------------------------------------------------------------------------------------
<S>              <C>                            <C>            <C>              <C>               <C>
OPERATING STATISTICS
Tonnes processed (000's)                        3,216.2        3,069.4          146.8             5%
Grade (grams/tonne)                                0.91           1.11          (0.20)          (18%)
Recovery (%)                                        81%            83%            (2%)           (2%)
Gold equivalent ounces produced                  75,980         91,214        (15,234)          (17%)

FINANCIAL DATA (in US$ millions)
Revenues                                         $ 35.8         $ 33.2          $ 2.6             8%
Cost of sales (a)                                  22.7           23.7           (1.0)           (4%)
Accretion                                           0.3            0.3             --             0%
Depreciation, depletion and amortization            7.1           10.0           (2.9)          (29%)
-----------------------------------------------------------------------------------------------------
                                                    5.7           (0.8)           6.5             nm
Exploration                                          --            0.4           (0.4)         (100%)
-----------------------------------------------------------------------------------------------------
Segment earnings (loss)                           $ 5.7         $ (1.2)         $ 6.9             nm
-----------------------------------------------------------------------------------------------------
</TABLE>

(a) Cost of sales excludes accretion, depreciation and amortization.

The  Company  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  kilometres  northwest of
Fort Knox.  Gold  equivalent  production  in the first  quarter of 2004 was down
compared to the first quarter of 2003. The decrease was due to the change in the
mine plan.  Management  has decided to suspend mining of the True North mine for
several  months this year 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 for
the full year 2004  compared to 2003.  The  Company's  plan for 2004 is for gold
production of 340,000 ounces.


                                       3
<PAGE>

Revenues increased largely due to a higher realized gold price. During the first
half of the year the mill feed grades  were lower due to the mining  sequence at
Fort Knox and the deferral of True North Mining to the second half of 2004. Mill
feed  grades are  expected  to  increase  in the second  half of the year due to
improved grade at Fort Knox and the  resumption of mining at True North.  During
the first half of 2004 gold production is expected to be  approximately  145,000
ounces,  increasing to  approximately  195,000  ounces in the second half of the
year.  Costs are  expected to decrease  quarter over quarter as the waste mining
efforts shift to the Fort Knox Mine  expansion  program.  This expansion is of a
capital nature and as a result major pit expansion will take place over the next
several years, releasing approximately 1 million ounces of gold.

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.  The 2004 capital  budget totals $39.0
million. In the first quarter of 2004, $7.2 million was spent - $4.7 million for
mine development, $1.0 million on the tailings dam with the balance spent on new
equipment or equipment rebuilds.

ROUND MOUNTAIN (50% OWNERSHIP AND OPERATOR) - U.S.A

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
                                                                        Three months ended
                                                                             March 31,                    2004 VS 2003
                                                                     -------------------------
                                                                         2004        2003 (a)        Change        Change %
----------------------------------------------------------------------------------------------------------------------------
<S>              <C>                                                  <C>             <C>            <C>                <C>
OPERATING STATISTICS
Tonnes processed (000's) (b)                                          17,434.0        9,080.6        8,353.4            92%
Grade (grams/tonne)                                                       0.53           0.65          (0.12)          (18%)
Recovery (%)                                                               66%            66%             0%             0%
Gold equivalent ounces produced                                         94,984         64,034         30,950            48%

FINANCIAL DATA (in US$ millions)
Revenues                                                                $ 36.8         $ 21.3         $ 15.5            73%
Cost of sales (c)                                                         17.6           13.8            3.8            28%
Accretion                                                                  0.5            0.3            0.2            67%
Depreciation, depletion and amortization                                  10.5            7.6            2.9            38%
----------------------------------------------------------------------------------------------------------------------------
                                                                           8.2           (0.4)           8.6             nm
Exploration                                                                0.1            0.2           (0.1)          (50%)
Other                                                                     (0.1)            --           (0.1)            nm
----------------------------------------------------------------------------------------------------------------------------
Segment earnings (loss)                                                  $ 8.2         $ (0.6)         $ 8.8             nm
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a) 2003 results are for the period February through March only.
(b) Tonnes processed represent 100% of mine production.
(c) Cost of sales excludes accretion, depreciation, depletion and amortization.

The Company 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. The Company's  share of production of 94,984 ounces for the
first quarter of 2004 was 48% higher than the 64,034 ounces  produced during the
corresponding period in 2003 (two months only).  Production levels exceeded plan
by 9%. Revenue  increased by 73% as a result of the increase in ounces  produced
and sold, and due to higher realized gold prices.

Due to the failure of an electrical  transformer  in the last half of 2003,  the
Company's focus was on accelerating  the placement of ore on the dedicated leach
pads to offset crushing and milling  limitations  and to stockpile  higher grade
ore.  Once the  mine was back  operating  efficiently,  the  stockpiled  ore was
processed in the first quarter of 2004 at levels  exceeding  plan. Cost of sales
increased 28% due to increased number of tonnes processed and higher production.
However  costs,  on a per ounce basis,  decreased  in the first  quarter of 2004
compared to the first quarter of 2003.

Management's  expectations  for the full year are for the  production of 367,000
ounces.


                                       4
<PAGE>

Capital  expenditures  during  the  quarter  were $1.8  million  with total year
planned expenditures of $8.1 million (the Company's share). Capital expenditures
during the first quarter of 2004 were incurred primarily on leach pad expansions
and capitalized exploration on the Gold Hill deposit.

PORCUPINE JOINT VENTURE (49% INTEREST, PLACER DOME 51%, OPERATOR) - CANADA

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
                                                                         Three months ended
                                                                              March 31,                    2004 VS 2003
                                                                      ------------------------
                                                                         2004           2003          Change        Change %
----------------------------------------------------------------------------------------------------------------------------
<S>              <C>                                                     <C>            <C>             <C>             <C>
OPERATING STATISTICS
Tonnes processed (000's) (a)                                             983.6          986.7           (3.1)           (0%)
Grade (grams/tonne)                                                       3.65           3.34           0.31             9%
Recovery (%)                                                               92%            92%             0%             0%
Gold equivalent ounces produced                                         51,867         47,580          4,287             9%

FINANCIAL DATA (in US$ millions)
Revenues                                                                $ 20.4         $ 18.2          $ 2.2            12%
Cost of sales (b)                                                         12.6           13.6           (1.0)           (7%)
Accretion                                                                  0.2            0.1            0.1           100%
Depreciation, depletion and amortization                                   5.4            4.6            0.8            17%
----------------------------------------------------------------------------------------------------------------------------
                                                                           2.2           (0.1)           2.3             nm
Exploration                                                                0.8            0.3            0.5           167%
----------------------------------------------------------------------------------------------------------------------------
Segment earnings (loss)                                                  $ 1.4         $ (0.4)         $ 1.8             nm
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a) Tonnes processed represent 100% of mine production.
(b) Cost of sales excludes accretion, depreciation, depletion and amortization.

The  Company  formed  this  joint  venture  on July 1, 2002 with a wholly  owned
subsidiary of Placer Dome Inc.  combining each company's gold mining  operations
in the  Porcupine  district of Timmins,  Ontario.  The  Company's  share of gold
production  in the first  quarter of 2004 was 51,867  ounces,  an increase of 9%
over the 47,580  ounces  produced in the first quarter of 2003.  The  production
increase was due  principally  to higher  underground  grades  being  processed.
Revenues  increased due to the higher  production  and  increased  realized gold
prices.

Cost of sales  decreased  by 7% as the  impact  of  higher  grade  and  improved
operating  efficiencies  more than offset the  approximately 15% appreciation of
the Canadian dollar, compared to the United States dollar, quarter-over-quarter.
Results  to date are  essentially  on plan  with the  expectation  of  producing
200,000 ounces to the Company's account.

The  Company  and its  partner  plan an  aggressive  spending  program  for 2004
focusing on expanding reserves through the development of the Pamour project and
the Hoyle Pond  development.  The  Company's  share of capital  expenditures  is
estimated at $28.7 million for 2004. In the first quarter,  the Company's  share
of capital  expenditures  was $2.3 million,  which is less than the $4.5 million
planned as certain spending was deferred until later in 2004.


                                       5
<PAGE>

KUBAKA (98.1% OWNERSHIP AND OPERATOR) - RUSSIA

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
                                                                          Three months ended
                                                                               March 31,                    2004 VS 2003
                                                                      -------------------------
                                                                         2004         2003 (a)        Change        Change %
----------------------------------------------------------------------------------------------------------------------------
<S>              <C>                                                     <C>            <C>             <C>             <C>
OPERATING STATISTICS
Tonnes processed (000's) (b)                                             218.0          220.0           (2.0)           (1%)
Grade (grams/tonne)                                                       4.30           6.23          (1.93)          (31%)
Recovery (%)                                                               97%            97%             0%             0%
Gold equivalent ounces produced                                         29,259         30,050           (791)           (3%)

FINANCIAL DATA (in US$ millions)
Revenues                                                                $ 12.0         $ 11.5          $ 0.5             4%
Cost of sales (c)                                                          7.7            5.4            2.3            43%
Accretion                                                                  0.1           (0.1)           0.2             nm
Depreciation, depletion and amortization                                   1.7            3.1           (1.4)          (45%)
----------------------------------------------------------------------------------------------------------------------------
                                                                           2.5            3.1           (0.6)          (19%)
Exploration                                                                0.1            0.2           (0.1)          (50%)
Other                                                                      0.2            0.2             --             0%
----------------------------------------------------------------------------------------------------------------------------
Segment earnings                                                         $ 2.2          $ 2.7         $ (0.5)          (19%)
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a) 54.7% ownership interest to February 28, 2003, 98.1% thereafter.
(b) Tonnes processed represent 100% of mine production.
(c) Cost of sales excludes accretion, depreciation, depletion and amortization.

The  Company  completed  its  acquisition  of a  further  43.44%  of the  mining
operation in 2003 to bring its  ownership to 98.1%.  The  transaction  closed on
February 28, 2003 so the  comparative  results include the Company's 54.7% share
for the first two months of 2003 and its 98.1%  ownership  for the first quarter
of 2004.

The Company's  98.1% share of gold  equivalent  production was 29,259 ounces for
the first  quarter  of 2004,  a decrease  of 3% from the first  quarter of 2003.
Despite  the  lower  production,  revenues  were up by 4% as a result  of higher
realized gold prices.

Mining activities at the Kubaka pit ceased in October 2002 and the processing of
lower grade stockpiles commenced,  along with additional exploration drilling to
further define  mineralization at the Birkachan and Tsokol deposits.  Production
in the first quarter of 2004 was 4% above plan at the expected cost.

Pre-stripping  of the Birkachan pit continued  during the first quarter of 2004,
and the first ore is expected to be mined in May 2004.  This initially mined ore
and future ore will be placed in a stockpile. The all season road connecting the
Birkachan deposit to the Kubaka processing  facility is expected to be completed
by the third quarter of 2004.  Transportation  of ore from the Birkachan mine to
the Kubaka mill is planned to begin in the fourth quarter of 2004. Current plans
indicate  that an  eight-week  shut-down  of the  Kubaka  mill  during the third
quarter of 2004 will reduce the over-all operating cost profile and will improve
the annual cash flow of the mine. This eight-week suspension will allow for more
efficient  operations  of the  mill in the  fourth  quarter  of  2004,  and will
eliminate over-time related labour costs associated with vacations. Spending for
the first half of 2004 is expected to be slightly higher than the second half of
the year. With the addition of the high grade Birkachan ore, the mill feed grade
will  increase  in the second  half of the year,  resulting  in gold  production
increases.  Gold  production  for the  first  half of  2004  is  expected  to be
approximately  60,000 ounces of gold  equivalent,  increasing  to  approximately
73,000 ounces in the second half of the year.

The Company plans capital  expenditures of $11.2 million in 2004  principally to
develop the  Birkachan  test pit and  commence  underground  exploration  of the
Tsokol  vein.  In the first  quarter of 2004,  the  Company  spent $4.5  million
compared  to  plan  of $5.7  million  primarily  related  to the  pre-strip  and
construction at Birkachan and the tailings expansion program.


                                       6
<PAGE>

<TABLE>
<CAPTION>
PARACATU (ALSO KNOWN AS BRASILIA - 49% OWNERSHIP, RIO TINTO 51%, OPERATOR) - BRAZIL

----------------------------------------------------------------------------------------------------------------------------
                                                                        Three months ended
                                                                             March 31,                    2004 VS 2003
                                                                     --------------------------
                                                                        2004         2003 (a)        Change        Change %
----------------------------------------------------------------------------------------------------------------------------
<S>              <C>                                                   <C>            <C>            <C>                <C>
OPERATING STATISTICS
Tonnes processed (000's) (b)                                           4,498.6        3,101.5        1,397.1            45%
Grade (grams/tonne)                                                       0.45           0.46          (0.01)           (2%)
Recovery (%)                                                               76%            77%            (1%)           (1%)
Gold equivalent ounces produced                                         24,340         16,958          7,382            44%

FINANCIAL DATA (in US$ millions)
Revenues                                                                 $ 9.5          $ 5.8          $ 3.7            64%
Cost of sales (c)                                                          4.5            3.6            0.9            25%
Accretion                                                                  0.1            0.1             --             0%
Depreciation, depletion and amortization                                   2.4            1.7            0.7            41%
----------------------------------------------------------------------------------------------------------------------------
Segment earnings                                                         $ 2.5          $ 0.4          $ 2.1           525%
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a) 2003 results are for the period February through March only.
(b) Tonnes processed represent 100% of mine production.
(c) Cost of sales excludes accretion, depreciation, depletion and amortization.

The Company  acquired  its  ownership  interest in the  Paracatu  open pit mine,
located in the State of Minas Gerais,  upon completion of the  combination  with
TVX on January 31, 2003. The Company's share of gold  equivalent  production for
the first  quarter of 2004 was 24,340  ounces  compared to 16,958 ounces for the
corresponding period in 2003 (two months only), a 44% increase. Plant throughput
and production  during the quarter was lower than budget due to harder ore being
processed  while recovery was negatively  impacted by higher arsenic  content in
the ore.  Notwithstanding  these issues,  management  considers the 2004 plan of
95,000 ounces produced to the Company's account  achievable.  Revenues increased
by 64%  quarter-over-quarter due to the increased production and higher realized
gold prices.

The Company  plans  capital  expenditures  of $13.1  million in 2004 (its share)
centred on expansion of the mine's  output.  In the first quarter of 2004,  $0.7
million  was spent  which was well  below the  budgeted  amount of $5.6  million
mainly due to the delay in completion of the  semi-autogenous  grinding  ("SAG")
mill feasibility  study ($2.7 million),  which is now forecasted to be completed
in the second quarter of 2004.

LA COIPA (50% OWNERSHIP, PLACER DOME 50%, OPERATOR) - CHILE

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
                                                                        Three months ended
                                                                             March 31,                    2004 VS 2003
                                                                      -------------------------
                                                                        2004         2003 (a)        Change        Change %
----------------------------------------------------------------------------------------------------------------------------
<S>              <C>                                                   <C>            <C>              <C>              <C>
OPERATING STATISTICS
Tonnes processed (000's) (b)                                           1,593.0        1,039.0          554.0            53%
Grade (grams/tonne)                                                       1.38           1.09           0.29            27%
Recovery (%)                                                               82%            87%            (5%)           (6%)
Gold equivalent ounces produced                                         40,549         23,923         16,626            69%

FINANCIAL DATA (in US$ millions)
Revenues                                                                $ 15.8         $ 10.6          $ 5.2            49%
Cost of sales (c)                                                          8.3            8.3             --             0%
Accretion                                                                  0.1            0.1             --             0%
Depreciation, depletion and amortization                                   5.0            2.6            2.4            92%
----------------------------------------------------------------------------------------------------------------------------
                                                                           2.4           (0.4)           2.8             nm
Exploration                                                                 --            0.1           (0.1)         (100%)
----------------------------------------------------------------------------------------------------------------------------
Segment earnings (loss)                                                  $ 2.4         $ (0.5)         $ 2.9             nm
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a) 2003  results are for the period  February  through  March only.
(b) Tonnes processed  represent  100% of  mine  production.
(c) Cost of sales excludes accretion, depreciation, depletion and amortization.


                                       7
<PAGE>

The Company  acquired its ownership  interest in the La Coipa open pit mine upon
completion of the combination  with TVX on January 31, 2003. The Company's share
of gold  equivalent  production  for the first quarter of 2004 was 40,549 ounces
compared  to 23,923  ounces  for the  corresponding  period in 2003 (two  months
only),  an  increase  of 69%.  Production  levels were 18% ahead of plan for the
quarter  while  cost of sales,  on a per ounce  basis,  were  below  plan.  Gold
production was higher than plan due mainly to changes in the mine plan,  notably
a change in  sequencing of ore from Phase Three at Coipa Norte rather than Phase
Five. Gold  production was also positively  impacted by the lower gold to silver
ratio (61.1:1 for the first quarter of 2004 compared to 74.8:1 for all of 2003).
While  the  higher  production  resulted  in lower  costs on a per  ounce  basis
management expects this to increase  throughout the year with the mining of more
in-pit waste rock than in 2003. The full year 2004 production  budget of 145,000
gold equivalent ounces expected to be reached.

During the first quarter of 2004,  the Company's  share of capital  expenditures
was $0.3  million  with  nominal  spending  required for the balance of the year
2004.

CRIXAS (50% OWNERSHIP, ANGLOGOLD 50%, OPERATOR) - BRAZIL

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
                                                                         Three months ended
                                                                               March 31,                    2004 VS 2003
                                                                       ------------------------
                                                                         2004         2003 (a)        Change        Change %
----------------------------------------------------------------------------------------------------------------------------
<S>              <C>                                                     <C>            <C>             <C>             <C>
OPERATING STATISTICS
Tonnes processed (000's) (b)                                             183.0          123.0           60.0            49%
Grade (grams/tonne)                                                       7.90           8.25          (0.35)           (4%)
Recovery (%)                                                               96%            96%             0%             0%
Gold equivalent ounces produced                                         22,511         15,604          6,907            44%

FINANCIAL DATA (in US$ millions)
Revenues                                                                 $ 9.5          $ 5.6          $ 3.9            70%
Cost of sales (c)                                                          3.0            2.5            0.5            20%
Accretion                                                                   --             --             --             0%
Depreciation, depletion and amortization                                   3.0            2.3            0.7            30%
----------------------------------------------------------------------------------------------------------------------------
                                                                           3.5            0.8            2.7           338%
Exploration                                                                0.1            0.1             --             0%
----------------------------------------------------------------------------------------------------------------------------
Segment earnings                                                         $ 3.4          $ 0.7          $ 2.7           386%
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a) 2003 results are for the period February through March only.
(b) Tonnes processed represent 100% of mine production.
(c) Cost of sales excludes accretion, depreciation, depletion and amortization.

The Company  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.  The Company's  share of gold  equivalent  production  for the
first  quarter  of 2004 was  22,511  ounces  compared  to 15,604  ounces for the
corresponding  period last year (two months  only).  Revenues were up because of
the increased  production  and higher  realized gold prices.  Production  was 4%
ahead of plan as  recoveries  and plant  throughput  were better than  expected,
however this was offset by the impact of the strengthening of the Brazilian real
in relation to the U.S. dollar. Haulage costs also increased over 2003 as mining
continued at depth.  Management  considers  the 2004 target of producing  94,000
ounces to the Company's account achievable.

The  Company's  share of capital  expenditures  in the first quarter of 2004 was
$0.7 million spent mostly on ore  development and equipment  replacement.  Total
capital  expenditures  for the full year 2004 are  budgeted at $3.3 million (the
Company's share).


                                       8
<PAGE>

MUSSELWHITE (31.93% OWNERSHIP, PLACER DOME 68.07%, OPERATOR) - CANADA

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
                                                                         Three months ended
                                                                              March 31,                    2004 VS 2003
                                                                      ------------------------
                                                                        2004         2003 (a)        Change        Change %
----------------------------------------------------------------------------------------------------------------------------
<S>              <C>                                                     <C>            <C>            <C>              <C>
OPERATING STATISTICS
Tonnes processed (000's) (b)                                             364.0          191.7          172.3            90%
Grade (grams/tonne)                                                       4.96           5.05          (0.09)           (2%)
Recovery (%)                                                               95%            95%             0%             0%
Gold equivalent ounces produced                                         17,549          9,475          8,074            85%

FINANCIAL DATA (in US$ millions)
Revenues                                                                 $ 8.0          $ 2.9          $ 5.1           176%
Cost of sales (c)                                                          5.6            2.8            2.8           100%
Accretion                                                                   --             --             --             0%
Depreciation, depletion and amortization                                   2.9            1.7            1.2            71%
----------------------------------------------------------------------------------------------------------------------------
                                                                          (0.5)          (1.6)           1.1           (69%)
Exploration                                                                0.6            0.4            0.2            50%
----------------------------------------------------------------------------------------------------------------------------
Segment loss                                                            $ (1.1)        $ (2.0)         $ 0.9           (45%)
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a) 2003 results are for the period February through March only.
(b) Tonnes processed represent 100% of mine production.
(c) Cost of sales excludes accretion, depreciation, depletion and amortization.

The Company 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. The Company's share of gold  equivalent  production for
the first  quarter of 2004 was 17,549  ounces  compared to 9,475  ounces for the
corresponding  period last year (two months only).  Increased mill throughput in
the quarter more than offset the lower  grades.  Cost of sales  increased due to
the  increase  in the number of ounces  produced  and sold,  but also due to the
appreciation of the Canadian dollar,  against the U.S. dollar.  While production
was slightly  below plan,  costs were higher than plan again  largely due to the
strengthening of the Canadian dollar against the U.S. dollar.  The Joint Venture
management  considers  the full year  2004  budget of  producing  75,000  ounces
achievable.  Higher grade ore is expected  beginning the second  quarter of 2004
and will continue into the fourth quarter of 2004, which will help reduce costs,
on a per ounce basis.

During the first quarter of 2004,  the Company's  share of capital  expenditures
was $0.4 million with full year 2004  capital  expenditures  expected to be $3.7
million (the Company's share).

OTHER OPERATING SEGMENTS

New Britannia (50% ownership and operator) - Canada

The Company operates and owns a 50% interest in The New Britannia mine,  located
in northern  Manitoba,  Canada,  acquired in the combination with TVX on January
31,  2003.  The  Company's  share of gold  equivalent  production  for the first
quarter of 2004 was 6,707 ounces compared to 7,460 ounces for the  corresponding
period last year (two months only).

The ore grade at the mine  continues  to adversely  affect the sites  ability to
operate  economically.  Various options for the site are being reviewed with the
preferred operating strategy being to stop underground  development and mine the
developed  ore over the next four months after which the mine will shut down and
enter reclamation and closure. As a result,  management has revised downward its
2004  production  levels to 16,500 ounces from the planned 34,000 ounces.  It is
expected, however, that the mine will generate positive cash flow until closure.

The New Britannia  mine team has done an  outstanding  job of operating the mine
over the last 10 years. The mine produced  approximately  100,000 ounces of gold
above original expectations.  The New Britannia Mine earned the prestigious John
T. Ryan Safety award,  given to the safest  underground mine in Canada. The Team
earned  this award not once but five  times  over the  course of ten years,  the
Regional  Trophy three times for the Prairies and Northwest  Territories  Region
and the Canada Trophy two times, the latest award was earned in 2003.

There are no capital expenditures planned for 2004.


                                       9
<PAGE>

Lupin (100% ownership and operator) - Canada

The  Company  operates  the  Lupin  underground  mine,  located  in the  Nunavut
Territory,  Canada,  acquired  in the  combination  with Echo Bay on January 31,
2003.  In August  2003,  the  Company  announced  the  immediate  suspension  of
operations at Lupin due to the poor economic performance of the operation over a
protracted  period  of time.  The  plant and  equipment  was  placed on care and
maintenance pending a review of alternatives for the mine. This review concluded
that the  development  of a mine plan to extract the shaft and crown pillars and
previously  developed  remnant  ore  is  appropriate.   Accordingly,   the  mine
recommenced  production  on March 3, 2004 and  produced  5,187  gold  equivalent
ounces.  Management  expects  that the mine  will  meet its  target  for 2004 of
producing 79,000 gold equivalent ounces.

A total of $2.6 million was spent to restart the operation and to buy additional
equipment needed to meet the revised operating plan. There is no further capital
spending requirements in 2004.

Kettle River (100% ownership and operator) - U.S.A.

Kettle River, located in the state of Washington, U.S.A., recommenced operations
in late  December  2003.  During the first  quarter of 2004,  the mine  produced
25,347 gold equivalent ounces.  Production for the first quarter was essentially
to plan despite more challenging ground conditions than expected. Ground support
activities  are now almost  complete.  Mill  throughput  was ahead of plan by 9%
reflecting an efficient  operation  that is essential for the  processing of ore
from the Buckhorn  Mountain  mine,  which will be acquired upon the close of the
Crown Resources Corporation ("Crown") transaction.

Management is confident that the 2004 budget of 100,000 ounces  produced will be
met.  In order to meet the  objectives,  $1.5  million  in capital  spending  is
required primarily for the refurbishment of equipment.

Refugio (50% ownership and operator) - Chile

The Company and joint venture  partner Bema Gold  Corporation  announced in 2003
plans  to  recommence  production  at the  Refugio  mine in late  2004.  Capital
expenditures associated with the recommencement of operations are expected to be
approximately  $53 million.  During the first quarter of 2004,  activities  were
focused on engineering, procurement and design of the expanded processing plant.
Once complete in the fourth  quarter of 2004 the Refugio mine will be capable of
producing  approximately  115,000 to 130,000 ounces of gold equivalent per annum
to the Company's share.

DEPRECIATION, DEPLETION AND AMORTIZATION

Depreciation,  depletion and amortization totaled $38.7 million during the first
quarter 2004  compared to $32.5  million in 2003.  Depreciation,  depletion  and
amortization  increased  in 2004 when  compared  to 2003  since the  results  of
operations  for the  first  quarter  of 2003  included  only two  months  of the
depreciation,  depletion and  amortization  for the assets acquired from TVX and
Echo Bay.

EXPLORATION AND BUSINESS DEVELOPMENT

Total  exploration and business  development  expenses incurred during the first
quarter of 2004 was $3.5 million,  compared  with $6.2 million in 2003.  Planned
exploration and business development  expenditures for the first quarter of 2004
was $6.0 million.  Exploration  and business  development  activities were lower
than planned as certain projects that were planned to begin in the first quarter
were delayed until the second quarter.  The costs pertaining to these activities
will  increase  during the remaining  quarters to compensate  for the lower than
planned first quarter spending.

The Company plans to spend a minimum of $20.0 million on its exploration program
in order to  replace  and  increase  reserves  at  existing  mines and  increase
reserves at development projects.

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


                                       10
<PAGE>


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  $6.9 million in the first  quarter of 2004  compared to $5.8 million in
2003.

The 2004 first quarter general and  administrative  expenses are higher than the
2003 comparative expenses partially due to the adoption of CICA Handbook Section
3870 "Stock-based compensation and other stock-based payments". During the first
quarter ended March 31, 2004, the Company recorded  compensatory expense of $0.5
million relating to stock options and restricted stock units previously  granted
over the respective vesting periods.  All stock options granted since January 1,
2002 until December 31, 2003 have been recorded as a charge to opening  retained
earnings upon  adoption and prior period  results have not been  restated.  As a
result of the adoption of CICA Handbook  Section 3870, the Company has increased
its planned general and administrative spending in 2004 to $23.0 million.

OTHER INCOME - NET

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
in US$ millions                                                          Three months ended
                                                                              March 31,                    2004 VS 2003
                                                                     -------------------------
                                                                         2004           2003          Change        Change %
----------------------------------------------------------------------------------------------------------------------------
<S>                                                                      <C>            <C>            <C>              <C>
Interest and other income                                                $ 1.8          $ 1.0          $ 0.8            80%
Non-hedge derivative (loss) gain                                          (0.8)           2.1           (2.9)            nm
Interest expense on long-term liabilities                                 (0.6)          (1.1)           0.5           (45%)
Foreign exchange loss                                                     (2.5)          (0.7)          (1.8)          257%
----------------------------------------------------------------------------------------------------------------------------
Total other income                                                      $ (2.1)         $ 1.3         $ (3.4)            nm
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

Interest expense

Interest expense totaled $0.6 million during the first quarter of 2004, compared
to $1.1 million in 2003.  Interest  expense in 2004 is comprised of $0.1 million
relating to interest on the Kubaka  project  loans,  $0.3 million of interest on
the  Industrial  Revenue Bonds and the Fort Knox capital leases and $0.2 million
on other items.  Interest expense is expected to remain low for the remainder of
2004, as the Company has repaid the  Industrial  Revenue Bonds and the only plan
to increase  current  debt levels is through  the  addition of $16.0  million of
capital leases for the Refugio mining fleet.

Non-hedge derivative (loss) gain

Premiums  received at the  inception  of written  call options are recorded as a
liability and changes in the fair value of the  liability are  recognized in the
current  period.  During the quarter,  the Company  recorded an increased to the
liability on call  options  sold of $0.8  million  compared to a decrease to the
liability of $2.1 million in 2003.

Foreign exchange loss

During  the first  quarter  of 2004 the  Company  recorded a net loss on foreign
currency  translation and transactions of $2.5 million compared to net losses in
2003 of $0.7 million.

The Company's  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 the Company and the impact of changes in the
currencies in which the Company  conducts its operations in relation to the U.S.
dollar are  discussed  in the "Risk  Analysis"  section of the MD&A for the year
ended December 31, 2003.

INCOME AND MINING TAXES

The Company is subject to tax in various  jurisdictions  including  Canada,  the
United States,  Russia,  Brazil and Chile. The Company 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 2004 first
quarter  liability  arose from income taxes in Russia,  Brazil,  Chile (La Coipa
mine) and federal large  corporations tax and provincial


                                       11
<PAGE>

mining taxes in Canada. The Company's joint venture  investments in the La Coipa
and  Refugio  mines are held in  separate  Chilean  companies,  each of which is
subject to tax.

BALANCE SHEET

Key items and statistics are highlighted below (in millions of U.S. dollars).

------------------------------------------------------------------------------
                                                            AS AT:
                                             ---------------------------------
                                                March 31,         December 31,
                                                  2004                 2003
------------------------------------------------------------------------------

Unrestricted cash & equivalents               $    217.6          $    245.8
Current assets                                $    380.2          $    402.3
Total assets                                  $  1,755.9          $  1,795.4
Current liabilities                           $    110.1          $    150.5
Total debt (a)                                $     20.5          $     45.7
Total liabilities (b)                         $    365.4          $    412.1
Shareholders' equity                          $  1,390.5          $  1,382.4
------------------------------------------------------------------------------
Statistics
Working capital                               $    270.1          $    251.8
Working capital ratio (c)                          3.45x               2.67x
------------------------------------------------------------------------------

(a) Includes  long-term  debt plus the current  portion  thereof and  preferred
    shares.
(b) Includes preferred shares and non-controlling interest.
(c) Current assets divided by current liabilities.

During  2003,  the  Company  completed a number of  material  transactions  that
significantly  improved its balance sheet.  These events are fully  described in
the year  ended  December  31,  2003  MD&A.  During  the first  quarter of 2004,
unrestricted  cash and  equivalents  decreased by $28.2 million.  The changes in
cash are fully  described in the  liquidity  section that  follows.  The balance
sheet has improved over the quarter as working capital increased, while debt and
other obligations decreased.

LIQUIDITY AND CAPITAL RESOURCES

The  Company is highly  liquid.  During the first  quarter of 2004,  the Company
fully repaid the  Industrial  Revenue Bonds of $25.0 million owing to the Alaska
Industrial  Development and Export  Authority.  The Company is essentially  debt
free.

Cash flow provided from  operating  activities for the quarter was $15.0 million
in 2004  compared to $16.0 million in 2003.  Cash flow  provided from  operating
activities  increased  due to  higher  production  and gold  sales  offset by an
increase in working capital requirements.  Two significant factors in the use of
cash were: $12.9 million related to winter road resupply purchases at Kubaka and
Lupin;  and $13.6  million of reduction in accrued  liabilities  due to payments
associated with the completion of the settlement agreement regarding TVX Hellas.

CAPITAL ADDITIONS

The Company  plans to spend $165.0  million on additions to property,  plant and
equipment  as  fully  described  in  the  December  31,  2003  MD&A.  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.

In the first quarter of 2004,  $19.8 million was spent on additions to property,
plant and equipment. In the section, "Operations", the expenditures per mine are
detailed.


                                       12
<PAGE>

LIQUIDITY OUTLOOK

In the Company's  2003 year-end MD&A the following  details were provided of the
major uses of cash for 2004 outside of operating activities. These were:

============================================================ ===================
                                               FULL YEAR       FIRST QUARTER
                                               2004 PLAN        2004 - SPENT
------------------------------------------------------------ -------------------

Site Restoration                            $        19.2          $       1.7
Exploration and business development                 20.0                  3.5
Property, plant and equipment additions             165.0                 19.8
------------------------------------------------------------ -------------------
                                            $       204.2          $      25.0
============================================================ ===================

At the end of the first  quarter,  the Company  continues  to plan for the above
expenditures  for the full year. It is expected  that all of the $204.2  million
will be paid for from cash flow provided from operating activities.

COMMITMENTS

As at  March  31,  2004,  the  Company  does  not  have  any  material  monetary
commitments other than the planned spending  described above and its obligations
under its hedge program as discussed later in this MD&A.

On November 20, 2003,  the Company  announced  that it had executed a definitive
acquisition  agreement with Crown Resources  Corporation  ("Crown")  whereby the
Company will acquire Crown and its wholly owned Buckhorn gold deposit located in
north central  Washington  State,  approximately  67 kilometres by road from the
Company's  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  deposit of 2.79 million  tonnes grading 11.05 grams per tonnes
containing 991,300 ounces of gold.

The current  operating  plan for Buckhorn  contemplates  the  development  of an
underground  mine  and  the  shipment  of ore to the  Kettle  River  mill.  This
development  strategy addresses the major environmental issues identified during
prior  permitting  efforts.  The Company 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.

The Company has agreed to issue 0.2911 of a common share of the Company for each
outstanding  common share of Crown.  The total common shares to be issued by the
Company are 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.  The  transaction  is
anticipated to close in the third quarter of 2004.

HEDGING ACTIVITIES

Realized and unrealized gains or losses on derivative  contracts,  which qualify
for hedge accounting,  are deferred and recorded in earnings when the underlying
hedged  transaction is recognized.  Gains and losses on the early  settlement of
gold hedging  contracts are recorded as deferred  revenue or deferred  losses on
the balance sheet and included in earnings over the original  delivery  schedule
of the hedged production.  Realized and unrealized gains or losses on derivative
contracts  that do not qualify for hedge  accounting are recognized in income in
the period incurred.

The  outstanding  number  of  ounces,   average  expected  realized  prices  and
maturities for the gold commodity  derivative contracts as at March 31, 2004 are
as follows:

================================================================================
YEAR    OUNCES HEDGED   AVERAGE PRICE   CALL OPTIONS SOLD   AVERAGE STRIKE PRICE
--------------------------------------------------------------------------------
2004      107,500         $   280           50,000              $   340
2005       37,500         $   296               --                   --
--------------------------------------------------------------------------------
Total     145,000         $   284           50,000              $   340
================================================================================


                                       13
<PAGE>

At December 31, 2003,  the Company had spot  deferred  contracts for the sale of
175,000  ounces  of gold with a fair  value  unrealized  loss of $24.1  million,
however this loss was not recognized on the consolidated  financial  statements.
Beginning  January 1, 2004, these  contracts,  while still providing an economic
hedge,  failed to meet the  requirements for formal hedge  accounting.  As such,
changes in fair value from that point  until  maturity  are  included in current
earnings.  In addition,  the  unrealized  loss of $24.1 million is recognized in
earnings in connection with the original maturity dates of the contracts. During
the first quarter of 2004,  the Company  delivered  30,000 ounces into contracts
outstanding  at December 31, 2003 at an average  price of $269 per ounce leaving
145,000 ounces outstanding at March 31, 2004. The fair value of the gold forward
sales and spot deferred forward sales contract,  as at March 31, 2004, was $20.5
million,  based on a gold price of $424 per ounce.  Subsequent to the end of the
quarter,  the Company  delivered a further 20,000 ounces and financially  closed
out another 90,000 ounces at a cost of $9.6 million. For accounting purposes the
portion of the unrealized  loss, as determined on December 31, 2003, will remain
deferred on the balance sheet and will be recognized into earnings in accordance
with the original maturity dates of the contracts.

The remaining  35,000  ounces hedged will be delivered in the second  quarter of
this year. If the market price of gold is $400 per ounce on the dates the ounces
are delivered into the remaining  forward sales contracts,  the Company would be
paid $3.9 million less than if these  contracts did not exist.  In addition,  at
March  31,  2004,  the  Company  has  50,000  ounces  of  written  call  options
outstanding.  If the market price of gold is above $340 per ounce upon expiry in
June 2004,  the Company  will be  committed  to sell  50,000  ounces at $340 per
ounce. If the market price of gold is $400 per ounce,  the Company would be paid
$3.0 million less than if the calls did not exist.  The Company does not include
these  financial  instruments  in testing for  impairment  of  operating  mines,
mineral rights and development properties.

The Company uses these fixed forward  contracts to partially  hedge its Canadian
dollar denominated mine operating costs and general and administrative costs. At
December 31, 2003 the Company had fixed forward  contracts to sell U.S.  dollars
and buy  Canadian  dollars of CDN$28.4  million at an average  exchange  rate of
1.4221.  The  unrealized  gain at December 31, 2003 was $1.8 million.  Beginning
January 1, 2004,  these  contracts,  while still  providing  an economic  hedge,
failed to meet the requirements for formal hedge accounting. As such, changes in
fair value from that point until maturity are included in current earnings.  The
unrealized gain of $1.8 million is recognized in earnings in connection with the
original  maturity dates of the  contracts.  During the three months ended March
31, 2004,  the Company  recognized  into  earnings  $0.4 million of the deferred
gain. The remaining  deferred gain will be recognized  into earnings  during the
second  quarter of 2004 ($0.5  million)  and during the first half of 2005 ($0.9
million).  Gains from the  strengthening of the Canadian dollar against the U.S.
dollar since January 1, 2004 have been netted against  operating  costs from the
Company's  Canadian  mines  and  against  Canadian  general  and  administrative
expenses in the period incurred.

CRITICAL ACCOUNTING POLICIES

In the annual MD&A for the year 2003, there is a full discussion and description
of the critical accounting policies  appropriate to the Company. 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 the accompanying  notes.
These are fully described in the 2003 annual MD&A.

During the first quarter of 2004, the Company adopted three accounting changes:

1.       Stock-based compensation
2.       Asset retirement obligations
3.       Flow through shares

The  description  and impact of these  changes  are  described  in Note 3 of the
accompanying  consolidated  financial  statements for the period ended March 31,
2004,  which are  included in the  Quarterly  Report.  None of these  accounting
changes had a material impact on the Company's first quarter 2004 results.


                                       14
<PAGE>

OUTLOOK

In the year end MD&A we discussed the Company's three-pronged strategy:

1. Continue to look for  opportunities  to enhance the  performance  of existing
   assets.
2. Create value by investing in quality projects.
3. Increase value through accretive acquisitions.

During the first quarter of 2004,  we were able to exceed budget for  production
and our expectations  with respect to our mine operating costs. This is a result
of our  continuous  improvement  program.  The first  quarter  generally  is our
weakest and we expect  production  throughput  to increase each quarter in 2004.
This is  expected  to bring us to our target of 1.70 to 1.75  million  ounces of
gold  equivalent  production  for 2004  with  costs  that  are in line  with the
original  budget for the year.  Our  investments  in exploration at our existing
operations continue to yield promising results.

In 2003,  we  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 2004 and, after some initial start-up issues, is now working
efficiently. We continue to plan to spend $165.0 million in capital improvements
in 2004 in pursuit of meeting objective number two above.

We continue to look at  opportunities  to build our  Company  through  accretive
acquisitions.  It is very  important  that we remain  patient in this  endeavour
since  currently  assets  are being  exchanged  at  higher  than  value  prices.
Opportunities will continue to arise and be evaluated appropriately.


                                       15
<PAGE>

CONSOLIDATED BALANCE SHEETS

(expressed in millions of U.S. dollars) (unaudited)

<TABLE>
<CAPTION>
                                                                      AS AT          AS AT
                                                                    MARCH 31,     DECEMBER 31,
                                                                      2004            2003
                                                                    ----------    ----------
                                                                  Restated (a)    Restated (a)
<S>                                                                 <C>           <C>
ASSETS
  Current assets
     Cash and cash equivalents                                      $    217.6    $    245.8
     Restricted cash                                                       1.4           5.1
     Accounts receivable and other assets                                 28.8          42.2
     Inventories                                                         132.4         109.2
                                                                    ----------    ----------
                                                                         380.2         402.3
 Property, plant and equipment                                           991.0       1,010.4
 Goodwill                                                                342.3         342.3
 Long-term investments                                                    16.5           2.1
 Future income and mining taxes                                            1.4           1.5
 Deferred charges and other long-term assets                              24.5          35.9
                                                                     ----------    ----------
                                                                    $  1,755.9    $  1,794.5
                                                                    ==========    ==========

LIABILITIES
 Current liabilities
     Accounts payable and accrued liabilities                       $     83.6    $    101.9
     Current portion of long-term debt                                     4.4          29.4
     Current portion of reclamation and remediation obligations           22.1          19.2
                                                                    ----------    ----------
                                                                         110.1         150.5
 Long-term debt                                                            0.4           0.7
 Reclamation and remediation obligations                                 107.4         111.1
 Future income and mining taxes                                          123.5         126.6
 Other long-term liabilities                                               7.5           6.9
 Redeemable retractable preferred shares                                   2.9           3.0
                                                                    ----------    ----------
                                                                         351.8         398.8
                                                                    ----------    ----------
NON-CONTROLLING INTEREST                                                   0.7           0.7
                                                                    ----------    ----------
CONVERTIBLE PREFERRED SHARES OF SUBSIDIARY COMPANY                        12.9          12.6
                                                                    ----------    ----------
COMMON SHAREHOLDERS' EQUITY
 Common share capital and common share purchase warrants               1,784.2       1,783.5
 Contributed surplus                                                      33.7          30.0
 Accumulated deficit                                                    (425.4)       (429.1)
 Cumulative translation adjustments                                       (2.0)         (2.0)
                                                                    ----------    ----------
                                                                       1,390.5       1,382.4
                                                                    ----------    ----------
                                                                    $  1,755.9    $  1,794.5
                                                                    ==========    ==========

TOTAL ISSUED AND OUTSTANDING NUMBER OF COMMON SHARES (MILLIONS)          345.9         345.6
                                                                    ==========    ==========

   The accompanying notes are an integral part of these consolidated financial statements
</TABLE>

(a) See Note 2


                                       16
<PAGE>

CONSOLIDATED STATEMENTS OF OPERATIONS
(expressed in millions of U.S. dollars, except per share amounts) (unaudited)
For the three months ended March 31

<TABLE>
<CAPTION>
                                                                                   THREE MONTHS ENDED
                                                                                        MARCH 31,
                                                                                 ----------------------
                                                                                    2004         2003
                                                                                 ---------    ---------
                                                                                Restated (a)  Restated (a)
<S>                                                                              <C>          <C>
REVENUE AND OTHER INCOME
   Metal sales                                                                   $   154.8    $   117.0

OPERATING COSTS AND EXPENSE
   Cost of sales (excludes accretion, depreciation,
     depletion and amortization)                                                      92.6         85.3
   Accretion                                                                           2.2          1.8
   Depreciation, depletion and amortization                                           38.7         32.5
                                                                                 ---------    ---------
                                                                                      21.3         (2.6)
   Other operating costs                                                               1.9          0.2
   Exploration and business development                                                3.5          6.2
   General and administrative                                                          6.9          5.8
   Gain on disposal of assets                                                         (0.4)        (0.1)
                                                                                 ---------    ---------
OPERATING EARNINGS (LOSS)                                                              9.4        (14.7)
   Other (expense) income                                                             (2.1)         1.3
                                                                                 ---------    ---------
EARNINGS (LOSS) BEFORE TAXES AND OTHER ITEMS                                           7.3        (13.4)
   Income and mining taxes expense                                                    (0.9)        (1.4)
   Dividends on convertible preferred shares of subsidiary                            (0.2)        (0.2)
                                                                                 ---------    ---------
NET EARNINGS (LOSS) FOR THE PERIOD                                               $     6.2    $   (15.0)
                                                                                 =========    =========

ATTRIBUTABLE TO COMMON SHAREHOLDERS:
   Net earnings (loss) for the period                                            $     6.2    $   (15.0)
   Increase in equity component of convertible debentures                               --         (2.1)
                                                                                 ---------    ---------
NET EARNINGS (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS                          $     6.2    $   (17.1)
                                                                                 =========    =========

EARNINGS (LOSS) PER SHARE
   Basic                                                                         $     0.02   $    (0.07)
   Diluted                                                                       $     0.02   $    (0.07)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (MILLIONS)
   Basic                                                                              345.7        253.1
   Diluted                                                                            346.3        253.1

         The accompanying notes are an integral part of these consolidated financial statements
</TABLE>

(a) See Note 2


                                       17
<PAGE>

CONSOLIDATED STATEMENTS OF CASH FLOWS
(expressed in millions of U.S. dollars) (unaudited)
For the three months ended March 31

<TABLE>
<CAPTION>
                                                                         THREE MONTHS ENDED
                                                                              MARCH 31,
                                                                      --------------------------
                                                                        2004          2003
                                                                      --------      --------
                                                                     Restated (a)    Restated (a)
<S>                                                                   <C>           <C>
NET INFLOW (OUTFLOW) OF CASH RELATED TO THE FOLLOWING ACTIVITIES:
OPERATING:
Net earnings (loss) for the period                                    $    6.2      $  (15.0)
Items not affecting cash:
   Depreciation, depletion and amortization                               38.7          32.5
   Gain on disposal of assets                                             (0.4)         (0.1)
   Future income and mining taxes                                         (3.1)         (2.1)
   Deferred revenue recognized                                            (0.6)         (0.6)
   Other                                                                   0.7           1.2
   Changes in operating assets and liabilities:
     Accounts receivable and other assets                                 12.7           4.9
     Inventories                                                         (22.5)         (5.9)
     Accounts payable and accrued liabilities                            (16.7)          1.1
                                                                      --------      --------
CASH FLOW PROVIDED FROM OPERATING ACTIVITIES                              15.0          16.0
                                                                      --------      --------
INVESTING:
   Additions to property, plant and equipment                            (19.8)        (12.8)
   Business acquisitions, net of cash acquired                            --           (81.9)
   Proceeds on sale of marketable securities                               0.3           --
   Long-term investments and other assets                                 (3.8)         (2.8)
   Proceeds from the sale of property, plant and equipment                 0.5           --
   Decrease in restricted cash                                             3.7          31.8
                                                                      --------      --------
CASH FLOW USED IN INVESTING ACTIVITIES                                   (19.1)        (65.7)
                                                                      --------      --------
FINANCING:
   Issuance of common shares                                               1.4           1.8
   Reduction of debt component of convertible debentures                  --            (1.4)
   Repayment of debt                                                     (25.3)         (1.0)
                                                                      --------      --------
CASH FLOW USED IN FINANCING ACTIVITIES                                   (23.9)         (0.6)
                                                                      --------      --------
EFFECT OF EXCHANGE RATE CHANGES ON CASH                                   (0.2)          2.1
                                                                      --------      --------
DECREASE IN CASH AND CASH EQUIVALENTS                                    (28.2)        (48.2)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                           245.8         170.6
                                                                      --------      --------
CASH AND CASH EQUIVALENTS, END OF PERIOD                              $  217.6      $  122.4
                                                                      ========      ========

SUPPLEMENTARY DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for:
   Interest                                                           $    0.4      $    0.3
   Income taxes                                                       $    1.7      $    1.2

    The accompanying notes are an integral part of these consolidated financial statements

</TABLE>

(a) See Note 2


                                       18
<PAGE>

CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY

(expressed in millions of U.S. dollars) (unaudited)
For the three months ended March 31

<TABLE>
<CAPTION>
                                                  COMMON                                               CUMULATIVE
                                                  SHARE      CONTRIBUTED   CONVERTIBLE  ACCUMULATED   TRANSLATION
                                                 CAPITAL       SURPLUS     DEBENTURES     DEFICIT     ADJUSTMENTS      TOTAL
---------------------------------------------------------------------------------------------------------------------------------
                                                                                          Restated (a)
<S>                                             <C>              <C>          <C>          <C>            <C>        <C>
BALANCE, DECEMBER 31, 2002 (RESTATED)           $  1,058.5       $  12.9      $  132.3     $ (773.0)      $ (23.4)   $    407.3
Reduction of stated capital                         (761.4)          --            --         761.4           --            --
Issuance of common shares                          1,301.0           --            --           --            --        1,301.0
Increase in equity component of convertible
  debentures                                           --            --            2.2         (2.1)          --            0.1
Net loss for the period                                --            --            --         (15.0)          --          (15.0)
Cumulative translation adjustments                     --            --            --           --           9.4            9.4
                                                ----------       -------      --------     --------       -------    ----------
BALANCE, MARCH 31, 2003                         $  1,598.1       $  12.9      $  134.5     $  (28.7)      $ (14.0)   $  1,702.8
                                                ==========       =======      ========     ========       =======    ==========

BALANCE, DECEMBER 31, 2003 (RESTATED)           $  1,783.5       $  30.0      $    --      $ (429.1)      $  (2.0)   $  1,382.4
Cumulative effect of recording the fair
  value of stock                                       0.2           2.3           --          (2.5)          --            --
                                                ----------       -------      --------     --------       -------    ----------
BALANCE, JANUARY 1, 2004                           1,783.7          32.3           --        (431.6)         (2.0)      1,382.4
Issuance of common shares                              1.4           --            --           --            --            1.4
Stock-based compensation expense (b)                   --            0.5           --           --            --            0.5
Net earnings for the period                            --            --            --           6.2           --            6.2
Transfer of fair value of expired options             (0.9)          0.9           --           --            --            --
                                                ----------       -------      --------     --------       -------    ----------
BALANCE, MARCH 31, 2004                         $  1,784.2       $  33.7      $    --      $ (425.4)      $  (2.0)   $  1,390.5
                                                ==========       =======      ========     ========       =======    ==========

                      The accompanying notes are an integral part of these consolidated financial statements
</TABLE>

(a) See Note 2
(b) Includes stock option and restricted stock unit expense


                                       19
<PAGE>

                            KINROSS GOLD CORPORATION
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
                       FOR THE THREE MONTHS ENDED MARCH 31
  (millions of U.S. dollars, except per share amounts, unless otherwise stated)

1. BASIS OF PRESENTATION

   The interim consolidated financial statements (the "financial statements") of
   Kinross Gold  Corporation  (the  "Company")  have been prepared in accordance
   with the accounting  principles  and methods of application  disclosed in the
   restated  consolidated  financial  statements for the year ended December 31,
   2003, except for those indicated below.

   The accompanying interim unaudited  consolidated financial statements include
   all adjustments that are, in the opinion of management,  necessary for a fair
   presentation.  These  financial  statements  do not include  all  disclosures
   required by Canadian  generally accepted  accounting  principles ("CDN GAAP")
   for annual consolidated  financial  statements and accordingly should be read
   in conjunction with the Company's restated financial  statements for the year
   ended  December 31, 2003  included in the financial  statements  for the year
   ended  December 31, 2004,  which were filed with all the Canadian  securities
   regulatory  agencies  on  November  30,  2005.  In  addition,  these  interim
   consolidated  financial  statements  include  impacts of the  restatement  as
   disclosed in Note 2.

   COMPARATIVE FIGURES

   Certain 2003 figures in the  accompanying  unaudited  consolidated  financial
   statements have been reclassified to conform to the 2004 presentation.

2. RESTATEMENT

   PURCHASE PRICE ALLOCATION AND GOODWILL
   On January 31, 2003 the Company  acquired 100% of the  outstanding  shares of
   TVX Gold Inc.  ("TVX") and Echo Bay Mines Ltd. ("Echo Bay"). The consolidated
   financial  statements  presented for the year ended December 31, 2003 and the
   interim  periods  of 2003 and 2004 have been  restated  with  respect  to the
   accounting for the assets and liabilities  acquired by the Company in the TVX
   and Echo Bay transaction (the "Acquisitions").

   The restatements are based upon independent valuations of the acquired assets
   as of the  acquisition  date January 31, 2003 and  December  31, 2003,  which
   resulted in: (i) a revision of the  allocation  of the purchase  price to the
   reserves,  resources and certain property acquired in the Acquisitions;  (ii)
   consequential  changes in depreciation,  depletion and amortization;  (iii) a
   revision of the allocation of goodwill at the  acquisition  date to reporting
   assets  for  purposes  of  impairment  testing;  and (iv) a  revision  of the
   impairment of assets and goodwill as of December 31, 2003, leading to certain
   impairments  described in detail below. The overall effect of the restatement
   on the interim  consolidated  financial statements for the three months ended
   March  31,  2003 and 2004  and as at  December  31,  2003 are  summarized  as
   follows:

    (a) Reduction  of  $183.1  million  in  goodwill  from  the  $918.0  million
        initially  recorded on the Acquisitions to $736.7 million resulting from
        an increase in property,  plant and equipment and mineral interests, net
        of related future income tax liabilities;
    (b) Increase in  depreciation,  depletion and  amortization  expense of $4.3
        million and $6.3 million, respectively;
    (c) Recognition  of  impairment  losses with respect to goodwill and mineral
        interests of $394.4 million and $10 million,  respectively, for the year
        ended December 31, 2003; and
    (d) Reduction in income taxes  related to (b) and (c) above of $11.6 million
        for the year ended December 31, 2003.

   All  amounts  in  the  accompanying  notes  to  the  consolidated   financial
   statements  have  been  adjusted  to  give  effect  to the  impact  of  these
   restatements.

   ORIGINAL VALUATION METHODOLOGY
   The  original  valuation  of  the  assets  and  liabilities  acquired  in the
   Acquisitions  was  undertaken  and  completed  by the Company and included an
   independent appraisal of plant and equipment.  The allocation of the purchase
   price to the fair value of the assets and  liabilities  resulted in an excess
   of the purchase price over the fair value of the identifiable  assets of $918
   million.  This  residual  was  recorded as  goodwill.  The  Company  assigned
   goodwill to the Exploration and Acquisitions  and Corporate  reporting units,
   which was not  amortized.  In making the  assignment,  the  Company  reviewed
   examples  of  previous  applications  of  purchase  accounting  in the mining
   industry and applied  Canadian  Institute of Chartered  Accountants  ("CICA")
   Handbook  Section 3062,  "Goodwill  and Other  Intangible  Assets"  ("Section
   3062"), for purposes of Canadian GAAP, and Statement of Financial  Accounting
   Standards  ("SFAS") 142, "Goodwill and Other Intangible Assets" ("SFAS 142"),
   for purposes of U.S. GAAP.

   The  allocation of goodwill  primarily to the  Exploration  and  Acquisitions
   reporting unit was intended to represent the increase in value of the Company
   after the  Acquisitions,  resulting  primarily  from the  enhancement  of the
   Company's ability to sustain and increase its mineral resources and therefore
   increase its future production capabilities. The original goodwill impairment
   testing methodology was based on measuring the Company's success in achieving
   additions to proven and probable reserves compared to predetermined  expected
   average annual increases over a specified period of time.

   When the Company  tested the  goodwill for  impairment  based on its original
   methodology,  it  concluded  that there was no  impairment  of goodwill as at
   December 31, 2003.

   INITIAL REVISION OF ORIGINAL VALUATION METHODOLOGY
   Subsequent to discussions with and comments from regulatory  agencies and the
   Company's further review of applicable accounting guidance, at the end of the
   third  quarter of 2004,  the Company  revised its  allocation of goodwill and
   impairment  testing   methodology  and  reassigned  the  goodwill  originally
   computed ($918 million) to the  significant  reporting  units acquired in the
   Acquisitions.

   These reporting units  represented the Company's  interests in five operating
   mines  and  three  development  properties.   The  initial  revision  in  the
   allocation  of goodwill  to  reporting  units was based on the  premise  that
   goodwill  represented  a market  participant's  view as to the  potential for
   discovery of  additional  mineable  ounces of gold from  properties or mining
   rights  acquired  in the  acquisitions  in excess of those  reflected  in the
   purchase price  allocated to  identifiable  assets,  and to the potential for
   increased  revenues as a result of higher  realized  gold prices.  On testing
   goodwill for impairment,  the revised methodology  determined fair value of a
   reporting  unit using a net asset value  multiple  that  Kinross  concluded a
   market  participant  would use in determining fair value. The net asset value
   was in turn computed  based on discounted  cash flows over the projected life
   of each  mine in the case of  operating  mines or in the case of  development
   properties using a per ounce value based on market data.


                                       20
<PAGE>

Using this revised goodwill  allocation and impairment  testing  methodology the
Company determined that there was no goodwill or asset impairment as at December
31,  2003.  However,  based  on  this  goodwill  allocation  and  the  Company's
negotiations  to purchase the  remaining 51% of the Paracatu  mine,  the Company
recognized  a goodwill  impairment  charge of $143  million in the three  months
ended  September  30,  2004.  As  discussed  below,  this  previously   recorded
impairment charge has been reversed as part of the restatement.

FURTHER REVISION OF VALUATION, ALLOCATION AND IMPAIRMENT METHODOLOGY
In January 2005,  following  additional comments from regulatory  agencies,  the
Company engaged an independent  valuation advisory firm ("the Firm") to provide:
(i) a valuation of the significant  assets and  liabilities  acquired as part of
the  Acquisitions;  (ii) an allocation  to the  reporting  units of the goodwill
resulting  from the  excess of the  purchase  price  over the fair  value of the
identifiable  assets and liabilities  acquired in the Acquisitions;  and (iii) a
valuation  of the assets and  liabilities  acquired in the  Acquisitions  and an
assessment of the resulting goodwill for impairment as at December 31, 2003.

The valuation  methodology  employed by the Firm took into  consideration  value
beyond proven and probable reserves ("VBPP") as defined by the newly issued CICA
Emerging Issues  Committee  ("EIC")  Abstract No 152 "Mining Assets - Impairment
and Business  Combinations"  ("EIC-152").  Similar accounting  guidance was also
issued in the United States.  This guidance requires that a mining entity should
include VBPP and the effect of anticipated  fluctuations  in the future price of
minerals when allocating the purchase price of a business  combination to mining
assets acquired and also when testing mining assets for impairment.

The most significant  identifiable  assets acquired in the Acquisitions were the
property,  plant and equipment and mineral interests. The original independently
appraised  values of plant and equipment  were  maintained.  The Firm valued the
mineral interests that consisted of: proven and probable reserves;  measured and
indicated  resources and inferred resources as defined under National Instrument
43-101"Standards   for  disclosure  of  mineral  projects"  issued  by  Canadian
Securities  Administrators,  using a discounted cash flow approach. In addition,
the Company acquired land with mineral rights ("exploration properties"),  which
is the area adjacent and contiguous to existing  mines or properties  containing
reserves,   resources  or  without  any  identified   exploration  targets.  The
exploration  properties  were valued  based on prices paid for similar  types of
properties in market transactions.

The independent  valuation of the significant assets and liabilities acquired in
the Acquisitions  resulted in a revision to the fair values initially  estimated
as of  the  acquisition  date  and  a  consequent  reduction  of  goodwill.  The
independent  valuation  concluded that the resulting  goodwill  represented  the
following:

o   The expected  ability of the Company to increase its reserves and  resources
    based on its development of the identified  exploration  targets existing on
    the properties which were part of the Acquisitions;
o   The optionality (real option value associated with the portfolio of acquired
    mines as well as each  individual  mine) make  exploration  decisions on the
    acquired  properties and other properties based upon changes in gold prices,
    including  the ability to develop  additional,  higher-cost  reserves and to
    intensify  efforts to develop the more  promising  acquired  properties  and
    reduce  efforts at developing the less promising  acquired  properties  when
    gold prices increase in the future; and
o   The going  concern  value of the  Company's  capacity to replace and augment
    reserves through  completely new discoveries whose value is not reflected in
    any of the other valuations of existing mining assets.

The Company  accepted the results of the valuation and  accordingly  revised its
impairment  testing  methodology  to ensure  consistency  with the allocation of
purchase price and the related goodwill as determined in the valuation.

In determining the basis of assigning goodwill to reporting units as at the date
of  acquisition,  the  expected  additional  value  associated  attributable  to
exploration  potential  was  quantified  for each  reporting  unit  based on the
specific  geological  attributes  of the mineral  property  and based on data of
market transactions for similar types of properties.  The values associated with
optionality  and going  concern  value  could  not be  separately  computed  and
accordingly  the balance of goodwill  was  assigned to  reporting  units using a
relative fair value methodology.

IMPAIRMENT TESTING OF LONG-LIVED ASSETS
The Company tested its long-lived  assets,  including tangible mineral interests
and plant and equipment for  impairment as at December 31, 2003 and  accordingly
has  reflected  in the restated  consolidated  financial  statements  impairment
charges of $10.0  million as at December  31,  2003.  These  impairment  charges
relate to mineral interests and exploration properties.

The Company will reassess long-lived assets for recoverability if production and
depletion,  changes  in reserve  estimates,  decreases  in gold  prices or other
factors  indicate that the carrying  value may not be  recoverable.  Exploration
properties are also tested for  impairment  annually on a fair value basis based
on market  comparable data.  Impairment is recognized in the amount by which the
fair value is less than the carrying value.


                                       21
<PAGE>

IMPAIRMENT TESTING OF GOODWILL
In  accordance  with CICA  Section.  3062 and SFAS 142,  the Company  tested its
goodwill for  impairment  as at December  31, 2003 and has  recorded  impairment
charges  of  $394.4  for the year  ended  December  31,  2003,  in the  restated
consolidated financial statements.

The  valuations  performed at December 31, 2003  computed the fair value of each
reporting unit. The fair value of the reporting unit was based on the fair value
of the  mineral  interests  computed  using a  discounted  cash flow  method and
assumptions  similar to those used on the  acquisition  date at January 31, 2003
and included  expected  additional  value based on the expected  ability to find
additional ore. However,  no value could be computed for the optionality and the
going concern value,  which were  contributors  to goodwill at January 31, 2003.
This  inability to directly  value  optionality  and going concern value results
primarily  from the  requirements  under  Section  3062 and SFAS 142 to allocate
goodwill to reporting units, which in the case of mining companies are typically
individual  mine sites.  The Company  would have relied on  real-option  pricing
methodology had the models been well enough  specified to support  reliable fair
values.  In a single  mining  operation any going concern value would have to be
finite  and  limited  to  the  life  of  the  mineral   that  can  be  extracted
economically. However, even if such models had been readily available, empirical
evidence  suggests  that  market   participants  do  not  perceive   significant
real-option  or going  concern  value  at the mine  site  level,  which  are the
reporting units for goodwill impairment testing purposes.

In the future,  the Company will test goodwill for impairment at least annually,
unless all of the following criteria have been met:

(a) The assets and liabilities  that make up the reporting unit have not changed
    significantly since the most recent fair value determination.
(b) The most recent,  bottom-up  fair value  determination  of fair values for a
    reporting  unit resulted in an amount that  exceeded the carrying  amount of
    the reporting unit by a substantial margin.
(c) Based on an analysis of events that have  occurred  and  circumstances  that
    have changed since the most recent fair value determination,  the likelihood
    that a current  fair  value  determination  would be less  than the  current
    carrying amount of the reporting unit is remote.

In  accordance  with CICA  Section  3062 and SFAS 142,  the Company will also be
alert  for  "triggering  events"  that  would  indicate  the  need to  test  for
impairment more frequently than annually.  In addition to the triggering  events
specifically  identified in the relevant accounting  pronouncement,  significant
changes  in gold  prices  and  changes  in the  demand  for gold  would  also be
considered triggering events.

The Company uses the  following  methodology  to test for  goodwill  impairment.
First, the Company determines the fair value of the reporting unit, which is the
sum of the following:

o   Discounted nominal cash flows of reserves and resources.
o   Fair value of exploration properties based on market comparable data.
o   Expected  additional value from identified  exploration  targets  calculated
    based  on  management's  estimates  of the  ounces  at such  targets  at the
    impairment  testing  date,  corroborated  by an  analysis  of the  Company's
    three-year  historical  experience with additions to reserves and resources,
    and  prices  in  market  transactions   involving  properties  with  similar
    exploration targets.

IMPACT OF INDEPENDENT  VALUATIONS AS AT JANUARY 31, 2003 (ACQUISITION  DATE) The
following  table  shows the impact of the  revised  allocation  of the  purchase
price:


                                       22
<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------- ------------- -------------
                                                                            AS PREVIOUSLY
                                                                             REPORTED (A)     REVISED        CHANGE
------------------------------------------------------------------------------------------- ------------- -------------
<S>                                                                         <C>              <C>           <C>
Common shares of Kinross issued to Echo Bay and TVX shareholders            $       177.8    $     177.8   $        --
Value of Kinross common stock per share                                              7.14           7.14            --
------------------------------------------------------------------------------------------- ------------- -------------
Fair value of the Company's common stock issued                             $     1,269.8    $   1,269.8   $        --

Plus - fair value of warrants and options assumed by the Company                     29.3           29.3            --
Plus - direct acquisition costs incurred by the Company                              12.6           12.6            --
Plus - the Company's previous 10.6% ownership interest in Echo Bay                    7.0            7.0            --
------------------------------------------------------------------------------------------- ------------- -------------
Total purchase price                                                        $     1,318.7    $   1,318.7   $        --
Plus - Fair value of liabilities assumed by Kinross
     Accounts payable and accrued liabilities                                        76.7           76.7            --
     Long-term debt, including current portion                                        2.2            2.2            --
     Site restoration cost accruals, including current portion                       63.0           63.0            --
     Future income tax liabilities                                                   52.8          135.9          83.1
     Other long-term liabilities                                                      0.1            0.1            --
     Liability with respect to TVX Newmont JV assets acquired                        94.5           94.5            --
Less - Fair value of assets acquired by Kinross                                                       --
     Cash                                                                           (44.2)         (44.2)           --
     Restricted cash                                                                (21.4)         (21.4)           --
     Marketable securities                                                           (2.4)          (2.4)           --
     Accounts receivable and other assets                                           (22.8)         (22.8)           --
     Inventories                                                                    (47.9)         (47.9)           --
     Property, plant and equipment (b)                                             (213.7)        (168.3)         45.4
     Mineral interests                                                             (283.9)        (593.7)       (309.8)
     Long-term investments and other non-current assets                             (53.7)         (53.7)           --
------------------------------------------------------------------------------------------- ------------- -------------
Residual purchase price allocated to goodwill                               $       918.0    $     736.7   $    (181.3)
------------------------------------------------------------------------------------------- ------------- -------------
</TABLE>

(a)     As previously disclosed in 2003 financial statements.
(b)     Reclassification to mineral interests.

IMPACT OF INDEPENDENT VALUATIONS AND IMPAIRMENT TESTING AT DECEMBER 31, 2003
Based on  independent  valuations  as of December  31,  2003 and the  impairment
testing  methodology  described  above,  the  Company  recorded  impairments  of
long-lived assets of $10.0 million relating to mineral interests and exploration
properties and goodwill impairment of $394.4 million for the year ended December
31, 2003. See Note 6 for details of goodwill impairment by reportable segment.

RECLAMATION AND REMEDIATION OBLIGATIONS
The CICA issued Handbook Section 3110 "Asset Retirement  Obligations"  ("Section
3110") sets out new accounting requirements for the recognition, measurement and
disclosure of liabilities  for asset  retirement  obligations  (reclamation  and
remediation  obligations)  and the  related  asset  retirement  cost.  This  new
standard is to be applied to fiscal years,  which  commenced on or after January
1, 2004.  The details on the adoption of this  standard are  described in Note 4
and Note 10.  Effective  January  1,  2004,  the  Company  adopted  the  initial
recognition  and  measurement  provisions  of  Section  3110  and  applied  them
retroactively  with a  restatement  of 2003 and 2002  comparative  figures.  The
tables shown below include the impact of this retroactive application of Section
3110.  The  impact of  adoption  for the year  ended  December  31 2003,  was an
increase  in  property,  plant and  equipment  by $45.4  million  and  increased
reclamation  and  remediation  obligations  by $10.6 million to reflect the fair
value of the  asset  and the  related  liability.  Net  loss for the year  ended
December 31, 2003 decreased by $3.1 million.

FINANCIAL INSTRUMENTS AND HEDGING
Effective  January  1,  2004,  the  Company  adopted  Accounting   Guideline  13
("AcG-13"),   "Hedging   Relationships",   which  provides  guidance  concerning
documentation and  effectiveness  testing for derivative  contracts.  Derivative
instruments  that do not qualify as a hedge under AcG-13,  or are not designated
as a hedge, are recorded on the balance sheet at fair value with changes in fair
value recognized in earnings.  Upon the adoption of AcG-13,  certain  derivative
instruments that had been previously  accounted for as hedges failed to meet the
requirements of AcG-13 for formal hedge  accounting.  Therefore,  the previously
financial results were restated to show the related impact. For the three months
ended March 31, 2004, the impact of this  derecognition was to decrease Accounts
receivable  and other  assets by $1.0  million,  increase  Cost of sales by $0.2
million and decrease Metal sales by $0.8 million.


                                       23
<PAGE>

IMPACT OF RESTATEMENT ON CONSOLIDATED FINANCIAL STATEMENTS
The effect of the revised  valuations,  allocation  of  goodwill  and testing of
impairment and adoption of Section 3110 on the consolidated balance sheets as of
December 31, 2003 and March 31, 2004 and  consolidated  statement of  operations
for the three months ended March 31, 2003 and 2004 are shown below:

CONSOLIDATED BALANCE SHEETS AS AT DECEMBER 31, 2003

<TABLE>
<CAPTION>
================================================================================= =============================
                                                                        AS
                                                                    PREVIOUSLY
                                                                      REPORTED       CHANGE       AS RESTATED
--------------------------------------------------------------------------------- -----------------------------
<S>                                                                <C>             <C>            <C>
ASSETS
  Current assets
     Cash and cash equivalents                                     $       245.8   $        --    $      245.8
     Restricted cash                                                         5.1            --             5.1
     Accounts receivable and other assets                                   42.2            --            42.2
     Inventories                                                           109.2            --           109.2
                                                                  --------------- -----------------------------
                                                                           402.3            --           402.3
  Property, plant and equipment                                            782.7         227.7         1,010.4
  Goodwill                                                                 918.0        (575.7)          342.3
  Long-term investments                                                      2.1            --             2.1
  Future income and mining taxes                                             1.5            --             1.5
  Deferred charges and other long-term assets                               35.9            --            35.9
                                                                  --------------- -----------------------------
                                                                   $     2,142.5   $    (348.0)   $    1,794.5
                                                                  =============== =============================
LIABILITIES
  Current liabilities
     Accounts payable and accrued liabilities                      $       101.4   $       0.5    $      101.9
     Current portion of long-term debt                                      29.4            --            29.4
     Current portion of reclamation and remediation obligations             19.2            --            19.2
                                                                  --------------- -----------------------------
                                                                           150.0           0.5           150.5
  Long-term debt                                                             0.7            --             0.7
  Reclamation and remediation obligations                                  100.5          10.6           111.1
  Future income and mining taxes                                            55.6          71.0           126.6
  Other long-term liabilities                                                4.7           2.2             6.9
  Redeemable retractable preferred shares                                    3.0            --             3.0
                                                                  --------------- -----------------------------
                                                                           314.5          84.3           398.8
                                                                  --------------- -----------------------------
NON-CONTROLLING INTEREST                                                     0.7            --             0.7
                                                                  --------------- -----------------------------
CONVERTIBLE PREFERRED SHARES OF SUBSIDIARY COMPANY                          12.6            --            12.6
                                                                  --------------- -----------------------------
COMMON SHAREHOLDERS' EQUITY                                                                 --
  Common share capital and common share purchase warrants                1,783.5            --         1,783.5
  Contributed surplus                                                       30.0            --            30.0
  Accumulated deficit                                                        3.2        (432.3)         (429.1)
  Cumulative translation adjustments                                        (2.0)           --            (2.0)
                                                                  --------------- -----------------------------
                                                                         1,814.7        (432.3)        1,382.4
                                                                  --------------- -----------------------------
                                                                   $     2,142.5   $    (348.0)   $    1,794.5
================================================================================= =============================
</TABLE>

(a)     Change in Other Long-term liabilities relates to the reclassification of
        certain asset retirement related liabilities to the reclamation and
        remediation obligation.


                                       24
<PAGE>

CONSOLIDATED BALANCE SHEETS AS AT MARCH 31, 2004

<TABLE>
<CAPTION>
================================================================================= =============================
                                                                        AS
                                                                    PREVIOUSLY
                                                                      REPORTED       CHANGE       AS RESTATED
--------------------------------------------------------------------------------- -----------------------------
<S>                                                                <C>             <C>            <C>
ASSETS
  Current assets
     Cash and cash equivalents                                     $       217.6   $        --    $      217.6
     Restricted cash                                                         1.4            --             1.4
     Accounts receivable and other assets                                   30.4          (1.6)           28.8
     Inventories                                                           132.4            --           132.4
                                                                  --------------- -----------------------------
                                                                           381.8          (1.6)          380.2
  Property, plant and equipment                                            774.1         216.9           991.0
  Goodwill                                                                 918.0        (575.7)          342.3
  Long-term investments                                                     16.5            --            16.5
  Future income and mining taxes                                             1.3           0.1             1.4
  Deferred charges and other long-term assets                               24.5            --            24.5
                                                                  --------------- -----------------------------
                                                                   $     2,116.2   $    (360.3)   $    1,755.9
                                                                  =============== =============================
LIABILITIES
  Current liabilities
     Accounts payable and accrued liabilities                      $        84.8   $      (1.2)   $       83.6
     Current portion of long-term debt                                       4.4            --             4.4
     Current portion of reclamation and remediation obligations             22.1            --            22.1
                                                                  --------------- -----------------------------
                                                                           111.3          (1.2)          110.1
  Long-term debt                                                             0.4            --             0.4
  Reclamation and remediation obligations                                  107.4            --           107.4
  Future income and mining taxes                                            54.5          69.0           123.5
  Other long-term liabilities                                                6.4           1.1             7.5
  Redeemable retractable preferred shares                                    2.9            --             2.9
                                                                  --------------- -----------------------------
                                                                           282.9          68.9           351.8
                                                                  --------------- -----------------------------
NON-CONTROLLING INTEREST                                                     0.7            --             0.7
                                                                  --------------- -----------------------------
CONVERTIBLE PREFERRED SHARES OF SUBSIDIARY COMPANY                          12.9            --            12.9
                                                                  --------------- -----------------------------
COMMON SHAREHOLDERS' EQUITY
  Common share capital and common share purchase warrants                1,784.0           0.2         1,784.2
  Contributed surplus                                                       32.9           0.8            33.7
  Retained earnings (deficit)                                                4.8        (430.2)         (425.4)
  Cumulative translation adjustments                                        (2.0)           --            (2.0)
                                                                  --------------- -----------------------------
                                                                         1,819.7        (429.2)        1,390.5
                                                                  --------------- -----------------------------
                                                                   $     2,116.2   $    (360.3)   $    1,755.9
================================================================================= =============================
</TABLE>

(a)     Change in Other Long-term liabilities relates to the reclassification of
        certain asset retirement related liabilities to the reclamation and
        remediation obligation.


                                       25
<PAGE>

CONSOLIDATED STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2003

<TABLE>
<CAPTION>
================================================================================= =============================
                                                                        AS
                                                                    PREVIOUSLY
                                                                      REPORTED       CHANGE       AS RESTATED
--------------------------------------------------------------------------------- -----------------------------
<S>                                                                <C>             <C>            <C>
REVENUE AND OTHER OPERATING INCOME
  Metal sales                                                      $       117.0   $        --    $      117.0

OPERATING COSTS AND EXPENSES
  Cost of sales (excluding items shown below)                               85.5          (0.2)           85.3
  Accretion                                                                  1.8                           1.8
  Depreciation, depletion and amortization                                  28.2           4.3            32.5
                                                                  --------------- -----------------------------
                                                                             1.5          (4.1)           (2.6)
  Other operating costs                                                      0.2            --             0.2
  Exploration and business development                                       6.2            --             6.2
  General and administrative                                                 5.8            --             5.8
  Gain on disposal of assets                                                (0.1)           --            (0.1)
                                                                  --------------- -----------------------------
OPERATING EARNINGS (LOSS)                                                  (10.6)         (4.1)          (14.7)

  Other income, net                                                          1.3            --             1.3
                                                                  --------------- -----------------------------
EARNINGS (LOSS) BEFORE TAXES AND OTHER ITEMS                                (9.3)         (4.1)          (13.4)
                                                                                            --
  Income and mining taxes recovery (expense)                                (2.5)          1.1            (1.4)
  Dividends on convertible preferred shares of subsidiary                   (0.2)           --            (0.2)
                                                                  --------------- -----------------------------
NET EARNINGS (LOSS)                                                $       (12.0)  $      (3.0)   $      (15.0)
                                                                  =============== =============================

ATTRIBUTABLE TO COMMON SHAREHOLDERS:

  Net earnings (loss)                                              $       (12.0)  $      (3.0)   $      (15.0)
  Increase in equity component of convertible debentures                    (2.1)           --            (2.1)
                                                                  --------------- -----------------------------
NET EARNINGS (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS            $       (14.1)  $      (3.0)   $      (17.1)
                                                                  =============== =============================

EARNINGS (LOSS) PER SHARE
  Basic                                                            $       (0.06)  $     (0.01)   $      (0.07)
  Diluted                                                          $       (0.06)  $     (0.01)   $      (0.07)
================================================================================= =============================
</TABLE>


                                       26
<PAGE>

CONSOLIDATED STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2004

<TABLE>
<CAPTION>
================================================================================= =============================
                                                                        AS
                                                                    PREVIOUSLY
                                                                      REPORTED       CHANGE       AS RESTATED
--------------------------------------------------------------------------------- -----------------------------
<S>                                                                <C>             <C>            <C>
REVENUE AND OTHER OPERATING INCOME
  Metal sales                                                      $       155.6   $      (0.8)   $      154.8

OPERATING COSTS AND EXPENSES
  Cost of sales (excluding items shown below)                               90.5           2.1            92.6
  Accretion                                                                  2.2            --             2.2
  Depreciation, depletion and amortization                                  32.4           6.3            38.7
                                                                  --------------- -----------------------------
                                                                            30.5          (9.2)           21.3
  Other operating costs                                                      1.8           0.1             1.9
  Exploration and business development                                       3.5            --             3.5
  General and administrative                                                 6.9            --             6.9
  Gain on disposal of assets                                                (0.4)           --            (0.4)
                                                                  --------------- -----------------------------
OPERATING EARNINGS (LOSS)                                                   18.7          (9.3)            9.4

  Other income, net                                                         (2.1)           --            (2.1)
                                                                  --------------- -----------------------------
EARNINGS (LOSS) BEFORE TAXES AND OTHER ITEMS                                16.6          (9.3)            7.3

  Income and mining taxes recovery (expense)                                (3.2)          2.3            (0.9)
  Dividends on convertible preferred shares of subsidiary                   (0.2)           --            (0.2)
                                                                  --------------- -----------------------------
NET EARNINGS (LOSS)                                                $        13.2   $      (7.0)   $        6.2
                                                                  --------------- -----------------------------

ATTRIBUTABLE TO COMMON SHAREHOLDERS:

  Net earnings (loss)                                              $        13.2   $       7.0    $        6.2
                                                                  --------------- -----------------------------
NET EARNINGS (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS            $        13.2   $      (7.0)   $        6.2
                                                                  =============== =============================

EARNINGS (LOSS) PER SHARE
  Basic                                                            $        0.04   $     (0.02)   $       0.02
  Diluted                                                          $        0.04   $     (0.02)   $       0.02
================================================================================= =============================
</TABLE>


                                       27
<PAGE>

3. ACCOUNTING CHANGES

   (A) STOCK-BASED COMPENSATION

       In November 2001,  the CICA issued  Handbook  Section 3870,  "Stock-Based
       Compensation and Other Stock-Based  Payments" ("Section 3870"), which was
       revised in November  2003.  Section 3870  establishes  standards  for the
       recognition,  measurement, and disclosure of stock-based compensation and
       other  stock-based  payments  made in exchange for goods and services and
       applies to transactions,  including non-reciprocal transactions, in which
       an  enterprise  grants  common  shares,  stock  options  or other  equity
       instruments, or incurs liabilities based on the price of common shares or
       other equity instruments. Section 3870 outlines a fair value based method
       of accounting  required for certain stock-based  transactions,  effective
       January 1, 2002 and applied to awards granted on or after that date.

       Prior to January 1, 2004, as permitted by Section  3870,  the Company did
       not adopt the  provisions  in respect of the fair value  based  method of
       accounting for its employee stock-based transactions.

       Effective  January 1, 2004, the Company  recorded an expense for employee
       stock-based  compensation using the fair value based method prospectively
       for all  awards  granted or  modified  on or after  January  1, 2002,  in
       accordance  with the  transitional  provisions of Section 3870.  The fair
       value at grant date of stock options is estimated using the Black-Scholes
       option-pricing  model.  Compensation expense is recognized over the stock
       option vesting period.

       The impact of the  adoption of the fair value based method for all awards
       only impacted the Company's method of accounting for stock options.  As a
       result, stock option compensation  (pre-tax) of $2.5 million was recorded
       as a cumulative  effect of the adoption as an  adjustment  to the opening
       deficit as shown in the consolidated  statements of common  shareholders'
       equity and on adoption  $0.2  million was  recorded as an increase in the
       value of common shares on the exercise of options.  Additionally,  during
       the three months ended March 31, 2004 the Company  recorded  stock option
       expense of $0.3  million and  recorded  restricted  stock unit expense of
       $0.2 million.

       Had the Company adopted the fair value based method of accounting for all
       stock-based  awards,  reported  net loss and loss per common  share would
       have been adjusted to the pro forma amounts indicated in the table below:


                                       28
<PAGE>

------------------------------------------------------------------------------
                                                                  THREE MONTHS
                                                                      ENDED
                                                                    MARCH 31,
                                                                      2003
------------------------------------------------------------------------------

Net loss attributable to common shareholders                         $ (17.1)
  Stock-based compensation expense - pro forma                          (0.1)
------------------------------------------------------------------------------
Net loss - pro forma                                                 $ (17.2)
==============================================================================

Loss per common share
  Basic and diluted - reported                                       $ (0.07)
  Basic and diluted - pro forma                                      $ (0.07)
==============================================================================

       The following  weighted  average  assumptions  were used in computing the
       fair value of stock options for the following periods:

---------------------------------------------------------------------------
                                                  THREE MONTHS ENDED
                                                        MARCH 31,
                                                   2004            2003
---------------------------------------------------------------------------

BLACK-SCHOLES WEIGHTED-AVERAGE ASSUMPTIONS
Expected dividend yield                              0.00%           0.00%
Expected volatility                                 40.37%          70.37%
Risk-free interest rate                              2.04%           2.90%
Expected option life in years                          3.5             5.0

WEIGHTED AVERAGE STOCK OPTION FAIR VALUE
    PER OPTION GRANTED                              $ 2.86          $ 6.25
---------------------------------------------------------------------------

   (B) ASSET RETIREMENT OBLIGATIONS

       The CICA issued  Handbook  Section  3110 "Asset  Retirement  Obligations"
       ("Section  3110") to be applied to fiscal  years  commencing  on or after
       January 1,  2004.  Section  3110  requires a  liability  to be  initially
       recognized  for the  estimated  fair value of the  obligation  when it is
       incurred.  The associated asset retirement cost is capitalized as part of
       the carrying  amount of the  long-lived  asset and  depreciated  over the
       remaining  life of the underlying  asset and the associated  liability is
       accreted to the estimated  fair value of the obligation at the settlement
       date through periodic accretion charges to net earnings (loss).  When the
       obligation  is  settled,  any  difference  between the final cost and the
       recorded liability is recognized as income or loss on settlement.

       The Company's  mining and  exploration  activities are subject to various
       laws and  regulations for federal,  provincial and various  international
       jurisdictions governing the protection of the environment. These laws and
       regulations are continually changing. 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,  but cannot predict the amount of
       such future  expenditures.  Estimated future  reclamation costs are based
       principally on legal and regulatory  requirements.  Prior to the issue of
       Section  3110 the Company  accrued for  estimated  site  restoration  and
       closure  obligations  over the  producing  life of a mine  with an annual
       charge to earnings based primarily on legal,  regulatory requirements and
       company policy.

       Effective  January 1, 2004, the Company  adopted the initial  recognition
       and   measurement   provisions   of  Section   3110  and   applied   them
       retroactively.  The financial statements and accompanying notes have been
       restated to reflect the adoption of Section 3110. The adoption of Section
       3110  resulted in an increase in net loss for the period of $0.8  million
       (pre-tax) for the period ended March 31, 2003 as a result of  adjustments
       required to the site restoration  cost obligation.  Net loss for the year
       ended December 31, 2003 decreased by $3.1 million, while the net loss for
       the year ended  December 31, 2002  decreased by $8.1 million.  During the
       three  months  ended March 31, 2004,  the Company  recorded  depreciation
       expense of $3.2 million  (pre-tax) and accretion  expense of $2.2 million
       (pre-tax).  During  2003,  the  Company  increased  property,  plant  and
       equipment  by  $45.4  million.  Long-lived  assets,  net  of  accumulated
       depreciation,  were $35.0  million and $38.2 million as at March 31, 2004
       and December 31, 2003, respectively. The site restoration cost obligation
       (asset retirement obligation liability) as at December 31, 2003 of $119.7
       million was also  increased by $10.6 million to $130.3 million to reflect
       the adoption of Section  3110.  The site  restoration  cost accrual as at
       March 31, 2004 was $129.5 million.  The undiscounted  amount of estimated
       cash flows to settle the site


                                       29
<PAGE>

       restoration cost accruals was  approximately  $145 million.  The expected
       timing of expenditures ranges from 2004 to 2025. The credit adjusted risk
       free rate used in estimating the site restoration cost obligation was 7%.

------------------------------------------------------------------------------
                                                                  THREE MONTHS
                                                                 ENDED MARCH 31,
                                                                      2003
------------------------------------------------------------------------------
Net loss attributable to common shareholders
  As previously reported                                            $ (16.3)
  Impact of adoption of Section 3110                                   (0.8)
------------------------------------------------------------------------------
  As currently reported                                             $ (17.1)
==============================================================================

Loss per common share
Basic and diluted
  As previously reported                                            $ (0.06)
  Impact of adoption of Section 3110                                  (0.01)
------------------------------------------------------------------------------
  As currently reported                                             $ (0.07)
==============================================================================

       The following  table provides a  reconciliation  of the site  restoration
       cost obligation for the following periods:

--------------------------------------------------------------------------------
                                                     MARCH 31,      DECEMBER 31,
                                                       2004            2003
--------------------------------------------------------------------------------

Balance at the beginning of the period              $  130.3      $   69.5
  Additions resulting from acquisitions (a)              --           65.6
  Liabilities settled                                   (1.7)        (19.3)
  Accretion expense                                      2.2           9.0
  Foreign exchange                                      (0.1)          2.3
  Asset retirment cost                                   --            3.2
  Other                                                 (1.2)          --
-------------------------------------------------------------------------------
Balance at the end of the period                    $  129.5      $  130.3
===============================================================================

(a) Reflects the  acquisitions of TVX and Echo Bay as well as the increase in
    ownership of Kubaka.

   (C) FLOW THROUGH SHARES

       On March 19, 2004, the Emerging  Issues  Committee  (EIC) of the Canadian
       Institute of Chartered Accountants ("CICA") issued EIC 146, "Flow through
       shares"  ("EIC 146").  EIC 146 requires the  recognition  of a future tax
       liability  and a reduction  to  shareholders  equity on the date that the
       company  renounces  the tax  credits  associated  with  tax  expenditures
       provided  there is reasonable  assurance  that the  expenditures  will be
       made. This EIC was applicable on a prospective basis for all transactions
       initiated  after  March 19,  2004.  The  Company has adopted EIC 146 on a
       prospective basis.

4. 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  policy
   approved by the Company's Board of Directors.

   Realized  and  unrealized  gains or losses  on  derivative  contracts,  which
   qualify for hedge accounting,  are deferred and recorded in earnings when the
   underlying  hedged  transaction is recognized.  Gains and losses on the early
   settlement  of gold hedging  contracts  are  recorded as deferred  revenue or
   deferred  losses on the  balance  sheet and  included  in  earnings  over the
   original delivery schedule of the hedged production.  Realized and unrealized
   gains or  losses  on  derivative  contracts  that do not  qualify  for  hedge
   accounting are recognized in income in the period incurred.

   The  outstanding  number of  ounces,  average  expected  realized  prices and
   maturities for the gold commodity  derivative  contracts as at March 31, 2004
   are as follows:


                                       30
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
           EXPECTED YEAR   SPOT DEFERRED     AVERAGE     CALL OPTIONS     AVERAGE         PUT OPTIONS         AVERAGE
           OF DELIVERY     OUNCES HEDGED      PRICE      SOLD (OUNCES)    STRIKE PRICE    BOUGHT (OUNCES)     STRIKE PRICE
------------------------------------------------------------------------------------------------------------------------------
<C>                              <C>        <C>                <C>        <C>                    <C>            <C>
2004                             107,500    $    280           50,000     $    340               112,500        $    250
2005                              37,500    $    296              --           --                150,000        $    250
2006                                --           --               --           --                150,000        $    250
------------------------------------------------------------------------------------------------------------------------------
                                 145,000    $    284           50,000     $    340               412,500        $    250
==============================================================================================================================
</TABLE>

     At December 31, 2003, the Company had spot deferred  contracts for the sale
     of  175,000  ounces  of gold  with a fair  value  unrealized  loss of $24.1
     million, however this loss was not recognized on the consolidated financial
     statements.  Beginning  January  1,  2004,  these  contracts,  while  still
     providing an economic  hedge,  failed to meet the  requirements  for formal
     hedge  accounting.  As such,  changes in fair  value from that point  until
     maturity are included in current earnings. In addition, the unrealized loss
     of $24.1 million is recognized in earnings in connection  with the original
     maturity  dates of the  contracts.  During the first  quarter of 2004,  the
     Company delivered 30,000 ounces into contracts  outstanding at December 31,
     2003  at an  average  price  of  $269  per  ounce  leaving  145,000  ounces
     outstanding at March 31, 2004. The fair value of the gold forward sales and
     spot  deferred  forward  sales  contract,  as at March 31, 2004,  was $20.5
     million, based on a gold price of $424 per ounce.  Subsequent to the end of
     the quarter,  the Company delivered a further 20,000 ounces and financially
     closed out another 90,000 ounces at a cost of $9.6 million.  For accounting
     purposes the portion of the unrealized  loss, as determined on December 31,
     2003, will remain deferred on the balance sheet and will be recognized into
     earnings in accordance  with the original  maturity dates of the contracts,
     as follows:

--------------------------------------------------------------------------------
QUARTERLY RECOGNITION OF DEFERRED LOSSES                  OUNCES   ($ MILLIONS)
--------------------------------------------------------------------------------

Q3 2004                                                    30,000       4.4
Q4 2004                                                    22,500       3.0
Q1 2005                                                    12,500       1.6
Q2 2005                                                    25,000       3.1
-----------------------------------------------------------------------------

                                                           90,000   $  12.1
==============================================================================

   The remaining 35,000 ounces will be delivered in the second quarter of 2004.

   Premiums  received at the inception of written call options are recorded as a
   liability.  Changes  in the  fair  value  of  the  liability  are  recognized
   currently in earnings. In addition, the Company did not seek hedge accounting
   for its silver spot  deferred  contracts  or gold put  options  and  Canadian
   dollar forward contracts  acquired in the business  combination with TVX Gold
   Inc.  and  Echo Bay  Mines  Ltd.  Changes  in the  fair  value  of  financial
   instruments  are  recognized   currently  in  earnings.   The  mark-to-market
   adjustment increased the liability on the Company's call options sold, silver
   spot  deferred  contracts  and gold put options by $0.8 million for the three
   months ended March 31, 2004 and  decreased  the liability by $2.1 million for
   the three months ended March 31, 2003.

   At March 31,  2004,  the  Company's  consolidated  foreign  currency  program
   consists of:

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                  MATURITY PERIOD                 AVERAGE PRICE                                       UNREALIZED
                                  (TO THE YEAR)        QUANTITY    (C$/USD)       FAIR VALUE      DEFERRED GAIN    LOSS RECOGNIZED
-----------------------------------------------------------------------------------------------------------------------------------
                                                                 (millions of USD)              (millions of USD)
<S>                         <C>        <C>          <C>                <C>        <C>                 <C>               <C>
Fixed forward contracts (CDN$)         2004         $      5.0         1.4167     $  0.4              $   0.5           $ (0.1)
                                       2005               10.0         1.4322        0.8                  0.9             (0.1)
-----------------------------------------------------------------------------------------------------------------------------------
                                                    $     15.0         1.4270     $  1.2               $  1.4           $ (0.2)
===================================================================================================================================
</TABLE>

   The  Company  uses these  fixed  forward  contracts  to  partially  hedge its
   Canadian   dollar   denominated   mine   operating   costs  and  general  and
   administrative  costs.  At December  31,  2003 the Company had fixed  forward
   contracts to sell U.S.  dollars and buy Canadian dollars of CDN $28.4 million
   at an average  exchange rate of 1.4221.  The unrealized  gain at December 31,
   2003 was $1.8 million.  Beginning  January 1, 2004,  these  contracts,  while
   still providing an economic hedge, failed to meet the requirements for formal
   hedge  accounting.  As such,  changes in fair  value  from that  point  until
   maturity  are  included  in current  earnings.  The  unrealized  gain of $1.8
   million is recognized in earnings in  connection  with the original  maturity
   dates of the  contracts.  During the three months  ended March 31, 2004,  the
   Company  recognized  into  earnings  $0.4 million of the deferred  gain.  The
   remaining  deferred gain will be recognized  into earnings  during the second
   quarter  of 2004  ($0.5  million)  and  during  the first  half of 2005 ($0.9
   million).  Gains from the  strengthening  of the Canadian  dollar against the
   U.S.  dollar since January 1, 2004 have been netted against  operating  costs
   from  the  Company's   Canadian  mines  and  against   Canadian  general  and
   administrative expenses in the period incurred.


                                       31
<PAGE>

5. INVENTORIES

   The following table details the composition of inventories as at:

                                               MARCH 31,     DECEMBER 31,
                                                 2004           2003
-----------------------------------------------------------------------------

In-process                                     $   15.9    $   15.5
Finished metal                                     21.0        15.4
Ore in stockpiles                                  14.7        15.3
Ore on leach pads                                  13.2         8.3
Materials and supplies                             75.4        62.5
-----------------------------------------------------------------------------

                                                  140.2       117.0
Long-term portion of ore in stockpiles (a)         (7.8)       (7.8)
-----------------------------------------------------------------------------
                                               $  132.4    $  109.2
=============================================================================

   (a) Long-term portion of ore in stockpiles  includes  low-grade  material not
       scheduled for processing  within the next twelve months and is included
       in Deferred charges and other long-term assets on the consolidated
       balance sheets.

   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.

   Ore on leach pads relates  entirely to the Company's 50% owned Round Mountain
   mine.

   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  twelve months  following the
   date the last tonne of ore is placed on the leach pad.

6. GOODWILL

   The  goodwill  allocated to the  Company's  reporting  units  included in the
   respective operating segment assets is shown in the table below:

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
                                          2003                                                          2004
-------------------------------------------------------------------------------------------------------------------------------
                         Dec 31, 2002  Additions (a)  Impairment   Dec 31, 2003     Additions       Impairment   Mar 31, 2004
-------------------------------------------------------------------------------------------------------------------------------
<S>                         <C>        <C>            <C>           <C>             <C>              <C>            <C>
OPERATING SEGMENTS
  Fort Knox                   $ --       $   --         $   --        $   --          $   --           $    --        $    --
  Kubaka                        --           --             --            --              --                --             --
  Round Mountain                --          173.7          (87.2)         86.5            --                --            86.5
  La Coipa                      --          137.3          (65.9)         71.4            --                --            71.4
  Crixas                        --           80.5          (42.5)         38.0            --                --            38.0
  Paracatu                      --          164.9          (99.4)         65.5            --                --            65.5
  Musselwhite                   --           84.9          (53.9)         31.0            --                --            31.0
  Porcupine Joint Venture       --           --             --            --              --                --             --
  Other operations              --           95.4          (45.5)         49.9            --                --            49.9
CORPORATE AND OTHER             --           --             --            --              --                --             --
-------------------------------------------------------------------------------------------------------------------------------

                              $ --       $  736.7       $ (394.4)     $  342.3         $   --           $    --       $  342.3
===============================================================================================================================
</TABLE>

(a) Resulting from the acquisitions of TVX and Echo Bay.

   During the three months ended March 31, 2004, no goodwill  impairment charges
   were recorded.

7. LONG-TERM INVESTMENTS

   On February 10, 2004,  the Company  entered into a  transaction  with Wolfden
   Resources Inc. to sell its interests in the Ulu gold property in exchange for
   2.0 million common shares of Wolfden  Resources  Inc.  valued at $7.7 million
   and 1.0 million  common share warrants each to acquire one common share at an
   exercise price of $5.80 valued at $1.1 million exercisable for 18 months from
   the transaction date. In addition,  the Company also received $2.0 million in
   cash  consideration.  There  was no gain or  loss on sale as  result  of this
   transaction.

   On January 8, 2004, the Company  purchased an  approximate  10.2% interest in
   Anatolia Minerals  Development Limited. As a result, the Company received 4.0
   million common shares of Anatolia Minerals Development Limited valued at $5.4
   million.


                                       32
<PAGE>

8. OTHER INCOME - NET

-----------------------------------------------------------
                                        THREE MONTHS ENDED
                                             MARCH 31,
                                        -------------------
                                          2004      2003
-----------------------------------------------------------

Interest income and other               $  1.8      $  1.0
Interest expense                          (0.6)       (1.1)
Foreign exchange losses                   (2.5)       (0.7)
Non-hedge derivative gains (losses)       (0.8)        2.1
-----------------------------------------------------------
                                        $ (2.1)     $  1.3
===========================================================

9. SEGMENTED INFORMATION

The Company  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.  Segments
are operations  reviewed by the Chief Operating  Decision Maker (Chief Executive
Officer).  Reportable segments are identified based on quantitative  thresholds,
which are those operations whose revenues, earnings (loss) or assets are greater
than 10% of the total  consolidated  revenues,  earnings (loss) or assets of all
the reportable segments. In addition, the Company considers qualitative factors,
such as which operations are considered to be significant by the Chief Operating
Decision Maker.  Less  significant  properties  that are either  producing or in
development  prior to commercial  production are classified as other operations.
Operations under care and maintenance or shutdown (properties in the reclamation
phase), less significant  non-mining operations and other operations not meeting
these thresholds are included in corporate and other.


                                       33
<PAGE>

The following tables set forth information by segment for the following periods:

<TABLE>
<CAPTION>
                                                                                                                            SEGMENT
                                                     MINING     COST OF                                                     EARNINGS
                                                     REVENUE   SALES (B)   ACCRETION    DD&A (c)    EXPLORATION  OTHER (D)   (LOSS)
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                 <C>         <C>         <C>         <C>         <C>         <C>         <C>
For the three months ended March 31, 2004 (a):
OPERATING SEGMENTS
  Fort Knox                                         $   35.8    $  22.7     $   0.3     $   7.1     $   --      $   --      $   5.7
  Kubaka (e)                                            12.0        7.7         0.1         1.7        0.1          0.2         2.2
  Round Mountain                                        36.8       17.6         0.5        10.5        0.1         (0.1)        8.2
  La Coipa                                              15.8        8.3         0.1         5.0        --           --          2.4
  Crixas                                                 9.5        3.0          --         3.0        0.1          --          3.4
  Paracatu                                               9.5        4.5         0.1         2.4        --           --          2.5
  Musselwhite                                            8.0        5.6          --         2.9        0.6          --         (1.1)
  Porcupine Joint Venture                               20.4       12.6         0.2         5.4        0.8          --          1.4
  Other operations                                      11.1        9.9         0.5         1.1        0.2          1.6        (2.2)
CORPORATE AND OTHER (f)                                 (4.1)       0.7         0.4        (0.4)       1.6          6.7       (13.1)
------------------------------------------------------------------------------------------------------------------------------------
                                                    $  154.8    $  92.6     $   2.2     $  38.7     $  3.5      $   8.4     $   9.4
===================================================================================================================================

<CAPTION>
                                                                                                                            SEGMENT
                                                     MINING    OPERATING                                                    EARNINGS
                                                     REVENUE   COSTS (B)   ACCRETION    DD&A (c)    EXPLORATION  OTHER (D)   (LOSS)
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                 <C>         <C>         <C>         <C>         <C>         <C>         <C>
For the three months ended March 31, 2003 (a):
OPERATING SEGMENTS
  Fort Knox                                         $   33.2    $  23.7     $   0.3     $  10.0     $  0.4      $    --     $  (1.2)
  Kubaka (e)                                            11.5        5.4        (0.1)        3.1        0.2          0.2         2.7
  Round Mountain                                        21.3       13.8         0.3         7.6        0.2           --        (0.6)
  La Coipa                                              10.6        8.3         0.1         2.6        0.1           --        (0.5)
  Crixas                                                 5.6        2.5          --         2.3        0.1           --         0.7
  Paracatu                                               5.8        3.6         0.1         1.7         --           --         0.4
  Musselwhite                                            2.9        2.8          --         1.7        0.4           --        (2.0)
  Porcupine Joint Venture                               18.2       13.6         0.1         4.6        0.3           --        (0.4)
  Other operations                                       9.9       11.2         0.3         0.6        3.4           --        (5.6)
CORPORATE AND OTHER (f)                                 (2.0)       0.4         0.7        (1.7)       1.1          5.7        (8.2)
------------------------------------------------------------------------------------------------------------------------------------
                                                    $  117.0    $  85.3     $   1.8     $  32.5     $  6.2      $   5.9     $ (14.7)
===================================================================================================================================
</TABLE>

(a) See Note 2.

(b) Cost of sales excludes accretion, depreciation, depletion and amortization.

(c) Other includes other operating costs,  general and  administrative  expenses
    and (gain) loss on disposal of assets.

(d) Depreciation,  depletion  and  amortization  is referred to as "DD&A" in the
    tables above.

(e) Segment  information  for the three months ended March 31, 2003 included the
    Company's portion of Kubaka's  financial  results  (54.7% until February 28,
    2003 and 100% thereafter).

(f) Includes corporate, shutdown operations and other non-core operations.

The following table details the segment assets and capital  expenditures for the
following periods:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------
                                   SEGMENT ASSETS               CAPITAL EXPENDITURE
                              -------------------------        ---------------------
                                   As at        As at           THREE MONTHS ENDED
                                 MARCH 31,   DECEMBER 31,            MARCH 31
                                   2004         2003             2004        2003
------------------------------------------------------------------------------------
<S>                           <C>            <C>               <C>          <C>
Operating segments (a)
  Fort Knox                   $    261.0     $    261.2        $   7.2      $   9.2
  Kubaka (b)                        64.1           73.3            4.5          0.1
  Round Mountain                   224.3          233.1            1.8          0.2
  La Coipa                         172.1          175.9            0.3           --
  Crixas                           111.7          110.2            0.7          0.1
  Paracatu                         273.7          275.0            0.7          0.4
  Musselwhite                      134.1          138.9            0.4          0.2
  Porcupine Joint Venture           79.5           83.6            2.3          1.4
  Other operations                 123.0          117.9            1.7          1.1
  CORPORATE AND OTHER (c)          312.4          325.4            0.2          0.1
-----------------------------------------------------------------------------------
                              $  1,755.9     $  1,794.5        $  19.8      $  12.8
====================================================================================
</TABLE>


                                       34
<PAGE>

(a) See Note 2.

(b) Segment  information  for the three months ended March 31, 2003 included the
   Company's  portion of Kubaka's  financial  results  (54.7% until February 28,
   2003 and 100% thereafter).

(c) Includes Corporate, shutdown operations and other non-core operations.

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
                                                          MINING REVENUES                 PROPERTY, PLANT & EQUIPMENT
                                                       -----------------------            ----------------------------
                                                         THREE MONTHS ENDED                  AS AT          AS AT
                                                               MARCH 31,                   MARCH 31,     DECEMBER 31,
                                                         2004            2003                 2004           2003
----------------------------------------------------------------------------------------------------------------------
<S>                                                    <C>             <C>                  <C>           <C>
GEOGRAPHIC INFORMATION (a):
United States                                          $  79.6         $  54.5              $ 372.4       $   381.9
Canada                                                    27.5            29.0                213.4           218.0
Russia (b)                                                12.0            11.5                 13.0            10.3
Chile                                                     16.7            10.6                 87.7            91.9
Brazil                                                    19.0            11.4                299.3           303.1
Other                                                       --              --                  5.2             5.2
----------------------------------------------------------------------------------------------------------------------
                                                       $ 154.8         $ 117.0              $ 991.0       $ 1,010.4
======================================================================================================================
</TABLE>

(a) See Note 2.

(b) Segment  information  for the three months ended March 31, 2003 included the
    Company's portion of Kubaka's  financial  results  (54.7% until February 28,
    2003 and 100% thereafter).

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.  For the three  months ended March 31, 2004 sales to
three  customers  totaled  $53.4  million,  $30.9  million  and  $24.1  million,
respectively.  For the three months ended March 31, 2003 sales to five customers
totaled $10.2  million,  $20.2 million  $28.4  million,  $22.2 million and $12.1
million, respectively.

10. EARNINGS (LOSS) PER SHARE

Earnings  (loss)  per share  ("EPS")  have been  calculated  using the  weighted
average  number  of  shares  outstanding  during  the  period.  Diluted  EPS  is
calculated  using the treasury  stock method.  The  following  table details the
calculation of the weighted average number of outstanding  common shares for the
purposes of computing basic and diluted earnings (loss) per common share for the
following periods.

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
                                                                       THREE MONTHS ENDED
                                                                   --------------------------
                                                                     MARCH 31,     MARCH 31,
(Number of common shares in millions)                                  2004          2003 (a)
---------------------------------------------------------------------------------------------
<S>                                                                   <C>            <C>
Basic weighted average shares outstanding:                            345,780        253,096

Weighted average shares dilution adjustments:
  Dilutive stock options (b)                                              352             --
  Restricted shares                                                       206             --
---------------------------------------------------------------------------------------------
Diluted weighted average shares outstanding                           346,338        253,096
=============================================================================================

Weighted average shares dilution adjustments - exclusions: (c)
  Dilutive stock options                                                   --          2,277
  Echo bay warrants (d)                                                    --          1,682
  Redeemable preferred shares                                           1,058          1,058
  Kinam preferred                                                         334            360
  Convertible debt                                                         --          4,994
=============================================================================================
</TABLE>

(a) As a result of the net loss from operations for the three-month period ended
    March 31, 2003,  diluted  earnings per share was calculated  using the basic
    weighted average shares outstanding  because to do otherwise would have been
    anti-dilutive.
(b) Dilutive stock options were determined by using the Company's  average share
    price for the period.  For the three  months  ended March 31, 2004 and 2003,
    the average share price used were $7.14, and $6.89 per share, respectively.
(c) These  adjustments were excluded,  as they were  anti-dilutive for the three
    months ended March 31, 2004 and 2003, respectively.
(d) Echo Bay warrants were exercised  during the three months ended December 31,
    2003 and are no longer outstanding.

11. LONG-TERM DEBT

During the three  months  ended  March 31,  2004 the  Company  fully  repaid the
Industrial  Revenue  Bonds  of $25.0  million  owing  to the  Alaska  Industrial
Development and Export Authority.


                                       35
<PAGE>

12. 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.

    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 9).

    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 9).


                                       36
<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.  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 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 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 been recorded in the
    financial statements.

    No  pleadings  have been  exchanged  with  respect  to these two  threatened
    actions.

    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 9). 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


                                       37
<PAGE>

    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.

    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.

    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 Appeals  for British  Columbia.  On May 16,
    2003, in a unanimous decision,  the Court of Appeals 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.

    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.

    Total accrued liabilities in relation to legal contingencies as at March 31,
    2004  and  December   31,  2003  were  $1.7   million  and  $15.1   million,
    respectively.


                                       38
<PAGE>

    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 March 31, 2004 the Company had the following  disputes and
    has not accrued any additional  tax  liabilities in relation to the disputes
    listed below:

    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. However, on May 14, 2004 the
    Magadan Appeal Court overturned the Magadan  Arbitration  court's  decision.
    The Company has  launched an appeal with the Federal  Cessation  court.  The
    Company  believes that this  reassessment  will be resolved with no material
    adverse impact to the Company's financial position, results of operations or
    cash flows.  This  reassessment  relates to the Kubaka business segment (see
    Note 9).

    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 9). 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 9).

13. CROWN RESOURCES

    On October 8, 2003, Kinross Gold Corporation and Crown Resources Corporation
    ("Crown")  announced  that they  have  executed  a Letter of Intent  whereby
    Kinross Gold  Corporation  will acquire  Crown and its  100%-owned  Buckhorn
    Mountain  gold  deposit  located in north  central  Washington  State,  USA,
    approximately  67  kilometers  by  road  from  Kinross'  Kettle  River  gold
    facility.

    On  November  20,  2003,  Kinross  Gold  Corporation  executed a  definitive
    agreement to acquire Crown.  Each of the outstanding  shares of common stock
    of Crown will be exchanged  for 0.2911  shares of Kinross  Gold  Corporation
    common  stock at closing  and is subject to the  approval of  two-thirds  of
    Crown's shareholders and customary closing conditions. Until the acquisition
    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.  Prior to the
    completion of the acquisition,  Crown would dividend to its shareholders its
    approximate   41%  equity  interest  in  Solitario   Resources   Corporation
    (TSX-SLR).

    The current plan, which  contemplates the development of an underground mine
    rather  than an open pit  mine,  positively  addresses  major  environmental
    concerns identified during previous permitting efforts. Kinross is confident
    that by working in  conjunction  with Federal,  State and local  agencies as
    well as other stakeholders, the permitting process, initiated by Crown, will
    be successful in obtaining the necessary  regulatory approvals to develop an
    underground  mine in a timely  manner.  In  conjunction  with the permitting
    process,  Kinross will review potential  synergies  between its Kettle River
    operation and the Buckhorn Mountain deposit.


                                       39
<PAGE>

    Either party may terminate the Merger  Agreement if the  transaction has not
    been  consummated by September 30, 2004 subject to certain  conditions.  The
    Company expects the transaction to close by September 30, 2004.


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</TEXT>
</DOCUMENT>
