<DOCUMENT>
<TYPE>EX-99.4
<SEQUENCE>5
<FILENAME>tex99-4.txt
<DESCRIPTION>EXHIBIT 99.4
<TEXT>
<PAGE>

                                                                    Exhibit 99.4


     RESTATED MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
                             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 JUNE
30,  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  RESTATED  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 AND SIX MONTHS ENDED JUNE 30, 2004, AS WELL AS OUR OUTLOOK.

AS  DISCUSSED  HEREIN,  THIS MD&A HAS BEEN  AMENDED AT  FEBRUARY 8, 2006 TO GIVE
EFFECT  TO  THE  RESTATEMENTS  AS  DESCRIBED  IN  "RESTATEMENT"   BELOW  AND  IN
"RESTATEMENT 1 - CORRECTION OF FOREIGN CURRENCY TRANSLATION IMPACT ON FUTURE TAX
LIABILITIES" AND "RESTATEMENT 2 - GOODWILL AND ASSET RETIREMENT  OBLIGATIONS' IN
THE NOTES TO THE RESTATED  CONSOLIDATED  FINANCIAL  STATEMENTS FOR THE THREE AND
SIX  MONTHS  ENDED  JUNE 30,  2004.  APART  FROM  REVISIONS  RESULTING  FROM THE
RESTATEMENTS, THIS MD&A DOES NOT REFLECT EVENTS SUBSEQUENT TO JUNE 30, 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 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 half of 2003
include  only  five  months  of  operations  of  the  mines  acquired  from  the
combination.

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 3 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. In addition,
the financial  statements  have been restated to correct an error related to the
impact of foreign  currency  exchange rates on future tax liabilities  resulting
from the TVX and Echo Bay transaction.  This restatement is described further in
Note 2.

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.

<PAGE>

DEVELOPMENTS IN 2004

CLOSURE OF GOLD HEDGE(1) PROGRAM

In the second  quarter of 2004,  the Company  elected to take advantage of lower
spot gold prices and  eliminated  the remainder of our gold hedge book by making
final deliveries against the hedge contracts at a cost of $9.6 million. However,
for accounting  purposes,  non-cash deferred charges of $7.4 million will impact
our results over the second half of 2004 and non-cash  deferred  charges of $4.7
million in the first half of 2005.

REPAYMENT OF INDUSTRIAL REVENUE BONDS

During the first half 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 now essentially debt free.

CLOSURE OF NEW BRITANNIA

Due to poor economic  performance,  Kinross and its joint venture partner,  High
River Gold Mines  Ltd.,  made the  decision in the first half of 2004 to suspend
all underground mine  development  work at New Britannia.  Mining and milling of
developed ore will continue until early in the fourth quarter of 2004.

SUMMARY OF RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF 2004

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
                                                      THREE MONTHS ENDED JUNE 30,           SIX MONTHS ENDED JUNE 30,
----------------------------------------------------------------------------------------------------------------------------
                                                    2004         2003       Change       2004           2003      Change(a)
----------------------------------------------------------------------------------------------------------------------------
<S>                                                <C>            <C>        <C>       <C>             <C>               <C>
Gold equivalent production - ounces (b)            420,093        460,953    (9%)      817,104          787,765          4%
Revenue (millions)                            $      158.2    $     157.8      0%    $   313.0    $       274.8         14%
Net earnings (loss) attributable to
   common shareholders (millions)             $       11.7    $    (29.7)     nm     $    19.4    $      (57.3)          nm
Basic and diluted earnings (loss) per share   $       0.03    $    (0.09)     nm     $    0.06    $      (0.20)          nm
---------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)     "nm" refers to not meaningful.
(b)     Included in gold equivalent production is silver production converted to
        gold production using a ratio of the average spot market prices for the
        commodities for each comparative period. The resulting ratios are 61.1:1
        and 62.0:1 for the second quarter and first half of 2004, respectively,
        and 75.5:1 and 75.8:1 for the second quarter and first half of 2003,
        respectively. The Company produced 0.9 million and 1.8 million ounces of
        silver in the second quarter and first half of 2004, respectively, and
        1.2 million and 2.1 million ounces of silver in the second quarter and
        first half of 2003, respectively.

SECOND QUARTER 2004 VS. SECOND QUARTER 2003

o    The Company's share of gold equivalent production for the second quarter of
     2004 was 420,093 ounces,  a decrease of 9% over the 460,953 gold equivalent
     ounces  produced  in the  corresponding  period  of 2003  primarily  due to
     reduced production at Fort Knox and Round Mountain.
o    Revenues  from gold and  silver  sales in the  second  quarter of 2004 were
     $158.2 million  compared to $157.8 million in second quarter of 2003. Lower
     production in the second  quarter of 2004, was offset by higher gold prices
     during the same period of 2004.
o    The  Company  sold  391,737  ounces of gold in the  quarter  at an  average
     realized  price of $389 per ounce while the average spot gold price for the
     quarter  was $393.  This  compares  to  440,990  ounces of gold sold in the
     second  quarter of 2003 at an average  realized  price per ounce of gold of
     $345 per ounce with the average  spot price for that period  being $347 per
     ounce.
o    Net earnings  attributable to common shareholders for the quarter was $11.7
     million, or $0.03 per share,  compared to a net loss attributable to common
     shareholders of $29.7 million,  or $0.04 per share,  for the second quarter
     of 2003.
o    Cost of sales was similar  in the first  quarter of 2004  compared with the
     prior  year  despite  fewer  ounces  being  sold.  This was  largely due to
     increased energy costs.
o    Cash flow  provided  from  operating  activities  for the quarter was $25.4
     million in 2004 compared to $18.1 million in 2003.  Cash flow provided from
     operating activities increased due to higher gold prices,  partially offset
     by an increase  in working  capital  requirements  and  deferred  losses on
     hedges as a result of unwinding the gold hedge program.


------------------
(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>

FIRST HALF OF 2004 VS. FIRST HALF OF 2003

o    For  the  first  half of  2004  the  Company's  share  of  gold  equivalent
     production  was 817,104  ounces,  an  increase of 4% over the 787,765  gold
     equivalent  ounces  produced  in the  corresponding  period  in  2003.  The
     increase is primarily due to the inclusion of only five months of operating
     information  for the first half of 2003 for the mines  acquired  in the TVX
     and Echo Bay  combinations,  offset by lower  production  during the second
     quarter of 2004.
o    Revenues  from gold and silver  sales in the first half of 2004 were $313.0
     million  compared to $274.8  million in the first half of 2003, an increase
     of 14% primarily due to higher gold prices in the first half of 2004.
o    The  Company  sold  765,863  ounces of gold in the first half at an average
     realized  price of $395 per ounce while the average spot gold price for the
     first half was $401 per ounce. This compares to 771,012 ounces of gold sold
     in the first half of 2003 at an average realized price per ounce of gold of
     $344 per ounce ($350 per ounce average spot price).
o    Net earnings attributable to common shareholders for the first half of 2004
     were $19.4 million, or $0.06 per share, compared to a net loss attributable
     to common  shareholders of $57.3 million, or $0.20 per share, for the first
     half of 2003.  The net  loss for the  first  half of 2003 was  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 for the first half of 2003
     by $1.1 million to $57.3 million.
o    Cost of sales was $190.4  million in the first half of 2004, an increase of
     3% over the prior year. The costs reflected  changes at the operations with
     the resumption of production at Kettle River,  reduced production at Kubaka
     and Round  Mountain and the suspension of mining at the True North deposit.
     Costs also increased as a result of higher energy prices.
o    Cash flow provided from operating activities for the first half of 2004 was
     $40.4 million in 2004 compared to $34.1 million in 2003. Cash flow provided
     from  operating  activities  increased due to higher  realized gold prices,
     partially  offset by an increase  in working  capital  requirements  and an
     increase in  deferred  losses on hedges as a result of  unwinding  the gold
     hedge program.
o    Significant factors in the use of cash were $12.9 million related to winter
     road  resupply  purchases  at Kubaka and Lupin,  payments of $13.6  million
     associated  with the completion of the settlement  agreement  regarding TVX
     Hellas  and an  increase  in  deferred  losses  on  hedges  as a result  of
     unwinding the gold hedge program.

RESULTS OF OPERATIONS

SEGMENT (LOSS) EARNINGS
<TABLE>
<CAPTION>
IN US$ MILLIONS                   Three months ended             Q2                   Six months ended                 YTD
                                      June 30,                2004 VS 2003                 June 30,                2004 VS 2003
                                 -------------------                                ----------------------
                                 2004         2003         Change    Change %          2004        2003 (a)      Change     Change %
------------------------------------------------------------------------------------------------------------------------------------
<S>                           <C>           <C>           <C>                       <C>           <C>           <C>            <C>
OPERATING SEGMENTS
  Fort Knox                   $   1.1       $  --         $   1.1         nm        $   6.8       $  (1.2)      $   8.0         nm
  Paracatu                        2.0           0.9           1.1        122%           4.5           1.3           3.2        246%
  Round Mountain                  3.7           8.6          (4.9)       (57%)         11.9           8.0           3.9         49%
  Porcupine Joint Venture         2.4           0.2           2.2       1100%           3.8          (0.2)          4.0         nm
  La Coipa                       (0.6)         (2.2)          1.6         73%           1.8          (2.7)          4.5         nm
  Crixas                          2.8           2.7           0.1          4%           6.2           3.4           2.8         82%
  Musselwhite                    (0.9)         (2.4)          1.5         63%          (2.0)         (4.4)          2.4         55%
  Kubaka (b)                      4.1           2.1           2.0         95%           6.3           4.8           1.5         31%
  Other Operations (c)           (1.3)         (5.1)          3.8         75%          (3.5)        (10.7)          7.2         67%
  CORPORATE & OTHER             (13.7)        (15.3)          1.6         10%         (26.8)        (23.5)         (3.3)       (14%)
-----------------------------------------------------------------------------------------------------------------------------------
Segment (loss) earnings       $  (0.4)      $ (10.5)      $  10.1         96%       $   9.0       $ (25.2)      $  34.2         nm
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)  Segment (loss) earnings for the six months ended June 30, 2003 include only
     5 months of operating and financial  results for the mines  acquired in the
     TVX/Echo Bay Transaction.
(b)  Segment (loss) earnings 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 for Lupin and Kettle River at 100% and New  Britannia at
     50% since February 1, 2003.


                                       3
<PAGE>

OPERATIONS

FORT KNOX (100% OWNERSHIP AND OPERATOR) - U.S.A.
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                             Three months ended            Q2             Six months ended              YTD
                                                  June 30,            2004 VS 2003             June 30,             2004 VS 2003
                                             -------------------                       ---------------------
                                              2004        2003       Change   Change %    2004          2003       Change   Change %
-----------------------------------------------------------------------------------------------------------------------------------
<S>              <C>                        <C>          <C>         <C>       <C>       <C>           <C>          <C>        <C>
OPERATING STATISTICS
Tonnes processed (000's)                    3,091.4      3,457.4     (366.0)   (11%)     6,307.6       6,526.8      (219.2)    (3%)
Grade (grams/tonne)                            0.89         1.00      (0.11)   (11%)        0.90          1.11       (0.21)   (19%)
Recovery (%)                                    89%          83%         6%       7%         85%           83%          2%      2%
Gold equivalent ounces produced              79,007      101,425    (22,418)   (22%)     154,987       192,639     (37,652)   (20%)

FINANCIAL DATA (in US$ millions)
Revenues                                 $     27.2   $     34.8  $    (7.6)   (22%)  $     63.0    $     68.0   $    (5.0)    (7%)
Cost of sales (a)                              19.1         24.1       (5.0)   (21%)        41.8          47.8        (6.0)   (13%)
Accretion                                       0.4          0.3        0.1     33%          0.7           0.6         0.1     17%
Depreciation, depletion & amortization          6.5          9.8       (3.3)   (34%)        13.6          19.8        (6.2)   (31%)
-----------------------------------------------------------------------------------------------------------------------------------
                                                1.2          0.6        0.6    100%          6.9          (0.2)        7.1     nm
Exploration                                     0.1          0.6       (0.5)   (83%)         0.1           1.0        (0.9)   (90%)
-----------------------------------------------------------------------------------------------------------------------------------

Segment earnings (loss)                  $      1.1   $   --      $     1.1     nm    $      6.8    $     (1.2)  $     8.0     nm
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>



(a) Cost of sales excludes accretion, depreciation, depletion 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.

SECOND QUARTER OF 2004 VS. SECOND QUARTER OF 2003

o    Gold equivalent production was lower by approximately 22% to 79,007 ounces,
     reflecting  the reduction in mill feed,  primarily due to the suspension of
     the  processing of ore from the True North  deposit.  The processing of the
     True North ore is expected to  recommence  in the second half of 2004.  The
     lower  production  is  reflected  in the 22% drop in  revenues  between the
     second quarter of 2004 and 2003.
o    Lower production  resulted in a drop in costs of sales.  However,  on a per
     ounce basis,  cost of sales were up reflecting the lower ounces  processed,
     increases in fuel costs of approximately  15%,  increase in energy costs of
     approximately  5% and availability of equipment.  The  availability  issues
     will be addressed as additional  high capacity trucks will be delivered and
     put into use during the third quarter of 2004.

FIRST HALF OF 2004 VS. FIRST HALF OF 2003

o    Gold equivalent  production was lower by  approximately  20% reflecting low
     mill feed grades 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.  Lower  production
     partially offset by higher realized gold prices resulted in a 7% decline in
     revenues.
o    Suspension  of mining of the True North deposit was to allow the True North
     mining  fleet to be utilized in  completing  the next phase of the tailings
     dam lift at Fort Knox  instead  of relying on more  expensive  third  party
     contractors.  This is expected to result in  decreased  production  for the
     full year 2004 compared to 2003.
o    Gold equivalent production of 154,987 ounces was higher than planned
     production of 145,000 ounces for the first half of 2004.
o    Lower costs of sales resulting from lower  production were partially offset
     by fuel and power costs and reduced availability of equipment.
o    Operating  costs,  on a per ounce basis,  are expected to decrease  quarter
     over quarter as waste mining  efforts shift to the Fort Knox mine expansion
     program.  This major pit  expansion  will take place over the next  several
     years, releasing approximately 1 million ounces of gold.
o    Exploration  conducted  in 2003 and  additional  results from the Fort Knox
     in-pit work confirmed  sufficient  continuity of the  mineralized  zones to
     justify a major  pit wall  layback  at an  assumed  gold  price of $325 per
     ounce.  This major layback is comprised of a three year,  approximately $60
     million capital expenditure program.


                                       4
<PAGE>

o    Planned capital  expenditures for 2004 were approximately $39.0 million. In
     the first  half of 2004 $19.4  million  was spent - $8.4  million  for mine
     development, $3.3 million on the tailings dam with the balance spent on new
     equipment and equipment rebuilds.

The  Company's  forecast for 2004 is gold  production of  approximately  340,000
ounces  with  lower  costs,  on a per ounce  basis,  in the  second  half due to
improved grade at Fort Knox and the resumption of mining at True North.

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

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                      Three months ended            Q2            Six months ended            YTD
                                            June 30,           2004 VS 2003            June 30,            2004 VS 2003
                                     ----------------------                      ----------------------
                                        2004       2003      Change    Change %     2004     2003 (a)    Change    Change %
-----------------------------------------------------------------------------------------------------------------------------
<S>              <C>                   <C>         <C>       <C>            <C>    <C>        <C>        <C>            <C>
OPERATING STATISTICS
Tonnes processed (000's) (b)           17,308.5    6,081.1   11,227.4       185%   34,742.5   10,751.1   23,991.4       223%
Grade (grams/tonne)                        0.66       0.66         --         0%       0.65       0.66      (0.01)       (2%)
Recovery (%)                                66%        66%         --         0%        66%        66%         --         0%
Gold equivalent ounces produced          99,554    116,336    (16,782)      (14%)   194,538    180,370     14,168         8%

FINANCIAL DATA (in US$ millions)
Revenues                               $   36.8   $   42.0  $    (5.2)      (12%) $    73.6  $    63.3  $    10.3        16%
Cost of sales (c)                          21.0       19.8        1.2         6%       38.6       33.6        5.0        15%
Accretion                                   0.4        0.4         --         0%        0.9        0.7        0.2        29%
Depreciation, depletion & amortization     11.6       12.6       (1.0)       (8%)      22.1       20.2        1.9         9%
-----------------------------------------------------------------------------------------------------------------------------
                                            3.8        9.2       (5.4)      (59%)      12.0        8.8        3.2        36%
Exploration                                 0.1        0.6       (0.5)      (83%)       0.2        0.8       (0.6)      (75%)
Other                                        --         --         --         0%       (0.1)        --       (0.1)        nm
-----------------------------------------------------------------------------------------------------------------------------
Segment earnings                       $    3.7   $    8.6  $    (4.9)      (57%) $    11.9  $     8.0  $     3.9        49%
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>


(a) 2003 results are for the period February through June 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.

SECOND QUARTER OF 2004 VS. SECOND QUARTER OF 2003

o    Gold  equivalent  production was lower by 14%, from 116,336 gold equivalent
     ounces to 99,554 gold equivalent  ounces, due to lower grades of ore placed
     on the dedicated and reusable leach pads.
o    Cost of sales increased by 6%, despite lower production due to increases in
     fuel costs, energy costs and supplies.

FIRST HALF OF 2004 VS. FIRST HALF OF 2003

o    Gold  equivalent  production  for the  first  half of 2004  was  higher  by
     approximately  8%  reflecting  acceleration  in the placement of ore on the
     dedicated  leach pads to offset  crushing  and milling  limitations  and to
     stockpile higher grade ore. The milling and crushing  limitations  resulted
     from a failure of an electrical  transformer in the last half of 2003. This
     was partially  offset by lower recovery rates due to lower grade ore placed
     on the dedicated and reusable leach pads.
o    Gold equivalent production of 194,538 ounces was higher than the planned
     production of 180,700 ounces for the first half of 2004.
o    The increase in cost of sales reflects the increased  production along with
     increases in fuel costs,  power costs,  supplies and marginal  increases in
     payroll.
o    Capital  expenditures  during the first half were $3.5  million  with total
     year planned  expenditures of $8.1 million (the Company's  share).  Capital
     expenditures during the first half of 2004 were incurred primarily on leach
     pad expansions and capitalized exploration on the Gold Hill deposit.

The  Company's  forecast for 2004 is gold  production of  approximately  385,000
ounces.


                                       5
<PAGE>


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

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
                                      Three months ended            Q2              Six months ended           YTD
                                           June 30,            2004 VS 2003            June 30,             2004 VS 2003
                                     ----------------------                      ----------------------
                                        2004       2003      Change    Change %     2004       2003      Change    Change %
-----------------------------------------------------------------------------------------------------------------------------
<S>              <C>                      <C>      <C>          <C>          <C>    <C>        <C>          <C>          <C>
OPERATING STATISTICS
Tonnes processed (000's) (a)              996.4    1,061.5      (65.1)       (6%)   1,980.0    2,048.2      (68.2)       (3%)
Grade (grams/tonne)                        3.69       3.88      (0.19)       (5%)      3.67       3.62       0.05         1%
Recovery (%)                                92%        92%         0%         0%        92%        92%         0%         0%
Gold equivalent ounces produced          53,225     59,964     (6,739)      (11%)   105,092    107,544     (2,452)       (2%)

FINANCIAL DATA (in US$ millions)
Revenues                                $  19.9   $   20.3    $  (0.4)       (2%)  $   40.3   $   38.5    $   1.8         5%
Cost of sales (b)                          10.7       11.6       (0.9)       (8%)      23.3       25.2       (1.9)       (8%)
Accretion                                   0.1        0.2       (0.1)      (50%)       0.3        0.3         --         0%
Depreciation, depletion & amortization      5.7        5.9       (0.2)       (3%)      11.1       10.5        0.6         6%
-----------------------------------------------------------------------------------------------------------------------------
                                            3.4        2.6        0.8        31%        5.6        2.5        3.1       124%
Exploration                                 1.0        1.0         --         0%        1.8        1.3        0.5        38%
Other                                        --        1.4       (1.4)     (100%)        --        1.4       (1.4)     (100%)
-----------------------------------------------------------------------------------------------------------------------------
Segment earnings (loss)                 $   2.4   $    0.2    $   2.2      1100%   $    3.8   $   (0.2)   $   4.0         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.  by  combining  each  company's  gold  mining
operations in the Porcupine district of Timmins, Ontario.

SECOND QUARTER OF 2004 VS. SECOND QUARTER OF 2003

o    Gold  equivalent  production  was lower by 11% due to  closure  of the Dome
     underground  mining operations at the end of May and lower mill throughput.
     The Dome underground  mine was the longest  operating mine in North America
     having been in  operation  for 94 years.  Despite  the drop in  production,
     revenues were down by only 2% due to higher realized gold prices.
o    Cost of sales were down reflecting the lower ounces  processed as discussed
     above, partially offset by a strengthening of the Canadian dollar, compared
     to the United States dollar, during the quarter.

FIRST HALF OF 2004 VS. FIRST HALF OF 2003

o    Gold equivalent production was lower by approximately 2% reflecting closure
     of the Dome  underground  mining  operations  at the end of May  offset  by
     higher underground  grades being processed.  The Hoyle Pond underground and
     the Hoyle Pond and Dome open pit operations are still in operation. Despite
     lower production,  revenues were up by 5% during the first half of 2004 due
     to higher realized gold prices.
o    Gold equivalent production of 105,092 ounces was better than the planned
     production of 101,200 ounces for the first half of 2004.
o    The decrease in costs of sales reflects the lower production along with the
     impact of processing higher underground  grades.  This was partially offset
     by a 4% appreciation of the Canadian dollar,  compared to the United States
     dollar, during the first half of 2004.
o    The Company and its partner planned an aggressive spending program for 2004
     centred on expanding reserves through the development of the Pamour project
     and Hoyle Pond development. Capital expenditures during the first half were
     $7.2  million with total year planned  expenditures  of $28.7  million (the
     Company's share).  Capital  expenditures during the first half of 2004 were
     lower due to  deferral of the Pamour  project,  deferral of capital for the
     winze (an underground  tunnel to provide  connection  between levels of the
     mine) at Hoyle Pond and deferral of the Hoyle Pond crown pillar project.

The  Company's  forecast for 2004 is gold  production of  approximately  200,000
ounces.


                                       6
<PAGE>

KUBAKA (98.1% OWNERSHIP AND OPERATOR) - RUSSIA
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                        Three months ended         Q2               Six months ended           YTD
                                           June 30,            2004 VS 2003            June 30,             2004 VS 2003
                                     ----------------------                      ----------------------
                                        2004       2003      Change    Change %     2004     2003 (a)    Change    Change %
-----------------------------------------------------------------------------------------------------------------------------
<S>                                     <C>        <C>        <C>             <C>   <C>        <C>        <C>             <C>
OPERATING STATISTICS
Tonnes processed (000's) (b)              216.0      214.0        2.0         1%      434.0      434.0         --         0%
Grade (grams/tonne)                        5.75       7.11      (1.36)      (19%)      5.02       6.65      (1.63)      (25%)
Recovery (%)                                98%        97%         1%         1%        97%        97%         0%         0%
Gold equivalent production to dore       39,121     47,576     (8,455)      (18%)    68,380     77,626     (9,246)      (12%)

FINANCIAL DATA (in US$ millions)
Revenues                                $  16.5    $  16.2    $   0.3         2%    $  28.5    $  27.7    $   0.8         3%
Cost of sales (c)                          10.0        8.4        1.6        19%       17.7       13.8        3.9        28%
Accretion                                   0.1         --        0.1         nm        0.2       (0.1)       0.3         nm
Depreciation, depletion & amortization      2.1        5.1       (3.0)      (59%)       3.8        8.2       (4.4)      (54%)
-----------------------------------------------------------------------------------------------------------------------------
                                            4.3        2.7        1.6        59%        6.8        5.8        1.0        17%
Exploration                                  --        0.4       (0.4)     (100%)       0.1        0.6       (0.5)      (83%)
Other                                       0.2        0.2         --         0%        0.4        0.4         --         0%
-----------------------------------------------------------------------------------------------------------------------------
Segment earnings                        $   4.1    $   2.1    $   2.0        95%    $   6.3    $   4.8    $   1.5        31%
-----------------------------------------------------------------------------------------------------------------------------
</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.

On February 28, 2003, the Company completed a step-up transaction increasing its
interest by 43.44% in the Kubaka open pit mine located in the Magadan  Oblast in
far eastern Russia to bring its ownership to 98.1%.  Therefore,  the comparative
results  include the Company's  54.7% share for the first two months of 2003 and
its 98.1 % ownership thereafter.

SECOND QUARTER OF 2004 VS. SECOND QUARTER OF 2003

o    The  Company's   share  of  gold   equivalent   production   was  lower  by
     approximately   18%  due  to  the  processing  of  relatively  lower  grade
     stockpiles.  However, revenues increased by 2% despite the lower production
     due largely to higher realized gold prices.  Pre-stripping of the Birkachan
     pit was completed  and mining of ore commenced at the end of May 2004.  The
     activities at the Birkachan pit were affected by inclement weather.
o    Costs of sales during the quarter increased by 19% despite the 18% decrease
     in  production  due to  lower  grade  ore  processed,  higher  fuel  costs,
     increased  equipment  supplies and mill  consumables,  partially  offset by
     reduced selling costs and property taxes.

FIRST HALF OF 2004 VS. FIRST HALF OF 2003

o    Gold equivalent  production was lower by  approximately  12% reflecting the
     processing  of  relatively  lower  grade  stockpiles.   However,   revenues
     increased by 3% despite the lower production largely due to higher realized
     gold prices. Pre-stripping of the Birkachan pit was completed and mining of
     ore started at the end of May 2004.  The  activities  at the  Birkachan pit
     were affected by inclement weather.
o    Gold equivalent production of 68,380 ounces was higher than the planned
     production of 60,000 ounces for the first half of 2004.
o    Costs of sales  increased  despite  lower  production as a result of higher
     fuel costs,  equipment  supplies and mill consumables,  partially offset by
     reduced selling costs and property taxes.
o    The addition of high-grade  Birkachan ore will increase the mill feed grade
     in the second half of the year,  which should increase  production and lead
     to a lower costs of sales, on a per ounce basis.
o    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  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  overtime-related  labour costs
     associated with vacations.
o    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.
o    The  Company  planned  capital  expenditures  of  $11.2  million  in  2004,
     principally  to develop the  Birkachan  open pit and  commence  underground
     exploration  of the Tsokol  vein.  In the first half of 2004,  the  Company


                                       7
<PAGE>

     spent $10.0 million  primarily on pre-strip and  construction at Birkachan,
     new  mechanical  equipment  (haul  truck,  loader  and  drill  rig) and the
     tailings expansion project.

The  Company's  forecast for 2004 is gold  production of  approximately  137,000
ounces.

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

<TABLE>
<CAPTION>

-----------------------------------------------------------------------------------------------------------------------------
                                         Three months ended          Q2             Six months ended            YTD
                                           June 30,             2004 VS 2003           June 30,             2004 VS 2003
                                     ----------------------                      ----------------------
                                        2004       2003      Change    Change %     2004     2003 (a)    Change    Change %
-----------------------------------------------------------------------------------------------------------------------------
<S>              <C>                    <C>        <C>         <C>           <C>    <C>        <C>        <C>            <C>
OPERATING STATISTICS
Tonnes processed (000's) (b)            4,271.4    4,495.4     (224.0)       (5%)   8,770.0    7,596.9    1,173.1        15%
Grade (grams/tonne)                        0.45       0.46      (0.01)       (2%)      0.45       0.46      (0.01)       (2%)
Recovery (%)                                75%        77%        (2%)       (3%)       75%        77%        (2%)       (3%)
Gold equivalent production to dore       22,096     25,707     (3,611)      (14%)    46,436     42,665      3,771         9%

FINANCIAL DATA (in US$ millions)
Revenues                               $    9.6   $    8.8    $   0.8         9%   $   19.1   $   14.6   $    4.5        31%
Cost of sales (c)                           5.1        4.6        0.5        11%        9.6        8.2        1.4        17%
Accretion                                   0.2        0.1        0.1       100%        0.3        0.2        0.1        50%
DD&A                                        2.3        2.9       (0.6)      (21%)       4.7        4.6        0.1         2%
-----------------------------------------------------------------------------------------------------------------------------
                                            2.0        1.2        0.8        67%        4.5        1.6        2.9       181%
Exploration                                  --        0.3       (0.3)     (100%)        --        0.3       (0.3)     (100%)
-----------------------------------------------------------------------------------------------------------------------------
Segment earnings                       $    2.0   $    0.9    $   1.1       122%   $    4.5   $    1.3   $    3.2       246%
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)  2003 results are for the period February through June 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.

SECOND QUARTER OF 2004 VS. SECOND QUARTER OF 2003

o    Gold  equivalent  production  was  14%  lower  due  to  the  processing  of
     relatively  harder  ore.  However,  revenues  were up by 9% as higher  gold
     prices more than offset the drop in production and fewer ounces sold.
o    Despite the lower production,  cost of sales increased by 11%. The increase
     was largely the result of the higher costs  associated  with the harder ore
     being processed.

FIRST HALF OF 2004 VS. FIRST HALF OF 2003

o    Gold equivalent  production of 46,436 ounces for the first half of 2004 was
     an  increase of 9% over the 42,665  ounces for the first half of 2003.  The
     increased  production  along with higher realized gold prices resulted in a
     31% increase in revenues.
o    Costs of sales were up by 17% reflecting the impact of lower plant
     throughput as well as increased costs from harder ore being processed.
o    The Company planned capital expenditures of $13.1 million in 2004 mainly to
     expand the  semi-autogenous  grinding  ("SAG")  mill.  In the first half of
     2004, $1.9 million was spent due to the delay in completion of the SAG mill
     feasibility study.

The Company's  forecast for 2004 is for gold production of approximately  92,000
ounces.


                                       8
<PAGE>


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

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                       Three months ended          Q2               Six months ended           YTD
                                           June 30,            2004 VS 2003             June 30,            2004 VS 2003
                                     ----------------------                      ----------------------
                                        2004       2003      Change    Change %     2004     2003 (a)    Change    Change %
-----------------------------------------------------------------------------------------------------------------------------
<S>              <C>                    <C>       <C>            <C>          <C>   <C>        <C>          <C>          <C>
OPERATING STATISTICS
Tonnes processed (000's) (b)            1,596.0   $1,547.0       49.0         3%    3,189.0    2,586.0      603.0        23%
Grade (grams/tonne)                        0.94       0.86       0.08         9%       1.16       0.94       0.22        23%
Recovery (%)                                82%        85%        (3%)       (4%)       82%        86%        (4%)       (5%)
Gold equivalent production to dore       32,454     32,854       (400)       (1%)    73,003     56,777     16,226        29%

FINANCIAL DATA (in US$ millions)
Revenues                               $   14.1    $  11.6      $ 2.5        22%   $   29.9   $   22.2    $   7.7        35%
Cost of sales (c)                          10.2        9.4        0.8         9%       18.5       17.7        0.8         5%
Accretion                                    --         --         --         0%        0.1        0.1         --         0%
DD&A                                        4.3        4.0        0.3         8%        9.3        6.6        2.7        41%
-----------------------------------------------------------------------------------------------------------------------------
                                           (0.4)      (1.8)       1.4       (78%)       2.0       (2.2)       4.2         nm
Exploration                                 0.1        0.4       (0.3)      (75%)       0.1        0.5       (0.4)      (80%)
Other                                       0.1         --        0.1         nm        0.1         --        0.1         nm
-----------------------------------------------------------------------------------------------------------------------------
Segment (loss) earnings                $   (0.6)   $  (2.2)     $ 1.6       (73%)  $    1.8   $   (2.7)   $   4.5         nm
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)  2003 results are for the period February through June 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 La Coipa open pit mine upon
completion of the combination with TVX on January 31, 2003.

SECOND QUARTER OF 2004 VS. SECOND QUARTER OF 2003

o    Gold  equivalent  production was marginally  lower in the second quarter of
     2004.  Revenues  were up by 22% due to higher  realized  gold prices and an
     increased number of gold equivalent ounces sold.

FIRST HALF OF 2004 VS. FIRST HALF OF 2003

o    Gold equivalent production was higher by approximately 29% mainly due to
     changes in the mine plan.
o    Gold equivalent production of 73,003 ounces was better than the planned
     production of 69,800 ounces for the first half of 2004.
o    The  increased  cost of sales  reflects  the  increase in the tonnes of ore
     processed.  Recovery rates were lower than the first half of 2003,  however
     they were marginally  better than the plan.  Costs of sales, on a per ounce
     basis, is expected to increase  throughout the year with the mining of more
     in-pit waste rock than in 2003.

The  Company's  forecast for 2004 is gold  production of  approximately  145,000
ounces.


                                       9
<PAGE>


CRIXAS (50% OWNERSHIP, ANGLOGOLD 50%, OPERATOR) - BRAZIL
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                       Three months ended           Q2             Six months ended            YTD
                                           June 30,            2004 VS 2003             June 30,           2004 VS 2003
                                     ----------------------                      ----------------------
                                        2004       2003      Change    Change %     2004     2003 (a)    Change    Change %
-----------------------------------------------------------------------------------------------------------------------------
<S>              <C>                      <C>        <C>         <C>         <C>      <C>        <C>         <C>         <C>
OPERATING STATISTICS
Tonnes processed (000's) (b)              185.3      188.7       (3.4)       (2%)     368.3      311.7       56.6        18%
Grade (grams/tonne)                        8.25       8.27      (0.02)       (0%)      8.14       8.26      (0.12)       (1%)
Recovery (%)                                95%        96%        (1%)       (1%)       95%        96%        (1%)       (1%)
Gold equivalent production to dore      $23,440     24,103       (663)       (3%)    45,951     39,707      6,244        16%

FINANCIAL DATA (in US$ millions)
Revenues                                $   8.7    $   8.7      $  --         0%    $  18.2    $  14.3     $  3.9        27%
Cost of sales (c)                           2.7        2.6        0.1         4%        5.7        5.1        0.6        12%
Accretion                                    --         --         --         0%         --         --         --         0%
Depreciation, depletion & amortization      3.2        3.3       (0.1)       (3%)       6.2        5.6        0.6        11%
-----------------------------------------------------------------------------------------------------------------------------
                                            2.8        2.8         --         0%        6.3        3.6        2.7        75%
Exploration                                  --        0.1       (0.1)     (100%)       0.1        0.2       (0.1)      (50%)
-----------------------------------------------------------------------------------------------------------------------------
Segment earnings                        $   2.8    $   2.7      $ 0.1         4%    $   6.2    $   3.4     $  2.8        82%
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)  2003 results are for the period February through June 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,  Brazil,  upon completion of the combination with
TVX on January 31, 2003.

SECOND QUARTER OF 2004 VS. SECOND QUARTER OF 2003

o    Gold equivalent  production,  revenue,  costs of sales and depreciation for
     the  second  quarter of 2004 were  similar  to the second  quarter of 2003.
     Marginally lower throughput lead to lower  production,  which was offset by
     higher realized gold prices.

FIRST HALF OF 2004 VS. FIRST HALF OF 2003

o    Gold equivalent  production was higher by  approximately  16% mainly due to
     changes in the mine plan.  The  increased  production  was the result of an
     increase to the amount of ore being processed.  Revenues were up by 27% due
     to the increased production and higher realized gold prices.
o    Gold  equivalent  production  of 45,951  ounces was lower than the  planned
     production  of  46,600  ounces  for the  first  half of 2004  due to  grade
     variation  in quartz  vein  ore.  Recovery  rates  for the first  half were
     marginally better than plan.

The  Company's  forecast for 2004 is gold  production  of  approximately  94,000
ounces.


                                       10
<PAGE>

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

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                       Three months ended          Q2               Six months ended           YTD
                                            June 30,           2004 VS 2003            June 30,            2004 VS 2003
                                     ----------------------                      ----------------------
                                        2004       2003      Change    Change %     2004     2003 (a)    Change    Change %
-----------------------------------------------------------------------------------------------------------------------------
<S>              <C>                      <C>        <C>         <C>          <C>     <C>        <C>        <C>          <C>
OPERATING STATISTICS
Tonnes processed (000's) (b)              363.9      342.1       21.8         6%      727.9      533.8      194.1        36%
Grade (grams/tonne)                        5.46       5.40       0.06         1%       5.21       5.27      (0.06)       (1%)
Recovery (%)                                96%        95%         1%         1%        96%        95%         1%         1%
Gold equivalent production to dore       19,600     18,089      1,511         8%     37,149     27,564      9,585        35%

FINANCIAL DATA (in US$ millions)
Revenues                                $   8.0    $   5.5     $  2.5        45%    $  16.0    $   8.4     $  7.6        90%
Cost of sales (c)                           5.0        4.2        0.8        19%       10.6        7.0        3.6        51%
Accretion                                   0.1         --        0.1         nm        0.1         --        0.1         nm
Depreciation, depletion & amortization      3.3        3.0        0.3        10%        6.2        4.7        1.5        32%
-----------------------------------------------------------------------------------------------------------------------------
                                           (0.4)      (1.7)       1.3        76%       (0.9)      (3.3)       2.4        73%
Exploration                                 0.5        0.7       (0.2)      (29%)       1.1        1.1         --         0%
-----------------------------------------------------------------------------------------------------------------------------
Segment loss                            $  (0.9)   $  (2.4)    $  1.5        63%    $  (2.0)   $  (4.4)    $  2.4        55%
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)  2003 results are for the period February through June 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.

SECOND QUARTER OF 2004 VS. SECOND QUARTER OF 2003

o    Gold  equivalent  production was 8% higher due to improved mill  throughput
     and marginally higher grades and recoveries. Increased production and sales
     along with  higher  realized  gold  prices  resulted  in a 45%  increase in
     revenue.
o    Costs of sales were  higher as a result of  increased  sales and a stronger
     Canadian dollar compared to the United States dollar.

FIRST HALF OF 2004 VS. FIRST HALF OF 2003

o    Gold  equivalent  production  was higher by 35% mainly due to improved mill
     throughput,  which more than offset marginally lower grades.  The increased
     production and number of ounces sold,  along with higher gold prices,  lead
     to a 90% increase in revenues.
o    The increased cost of sales was due to higher mill throughput, higher sales
     and a stronger Canadian dollar compared to the United States dollar.

The  Company's  forecast for 2004 is gold  production  of  approximately  75,000
ounces.

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  in the second
quarter and first half of 2004 was 7,866 ounces and 14,573 ounces, respectively.
This  compares to the  Company's  share of gold  equivalent  production  for the
second  quarter  and  first  half of 2003 of 9,365  ounces  and  16,825  ounces,
respectively. Results from the first half of 2003 are for the months of February
through June only. Gold  equivalent  production was lower for the second quarter
and first  half of 2004 as the mine is being  prepared  for  closure  unless new
deposits are  identified.  Costs of sales for both the quarter and  year-to-date
were due to a reduction in spending as a result of the  preparation  for closure
activities.

The  Company's  forecast for 2004 is gold  production  of  approximately  27,200
ounces.


                                       11
<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  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. The mine  recommenced  production
on March 3, 2004 based on the  development  of a mine plan to extract  the shaft
and  crown  pillars  and  previously  developed  remnant  ore.  Gold  equivalent
production  in the second  quarter and first half of 2004 were 19,710 ounces and
24,897 ounces,  respectively.  This compares to second quarter and first half of
2003  gold   equivalent   production  of  25,534   ounces  and  44,318   ounces,
respectively.  Results  from the first half of 2003 are for the months  February
through June only. Gold  equivalent  production was lower for the second quarter
and first half of 2004 as compared to the second  quarter and first half of 2003
by 23% and 44%,  respectively,  due to fewer tons encountered in the center zone
crown  pillar  and the  lower  grade of ore as the  Company  winds  down  mining
activities. Operating costs were lower for both the quarter and six months ended
June 30,  2004 due to spending  reductions  resulting  from the winding  down of
mining activities.

The  Company's  forecast for 2004 is gold  production  of  approximately  72,000
ounces.

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.  Gold  equivalent  production in the second  quarter and
first half of 2004 were  22,362  ounces and 47,709  ounces,  respectively.  Gold
equivalent  production  was lower than the plan for the second quarter and first
half of 2004 by 20% and 10%,  respectively,  due to lower throughput at the mill
and lower grade ore, partially offset by better than plan recovery rates.

The  Company's  forecast for 2004 is gold  production  of  approximately  99,600
ounces.

REFUGIO (50% OWNERSHIP AND OPERATOR) - CHILE

In 2003,  the  Company and its joint  venture  partner,  Bema Gold  Corporation,
announced  plans to  recommence  production  at the  Refugio  mine in late 2004.
Capital  expenditures  associated with the  recommencement of operations are now
expected to be  approximately  $58 million as result of construction  delays and
increased  steel and labor  costs.  The  delays are due to poor  performance  of
subcontractors,  delays in shipping of equipment and inclement  weather.  During
the second quarter of 2004,  activities  continued to be focused on engineering,
procurement,  design and  construction  of the expanded  processing  plant.  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 $43.0 million during the second
quarter of 2004  compared to $45.5  million in 2003.  The decrease is due to the
reduction in  depreciation  at the Fort Knox  operation due to the suspension of
mining at the True North mine until the latter half of 2004, partially offset by
the  resumption  of mining  at  Kettle  River in  December  2003.  Depreciation,
depletion and  amortization  totaled $81.7 million during the first half of 2004
compared to $78.0 million in 2003.

EXPLORATION AND BUSINESS DEVELOPMENT

Total exploration and business  development  expenses incurred during the second
quarter  of 2004 and  first  half of 2004 were $5.4  million  and $8.9  million,
respectively,  compared to $7.1  million  and $13.3  million in each of the same
periods of 2003,  respectively.  Exploration and business development activities
were lower  than  planned as  certain  projects  expected  to begin in the first
quarter  were  delayed  until the  second  quarter.  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.


                                       12
<PAGE>

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  expenses in the second quarter of
2004 and first half of 2004 were $8.5 million and $15.4  million,  respectively,
compared to $6.0 million and $11.8  million in each of the same periods of 2003,
respectively.

The  general  and  administrative  expenses  for the second  quarter of 2004 are
higher  primarily  due to stock  based  compensation  expense  of $0.3  million,
restricted  stock units expense of $0.2  million,  and increases in legal costs,
payroll and benefit costs, insurance and shareholder communication costs.

The first half 2004 general and administrative expenses are higher than the 2003
comparative   expenses  as  the  Company  adopted  CICA  Handbook  Section  3870
"Stock-based compensation and other stock-based payments". During the first half
of 2004, the Company recorded  stock-based  compensation expense of $0.9 million
relating to stock options and restricted stock units previously granted over the
respective vesting periods.  The increases for 2004 are also due to increases in
payroll and benefit costs, insurance,  legal costs and shareholder communication
costs.

OTHER INCOME - NET
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
IN US$ MILLIONS                        Three months ended           Q2             Six months ended            YTD
                                           June 30,             2004 VS 2003            June 30,            2004 VS 2003
                                     ----------------------                      ----------------------
                                        2004       2003      Change    Change %     2004       2003      Change    Change %
-----------------------------------------------------------------------------------------------------------------------------
<S>                                       <C>        <C>        <C>           <C>     <C>        <C>        <C>          <C>
Interest and other income                 $ 1.9     $  1.8      $ 0.1         6%      $ 3.7     $  2.8      $ 0.9        32%
Non-hedge derivative gain (loss)            4.1       (0.9)       5.0         nm        3.3        1.2        2.1       175%
Interest expense on long-term liabilities  (0.5)      (1.4)       0.9        64%       (1.1)      (2.5)       1.4        56%
Foreign exchange gain (loss)                6.7      (17.6)      24.3         nm        5.0      (24.6)      29.6         nm
-----------------------------------------------------------------------------------------------------------------------------
Total other income                        $12.2     $(18.1)     $30.3         nm      $10.9     $(23.1)     $34.0         nm
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

INTEREST EXPENSE

Interest expense totaled $0.5 million and $1.1 million during the second quarter
and first half of 2004, respectively,  compared to $1.4 million and $2.5 million
for the comparative  periods in 2003. Interest expense in the first half of 2004
was  comprised  primarily of interest on the  remaining  Kubaka  project  loans,
interest on the Industrial  Revenue Bonds, Fort Knox capital leases and 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 in 2004 for the Refugio  mining  fleet of which $4.4  million  were added
during the second quarter of 2004.

NON-HEDGE DERIVATIVE GAIN (LOSS)

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 first half of 2004, the Company  recorded a decrease
to the liability on call options sold of $3.3 million  compared to a decrease of
$1.2 million in 2003.

FOREIGN EXCHANGE GAIN (LOSS)

During the second quarter and first half of 2004 the Company recorded a net gain
on foreign  currency  translation  and  transactions  of $6.7  million  and $5.0
million,  respectively,  compared to net losses for the  comparative  periods in
2003 of $17.6 million and $24.6 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 period.  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.


                                       13
<PAGE>

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 liability for
the first half of 2003  arose from  income  taxes in Russia,  Brazil,  Chile (La
Coipa mine) and federal large  corporations  tax and provincial  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:
                                       -----------------------------
                                         June 30,       December 31,
                                           2004             2003
--------------------------------------------------------------------

Unrestricted cash & equivalents        $    187.7      $    245.8
Current assets                              373.8           402.3
Total assets                              1,756.3         1,794.5
Current liabilities                         103.1           150.5
Total debt (a)                               24.3            45.7
Total liabilities (b)                       376.5           438.0
Shareholders' equity                      1,379.8         1,356.5
--------------------------------------------------------------------
Statistics
     Working capital                   $    270.7      $    251.8
     Working capital ratio (c)              3.63x           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  half of  2004,
unrestricted  cash and  equivalents  decreased by $58.1 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 half of 2004, the Company fully
repaid  the  Industrial  Revenue  Bonds of  $25.0  million  owing to the  Alaska
Industrial Development and Export Authority.

Cash flow provided from  operating  activities for the quarter was $25.4 million
in 2004  compared to $18.1 million in 2003.  Cash flow  provided from  operating
activities  increased  due to a higher gold price,  higher  production  and gold
sales and  decreased  due to an increase  in working  capital  requirements  and
deferred losses on hedges as a result of unwinding the gold hedge program.

Cash flow  provided  from  operating  activities  for the first half of 2004 was
$40.4 million in 2004 compared to $34.1 million in 2003. Cash flow provided from
operating activities increased due to a higher gold price, higher production and
gold sales and decreased due to an increase in working capital requirements from
deferred losses on hedges as a result of unwinding the gold hedge program.

Significant  factors  in the use of cash for the first  half of 2004 were  $12.9
million  related to winter  road  resupply  purchases  at Kubaka and Lupin and a
reduction of $13.6  million in accrued  liabilities  due to payments  associated
with the completion of the settlement agreement regarding TVX Hellas.


                                       14
<PAGE>

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.  The  following  table  outlines  the
capital additions in 2004 by operation:

-------------------------------------------------
                       YEAR TO DATE     FULL YEAR
                          ACTUAL         FORECAST
-------------------------------------------------

Fort Knox               $  19.4        $   39.0
Round Mountain              3.5             8.1
Porcupine                   7.1            28.7
Kubaka                     10.0            11.2
Paracatu                    1.9            13.1
La Coipa                    0.4             1.4
Crixas                      2.0             3.3
Musselwhite                 1.6             3.7
Refugio                    12.5            52.3
Other                       1.8             4.2
-----------------------------------------------
Total                   $  60.2        $  165.0
===============================================

LIQUIDITY OUTLOOK

As at June 30, 2004 the  following  are the major uses of cash for the remainder
of 2004 outside of operating activities:

---------------------------------------------------------------------------
                                                 YEAR TO DATE     FULL YEAR
                                                    ACTUAL        FORECAST
---------------------------------------------------------------------------

Site restoration                                 $   4.5        $   19.2
Exploration and business development                 8.9            20.0
Property, plant and equipment additions             60.2           165.0
---------------------------------------------------------------------------
Total                                            $  73.6        $  204.2
===========================================================================

COMMITMENTS

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
                                       TOTAL       SECOND HALF       2005         2006            2007          2008+
                                                     2004
----------------------------------------------------------------------------------------------------------------------
<S>                                  <C>            <C>            <C>            <C>            <C>           <C>
Long-term debt obligations           $   2.7        $   2.7        $    --        $    --        $  --         $  --
Capital lease obligations               15.7            2.9            6.4            6.4           --            --
Operating lease obligations              7.8            1.5            3.0            2.6           0.7           --
Purchase obligations                     2.1            0.1            0.7            0.7           0.6           --
Other long-term liabilities              2.5            0.4            0.3            0.3           0.3           1.2
----------------------------------------------------------------------------------------------------------------------
                                     $  30.8        $   7.6        $  10.4        $  10.0        $  1.6        $  1.2
======================================================================================================================
</TABLE>


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  shipping  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


                                       15
<PAGE>

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 is approximately  13.6 million.  A registration  statement  covering the
issuance  of the  common  shares has been  filed  with the U.S.  Securities  and
Exchange  Commission.  It is anticipated  that the  acquisition of Crown will be
completed  following the  effectiveness  of the  registration  statement and the
approval  of the  transaction  by the Crown  shareholders.  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 June 30, 2004 are
as follows:

<TABLE>
<CAPTION>
====================================================================================================
EXPECTED YEAR     SPOT DEFERRED     AVERAGE     CALL OPTIONS     AVERAGE      PUT OPTIONS  AVERAGE
OF DELIVERY       OUNCES HEDGED      PRICE      SOLD (OUNCES)    STRIKE         BOUGHT      STRIKE
                                                                 PRICE         (OUNCES)      PRICE
----------------------------------------------------------------------------------------------------
<S>                <C>              <C>         <C>              <C>            <C>          <C>
2004                    --            --               --           --          75,000       $ 250
2005                    --            --               --           --         150,000       $ 250
2006                    --            --               --                      150,000       $ 250
----------------------------------------------------------------------------------------------------
Total                   --            --               --           --         375,000       $ 250
====================================================================================================
</TABLE>

At December 31, 2003, the Company had 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 six
months  ended June 30,  2004 the  Company  delivered  85,000  ounces  into these
contracts and  financially  closed out the remaining  90,000 ounces at a cost of
$9.6 million.  However,  for  accounting  purposes the portion of the unrealized
loss, as determined  on December 31, 2003,  relating to contracts  with original
maturity  dates after June 30, 2004  remains  deferred on the balance  sheet and
will only be recognized into earnings in accordance  with the original  maturity
dates of the contracts.

During the second  quarter of 2004,  the Company  delivered  55,000  ounces into
contracts outstanding at December 31, 2003 at an average price of $281 per ounce
(30,000  ounces in the first  quarter  of 2004 at an  average  price of $269 per
ounce).

At June 30, 2004, the Company's  consolidated  foreign currency program consists
of:

<TABLE>
<CAPTION>
===================================================================================================================
CANADIAN DOLLARS               MATURITY PERIOD     QUANTITY (MILLIONS        AVERAGE PRICE            FAIR VALUE
                               (TO THE YEAR)        OF U.S. DOLLARS)           (C$/USD$)             (MILLIONS OF
                                                                                                     U.S. DOLLARS)
------------------------------------------------------------------------------------------------------------------
<S>                                  <C>                  <C>                     <C>                       <C>
Fixed forward contracts              2004                 $ 33.0                  1.3717                    $ 0.7
                                     2005                   10.0                  1.4322                      0.7
------------------------------------------------------------------------------------------------------------------
Total                                                     $ 43.0                  1.3858                    $ 1.4
==================================================================================================================
</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


                                       16
<PAGE>

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 six
months ended June 30, 2004, the Company recognized into earnings $0.9 million of
the deferred gain. The remaining  deferred gain will be recognized into earnings
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.

During the first half of 2004, the Company entered into additional fixed forward
contracts to sell U.S.  dollars and buy Canadian  dollars of CDN$45.3 million at
an average  exchange  rate of  1.3717.  The fair  value of these  fixed  forward
contracts  as at June 30,  2004,  based  on a spot  price  of  1.3404,  was $0.7
million, which has been recognized into earnings during the quarter.

For  details  on the  hedging  activities  please  refer  to  Note 5  "Financial
instruments" of the accompanying consolidated financial statements.

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 half 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 4 of the
accompanying  consolidated  financial  statements  for the period ended June 30,
2004,  which are  included in the  Quarterly  Report.  None of these  accounting
changes had a material impact on the Company's  second quarter and first half of
2004 results.

OUTLOOK

During the first half of 2004, we were able to exceed budget for  production and
importantly  exceed our  expectations  with respect to our mine operating costs.
This is a result of a strong  commitment  to cost  containment  by our operating
teams, and a result of our continuous  improvement program. Based on the results
of the first half versus  plan,  we  continue to expect to produce  1.70 to 1.75
million ounces of gold  equivalent  production  for 2004. As production  volumes
increase,  our cost of sales, on a per ounce basis, is expected to decrease. Our
investments  in  exploration  at  our  existing  operations  continue  to  yield
promising  results,  as does the  extensive  infill  drill  program at Gurupi in
Brazil.

In 2003, we announced plans to expand and recommission the Refugio mine, restart
the Kettle  River  operation,  and expand the  Porcupine  Joint  Venture mill to
accommodate  the new ore feed from the  Pamour  open pit.  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 well. The PJV expansion is on time and below budget.  We
continue  to plan to spend  $165.0  million in capital  improvements  in 2004 in
pursuit of meeting our goals.

At the end of last year,  we were sellers of junior gold shares  because,  as we
stated at the end of last year,  we believed the sector was over heated.  In the
past few months we have reversed our view in the junior sector and have begun an
investment  strategy  focused on  companies  with  projects  that we believe are
developable  in the  2006 - 2009  period.  Our goal is to  become a  significant
investor  in a few of  these  companies  and  then  we  look  to  help  existing
management  to  maximize  the value of the  underlying  assets to the benefit of
their shareholders and of course Kinross shareholders.


                                       17
<PAGE>

CONSOLIDATED BALANCE SHEETS
(EXPRESSED IN MILLIONS OF U.S. DOLLARS) (UNAUDITED)


<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
                                                                            AS AT          AS AT
                                                                           JUNE 30,      DECEMBER 31,
                                                                             2004            2003
-------------------------------------------------------------------------------------------------------
                                                                         Restated (a)    Restated (a)
<S>                                                                     <C>                <C>
ASSETS
  Current assets
    Cash and cash equivalents                                           $    187.7         $    245.8
    Restricted cash                                                            1.3                5.1
    Marketable securities                                                     10.4                0.1
    Accounts receivable and other assets                                      40.3               42.1
    Inventories                                                              134.1              109.2
                                                                        -----------------------------
                                                                             373.8              402.3
 Property, plant and equipment                                               988.5            1,010.4
 Goodwill                                                                    342.3              342.3
 Long-term investments                                                        26.7                2.1
 Future income and mining taxes                                                1.2                1.5
 Deferred charges and other long-term assets                                  23.8               35.9
                                                                        -----------------------------
                                                                        $  1,756.3         $  1,794.5
                                                                        =============================

LIABILITIES
  Current liabilities
    Accounts payable and accrued liabilities                            $     79.8         $    101.9
    Current portion of long-term debt                                          4.0               29.4
    Current portion of reclamation and remediation obligations                19.3               19.2
                                                                        -----------------------------
                                                                             103.1              150.5
 Long-term debt                                                                4.5                0.7
 Reclamation and remediation obligations                                     109.1              111.1
 Future income and mining taxes                                              136.8              152.5
 Other long-term liabilities                                                   6.4                6.9
 Redeemable retractable preferred shares                                       2.9                3.0
                                                                        -----------------------------
                                                                             362.8              424.7
                                                                        -----------------------------
NON-CONTROLLING INTEREST                                                       0.8                0.7
                                                                        -----------------------------
CONVERTIBLE PREFERRED SHARES OF SUBSIDIARY COMPANY                            12.9               12.6
                                                                        -----------------------------
COMMON SHAREHOLDERS' EQUITY
 Common share capital and common share purchase warrants                   1,785.5            1,783.5
 Contributed surplus                                                          34.4               30.0
 Accumulated deficit                                                        (438.9)            (455.8)
 Cumulative translation adjustments                                           (1.2)              (1.2)
                                                                        -----------------------------
                                                                           1,379.8            1,356.5
                                                                        -----------------------------
                                                                        $  1,756.3         $  1,794.5
                                                                        =============================

TOTAL OUTSTANDING AND ISSUED COMMON SHARES (MILLIONS)                        346.2              345.6
                                                                        =============================

        THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS
</TABLE>

(a) See Notes 2 & 3


                                                  18
<PAGE>

CONSOLIDATED STATEMENTS OF OPERATIONS
(expressed in millions of U.S. dollars, except per share amounts)
(unaudited)
For the three and six months ended June 30

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                        Three months ended                Six months ended
                                                                             June 30,                         June 30,
                                                                 -------------------------------------------------------------------

                                                                      2004            2003              2004               2003
------------------------------------------------------------------------------------------------------------------------------------
                                                                  Restated (a)      Restated (a)      Restated (a)     Restated (a)
<S>                                                               <C>               <C>               <C>               <C>
Revenue and other income
 Metal sales                                                      $   158.2         $   157.8         $   313.0         $   274.8

Operating costs and expense
 Cost of sales (excludes accretion, depreciation, depletion
  and amortization)                                                    97.8             100.0             190.4             185.3
 Accretion                                                              2.2               2.5               4.4               4.3
 Depreciation, depletion and amortization                              43.0              45.5              81.7              78.0
                                                                  ---------------------------------------------------------------
                                                                       15.2               9.8              36.5               7.2
 Other operating costs                                                  2.0               6.6               3.9               6.8
 Exploration and business development                                   5.4               7.1               8.9              13.3
 General and administrative                                             8.5               6.0              15.4              11.8
 (Gain) loss on disposal of assets                                     (0.3)              0.6              (0.7)              0.5
                                                                  ---------------------------------------------------------------
Operating earnings (loss)                                              (0.4)            (10.5)              9.0             (25.2)
 Other income (expense) - net                                          12.2             (18.1)             10.9             (23.1)
                                                                  ---------------------------------------------------------------
Earnings (loss) before taxes and other items                           11.8             (28.6)             19.9             (48.3)
 Income and mining taxes recovery (expense)                             0.2               1.4                --              (4.2)
 Non-controlling interest                                              (0.1)             (0.1)             (0.1)             (0.1)
 Dividends on convertible preferred shares of subsidiary               (0.2)             (0.2)             (0.4)             (0.4)
                                                                  ---------------------------------------------------------------
Net earnings (loss) for the period                                $    11.7         $   (27.5)        $    19.4         $   (53.0)
                                                                  ===============================================================
Attributable to common shareholders:
 Net earnings (loss) for the period                               $    11.7         $   (27.5)        $    19.4         $   (53.0)
 Increase in equity component of convertible debentures                 --               (2.2)              --               (4.3)
                                                                  ---------------------------------------------------------------
Net earnings (loss) attributable to common shareholders           $    11.7         $   (29.7)        $    19.4         $   (57.3)
                                                                  ===============================================================
Earnings (loss) per share
 Basic                                                            $    0.03         $   (0.09)        $    0.06         $   (0.20)
 Diluted                                                          $    0.03         $   (0.09)        $    0.06         $   (0.20)
Weighted average common shares outstanding (millions)
 Basic                                                                346.0             314.7             345.9             284.1
 Diluted                                                              346.3             314.7             346.3             284.1
====================================================================================================================================

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

(a) See Notes 2 & 3


                                                                19
<PAGE>

CONSOLIDATED STATEMENTS OF CASH FLOWS

(expressed in millions of U.S. dollars) (unaudited)
For the three and six months ended June 30

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
                                                                    Three months ended                Six months ended
                                                                          June 30,                       June 30,
                                                                 -------------------------------------------------------------
                                                                    2004           2003           2004            2003
------------------------------------------------------------------------------------------------------------------------------
                                                                 Restated (a)   Restated (a)    Restated (a)   Restated (a)
<S>                                                               <C>              <C>              <C>              <C>
Net inflow (outflow) of cash related to the following
 activities:
Operating:
Net earnings (loss) for the period                                $   11.7         $  (27.5)        $   19.4         $  (53.0)
Items not affecting cash:
 Depreciation, depletion and amortization                             43.0             45.5             81.7             78.0
 (Gain) loss on disposal of asset                                     (0.3)             0.6             (0.7)             0.5
 Future income and mining taxes                                       (3.4)            (4.5)            (7.2)            (2.4)
 Deferred revenue recognized                                          (0.5)            (0.5)            (1.1)            (1.1)
 Unrealized foreign exchange (gains) losses and other                 (7.8)            20.5             (7.9)            28.0
 Changes in non-cash working capital items
   Accounts receivable and other assets                              (11.3)             9.3              1.4             14.2
   Inventories                                                        (2.0)            (3.3)           (24.5)            (9.2)
   Accounts payable and accrued liabilities                           (4.0)           (22.0)           (20.7)           (20.9)
                                                                  -----------------------------------------------------------
Cash flow provided from operating activities                          25.4             18.1             40.4             34.1
                                                                  -----------------------------------------------------------
Investing:
 Additions to property, plant and equipment                          (40.4)           (12.1)           (60.2)           (24.9)
 Business acquisitions, net of cash acquired                           --               --               --             (81.9)
 Marketable securities                                               (10.5)             0.6            (10.2)             0.6
 Long-term investments and other assets                               (9.6)            (3.4)           (13.4)            (6.2)
 Proceeds from the sale of property, plant and equipment               0.3              --               0.8              --
 Decrease in restricted cash                                           0.1              5.6              3.8             37.4
                                                                  -----------------------------------------------------------
Cash flow used in investing activities                               (60.1)            (9.3)           (79.2)           (75.0)
                                                                  -----------------------------------------------------------
Financing:
 Issuance of common shares                                             1.6              1.5              3.0              3.3
 Reduction of debt component of convertible debentures                 --              (1.4)             --              (2.8)
 Proceeds from issue of debt                                           4.4              --               4.4              --
 Repayment of debt                                                    (0.7)            (8.2)           (26.0)            (9.2)
                                                                  -----------------------------------------------------------
Cash flow provided from (used in) financing activities                 5.3             (8.1)           (18.6)            (8.7)
                                                                  -----------------------------------------------------------
Effect of exchange rate changes on cash                               (0.5)             1.9             (0.7)             4.0
                                                                  -----------------------------------------------------------
(Decrease) increase in cash and cash equivalents                     (29.9)             2.6            (58.1)           (45.6)
Cash and cash equivalents, beginning of period                       217.6            122.4            245.8            170.6
                                                                  -----------------------------------------------------------
Cash and cash equivalents, end of period                          $  187.7         $  125.0         $  187.7         $  125.0
                                                                  ===========================================================
Supplementary disclosure of cash flow information:
Cash paid for:
 Interest                                                         $    0.2         $    4.1         $    0.6         $    4.4
 Income taxes                                                     $    4.6         $    2.5         $    6.3         $    3.7
=============================================================================================================================

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

(a) See Notes 2 & 3


                                                              20
<PAGE>

CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY
(expressed in millions of U.S. dollars) (unaudited)
For the six months ended June 30

<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                            1,302.4         --            --              --            --         1,302.4
Increase in equity component of convertible
  debentures                                             --          --            4.4            (4.3)          --             0.1
Net loss for the period                                  --          --            --            (53.0)          --           (53.0)
Cumulative translation adjustments                       --          --            --              --           19.6           19.6
                                                  ---------------------------------------------------------------------------------
Balance, June 30, 2003                            $  1,599.5     $  12.9      $  136.7        $  (68.9)     $   (3.8)     $ 1,676.4
                                                  =================================================================================
Balance, December 31, 2003 (restated)             $  1,783.5     $  30.0      $    --         $ (455.8)     $   (1.2)     $ 1,356.5
Cumulative effect of recording the fair
  value of stock                                         0.2         2.3           --             (2.5)          --              --
                                                  ---------------------------------------------------------------------------------
Balance, January 1, 2004                             1,783.7        32.3           --           (458.3)         (1.2)       1,356.5
Issuance of common shares                                3.0         --            --              --            --             3.0
Stock-based compensation expense (b)                     --          0.9           --              --            --             0.9
Net earnings for the period                              --          --            --             19.4           --            19.4
Transfer of fair value of expired options               (1.2)        1.2           --              --            --              --
                                                  ---------------------------------------------------------------------------------
Balance, June 30, 2004                            $  1,785.5     $  34.4       $   --         $ (438.9)     $   (1.2)     $ 1,379.8
                                                  =================================================================================

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

(a) See Notes 2 & 3
(b) Includes stock option and restricted stock unit expense


                                                              21
<PAGE>

                            KINROSS GOLD CORPORATION
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
                FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30
  (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 report for
   the  year  ended  December  31,  2003  included  in  the  restated  financial
   statements  for the year ended  December 31, 2004,  which were filed with all
   the  Canadian  securities  regulatory  agencies  on  February  15,  2006.  In
   addition,  these interim consolidated financial statements include impacts of
   the restatements as disclosed in Notes 2 and 3.

   COMPARATIVE FIGURES

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

2. RESTATEMENT 1 - CORRECTION OF FOREIGN CURRENCY  TRANSLATION  IMPACT ON FUTURE
   TAX LIABILITIES

   During the  preparation  of its interim  financial  statements  for 2005, the
   Company  discovered  an error  relating to its financial  statements  for the
   years ended December 31, 2003 and 2004 and the related  interim  periods.  In
   those previously released financial statements,  the Company had not properly
   assessed the impact of changes in foreign  currency  exchange rates affecting
   the future tax  liabilities  primarily  arising on the acquisition of TVX and
   Echo Bay on January 31, 2003. This restatement gives effect to the adjustment
   of those  future  income  tax  liabilities  to  properly  reflect  changes in
   currency  exchange  rates  between  the U.S.  dollar and the  currency of the
   country in which the future tax  liability  arose.  The impact of the foreign
   currency   exchange  rate  changes  related   primarily  to  the  future  tax
   liabilities of the Brazilian operations.  This restatement primarily affected
   Foreign  exchange  losses  included in Other income  (expense) and income and
   mining tax expense.  As a result of the  treatment of foreign  operations  as
   self sustaining operations until September 29, 2003, a portion of the foreign
   exchange loss has been charged to  Cumulative  translation  adjustment.  This
   non-cash  adjustment  has no  impact  on net  cash  flows  or  cash  balances
   previously reported. All amounts included within these consolidated financial
   statements  and  accompanying  notes  have  been  adjusted  to  reflect  this
   restatement.  The following is a summary of the effects of the aforementioned
   adjustments on the consolidated financial statements:

   Consolidated balance sheets
   ---------------------------

<TABLE>
<CAPTION>
   =============================================================================================================
                                                               AS PREVIOUSLY
                                                                REPORTED (a)      ADJUSTMENTS      AS RESTATED
   -------------------------------------------------------------------------------------------------------------
<S>                                                             <C>                <C>                  <C>
   As at June 30, 2004
   LIABILITIES
     Future income and mining taxes                             $     120.4        $    16.4            136.8
   COMMON SHAREHOLDERS' EQUITY
     Accumulated deficit                                        $    (421.7)       $   (17.2)          (438.9)
     Cumulative translation adjustments                         $      (2.0)       $     0.8             (1.2)
   -------------------------------------------------------------------------------------------------------------
   AS AT DECEMBER 31, 2003
   LIABILITIES
     Future income and mining taxes                             $     126.6        $    25.9        $   152.5
   COMMON SHAREHOLDERS' EQUITY
     Accumulated deficit                                        $    (429.1)       $   (26.7)          (455.8)
     Cumulative translation adjustments                         $      (2.0)       $     0.8             (1.2)
   -------------------------------------------------------------------------------------------------------------
</TABLE>

   (a)  As  previously   disclosed  in  the  second   quarter  2004  financial
        statements filed with regulators in November 2005.


   Consolidated statements of operations
   -------------------------------------

<TABLE>
<CAPTION>
   =============================================================================================================
                                                               AS PREVIOUSLY
                                                                REPORTED (a)      ADJUSTMENTS      AS RESTATED
   -------------------------------------------------------------------------------------------------------------
<S>                                                             <C>                <C>                  <C>
   Three months ended June 30, 2004
   Operating loss                                               $      (0.4)       $       -        $    (0.4)
     Other income - net                                         $       4.8        $     7.4        $    12.2
   Earnings before taxes and other items                        $       4.4        $     7.4        $    11.8
   Income and mining tax (expense) recovery                     $      (0.4)       $     0.6        $     0.2
   Non-controlling interest                                     $      (0.1)       $       -        $    (0.1)
   Dividends on convertible preferred shares of subsidiary      $      (0.2)       $       -        $    (0.2)
   Share in loss of investee companies                          $         -        $       -        $       -
   Net earnings                                                 $       3.7        $     8.0        $    11.7
   Net earnings attributable to common shareholders             $       3.7        $     8.0        $    11.7
   Earnings per share
     Basic and diluted                                          $      0.01        $    0.02        $    0.03
   -------------------------------------------------------------------------------------------------------------
   THREE MONTHS ENDED JUNE 30, 2003
   Operating loss                                               $     (10.5)       $       -        $   (10.5)
     Other (expense) income - net                               $       0.4        $   (18.5)       $   (18.1)
   Loss before taxes and other items                            $     (10.1)       $   (18.5)       $   (28.6)
   Income and mining tax recovery                               $       0.3        $     1.1        $     1.4
   Non-controlling interest                                     $      (0.1)       $       -        $    (0.1)
   Dividends on convertible preferred shares of subsidiary      $      (0.2)       $       -        $    (0.2)
   Share in loss of investee companies                          $         -        $       -        $       -
   Net loss                                                     $     (10.1)       $   (17.4)       $   (27.5)
   Net loss attributable to common shareholders                 $     (12.3)       $   (17.4)       $   (29.7)
   Loss per share
   Basic and diluted                                            $     (0.04)       $   (0.05)       $   (0.09)
   -------------------------------------------------------------------------------------------------------------
   SIX MONTHS ENDED JUNE 30, 2004
   Operating earnings                                           $       9.0        $       -        $     9.0
     Other income - net                                         $       2.7        $     8.2        $    10.9
   Earnings before taxes and other items                        $      11.7        $     8.2        $    19.9
   Income and mining tax expense                                $      (1.3)       $     1.3        $       -
   Non-controlling interest                                     $      (0.1)       $       -        $    (0.1)
   Dividends on convertible preferred shares of subsidiary      $      (0.4)       $       -        $    (0.4)
   Share in loss of investee companies                          $         -        $       -        $       -
   Net earnings                                                 $       9.9        $     9.5        $    19.4
   Net earnings attributable to common shareholders             $       9.9        $     9.5        $    19.4
   Earnings per share
     Basic and diluted                                          $      0.03        $    0.03        $    0.06
   -------------------------------------------------------------------------------------------------------------
   SIX MONTHS ENDED JUNE 30, 2003
   Operating loss                                               $     (25.2)       $       -        $   (25.2)
     Other expense - net                                        $       1.7        $   (24.8)       $   (23.1)
   Loss before taxes and other items                            $     (23.5)       $   (24.8)       $   (48.3)
   Income and mining tax expense                                $      (1.1)       $    (3.1)       $    (4.2)
   Non-controlling interest                                     $      (0.1)       $       -        $    (0.1)
   Dividends on convertible preferred shares of subsidiary      $      (0.4)       $       -        $    (0.4)
   Share in loss of investee companies                          $         -        $       -        $       -
   Net loss                                                     $     (25.1)       $   (27.9)       $   (53.0)
   Net loss attributable to common shareholders                 $     (29.4)       $   (27.9)       $   (57.3)
   Loss per share
     Basic and diluted                                          $     (0.10)       $   (0.10)       $   (0.20)
   -------------------------------------------------------------------------------------------------------------
</TABLE>

  (a)   As  previously   disclosed  in  the  second   quarter  2004  financial
        statements filed with regulators in November 2005.

3. RESTATEMENT 2 - GOODWILL AND ASSET RETIREMENT OBLIGATIONS

   This restatement  note sets out the impact of the restatement  related to the
   purchase price allocation,  accounting for goodwill and impact of adoption of
   CICA Handbook Section 3110 "Asset Retirement Obligations".  These changes are
   reflected in the  "Restatement  2" column.  The  "Restatement 1" column gives
   effect to the  restatement  related to the  correction  of  foreign  currency
   translation impact on future tax liabilities as described in Note 2 above.

   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 six months ended
   June 30, 2003 and 2004 are summarized as follows:

   (a)  Reduction  of  $181.3  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 $5.2
        million and $6.8 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.

    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


                                       22
<PAGE>

    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) relates to the Company's
        ability to 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.


                                       23
<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  million 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:


                                       24
<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)
    ------------------------------------------------------------------------------------------------------------------------
    (a) As previously disclosed in 2003 financial statements filed with regulators in March 2004.
    (b) Reclassification to mineral interests.
</TABLE>

    IMPACT OF INDEPENDENT VALUATIONS AND IMPAIRMENT TESTING AT DECEMBER 31, 2003
    AND 2004
    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 7 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.  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 June 30,  2004,  the
    impact of this  derecognition was to increase Accounts  receivable and other
    assets by $2.9 million,  decrease  Cost of sales by $0.3  million,  decrease
    General and administrative  expense by $0.1 million and increase Metal sales
    by $2.5 million.  For the six months ended June 30, 2004, the impact of this
    derecognition was to increase Accounts


                                       25
<PAGE>

    receivable and other assets by $1.9 million,  decrease Cost of sales by $0.1
    million,  General and  administrative  expense by $0.1  million and increase
    Metal sales by $1.7 million.

    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 June 30, 2004 and  consolidated  statement  of
    operations for the three months ended and six months ended June 30, 2003 and
    2004 are shown below:

    CONSOLIDATED BALANCE SHEETS AS AT DECEMBER 31, 2003

<TABLE>
<CAPTION>
    ===========================================================================================================================
                                                                      AS PREVIOUSLY   RESTATMENT   RESTATMENT
                                                                       REPORTED (a)      2(b)         1(c)       AS RESTATED
    ---------------------------------------------------------------------------------------------------------------------------
<S>                                                                  <C>              <C>          <C>
    ASSETS
      Current assets
        Cash and cash equivalents                                     $       245.8    $      --    $      --   $    245.8
        Restricted cash                                                         5.1           --           --          5.1
        Marketable securities                                                   0.1           --           --          0.1
        Accounts receivable and other assets                                   42.1           --           --         42.1
        Inventories                                                           109.2           --           --        109.2
                                                                     ----------------------------------------------------------
      Current assets                                                          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         25.9        152.5
      Other long-term liabilities (d)                                           4.7          2.2           --          6.9
      Redeemable retractable preferred shares                                   3.0           --           --          3.0
                                                                     ----------------------------------------------------------
                                                                              314.5         84.3         25.9        424.7
                                                                     ----------------------------------------------------------
    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)       (26.7)      (455.8)
      Cumulative translation adjustments                                       (2.0)          --          0.8         (1.2)
                                                                     ----------------------------------------------------------
                                                                            1,814.7       (432.3)       (25.9)     1,356.5
                                                                     ----------------------------------------------------------
                                                                      $     2,142.5    $  (348.0)   $      --   $  1,794.5
    ---------------------------------------------------------------------------------------------------------------------------
</TABLE>

    (a) As previously  disclosed in the original 2003 financial statements filed
        with regulators in March 2004.
    (b) Impact of restatement relating to purchase price allocation and goodwill
        per financial statements filed with regulators in November 2005.
    (c) Restatement  for correction of foreign  currency  translation  impact on
        future tax liabilities. See Note 2.
    (d) Change in Other long-term liabilities relates to the reclassification of
        certain asset  retirement  related  liabilities to the  reclamation  and
        remediation obligations.


                                       26
<PAGE>

        CONSOLIDATED BALANCE SHEETS AS AT JUNE 30, 2004

<TABLE>
<CAPTION>
        =========================================================================================================================
                                                                          AS PREVIOUSLY   RESTATMENT   RESTATMENT
                                                                           REPORTED (a)      2(b)         1(c)       AS RESTATED
        -------------------------------------------------------------------------------------------------------------------------
<S>                                                                      <C>              <C>         <C>           <C>
        ASSETS
          Current assets
            Cash and cash equivalents                                      $      187.7    $      --   $      --     $     187.7
            Restricted cash                                                         1.3           --          --             1.3
            Marketable securities                                                  10.4           --          --            10.4
            Accounts receivable and other assets                                   37.8          2.5          --            40.3
            Inventories                                                           134.5         (0.4)         --           134.1
                                                                         --------------------------------------------------------
                                                                                  371.7          2.1          --           373.8
          Property, plant and equipment                                           778.8        209.7          --           988.5
          Goodwill                                                                918.0       (575.7)         --           342.3
          Long-term investments                                                    26.7           --          --            26.7
          Future income and mining taxes                                            1.2           --          --             1.2
          Deferred charges and other long-term assets                              23.8           --          --            23.8
                                                                         --------------------------------------------------------
                                                                           $    2,120.2    $  (363.9)  $      --     $   1,756.3
                                                                         --------------------------------------------------------
        LIABILITIES
          Current liabilities
            Accounts payable and accrued liabilities                       $       79.6    $     0.2   $      --     $      79.8
            Current portion of long-term debt                                       4.0           --          --             4.0
            Current portion of reclamation and remediation obligations             19.3           --          --            19.3
                                                                         --------------------------------------------------------
                                                                                  102.9          0.2          --           103.1
          Long-term debt                                                            4.5           --          --             4.5
          Reclamation and remediation obligations                                 109.1           --          --           109.1
          Future income and mining taxes                                           52.4         68.0        16.4           136.8
          Other long-term liabilities (d)                                           6.4           --          --             6.4
          Redeemable retractable preferred shares                                   2.9           --          --             2.9
                                                                         --------------------------------------------------------
                                                                                  278.2         68.2        16.4           362.8
                                                                         --------------------------------------------------------
        NON-CONTROLLING INTEREST                                                    0.8           --          --             0.8
                                                                         --------------------------------------------------------
        CONVERTIBLE PREFERRED SHARES OF SUBSIDIARY COMPANY                         12.9           --          --            12.9
                                                                         --------------------------------------------------------
        COMMON SHAREHOLDERS' EQUITY
          Common share capital and common share purchase warrants               1,785.3          0.2          --         1,785.5
          Contributed surplus                                                      33.6          0.8          --            34.4
          Accumulated deficit                                                      11.4       (433.1)      (17.2)         (438.9)
          Cumulative translation adjustments                                       (2.0)          --         0.8            (1.2)
                                                                         --------------------------------------------------------
                                                                                1,828.3       (432.1)      (16.4)        1,379.8
                                                                         --------------------------------------------------------
                                                                           $    2,120.2    $  (363.9)  $      --     $   1,756.3
        -------------------------------------------------------------------------------------------------------------------------
</TABLE>

        (a) As  previously   disclosed  in  the  original  second  quarter  2004
            financial statements filed with regulators in August 2004.
        (b) Impact of  restatement  relating to purchase  price  allocation  and
            goodwill per financial  statements filed with regulators in November
            2005.
        (c) Restatement for correction of foreign currency translation impact on
            future tax liabilities. See Note 2.
        (d) Change   in   Other   long-term    liabilities    relates   to   the
            reclassification  of certain asset retirement related liabilities to
            the reclamation and remediation obligations.


                                       27
<PAGE>

CONSOLIDATED STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2003

<TABLE>
<CAPTION>
        =========================================================================================================================
                                                                          AS PREVIOUSLY   RESTATMENT   RESTATMENT
                                                                           REPORTED (a)      2(b)         1(c)       AS RESTATED
        -------------------------------------------------------------------------------------------------------------------------
<S>                                                                      <C>              <C>         <C>           <C>
        REVENUE AND OTHER OPERATING INCOME
          Metal sales                                                     $      157.8     $      --   $       --    $     157.8

        OPERATING COSTS AND EXPENSES
          Cost of sales (excludes accretion, depreciation, depletion
            and amortization)                                                     98.8           1.2           --          100.0
          Accretion                                                                2.5            --           --            2.5
          Depreciation, depletion and amortization                                40.3           5.2           --           45.5
                                                                         --------------------------------------------------------
                                                                                  16.2          (6.4)          --            9.8
          Other operating costs                                                    6.6            --           --            6.6
          Exploration and business development                                     7.1            --           --            7.1
          General and administrative                                               6.0            --           --            6.0
          Gain on disposal of assets                                               0.6            --           --            0.6
                                                                         --------------------------------------------------------
        OPERATING LOSS                                                            (4.1)         (6.4)          --          (10.5)

          Other income (expense) - net                                             0.5          (0.1)       (18.5)         (18.1)
                                                                         --------------------------------------------------------
        LOSS BEFORE TAXES AND OTHER ITEMS                                         (3.6)         (6.5)       (18.5)         (28.6)

          Income and mining taxes recovery (expense)                              (1.6)          1.9          1.1            1.4
          Non-controlling interest                                                (0.1)           --           --           (0.1)
          Dividends on convertible preferred shares of subsidiary                 (0.2)           --           --           (0.2)
                                                                         --------------------------------------------------------
        NET LOSS                                                          $       (5.5)    $    (4.6)  $    (17.4)   $     (27.5)
                                                                         --------------------------------------------------------

        ATTRIBUTABLE TO COMMON SHAREHOLDERS:

          Loss                                                            $       (5.5)    $    (4.6)  $    (17.4)   $     (27.5)
          Increase in equity component of convertible debentures                  (2.2)           --           --           (2.2)
                                                                         --------------------------------------------------------
        NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS                      $       (7.7)    $    (4.6)  $    (17.4)   $     (29.7)
                                                                         --------------------------------------------------------

        LOSS PER SHARE
          Basic                                                           $      (0.02)    $   (0.01)  $    (0.06)   $     (0.09)
          Diluted                                                         $      (0.02)    $   (0.01)  $    (0.06)   $     (0.09)
        =========================================================================================================================
</TABLE>

        (a) As  previously   disclosed  in  the  original  second  quarter  2004
            financial statements filed with regulators in August 2004.
        (b) Impact of  restatement  relating to purchase  price  allocation  and
            goodwill per financial  statements filed with regulators in November
            2005.
        (c) Restatement for correction of foreign currency translation impact on
            future tax liabilities. See Note 2.


                                       28
<PAGE>

CONSOLIDATED STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2004

<TABLE>
<CAPTION>
        =========================================================================================================================
                                                                          AS PREVIOUSLY   RESTATMENT   RESTATMENT
                                                                           REPORTED (a)      2(b)         1(c)       AS RESTATED
        -------------------------------------------------------------------------------------------------------------------------
<S>                                                                      <C>              <C>         <C>           <C>
        REVENUE AND OTHER OPERATING INCOME
          Metal sales                                                     $       154.9     $     3.3  $       --    $     158.2

        OPERATING COSTS AND EXPENSES
          Cost of sales (excludes accretion, depreciation, depletion
            and amortization)                                                      98.4          (0.6)         --           97.8
          Accretion                                                                 2.2            --          --            2.2
          Depreciation, depletion and amortization                                 36.2           6.8          --           43.0
                                                                         --------------------------------------------------------
                                                                                   18.1          (2.9)         --           15.2
          Other operating costs                                                     2.0            --          --            2.0
          Exploration and business development                                      5.4            --          --            5.4
          General and administrative                                                8.5            --          --            8.5
          Gain on disposal of assets                                               (0.3)           --          --           (0.3)
                                                                         --------------------------------------------------------
        OPERATING EARNINGS (LOSS)                                                   2.5          (2.9)         --           (0.4)

          Other income (expense) - net                                              5.5          (0.7)        7.4           12.2
                                                                         --------------------------------------------------------
        EARNINGS BEFORE TAXES AND OTHER ITEMS                                       8.0          (3.6)        7.4           11.8

          Income and mining taxes expense                                          (1.1)          0.7         0.6            0.2
          Non-controlling interest                                                 (0.1)           --          --           (0.1)
          Share in loss of investee companies                                         -            --          --             --
          Dividends on convertible preferred shares of subsidiary                  (0.2)           --          --           (0.2)
                                                                         --------------------------------------------------------
        NET EARNINGS ATTRIBUTABLE TO COMMON SHAREHOLDERS                  $         6.6     $    (2.9) $      8.0    $      11.7
                                                                         --------------------------------------------------------

        EARNINGS PER SHARE
          Basic                                                           $         0.02    $   (0.01) $    0.02     $      0.03
          Diluted                                                         $         0.02    $   (0.01) $    0.02     $      0.03
        =========================================================================================================================
</TABLE>

        (a) As  previously   disclosed  in  the  original  second  quarter  2004
            financial statements filed with regulators in August 2004.
        (b) Impact of  restatement  relating to purchase  price  allocation  and
            goodwill per financial  statements filed with regulators in November
            2005.
        (c) Restatement for correction of foreign currency translation impact on
            future tax liabilities. See Note 2.


                                       29
<PAGE>

CONSOLIDATED STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2003

<TABLE>
<CAPTION>
        =========================================================================================================================
                                                                          AS PREVIOUSLY   RESTATMENT   RESTATMENT
                                                                           REPORTED (a)      2(b)         1(c)       AS RESTATED
        -------------------------------------------------------------------------------------------------------------------------
<S>                                                                      <C>              <C>         <C>           <C>
        REVENUE AND OTHER OPERATING INCOME
          Metal sales                                                     $       274.8    $      --   $       --    $     274.8

        OPERATING COSTS AND EXPENSES
          Cost of sales (excludes accretion, depreciation, depletion
            and amortization)                                                     184.3          1.0           --          185.3
          Accretion                                                                 4.3           --           --            4.3
          Depreciation, depletion and amortization                                 68.5          9.5           --           78.0
                                                                         --------------------------------------------------------
                                                                                   17.7        (10.5)          --            7.2
          Other operating costs                                                     6.8           --           --            6.8
          Exploration and business development                                     13.3           --           --           13.3
          General and administrative                                               11.8           --           --           11.8
          Gain on disposal of assets                                                0.5           --           --            0.5
                                                                         --------------------------------------------------------
        OPERATING LOSS                                                            (14.7)       (10.5)          --          (25.2)

          Other income (expense) - net                                              1.8         (0.1)       (24.8)         (23.1)
                                                                         --------------------------------------------------------
        LOSS BEFORE TAXES AND OTHER ITEMS                                         (12.9)       (10.6)       (24.8)         (48.3)

          Income and mining taxes expense                                          (4.1)         3.0         (3.1)          (4.2)
          Non-controlling interest                                                 (0.1)          --           --           (0.1)
          Dividends on convertible preferred shares of subsidiary                  (0.4)          --           --           (0.4)
                                                                         --------------------------------------------------------
        NET LOSS                                                          $       (17.5)   $    (7.6) $     (27.9)   $     (53.0)
                                                                         --------------------------------------------------------

        ATTRIBUTABLE TO COMMON SHAREHOLDERS:

          Net loss                                                        $       (17.5)   $    (7.6) $     (27.9)   $     (53.0)
          Increase in equity component of convertible debentures                   (4.3)          --           --           (4.3)
                                                                         --------------------------------------------------------
        NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS                      $       (21.8)   $    (7.6) $     (27.9)   $     (57.3)
                                                                         --------------------------------------------------------

        LOSS PER SHARE
          Basic                                                           $       (0.08)   $   (0.02) $     (0.10)   $     (0.20)
          Diluted                                                         $       (0.08)   $   (0.02) $     (0.10)   $     (0.20)
        =========================================================================================================================
</TABLE>

        (a) As  previously   disclosed  in  the  original  second  quarter  2004
            financial statements filed with regulators in August 2004.
        (b) Impact of  restatement  relating to purchase  price  allocation  and
            goodwill per financial  statements filed with regulators in November
            2005.
        (c) Restatement for correction of foreign currency translation impact on
            future tax liabilities. See Note 2.


                                       30
<PAGE>

CONSOLIDATED STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2004

<TABLE>
<CAPTION>
        =========================================================================================================================
                                                                          AS PREVIOUSLY   RESTATMENT   RESTATMENT
                                                                           REPORTED (a)      2(b)         1(c)       AS RESTATED
        -------------------------------------------------------------------------------------------------------------------------
<S>                                                                      <C>              <C>         <C>           <C>
        REVENUE AND OTHER OPERATING INCOME
          Metal sales                                                     $       310.5     $     2.5  $       --    $     313.0

        OPERATING COSTS AND EXPENSES
          Cost of sales (excludes accretion, depreciation, depletion
            and amortization)                                                     188.8           1.6          --          190.4
          Accretion                                                                 4.4            --          --            4.4
          Depreciation, depletion and amortization                                 68.6          13.1          --           81.7
                                                                         --------------------------------------------------------
                                                                                   48.7         (12.2)         --           36.5
          Other operating costs                                                     3.9            --          --            3.9
          Exploration and business development                                      8.9            --          --            8.9
          General and administrative                                               15.4            --          --           15.4
          Gain on disposal of assets                                               (0.7)           --          --           (0.7)
                                                                         --------------------------------------------------------
        OPERATING EARNINGS                                                         21.2         (12.2)         --            9.0

          Other income (expense) - net                                              3.4          (0.7)        8.2           10.9
                                                                         --------------------------------------------------------
        EARNINGS BEFORE TAXES AND OTHER ITEMS                                      24.6         (12.9)        8.2           19.9

          Income and mining taxes expense                                          (4.3)          3.0         1.3             --
          Non-controlling interest                                                 (0.1)           --          --           (0.1)
          Dividends on convertible preferred shares of subsidiary                  (0.4)           --          --           (0.4)
                                                                         --------------------------------------------------------
        NET EARNINGS                                                      $        19.8     $    (9.9) $      9.5    $      19.4
                                                                         --------------------------------------------------------

        ATTRIBUTABLE TO COMMON SHAREHOLDERS:

          Net earnings                                                    $        19.8     $    (9.9) $      9.5    $      19.4
                                                                         --------------------------------------------------------
        NET EARNINGS ATTRIBUTABLE TO COMMON SHAREHOLDERS                  $        19.8     $    (9.9) $      9.5    $      19.4
                                                                         --------------------------------------------------------

        EARNINGS PER SHARE
          Basic                                                           $        0.06     $   (0.03) $     0.03    $      0.06
          Diluted                                                         $        0.06     $   (0.03) $     0.03    $      0.06
        =========================================================================================================================
</TABLE>

        (a) As  previously   disclosed  in  the  original  second  quarter  2004
            financial statements filed with regulators in August 2004.
        (b) Impact of  restatement  relating to purchase  price  allocation  and
            goodwill per financial  statements filed with regulators in November
            2005.
        (c) Restatement for correction of foreign currency translation impact on
            future tax liabilities. See Note 2.


                                       31
<PAGE>

4.  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.  During the three
        months and six months  ended June 30,  2004 the Company  recorded  stock
        option   expense  of  $0.3  million  and  $0.6  million,   respectively.
        Additionally, the Company recorded restricted stock unit expense of $0.1
        million and $0.3 million,  respectively  during the three months and six
        months ended June 30, 2004.

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


                                       32
<PAGE>

--------------------------------------------------------------------------------
                                                  Three months      Six months
                                                      ended            ended
                                                    June 30,         June 30,
                                                      2003             2003
--------------------------------------------------------------------------------

Net loss attributable to common shareholders         $ (29.7)          $ (57.3)
 Stock-based compensation expense - pro forma             --              (0.1)
-------------------------------------------------------------------------------
Net loss - pro forma                                 $ (29.7)          $ (57.4)
-------------------------------------------------------------------------------

Loss per common share
 Basic and diluted - reported                        $ (0.09)          $ (0.20)
 Basic and diluted - pro forma                       $ (0.09)          $ (0.20)
-------------------------------------------------------------------------------

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

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
                                                            THREE MONTHS ENDED                 SIX MONTHS ENDED
                                                                 JUNE 30,                          JUNE 30,
                                                           2004             2003             2004             2003
---------------------------------------------------------------------------------------------------------------------
<S>                                                         <C>              <C>              <C>              <C>
BLACK-SCHOLES WEIGHTED-AVERAGE ASSUMPTIONS
  Expected dividend yield                                   0.00%            0.00%            0.00%            0.00%
  Expected volatility                                      40.37%           70.15%           40.37%           70.32%
  Risk-free interest rate                                   3.07%            2.72%            2.66%            2.86%
  Expected option life in years
                                                              3.5              5.0              3.5              5.0

WEIGHTED AVERAGE STOCK OPTION FAIR VALUE
      PER OPTION GRANTED                                 $   2.74         $   5.36         $   2.79         $   6.02
=====================================================================================================================
</TABLE>

    (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 $1.1
        million  (pre-tax)  for the period  ended  June 30,  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 and six months ended June 30, 2004, the
        Company recorded depreciation expense of $3.1 million (pre-tax) and $6.3
        million (pre-tax),  respectively,  and accretion expense of $2.2 million
        (pre-tax) and $4.4 million  (pre-tax),  respectively.  During 2003,  the
        Company  increased  property,  plant  and  equipment  by $45.4  million.
        Long-lived assets, net of accumulated  depreciation,  were $31.9 million
        and  $38.2   million  as  at  June  30,  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 June 30, 2004 was
        $128.4  million.  The  undiscounted  amount of  estimated  cash flows to
        settle the site restoration cost accruals


                                       33
<PAGE>

        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      Six months
                                                 ended June 30,   ended June 30,
                                                      2003             2003
--------------------------------------------------------------------------------
Net loss attributable to common shareholders
  As previously reported                            $ (12.0)        $ (28.3)
  Restatement of foreign currency impact on
    future tax liabilities                            (17.4)          (27.9)
  Impact of adoption of Section 3110                   (0.3)           (1.1)
--------------------------------------------------------------------------------
  As currently reported                             $ (29.7)        $ (57.3)
================================================================================

Loss per common share
Basic and diluted
  As previously reported                            $ (0.04)        $ (0.10)
  Restatement of foreign currency impact on
    future tax liabilities                            (0.05)          (0.10)
  Impact of adoption of Section 3110                     --              --
--------------------------------------------------------------------------------
  As currently reported                             $ (0.09)        $ (0.20)
--------------------------------------------------------------------------------

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

--------------------------------------------------------------------------------
                                                  June 30,          December 31,
                                                     2004               2003
--------------------------------------------------------------------------------

Balance at the beginning of the period             $ 130.3            $  69.5
Additions resulting from acquisitions (a)               --               65.6
Liabilities settled                                   (4.5)             (19.3)
Accretion expense                                      4.4                9.0
Foreign exchange                                      (0.6)               2.3
Asset retirement cost                                   --                3.2
Other                                                 (1.2)                --
-------------------------------------------------------------------------------
Balance at the end of the period                   $ 128.4            $ 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.

5.  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 June 30, 2004 are
as follows:

<TABLE>
<CAPTION>
===================================================================================================================
                                                                                    Put Options
Expected Year of     Spot Deferred     Average      Call Options       Average         Bought          Average
Delivery              Ounce Hedged      Price       Sold (Ounces)    Strike Price     (ounces)        Strike Price
-------------------------------------------------------------------------------------------------------------------
<S>                   <C>              <C>          <C>                <C>              <C>             <C>
2004                     --               --            --                --             75,000          $ 250
2005                     --               --            --                --            150,000          $ 250
2006                     --               --            --                --            150,000          $ 250
-------------------------------------------------------------------------------------------------------------------
                         --               --            --                --            375,000          $ 250
===================================================================================================================
</TABLE>

        At December 31, 2003, the Company had 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 six months
        ended June 30,  2004 the  Company  delivered  85,000  ounces  into these
        contracts and  financially  closed out the remaining  90,000 ounces at a
        cost of $9.6 million.  However,  for accounting  purposes the portion of
        the  unrealized  loss, as  determined on December 31, 2003,  relating to
        contracts  with  original  maturity  dates after June 30,  2004  remains
        deferred on the balance sheet and will only 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
================================================================================


        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 decreased the liability on the
        Company's call options sold, silver spot deferred contracts and gold put
        options by $3.3  million for the six months ended June 30, 2004 and $1.2
        million for the six months ended June 30, 2003.

        At June 30, 2004, the Company's  consolidated  foreign  currency program
        consists of:

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
                                                                                                                    Unrealized
                                       Maturity Period                    Average Price                Deferred     gain (loss)
                                         (to the year)    Quantity          (C$/USD)      Fair Value     gain       recognized
-------------------------------------------------------------------------------------------------------------------------------
                                                      (millions of USD)                             (millions of USD)
<S>                         <C>             <C>           <C>                <C>            <C>          <C>         <C>
Fixed forward contracts (CDN$)              2004          $ 33.0             1.3717         $ 0.7        $ --         $  0.7
                                            2005            10.0             1.4322           0.7          0.9          (0.2)
--------------------------------------------------------------------------------------- ---------------------------------------
Total                                                     $ 43.0             1.3858         $ 1.4        $ 0.9        $  0.5
================================================================================================================================
</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 six months
        ended June 30, 2004, the Company  recognized  into earnings $0.9 million
        of the deferred  gain.  The  remaining  deferred gain will be recognized
        into earnings 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.

        During the first half of 2004, the Company entered into additional fixed
        forward  contracts  to sell U.S.  dollars  and buy  Canadian  dollars of
        CDN$45.3 million at an average  exchange rate of 1.3717.  The fair value
        of these fixed  forward  contracts as at June 30, 2004,  based on a spot
        price of  1.3404,  was $0.7  million,  which  has been  recognized  into
        earnings during the quarter.


                                       34
<PAGE>

6.  INVENTORIES

    The following table details the composition of inventories as at:

--------------------------------------------------------------------------------
                                                   June 30,        December 31,
                                                     2004              2003
--------------------------------------------------------------------------------

In-process                                        $   27.2         $   15.5
Finished metal                                        14.2             15.4
Ore in stockpiles                                     15.0             15.3
Ore on leach pads                                     13.4              8.3
Materials and supplies                                72.9             62.5
-------------------------------------------------------------------------------
                                                     142.7            117.0
Long-term portion of ore in stockpiles (a)            (8.6)            (7.8)
-------------------------------------------------------------------------------
                                                  $  134.1         $  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.

7. 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   June 30, 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 six months ended June 30,  2004,  no goodwill  impairment  charges
   were recorded.

8. 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 as a result of the disposal.

   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.


                                       35
<PAGE>


During the second quarter of 2004, the Company acquired an  approximately  10.4%
interest in Cumberland Resources Ltd., which was valued at $8.2 million.

9. OTHER INCOME - NET

<TABLE>
<CAPTION>

----------------------------------------------------------------------------------------
                                       Three months ended            Six months ended
                                            June 30,                     June 30,
                                      --------------------------------------------------
                                       2004           2003          2004           2003
-----------------------------------------------------------------------------------------
<S>                                    <C>            <C>           <C>            <C>
Interest income and other              $ 1.9         $  1.8         $ 3.7         $  2.8
Interest expense                        (0.5)          (1.4)         (1.1)          (2.5)
Foreign exchange (losses) gains          6.7          (17.6)          5.0          (24.6)
Non-hedge derivative gains (losses)      4.1           (0.9)          3.3            1.2
-----------------------------------------------------------------------------------------
                                       $12.2         $(18.1)        $10.9         $(23.1)
=========================================================================================
</TABLE>

10. 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.

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


                                       36
<PAGE>
<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 June 30, 2004 (a):
Operating segments
  Fort Knox                            $  27.2      $ 19.1       $ 0.4     $  6.5         $ 0.1     $   --      $  1.1
  Kubaka (e)                              16.5        10.0         0.1        2.1            --        0.2         4.1
  Round Mountain                          36.8        21.0         0.4       11.6           0.1         --         3.7
  La Coipa                                14.1        10.2          --        4.3           0.1        0.1        (0.6)
  Crixas                                   8.7         2.7          --        3.2            --         --         2.8
  Paracatu                                 9.6         5.1         0.2        2.3            --         --         2.0
  Musselwhite                              8.0         5.0         0.1        3.3           0.5         --        (0.9)
  Porcupine Joint Venture                 19.9        10.7         0.1        5.7           1.0         --         2.4
  Other operations                        19.6        14.0         0.5        3.6           1.1        1.7        (1.3)
Corporate and other (f)                   (2.2)          -         0.4        0.4           2.5        8.2       (13.7)
-----------------------------------------------------------------------------------------------------------------------
                                       $ 158.2      $ 97.8       $ 2.2     $ 43.0         $ 5.4     $ 10.2      $ (0.4)
=======================================================================================================================


-----------------------------------------------------------------------------------------------------------------------
                                                                                                               Segment
                                       Mining        Cost of                                                   earnings
                                       revenue      sales (b)  Accretion   DD&A (c)     Exploration Other (d)   (loss)
-----------------------------------------------------------------------------------------------------------------------
For the three months ended June 30, 2003 (a):
Operating segments
  Fort Knox                            $  34.8     $  24.1       $ 0.3     $  9.8         $ 0.6     $   --     $    --
  Kubaka (e)                              16.2         8.4          --        5.1           0.4        0.2         2.1
  Round Mountain                          42.0        19.8         0.4       12.6           0.6         --         8.6
  La Coipa                                11.6         9.4          --        4.0           0.4         --        (2.2)
  Crixas                                   8.7         2.6          --        3.3           0.1         --         2.7
  Paracatu                                 8.8         4.6         0.1        2.9           0.3         --         0.9
  Musselwhite                              5.5         4.2          --        3.0           0.7         --        (2.4)
  Porcupine Joint Venture                 20.3        11.6         0.2        5.9           1.0        1.4         0.2
  Other operations                        13.1        14.4         0.6        0.8           1.4        1.0        (5.1)
Corporate and other (f)                   (3.2)        0.9         0.9       (1.9)          1.6       10.6       (15.3)
-----------------------------------------------------------------------------------------------------------------------
                                       $ 157.8     $ 100.0       $ 2.5     $ 45.5         $ 7.1     $ 13.2     $ (10.5)
=======================================================================================================================
</TABLE>


                                       37
<PAGE>

<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 six months ended June 30, 2004 (a):
Operating segments
  Fort Knox                            $  63.0     $  41.8       $ 0.7     $ 13.6         $ 0.1     $   --      $  6.8
  Kubaka (e)                              28.5        17.7         0.2        3.8           0.1        0.4         6.3
  Round Mountain                          73.6        38.6         0.9       22.1           0.2       (0.1)       11.9
  La Coipa                                29.9        18.5         0.1        9.3           0.1        0.1         1.8
  Crixas                                  18.2         5.7           -        6.2           0.1         --         6.2
  Paracatu                                19.1         9.6         0.3        4.7            --         --         4.5
  Musselwhite                             16.0        10.6         0.1        6.2           1.1         --        (2.0)
  Porcupine Joint Venture                 40.3        23.3         0.3       11.1           1.8         --         3.8
  Other operations                        30.7        23.9         1.0        4.7           1.3        3.3        (3.5)
Corporate and other (f)                   (6.3)        0.7         0.8         --           4.1       14.9       (26.8)
-----------------------------------------------------------------------------------------------------------------------
                                       $ 313.0     $ 190.4       $ 4.4     $ 81.7         $ 8.9     $ 18.6      $  9.0
-----------------------------------------------------------------------------------------------------------------------
</TABLE>


<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 six months ended June 30, 2003 (a):
Operating segments
  Fort Knox                            $  68.0     $  47.8       $ 0.6     $ 19.8        $  1.0     $   --     $  (1.2)
  Kubaka (e)                              27.7        13.8        (0.1)       8.2           0.6        0.4         4.8
  Round Mountain                          63.3        33.6         0.7       20.2           0.8         --         8.0
  La Coipa                                22.2        17.7         0.1        6.6           0.5         --        (2.7)
  Crixas                                  14.3         5.1           -        5.6           0.2         --         3.4
  Paracatu                                14.6         8.2         0.2        4.6           0.3         --         1.3
  Musselwhite                              8.4         7.0           -        4.7           1.1         --        (4.4)
  Porcupine Joint Venture                 38.5        25.2         0.3       10.5           1.3        1.4        (0.2)
  Other operations                        23.0        25.6         0.9        1.4           4.8        1.0       (10.7)
Corporate and other (f)                   (5.2)        1.3         1.6       (3.6)          2.7       16.3       (23.5)
-----------------------------------------------------------------------------------------------------------------------
                                       $ 274.8     $ 185.3       $ 4.3     $ 78.0        $ 13.3     $ 19.1     $ (25.2)
=======================================================================================================================
</TABLE>

(a) See Notes 2 & 3.
(b) Cost of sales excludes accretion, depreciation, depletion and amortization.
(c) Depreciation,  depletion  and  amortization  is referred to as "DD&A" in the
    tables  above.
(d) Other includes other operating costs,  general and  administrative  expenses
    and (gain) loss on disposal of assets.
(e) Segment  information  for the six months  ended June 30, 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.


                                       38
<PAGE>

     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              Six months ended
                                    June 30,      December 31,                June 30,                      June 30,
                                      2004            2003             2004            2003           2004           2003
---------------------------------------------------------------------------------------------------------------------------
<S>                                <C>            <C>                  <C>             <C>           <C>             <C>
Operating segments (a)
  Fort Knox                       $   269.3      $   261.2            $ 12.2          $ 2.0         $ 19.4         $ 11.2
  Kubaka (b)                           69.7           73.3               5.5            0.4           10.0             0.5
  Round Mountain                      222.6          241.0               1.7            1.0            3.5             1.2
  La Coipa                            163.8          173.6               0.1            0.3            0.4             0.3
  Crixas                              104.5          109.7               1.3            0.9            2.0             1.0
  Paracatu                            268.4          272.0               1.2            0.8            1.9             1.2
  Musselwhite                         131.3          137.8               1.2            0.6            1.6             0.8
  Porcupine Joint Venture              79.6           83.6               4.8            1.9            7.1             3.3
  Other operations                    137.6          117.4              12.3            4.0           14.0             5.1
Corporate and other (c)               310.0          324.9               0.1            0.2            0.3             0.3
---------------------------------------------------------------------------------------------------------------------------
                                  $ 1,756.3      $ 1,794.5            $ 40.4         $ 12.1         $ 60.2          $ 24.9
===========================================================================================================================
</TABLE>

(a) See Notes 2 & 3.
(b) Segment  information  for the six months  ended June 30, 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              Six months ended              As at          As at
                                            June 30,                       June 30,                June 30,     December 31,
                                      2004           2003            2004           2003             2004          2003
----------------------------------------------------------------------------------------------------------------------------
<S>                                <C>             <C>            <C>             <C>              <C>          <C>
Geographic information (a):
United States                      $  72.7         $  76.8        $ 152.3         $ 131.3          $ 364.4      $   381.9
Canada                                36.1            35.7           63.6            64.7            210.9          218.0
Russia (b)                            16.5            16.2           28.5            27.7             16.4           10.3
Chile                                 14.6            11.6           31.3            22.2             95.3           91.9
Brazil                                18.3            17.5           37.3            28.9            296.3          303.1
Other                                   --              --             --              --              5.2            5.2
----------------------------------------------------------------------------------------------------------------------------
                                   $ 158.2         $ 157.8        $ 313.0         $ 274.8          $ 988.5      $ 1,010.4
=============================================================================================================================
</TABLE>

(a) See Note 2 & 3.
(b) Segment  information  for the six months  ended June 30, 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 June 30, 2004
    sales to four customers totaled $57.8 million,  $26.7 million, $23.6 million
    and $20.2  million,  respectively.  For the three months ended June 30, 2003
    sales to three  customers  totaled  $42.9  million,  $34.4 million and $33.7
    million, respectively.

    For the six months  ended  June 30,  2004  sales to four  customers  totaled
    $110.3 million,  $51.1 million, $47.7 million and $38.3 million. For the six
    months ended June 30, 2003 sales to three  customers  totaled $65.2 million,
    $62.1 million and $54.6 million, respectively.

11. 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            Six months ended
                                                                    June 30,      June 30,      June 30,      June 30,
                                                                 -----------------------------------------------------
(Number of common shares in millions)                                 2004        2003 (a)       (2004)       2003 (a)
---------------------------------------------------------------------------------------------------------------------
<S>                                                                  <C>           <C>           <C>           <C>
Basic weighted average shares outstanding:                           345,972       314,743       345,898       284,092

Weighted average shares dilution adjustments:
  Dilutive stock options (b)                                             139            --           134            --
  Restricted shares                                                      228            --           228            --
----------------------------------------------------------------------------------------------------------------------
Diluted weighted average shares outstanding                          346,339       314,743       346,260       284,092
=======================================================================================================================

Weighted average shares dilution adjustments - exclusions: (c)
  Dilutive stock options                                                  --         1,111            --         1,231
  Echo Bay warrants (d)                                                   --            --            --             -
  Redeemable preferred shares                                          1,058         1,058         1,058         1,058
  Kinam preferred                                                        332           360           332           360
  Convertible debt                                                        --         4,994            --         4,994
======================================================================================================================
</TABLE>

(a) As a result of the net loss from operations for the three month period ended
    June 30,  2004 and the three  and six month  periods  ended  June 30,  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 and six months  ended June 30,
    2004,  the  average  share  price  used were  $5.96,  and  $6.55 per  share,
    respectively.  For the three  months and six months  ended June 30, 2003 the
    average share price used were $6.50, and $6.69 per share, respectively
(c) These  adjustments were excluded,  as they were  anti-dilutive for the three
    months and six months ended June 30, 2004 and 2003, respectively.
(d) Echo Bay warrants were exercised  during the three months ended December 31,
    2003 and are no longer outstanding.


12. 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.

13. 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 appeal was
    dismissed on June 16, 2004.

    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


                                       39
<PAGE>

    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 10).

    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,


                                       40
<PAGE>

    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 10). The
    matter  was  tried in the  Nevada  State  Court in April  1997,  with  Summa
    claiming more than $13 million in damages, and, in September 1997, judgement
    was rendered for the Subsidiaries. The decision was appealed by Summa to the
    Supreme  Court of Nevada,  which in April 2000  reversed the decision of the
    trial court and remanded the case back to the trial court for "a calculation
    of the appropriate  royalties in a manner not inconsistent with this order."
    The case was decided by a panel  comprised of three of the seven Justices of
    the Supreme Court of Nevada and the Subsidiaries petitioned that panel for a
    rehearing. The petition was denied by the three-member panel on May 15, 2000
    and  remanded to the lower court for  consideration  of other  defenses  and
    arguments put forth by the Subsidiaries.  The Subsidiaries  filed a petition
    for a hearing  before the full Supreme  Court and on December 22, 2000,  the
    Court  recalled  its  previous  decision.  Both the  Subsidiaries  and their
    counsel  believe that grounds exist to modify or reverse the decision.  Echo
    Bay has $1.5 million  accrued related to this  litigation.  If the appellate
    reversal of the trial decision is maintained and the trial court, on remand,
    were to dismiss all of the Subsidiaries'  defenses,  the royalty calculation
    at  McCoy/Cove  would  change and  additional  royalties  would be  payable.
    Neither the Company, nor counsel to the Subsidiaries, believe it is possible
    to quantify the precise  amount of liability  pursuant to a revised  royalty
    calculation.

    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.

    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 or is unable to make a proper
    determination  based  on  the  information  available.  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 June 30,
    2004  and  December   31,  2003  were  $1.7   million  and  $15.1   million,
    respectively.


                                       41
<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 June 30, 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 10).

    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 10). 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 10).

14. SUBSEQUENT EVENT

    SALE OF AQUARIUS

    On  December 7, 2005,  the Company  signed a letter of intent with St Andrew
    Goldfields  Ltd. to sell its  interest in the  Aquarius  project in Timmins,
    Ontario  in  consideration  for 100  million  common  shares  and 25 million
    warrants in St Andrew Goldfields Ltd. These warrants are exercisable into 25
    million common shares  subject to certain terms and conditions  upon payment
    of $0.17 per share.  The sale triggered the  recognition of an impairment of
    property,  plant and  equipment  and  goodwill  of $36.8  million  which was
    recorded during the three months ended September 30, 2005.

    CROWN RESOURCES

    On November 20, 2003,  Kinross  announced  that it had executed a definitive
    acquisition  agreement (the  "Agreement")  with Crown Resources  Corporation
    ("Crown")  whereby  Kinross will acquire Crown and its wholly owned Buckhorn
    gold deposit located in north central  Washington  State,  approximately  70
    kilometers  by road from the  Company's  Kettle  River  mill.  The  original
    agreement  was based on an  exchange  ratio of  0.2911 of a common  share of
    Kinross  for each  outstanding  common  share of Crown and is subject to the
    effectiveness  of a registration  statement  covering the issuance of common
    shares filed with the SEC and approval by Crown shareholders. As a result of
    the review undertaken of the accounting for goodwill in the TVX and Echo Bay
    transaction, the completion of the registration statement has been delayed.

    On January 7, 2004,  the Company and Crown  announced  that the  termination
    date for the  Agreement  had been extended from December 31, 2004 to May 31,
    2005. Kinross also agreed to acquire 511,640 newly issued shares of Crown in
    a private placement for $1.0 million.

    Prior to the revised  deadline of May 31, 2005, an amendment was signed that
    extended the termination date of the Agreement to March 31, 2006, subject to
    Kinross  filing its 2004  financial  statements  no later than  December 31,
    2005. Shareholders of Crown will now receive 0.34 shares of Kinross for each
    share of  Crown.  A  valuation  collar  was also  agreed  upon in which  the
    aggregate  maximum  value of  Kinross  common  shares  to be issued to Crown
    shareholders  would be $110  million  and the  minimum  value would be $77.5
    million,  excluding,  in both cases,  shares of Crown held by  Kinross.  The
    Company  also agreed to purchase a $10 million  convertible  debenture  from
    Crown. The debenture is convertible into 5.8 million common shares of Crown.
    In the event the  Agreement  is  terminated,  Crown  shall have the right to
    convert all amounts due under this  debenture  by  providing  30 days' prior
    notice to Kinross.


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<PAGE>

    As a result of the  restatement  discussed  in Note 2, the Company  plans to
    engage in further  discussions  with Crown Resources to determine the future
    process for this transaction.


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</DOCUMENT>
