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

        MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
                          FINANCIAL CONDITION ("MD&A")

This Management's Discussion and Analysis of Results of Operations and Financial
Condition  ("MD&A") should be read in conjunction with the interim  consolidated
financial  statements of Kinross Gold  Corporation  ("Kinross" or the "Company")
for the period  ended  March 31,  2005.  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  Gold
Corporation's  restated  annual audited  consolidated  financial  statements and
management's  discussion  and analysis for the year ended  December 31, 2004 for
additional details, which are available on the Company's website www.kinross.com
and on www.sedar.com. The interim 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 as a note to the
annual  audited  financial  statements.  This  discussion  addresses  matters we
consider  important for an understanding of our financial  condition and results
of operations as of and for the three months ended March 31, 2005. This MD&A has
been prepared as of February 15, 2006.

1.      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 and many of
the costs associated with the Company's operations 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.

CONSOLIDATED FINANCIAL AND OPERATING HIGHLIGHTS

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
                                                                      THREE MONTHS ENDED
                                                                          MARCH 31,                     CHANGE (b)
----------------------------------------------------------------------------------------------------------------------
(IN MILLIONS EXCEPT OUNCES AND PER SHARE AMOUNTS)                  2005                2004            2005 vs 2004
----------------------------------------------------------------------------------------------------------------------
<S>                                                              <C>                 <C>                       <C>
Gold equivalent ounces - produced (a)                               410,480             397,011                  3%
Average realized gold price ($/ounce)                            $      429          $      400                  7%
Metal sales                                                      $    179.8          $    154.8                 16%
Net earnings (loss)                                              $     (0.9)         $      7.7                  nm
Basic and diluted earnings (loss) per share                      $        -          $     0.02                  nm
Cash flow from operating activities                              $     26.8          $     15.0                 79%
----------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)     Gold equivalent ounces include silver ounces produced  converted to gold
        based on the ratio of the average spot market prices for the commodities
        for each  period.  This ratio for the three  months ended March 31, 2005
        was 61.31:1,  compared with 61.13:1 for the three months ended March 31,
        2004.
(b)     "nm" refers to not meaningful.

2.      IMPACT OF KEY ECONOMIC TRENDS

Kinross' 2004 annual MD&A contains a discussion of the key economic  trends that
affect the Company  and its  financial  statements.  Included in this MD&A is an
update that reflects any  significant  changes since the preparation of the 2004
Annual MD&A.

PRICE OF GOLD

The price of gold is the largest single factor in determining  profitability and
cash flow from operations.  During the first quarter of 2005, the average market
price of gold was $427 per  ounce,  compared  with an  average of $408 per ounce
during the comparable period in 2004. During the first three months of 2005, the
price of gold moved between a low of $411 per ounce to a high of $444 per ounce.
During the quarter,  the Company  realized an average price of $429 per ounce on
its sales of gold.

U.S. DOLLAR AGAINST FOREIGN CURRENCIES

Kinross receives its revenues through the sale of gold in U.S. dollars. However,
for the Company's  non-U.S.  operations,  a portion of the  operating  costs and
capital  expenditures are denominated in the local currency.  Kinross'  non-U.S.
operations are located in Canada, Brazil, Chile and Russia, and movements in the
exchange rate between the currencies of these countries and the U.S. dollar have
an impact on  profitability  and cash flow.  During  the first  quarter of 2005,
compared  with the same period in 2004,  the Canadian  dollar,  Brazilian  real,
Chilean peso and the Russian  ruble were all stronger  against the U.S.  dollar,
resulting in increased costs to the Company.


                                       1
<PAGE>

INFLATIONARY COST PRESSURES

In addition to the weaker U.S. dollar, the Company's profitability has also been
negatively  impacted by rising  development  and operating costs with respect to
labour,  energy  and  consumables  in  general.  Mining is an  energy  intensive
activity and energy prices, in the form of both fuel and electricity, can have a
significant impact on operations. Other consumables, such as steel, concrete and
tires,  have  also had a  recent  increase  in  price.  One of the  goals of the
Company's  focus on continuous  improvement is to seek to mitigate the impact of
higher  consumable  prices  by  extending  the life of  capital  assets  and the
efficient use of materials and supplies in general.

3.      DEVELOPMENTS

RESTATEMENT FOR CORRECTION OF FOREIGN CURRENCY IMPACT ON FUTURE TAX LIABILITIES

During its preparation of the interim financial statements for 2005, the Company
and  its  auditors  discovered  an  error  relating  to  its  audited  financial
statements  for the years ended  December  31, 2003 and 2004 and the  respective
interim periods. In the previously released financial statements the Company had
not properly  assessed the impact of changes in foreign currency rates affecting
the timing  differences  resulting from a difference  between accounting and tax
basis,  which form the basis for the future tax liabilities.  As a result of the
restatement,  these  liabilities  are adjusted for 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 the  foreign  currency  exchange  rate
related  primarily to the future tax  liabilities  of the Brazilian  operations.
This non-cash  adjustment had no impact on operating cash flows or cash balances
previously reported. The financial statements for the respective interim periods
in 2005 are not restated.

All  amounts  included  in this  report  have been  adjusted to reflect the 2004
restatement.  The  following  is a summary of the effects of the  aforementioned
adjustments on our consolidated financial statements:

Consolidated balance sheets

<TABLE>
<CAPTION>
==================================================================================================
                                                            AS
                                                        PREVIOUSLY                        AS
                                                        REPORTED (a)     ADJUSTMENTS   RESTATED
--------------------------------------------------------------------------------------------------
<S>                                                     <C>              <C>           <C>
AS AT DECEMBER 31, 2004
LIABILITIES
  Future income and mining taxes                        $      90.6      $    32.9     $  123.5
COMMON SHAREHOLDERS' EQUITY
  Accumulated deficit                                   $    (487.7)     $   (33.7)    $ (521.4)
  Cumulative translation adjustment                     $      (2.0)     $     0.8     $   (1.2)
==================================================================================================
</TABLE>

(a)     As  previously  disclosed in the 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 MARCH 31, 2004
        Operating earnings                                                        $       9.4        $       -     $       9.4
          Other (expense) income - net                                            $      (2.1)       $     0.8     $      (1.3)
        Earnings before taxes and other items                                     $       7.3        $     0.8     $       8.1
        Income and mining tax expense                                             $      (0.9)       $     0.7     $      (0.2)
        Non-controlling interest                                                  $         -        $       -     $         -
        Share in loss of investee companies                                       $         -        $       -     $         -
        Dividends on convertible preferred shares of subsidiary company           $      (0.2)       $       -     $      (0.2)
        Net earnings                                                              $       6.2        $     1.5     $       7.7
        Net earnings attributable to common shareholders                          $       6.2        $     1.5     $       7.7
        Earnings per share
          Basic and diluted                                                       $      0.02        $       -     $      0.02
        =========================================================================================================================
</TABLE>

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


                                       2
<PAGE>

AGREEMENT TO ACQUIRE CROWN RESOURCES CORPORATION

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 kilometres
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 United  States
Securities  and Exchange  Commission  and approval by Crown  shareholders.  As a
result of the review  undertaken of the  accounting for goodwill in the TVX Gold
Inc. ("TVX") and Echo Bay Mines Ltd. ("Echo Bay") transaction, the completion of
the registration statement has been delayed.

On January 7, 2005, 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  purchased  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 has the
right to convert all amounts  due under this  debenture  to shares of its common
stock by providing 30 days' prior notice to Kinross.

As a result of the  restatement  of the years ended  December 31, 2004 and 2003,
for the correction of the foreign currency impact on future tax liabilities, the
Company  plans to engage in  further  discussions  with Crown to  determine  the
future process for this transaction.

SALE OF AQUARIUS GOLD PROPERTY

On December 7, 2005, Kinross signed a letter of intent to sell its Aquarius gold
property to St Andrew  Goldfields Ltd. ("St Andrew") in exchange for 100 million
common  shares of St Andrew and warrants to acquire 25 million St Andrew  common
shares at a price of CDN$0.17  per share for a period of 24 months.  Based on an
estimated market value of $14.3 million for the consideration to be received and
a carrying  value for the Aquarius gold property of $51.1  million,  the Company
will record an  impairment of $36.8 million on the property in the third quarter
of 2005.

RESERVE INCREASE AT PARACATU

On November 21, 2005, the Company  announced that estimated  proven and probable
reserves at the Paracatu mine in Brazil had increased to 13.3 million ounces, an
increase of 4.8 million ounces above the reserves reported at December 31, 2004.
The  increase  was the result of a drill  program  initiated  at the minesite in
January  2005,  following the purchase of the remaining 51% of Paracatu from Rio
Tinto Plc. on December 31, 2004.  The current  reserves  were  estimated,  as at
October 31, 2005,  using a gold price of $400 per ounce,  compared with $350 per
ounce at December 31, 2004.(1)

SALE OF INTEREST IN KINROSS FORREST

On September 2, 2005, the Company agreed to sell 23.33% of the shares of Kinross
Forrest Ltd. ("KF Ltd.") to Balloch Resources Ltd. ("Balloch") and retain 11.67%
of the initial  interest.  The payment of the consideration for the sale of such
shares in the  amount of CDN $5.5  million is  subject  to the  satisfaction  of
various  conditions,  including  regulatory  approvals  and the  completion of a
private  placement by Balloch of at least CDN $10 million.  Art Ditto,  a former
director and officer of the Company,  owns a 17.4%  interest in the  outstanding
common  shares of Balloch and upon closing of the private  placement,  which was
completed  on October 19,  2005,  Mr. Ditto was  appointed  President  and Chief
Executive  Officer of Balloch.  Mr. Robert Buchan, a former officer and director
of the Company,  was also appointed the  non-executive  Chairman of Balloch.  On
November 30, 2005, Balloch changed its name to Katanga Mining Ltd.


------------------------
(1)     For details  concerning  mineral reserve and mineral resource  estimates
        refer to the Mineral Reserves and Mineral  Resources tables and notes in
        the Company's Annual Information Form.


                                       3
<PAGE>

4.      CONSOLIDATED  FINANCIAL  RESULTS FOR THE FIRST  QUARTER  ENDED MARCH 31,
        2005

SUMMARY OF CONSOLIDATED FINANCIAL AND OPERATING PERFORMANCE

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
                                                                 THREE MONTHS ENDED
                                                                      MARCH 31,                    CHANGE
---------------------------------------------------------------------------------------------------------------
(IN MILLIONS, EXCEPT OUNCES AND PER SHARE AMOUNTS)             2005              2004           2005 vs 2004
---------------------------------------------------------------------------------------------------------------
<S>                                                          <C>               <C>                 <C>
Gold equivalent ounces - sold (b)                              415,768           387,480                 7%
Gold ounces - sold                                             401,114           374,126                 7%
Silver ounces - sold                                           898,454           816,313                10%
Average realized gold price ($/ounce)                        $     429         $     400                 7%
Gold sales - revenue                                         $   172.2         $   153.8                12%
Gold deferred revenue (expense) realized                          (0.3)             (4.1)               93%
Silver sales revenue                                               7.9               5.1                55%
                                                             ---------         ---------           ---------
Total metal sales                                            $   179.8         $   154.8                16%
Operating earnings                                           $       -         $     9.4              (100%)
Net earnings (loss)                                          $    (0.9)        $     7.7                 nm
Basic and diluted earnings (loss) per share                  $       -         $    0.02              (100%)
---------------------------------------------------------------------------------------------------------------


--------------------------------------------------------------------------------------------
                                                                 AS AT             As at
                                                             MARCH 31,      December 31,
                                                                  2005              2004
--------------------------------------------------------------------------------------------
Cash and cash equivalents                                    $    52.5         $    47.9
Current assets                                               $   205.4         $   206.9
Total assets                                                 $ 1,837.0         $ 1,834.2
Current liabilities                                          $   157.2         $   172.8
Total liabilities                                            $   549.5         $   547.1
Shareholders' equity                                         $ 1,287.5         $ 1,287.1
--------------------------------------------------------------------------------------------
</TABLE>

FIRST QUARTER 2005 VS. FIRST QUARTER 2004

o       The Company's share of gold equivalent  ounces sold for the three months
        ended  March 31,  2005 was 7% higher  than the  corresponding  period in
        2004.  Increased  attributable   production  at  Paracatu,   Kubaka  and
        Musselwhite  more than offset  lower  production  from La Coipa,  Kettle
        River and the shutdown of New Britannia and Lupin.
o       Revenues from metal sales increased by 16%  period-over-period  due to a
        higher number of gold equivalent  ounces sold and a higher realized gold
        price.  The Company sold 401,114 ounces of gold at a realized gold price
        of $429 per ounce,  compared  with 374,126  ounces of gold at an average
        realized price of $400 per ounce during the prior year's quarter.
o       Despite the increased  production and revenue,  operating  earnings were
        down by $9.4 million.  The drop in operating earnings during the current
        quarter  was  largely  due to a 22%  increase  in cost of  sales,  a 48%
        increase in general and  administrative  expenses  and a 14% increase in
        depreciation, depletion and amortization.
o       Cost of sales  increased by 22% due to the inclusion of 100% of Paracatu
        (up from 49% in 2004) and higher costs at Round Mountain,  Kubaka and La
        Coipa. This was partially offset by lower cost of sales at Fort Knox.
o       The  decrease  in  operating  earnings  resulted  in a  decrease  in net
        earnings from $7.7 million in the first quarter of 2004 to a net loss of
        $0.9 million in the first quarter of 2005.  The drop was also the result
        of an  increased  provision  for  income  and  mining  taxes.  This  was
        partially  offset by net other income of $1.7  million  during the first
        quarter of 2005,  versus net other  expense of $1.3  million  during the
        first quarter of 2004.
o       Cash flow provided by operating  activities increased by 79%, from $15.0
        million in the first  quarter of 2004 to $26.8  million  during the same
        period in 2005. Cash flow provided by operating activities increased due
        to a higher  realized gold price and a lower increase in working capital
        requirements  in 2005 versus  2004.  During the three months ended March
        31, 2005,  cash increased  $4.6 million;  from $47.9 million at December
        31, 2004 to $52.5 million at March 31, 2005.


                                       4
<PAGE>

SEGMENT EARNINGS

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
IN US$ MILLIONS                                            THREE MONTHS ENDED,
                                                               MARCH 31,                   2005 VS 2004
                                                      -----------------------------------------------------------
                                                           2005           2004         Change $      Change %
-----------------------------------------------------------------------------------------------------------------
<S>                                                      <C>            <C>           <C>               <C>
OPERATING SEGMENTS
  Fort Knox                                              $    4.6       $    5.7      $    (1.1)         (19%)
  Paracatu (a)                                                2.1            2.5           (0.4)         (16%)
  Round Mountain                                              4.3            8.2           (3.9)         (48%)
  Porcupine Joint Venture                                     2.8            1.4            1.4          100%
  La Coipa                                                    0.1            2.4           (2.3)         (96%)
  Crixas                                                      3.8            3.4            0.4           12%
  Musselwhite                                                (1.1)          (1.1)             -            0%
  Kubaka                                                      0.4            2.2           (1.8)         (82%)
  Other operations (b)                                       (1.6)          (2.2)           0.6           27%
CORPORATE & OTHER                                           (15.4)         (13.1)          (2.3)         (18%)
-----------------------------------------------------------------------------------------------------------------
TOTAL                                                    $      -       $    9.4      $    (9.4)        (100%)
-----------------------------------------------------------------------------------------------------------------
</TABLE>

(a)     On  December  31,  2004,  the  Company  completed  the  purchase  of the
        remaining 51% interest in the Paracatu  mine. For the three months ended
        March 31,  2004,  the  Company had only a 49%  interest,  which has been
        reflected in the segment earnings.
(b)     Other operations include Kettle River, Refugio, Lupin and New Britannia.

MINING OPERATIONS

<TABLE>
<CAPTION>
FORT KNOX (100% OWNERSHIP AND OPERATOR) - U.S.A
-----------------------------------------------------------------------------------------------------------------
                                                           THREE MONTHS ENDED,
                                                               MARCH 31,                   2005 VS 2004
                                                      -----------------------------------------------------------
                                                           2005           2004         Change $      Change %
-----------------------------------------------------------------------------------------------------------------
<S>                                                      <C>            <C>           <C>               <C>
OPERATING STATISTICS
Tonnes processed (000's)                                     3,007          3,216           (209)          (6%)
Grade (grams/tonne)                                           0.88           0.91          (0.03)          (4%)
Recovery (%)                                                 87.1%          81.1%           6.0%            7%
Gold equivalent ounces
    Produced                                                73,953         75,980         (2,027)          (3%)
    Sold                                                    70,876         86,355        (15,479)         (18%)

FINANCIAL DATA (in US$ millions)
Metal sales                                              $    30.5      $    35.8      $    (5.3)         (15%)
Cost of sales (a)                                             17.5           22.7           (5.2)         (23%)
Accretion                                                      0.3            0.3              -            0%
Depreciation, depletion and amortization                       7.7            7.1            0.6            8%
-----------------------------------------------------------------------------------------------------------------
                                                               5.0            5.7           (0.7)         (12%)
Exploration                                                    0.1              -            0.1            nm
Other                                                          0.3              -            0.3            nm
-----------------------------------------------------------------------------------------------------------------
Segment earnings                                         $     4.6      $     5.7      $    (1.1)         (19%)
-----------------------------------------------------------------------------------------------------------------
</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.

FIRST QUARTER 2005 VS. FIRST QUARTER 2004

o       Gold equivalent  production was lower by approximately  3%, reflecting a
        decrease in tonnes  processed and lower grade.  The shortfall was due to
        the  suspension of mining of the True North deposit in December 2004 and
        a pit slope  failure in January 2005  impacting  the planned ore release
        from the Fort Knox pit.  Higher  recovery  in the first  quarter of 2005
        partially offset the shortfall in tonnes processed and lower grade.
o       Tonnes processed and grade decreased in the first quarter of 2005 due to
        processing  only  harder  ore  from the Fort  Knox  pit as  compared  to
        blending the Fort Knox ore with the softer,  higher grade True North ore
        in the first quarter of 2004.
o       Revenues  from metal sales were down by 15% due to producing and selling
        fewer ounces, partially offset by higher realized gold prices.
o       Cost of sales decreased by 23% in the first quarter of 2005 due to fewer
        tonnes being processed and fewer ounces sold and suspension of mining at
        True North.


                                       5
<PAGE>

<TABLE>
<CAPTION>
ROUND MOUNTAIN (50% OWNERSHIP AND OPERATOR) - U.S.A
-----------------------------------------------------------------------------------------------------------------
                                                           Three months ended,
                                                               March 31,                   2005 VS 2004
                                                      -----------------------------------------------------------
                                                           2005           2004         Change $      Change %
-----------------------------------------------------------------------------------------------------------------
<S>                                                      <C>            <C>           <C>               <C>
OPERATING STATISTICS (a)
Tonnes processed (000's) (b)                                16,496         17,434           (938)          (5%)
Grade (grams/tonne)                                           0.65           0.69          (0.04)          (6%)
Gold equivalent ounces
    Produced                                                95,393         94,984            409            0%
    Sold                                                    92,844         89,601          3,243            4%

FINANCIAL DATA (in US$ millions)
Metal sales                                              $    39.9      $    36.8      $     3.1            8%
Cost of sales (c)                                             24.1           17.6            6.5           37%
Accretion                                                      0.5            0.5              -            0%
Depreciation, depletion and amortization                      10.9           10.5            0.4            4%
-----------------------------------------------------------------------------------------------------------------
                                                               4.4            8.2           (3.8)         (46%)
Exploration                                                    0.1            0.1              -            0%
Other                                                            -           (0.1)           0.1         (100%)
-----------------------------------------------------------------------------------------------------------------
Segment earnings                                         $     4.3      $     8.2      $    (3.9)         (48%)
-----------------------------------------------------------------------------------------------------------------
</TABLE>

(a)     Due to the  nature of heap leach  operations  recovery  rates  cannot be
        accurately measured on a quarterly basis.
(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.

FIRST QUARTER 2005 VS. FIRST QUARTER 2004

o       Gold  equivalent  ounces  produced  in the  first  quarter  of 2005 were
        similar to the comparable  period in 2004.  Tonnes  processed were lower
        due to the use of equipment in mining waste.
o       Revenue  increased by 8% as a result of a higher realized gold price and
        more ounces being sold.
o       Cost of sales  increased  by 37% due to the  increased  number of ounces
        being  sold,  higher  electricity  prices  and cost  increases  in other
        required supplies and operating expenses.


                                       6
<PAGE>

<TABLE>
<CAPTION>
PORCUPINE JOINT VENTURE (49% INTEREST, PLACER DOME 51%, OPERATOR) - CANADA
-----------------------------------------------------------------------------------------------------------------
                                                           Three months ended,
                                                               March 31,                   2005 VS 2004
                                                      -----------------------------------------------------------
                                                           2005           2004         Change $      Change %
-----------------------------------------------------------------------------------------------------------------
<S>                                                      <C>            <C>           <C>               <C>
OPERATING STATISTICS
Tonnes processed (000's) (a)                                 1,074            984             90            9%
Grade (grams/tonne)                                           3.14           3.65          (0.51)         (14%)
Recovery (%)                                                 92.0%          92.0%           0.0%            0%
Gold equivalent ounces
    Produced                                                52,891         51,867          1,024            2%
    Sold                                                    50,060         51,682         (1,622)          (3%)

FINANCIAL DATA (in US$ millions)
Metal sales                                              $    22.0      $    20.4      $     1.6            8%
Cost of sales (b)                                             13.3           12.6            0.7            6%
Accretion                                                      0.2            0.2              -            0%
Depreciation, depletion and amortization                       4.7            5.4           (0.7)         (13%)
-----------------------------------------------------------------------------------------------------------------
                                                               3.8            2.2            1.6           73%
Exploration                                                    1.0            0.8            0.2           25%
Other                                                            -              -              -            0%
-----------------------------------------------------------------------------------------------------------------
Segment earnings                                         $     2.8      $     1.4      $     1.4          100%
-----------------------------------------------------------------------------------------------------------------
</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.

FIRST QUARTER 2005 VS. FIRST QUARTER 2004

o       Gold  production for the first quarter of 2005  increased  slightly over
        the comparable  period in 2004 due to higher mill throughput as a result
        of the  completion of the mill  expansion  during the fourth  quarter of
        2004.  The mill  expansion  included  increased  grinding  and  leaching
        capacity for the harder ores anticipated from the Pamour open pit. Grade
        was  higher  than  planned,  but  14%  lower  quarter-over-quarter.  The
        reduction  reflects  16%  lower  grade  from  the  Dome  open pit and no
        production from the Dome underground  mine, which was placed in care and
        maintenance during the second quarter of 2004.
o       Metal  sales for the  quarter  increased  by $1.6  million,  or 8%, as a
        result of higher realized gold prices,  partially offset by fewer ounces
        being sold.
o       Despite  fewer  ounces  being  sold,  cost of sales  increase by 6%. The
        increase was the result of higher energy and other commodity costs along
        with a 7%  appreciation  in the Canadian  dollar against the U.S. dollar
        compared with the first quarter of 2004.


                                       7
<PAGE>

<TABLE>
<CAPTION>
PARACATU (100% OWNERSHIP AND OPERATOR) - BRAZIL
-----------------------------------------------------------------------------------------------------------------
                                                           Three months ended,
                                                               March 31,                   2005 VS 2004
                                                      -----------------------------------------------------------
                                                           2005           2004         Change $      Change %
-----------------------------------------------------------------------------------------------------------------
<S>                                                      <C>            <C>           <C>               <C>
OPERATING STATISTICS
Tonnes processed (000's) (b)                                 3,900          4,499           (599)         (13%)
Grade (grams/tonne)                                           0.42           0.45          (0.03)          (7%)
Recovery (%)                                                 76.9%          75.6%           1.3%            2%
Gold equivalent ounces
    Produced                                                40,609         24,340         16,269           67%
    Sold                                                    43,484         23,155         20,329           88%

FINANCIAL DATA (in US$ millions)
Metal sales                                              $    18.6      $     9.5      $     9.1           96%
Cost of sales (c)                                             12.3            4.5            7.8          173%
Accretion                                                      0.2            0.1            0.1          100%
Depreciation, depletion and amortization                       3.6            2.4            1.2           50%
-----------------------------------------------------------------------------------------------------------------
                                                               2.5            2.5              -            0%
Exploration                                                    0.4              -            0.4            nm
-----------------------------------------------------------------------------------------------------------------
Segment earnings                                         $     2.1      $     2.5      $    (0.4)         (16%)
-----------------------------------------------------------------------------------------------------------------
</TABLE>

(a)   On December 31, 2004, the Company  completed the purchase of the remaining
      51%  interest in the Paracatu  mine.  For the three months ended March 31,
      2004, the Company had only a 49% interest, which has been reflected in the
      segment earnings.
(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.

FIRST QUARTER 2005 VS. FIRST QUARTER 2004

o       Production  during the first  quarter of 2005  increased by 67% over the
        corresponding  quarter.  The  increase  was due to the December 31, 2004
        purchase of the  remaining  51% of the mine.  However,  on a 100% basis,
        production  was down 18%  quarter-over-quarter.  The decrease was due to
        fewer tonnes being  processed  at a lower grade,  partially  offset by a
        higher  recovery.  Fewer  tonnes  were  processed  due to  planned  mill
        stoppages for repairs during the quarter.
o       Revenues  from  metal  sales  increased  by  96% as a  result  of an 88%
        increase in the number of ounces sold and a higher realized gold price.
o       Cost of sales increased by 173%  quarter-over-quarter.  On a 100% basis,
        costs of sales  increased  by 34%.  The  increase  was the result of the
        appreciation  of the  Brazilian  real,  along  with  higher  energy  and
        consumable  costs.  This was partially offset by fewer ounces being sold
        on a 100% basis versus the comparable quarter in 2004.


                                       8
<PAGE>

<TABLE>
<CAPTION>
LA COIPA (50% OWNERSHIP, PLACER DOME 50%, OPERATOR) - CHILE
-----------------------------------------------------------------------------------------------------------------
                                                           Three months ended,
                                                               March 31,                   2005 VS 2004
                                                      -----------------------------------------------------------
                                                           2005           2004         Change $      Change %
-----------------------------------------------------------------------------------------------------------------
<S>                                                      <C>            <C>           <C>               <C>
OPERATING STATISTICS
Tonnes processed (000's) (a)                                 1,702          1,593            109            7%
Grade (grams/tonne)
        - Gold                                                0.99           1.38          (0.39)         (28%)
        - Silver                                             47.02          54.53          (7.51)         (14%)
Recovery (%)
        - Gold                                               81.8%          82.4%          (0.6%)          (1%)
        - Silver                                             57.9%          49.3%           8.6%           17%
Gold equivalent ounces
    Produced                                                34,024         40,549         (6,525)         (16%)
    Sold                                                    41,459         38,609          2,850            7%

FINANCIAL DATA (in US$ millions)
Metal sales                                              $    17.6      $    15.8      $     1.8           11%
Cost of sales (b)                                             12.5            8.3            4.2           51%
Accretion                                                      0.1            0.1              -            0%
Depreciation, depletion and amortization                       4.4            5.0           (0.6)         (12%)
-----------------------------------------------------------------------------------------------------------------
                                                               0.6            2.4           (1.8)         (75%)
Exploration                                                    0.2              -            0.2            nm
Other                                                          0.3              -            0.3            nm
-----------------------------------------------------------------------------------------------------------------
Segment earnings                                         $     0.1      $     2.4      $    (2.3)         (96%)
-----------------------------------------------------------------------------------------------------------------
</TABLE>

(a)     Tonnes processed represent 100% of mine production.
(b)     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.

FIRST QUARTER 2005 VS. FIRST QUARTER 2004

o       Gold  equivalent  production  decreased  16% during the first quarter of
        2005 mainly due to lower gold and silver grades. The lower grades were a
        result of pit slope failures that occurred in the Brecha Norte and Coipa
        Norte pits. The ratio to convert silver into gold equivalent  ounces was
        similar quarter-over-quarter.
o       Despite  the  reduced  production,  the sale of gold  equivalent  ounces
        increased  by  7%,  which  along  with a  higher  realized  gold  price,
        increased revenues from metal sales by 11%.
o       Cost of sales increased by 51% between the first quarter of 2005 and the
        first quarter of 2004. The increase was due to an increase in the number
        of ounces sold, a 2%  appreciation  of the Chilean peso against the U.S.
        dollar and higher power and fuel costs.


                                       9
<PAGE>

<TABLE>
<CAPTION>
CRIXAS (50% OWNERSHIP, ANGLOGOLD ASHANTI 50%, OPERATOR) - BRAZIL
-----------------------------------------------------------------------------------------------------------------
                                                           Three months ended,
                                                               March 31,                   2005 VS 2004
                                                      -----------------------------------------------------------
                                                           2005           2004         Change $      Change %
-----------------------------------------------------------------------------------------------------------------
<S>                                                      <C>            <C>           <C>               <C>
OPERATING STATISTICS
Tonnes processed (000's) (a)                                   188            183              5            3%
Grade (grams/tonne)                                           8.37           7.90           0.47            6%
Recovery (%)                                                 95.6%          95.4%           0.2%            0%
Gold equivalent ounces
    Produced                                                24,192         22,511          1,681            7%
    Sold                                                    24,154         23,376            778            3%

FINANCIAL DATA (in US$ millions)
Metal sales                                              $    10.3      $     9.5      $     0.8            8%
Cost of sales (b)                                              3.5            3.0            0.5           17%
Accretion                                                        -              -              -            0%
Depreciation, depletion and amortization                       2.9            3.0           (0.1)          (3%)
-----------------------------------------------------------------------------------------------------------------
                                                               3.9            3.5            0.4           11%
Exploration                                                    0.1            0.1              -            0%
-----------------------------------------------------------------------------------------------------------------
Segment earnings                                         $     3.8      $     3.4      $     0.4           12%
-----------------------------------------------------------------------------------------------------------------
</TABLE>

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

The Company  acquired its  ownership  interest in the Crixas  underground  mine,
located in the State of Goias,  upon completion of the  combination  with TVX on
January 31, 2003.

FIRST QUARTER 2005 VS. FIRST QUARTER 2004

o       Gold  production  increased  by 7%  during  the  first  quarter  of 2005
        compared with the corresponding  period in 2004. The increase was due to
        higher grade and increased throughput.
o       Higher revenues from metal sales were the result of an increased  number
        of ounces sold and a higher realized gold price.
o       Cost of sales  increased  by 17% due to an  increase  in the  number  of
        ounces sold along with an 8%  appreciation of the Brazilian real against
        the U.S.  dollar during the first quarter of 2005 compared with the same
        period in 2004.

<TABLE>
<CAPTION>
MUSSELWHITE (31.93% OWNERSHIP, PLACER DOME 68.07%, OPERATOR) - CANADA
-----------------------------------------------------------------------------------------------------------------
                                                           Three months ended,
                                                               March 31,                   2005 VS 2004
                                                      -----------------------------------------------------------
                                                           2005           2004         Change $      Change %
-----------------------------------------------------------------------------------------------------------------
<S>                                                      <C>            <C>           <C>               <C>
OPERATING STATISTICS
Tonnes processed (000's) (a)                                   355            364             (9)          (2%)
Grade (grams/tonne)                                           6.00           4.96           1.04           21%
Recovery (%)                                                 95.5%          95.0%           0.5%            1%
Gold equivalent ounces
    Produced                                                21,544         17,549          3,995           23%
    Sold                                                    20,340         19,203          1,137            6%

FINANCIAL DATA (in US$ millions)
Metal sales                                              $     8.8      $     8.0      $     0.8           10%
Cost of sales (b)                                              6.4            5.6            0.8           14%
Accretion                                                        -              -              -            0%
Depreciation, depletion and amortization                       3.1            2.9            0.2            7%
-----------------------------------------------------------------------------------------------------------------
                                                              (0.7)          (0.5)          (0.2)         (40%)
Exploration                                                    0.4            0.6           (0.2)         (33%)
-----------------------------------------------------------------------------------------------------------------
Segment loss                                             $    (1.1)     $    (1.1)     $       -            0%
-----------------------------------------------------------------------------------------------------------------
</TABLE>

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

The Company acquired its ownership interest in the Musselwhite underground mine,
located in north-western Ontario, upon completion of the combination with TVX on
January 31, 2003.


                                       10
<PAGE>

FIRST QUARTER 2005 VS. FIRST QUARTER 2004

o       Gold production was 23% higher due to  higher-grade  ore and better mill
        recovery,  offset by slightly lower  throughput.  Grade improved between
        the first  quarter of 2004 and the first  quarter of 2005 as a result of
        increased  higher-grade  underground ore in 2005, versus the lower grade
        ore from the open pit mining in 2004.
o       Metal sales  increased by 10% due to higher gold prices and an increased
        in the number of ounces sold.
o       Cost of sales  increased  by 14% due to an  increased  portion of higher
        cost  underground  tonnes  mined and higher  energy and other  commodity
        costs.  Cost of sales was also negatively  impacted by a 7% appreciation
        in the Canadian  dollar against the U.S.  dollar in the first quarter of
        2005 compared with the first quarter of 2004.

<TABLE>
<CAPTION>
KUBAKA (98.1% OWNERSHIP AND OPERATOR) - RUSSIA
-----------------------------------------------------------------------------------------------------------------
                                                           Three months ended,
                                                               March 31,                   2005 VS 2004
                                                      -----------------------------------------------------------
                                                           2005           2004         Change $      Change %
-----------------------------------------------------------------------------------------------------------------
<S>                                                      <C>            <C>           <C>               <C>
OPERATING STATISTICS
Tonnes processed (000's) (a)                                     208            218            (10)           (5%)
Grade (grams/tonne)                                             7.04           4.30           2.74            64%
Recovery (%)                                                   97.7%          97.0%             1%             1%
Gold equivalent ounces produced
    Produced                                                  46,162         29,259         16,903            58%
    Sold                                                      42,156         28,382         13,774            49%

FINANCIAL DATA (in US$ millions)
Metal sales                                               $     18.3     $     12.0      $     6.3            53%
Cost of sales (b)                                               13.5            7.7            5.8            75%
Accretion                                                        0.1            0.1              -             0%
Depreciation, depletion and amortization                         3.7            1.7            2.0           118%
------------------------------------------------------------------------------------------------------------------
                                                                 1.0            2.5           (1.5)          (60%)
Exploration                                                      0.5            0.1            0.4           400%
Other                                                            0.1            0.2           (0.1)          (50%)
------------------------------------------------------------------------------------------------------------------
Segment earnings                                          $      0.4     $      2.2      $    (1.8)          (82%)
------------------------------------------------------------------------------------------------------------------
</TABLE>

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

Kinross  acquired a 54.7%  interest in the Kubaka open pit mine,  located in the
Magadan Oblast in far eastern Russia, in three transactions in 1998 and 1999. On
February  28, 2003,  the Company  completed a step-up  transaction  to bring its
ownership interest to the current 98.1%.

FIRST QUARTER OF 2005 VS. FIRST QUARTER OF 2004

o       Gold  production  was 58% higher in the first quarter of 2005 versus the
        first quarter of 2004 due to higher grade and recovery, partially offset
        by lower mill throughput.
o       Revenues  from metal  sales were up by 53% due to an  increase in ounces
        sold and a higher realized gold price.
o       Cost of sales  increased by 75% largely due to an increase in the number
        of ounces being sold and the processing of the higher cost Birkachan ore
        from stockpile.
o       Depreciation,     depletion    and     amortization    was    up    118%
        quarter-over-quarter  due to the increase  production  and sales and the
        higher rate of depreciation  following the decision to close the mine at
        the end of 2005.

OTHER OPERATING SEGMENTS

REFUGIO (50% OWNERSHIP AND OPERATOR) - CHILE

Kinross  acquired  its 50%  interest in the Refugio  open pit mine,  located 120
kilometres northeast of Copiapo, Chile, in 1998. In 2001, due to low gold prices
and operational difficulties, mining activities were suspended and the operation
was placed on care and  maintenance.  In late 2002,  a  multi-phase  exploration
program  commenced  and in  2003  it was  determined  that  the  mine  would  be
recommissioned.

The mine is expected to achieve its continuous  production rate of 40,000 tonnes
per day by year-end 2005. The Company's share of the capital cost is expected to
total approximately $67 million, which is above budget. The increased costs were
due to unexpected delays and higher input costs. The recommissioned mine will be
capable  of  producing  approximately  115,000 to 130,000  ounces  annually,  to
Kinross' account.


                                       11
<PAGE>

KETTLE RIVER (100% OWNERSHIP AND OPERATOR) - U.S.A.

Kinross acquired Kettle River, located in the state of Washington,  U.S.A., upon
completion of the combination  with Echo Bay on January 31, 2003. At the time of
acquisition the mine was shutdown.  The Company  recommenced  operations in late
December  2003.  Gold  equivalent  production was 18,766 ounces during the first
quarter of 2005, down 26% from the corresponding period in 2004.  Production was
lower due to a reduction in tonnes  processed  resulting from a planned decrease
in mining activity at Emanuel Creek and continuing ground problems at the mine.

DEPRECIATION, DEPLETION AND AMORTIZATION

Depreciation,  depletion and amortization was $44.3 million in the first quarter
of 2005 compared with $38.7 million in the first quarter of 2004, an increase of
14%.  Depreciation,  depletion and  amortization  increased at Paracatu with the
acquisition  of the remaining 51% of the mine and at Kubaka with the increase in
the number of ounces sold and a reduced reserve base.

EXPLORATION AND BUSINESS DEVELOPMENT

Exploration and business  development  expense for the first quarter of 2005 was
$4.9 million,  compared with $3.5 million for the comparable  period in 2004, an
increase of 40%.  The  increase  is largely the result of the 2004  expenditures
being lower than  planned as certain  projects  were  delayed.  The focus of the
Company's  exploration  program is to replace and increase  reserves at existing
mines and increase reserves at its development projects.

GENERAL AND ADMINISTRATIVE

General and  administrative  costs include  corporate office expenses related to
the  overall  management  of the  business  which  are not part of  direct  mine
operating costs.  General and administrative  expense for the three months ended
March 31, 2005 was $10.2 million,  compared with $6.9 million for the comparable
period in 2004,  an  increase  of 48%.  The  increase  was largely the result of
increased  professional fees resulting from the review of the accounting for the
acquisition of TVX and Echo Bay, and the strength of the Canadian dollar against
the U.S. dollar.

OTHER INCOME (EXPENSE) - NET

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
IN US$ MILLIONS                                           Three months ended,
                                                               March 31,                   2005 VS 2004
                                                      -----------------------------------------------------------
                                                           2005           2004         Change $      Change %
-----------------------------------------------------------------------------------------------------------------
<S>                                                      <C>            <C>           <C>               <C>
Interest and other income                                $    1.9      $     1.8          0.1             6%
Interest expense                                             (1.9)          (0.6)        (1.3)         (217%)
Foreign exchange gains (losses)                               1.7           (1.7)         3.4             nm
Non-hedge derivative losses                                     -           (0.8)         0.8           100%
-----------------------------------------------------------------------------------------------------------------
Other income (expense) - net                             $    1.7      $    (1.3)         3.0             nm
-----------------------------------------------------------------------------------------------------------------
</TABLE>

INTEREST EXPENSE

Interest  expense  totalled  $1.9 million  during the first  quarter of 2005, an
increase of $1.3 million from the same period in 2004.  The  increased  interest
expense is the result of increased long-term debt including the LIBOR loan under
the credit facility.

NON-HEDGE DERIVATIVE LOSSES

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 three months of 2004, the Company  recorded an
increase to the liability on call options sold of $0.8 million.

FOREIGN EXCHANGE GAINS (LOSSES)

During the first  quarter of 2004,  the  Company  recorded a net gain on foreign
currency translation and transactions of $1.7 million,  compared with a net loss
for the comparative period in 2004 of $1.7 million.

The Company's  monetary  assets and  liabilities  are  translated at the rate of
exchange  prevailing  at  the  balance  sheet  date.   Non-monetary  assets  and
liabilities  are  translated  at  historical  rates.  Revenues  and expenses are
translated  at the average rate of exchange for the period.  Exchange  gains and
losses are included in income.


                                       12
<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 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. During the first quarter of
2005,  the  Company  recorded a  provision  for income and mining  taxes of $2.6
million on earnings before tax of $1.7 million.  During the corresponding period
in 2004,  the Company  recorded a provision  for income and mining taxes of $0.2
million on earnings  before tax of $8.1  million.  There are a number of factors
that can  significantly  impact the Company's  effective tax rate  including the
geographic distribution of income, varying rates in different jurisdictions, the
non-recognition of tax assets, mining allowance,  foreign currency exchange rate
movements,  changes  in tax laws and the  impact of  specific  transactions  and
assessments.

RELATED PARTY TRANSACTIONS

On September 2, 2005, the Company agreed to sell 23.33% of the shares of KF Ltd.
to Balloch  and  retain  11.67% of the  initial  interest.  Art Ditto,  a former
director and officer of the Company,  owns a 17.4%  interest in the  outstanding
common  shares of Balloch and upon  closing of the private  placement  which was
completed  on October 19,  2005,  Mr. Ditto was  appointed  President  and Chief
Executive  Officer of  Balloch.  Further  discussion  on the sale of KF Ltd.  to
Balloch is included above in the "Developments" section.

5.      LIQUIDITY AND CAPITAL RESOURCES

The following table summarizes  Kinross' cash flow activity for the three months
ended March 31, 2005 and 2004:

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
IN US$ MILLIONS                                           Three months ended,
                                                               March 31,                   2005 VS 2004
                                                      -----------------------------------------------------------
                                                           2005           2004         Change $      Change %
-----------------------------------------------------------------------------------------------------------------
<S>                                                      <C>            <C>           <C>               <C>
Cash flow:
   Provided from operating activities                    $   26.8      $    15.0      $    11.8           79%
   Used in investing activities                             (38.8)         (19.1)         (19.7)        (103%)
   Provided by (used in) financing acitvities                16.6          (23.9)          40.5            nm
Effect of exchange rate changes on cash                         -           (0.2)           0.2          100%
-----------------------------------------------------------------------------------------------------------------
Increase (decrease) in cash and
   cash equivalents                                           4.6          (28.2)          32.8            nm
Cash and cash equivalents:
   Beginning of period                                       47.9          245.8         (197.9)         (81%)
-----------------------------------------------------------------------------------------------------------------
   End of period                                         $   52.5      $   217.6      $  (165.1)         (76%)
-----------------------------------------------------------------------------------------------------------------
</TABLE>

OPERATING ACTIVITIES

Cash flow provided by operating activities was $26.8 million in the three months
ended March 31, 2005, compared with $15.0 million in the corresponding period in
2004, an increase of 79%. Cash flow provided by operating  activities  increased
due to a higher  realized gold price and a smaller  increase in working  capital
requirements in 2005 versus 2004.


                                       13
<PAGE>

INVESTING ACTIVITIES

Net cash used in investing  activities was $38.8 million in the first quarter of
2005, versus $19.1 million in the same period in 2004. The increase was due to a
92% increase in additions to property,  plant and equipment,  from $19.8 million
in the first quarter of 2004 to $38.1 million in the first quarter of 2005.  The
following provides a breakdown of capital expenditures:

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
IN US$ MILLIONS                                           Three months ended,
                                                               March 31,                   2005 VS 2004
                                                      -----------------------------------------------------------
                                                           2005           2004         Change $      Change %
-----------------------------------------------------------------------------------------------------------------
<S>                                                      <C>            <C>           <C>               <C>
OPERATING SEGMENTS
  Fort Knox                                              $   10.5       $     7.2     $     3.3           46%
  Paracatu (a)                                                3.9             0.7           3.2          457%
  Round Mountain                                              1.0             1.8          (0.8)         (44%)
  Porcupine Joint Venture                                     6.1             2.3           3.8          165%
  La Coipa                                                    1.0             0.3           0.7          233%
  Crixas                                                      1.4             0.7           0.7          100%
  Musselwhite                                                 1.2             0.4           0.8          200%
  Kubaka                                                      0.1             4.5          (4.4)         (98%)
  Other operations                                           12.6             1.7          10.9          641%
CORPORATE & OTHER                                             0.3             0.2           0.1           50%
-----------------------------------------------------------------------------------------------------------------
                                                         $   38.1       $    19.8     $    18.3           92%
-----------------------------------------------------------------------------------------------------------------
</TABLE>

(a)     On  December  31,  2004,  the  Company  completed  the  purchase  of the
        remaining 51% interest in the Paracatu  mine. For the three months ended
        March 31, 2004, the Company had only a 49% interest.

Capital  expenditures  in the first  quarter of 2005  included  costs related to
accessing  phase five and phase six ore zones at Fort Knox,  development  of the
Pamour pit at the Porcupine Joint Venture, costs at Paracatu related to the mine
and mill expansion and continued recommissioning costs at Refugio.

FINANCING ACTIVITIES

Net cash of $16.6  million was  provided by  financing  activities  in the first
quarter of 2005.  This was primarily  from proceeds from the issuance of debt of
$16.4 million,  which related largely to the $15.0 million increase to the LIBOR
loan drawn on the Company's  revolving credit facility.  In the first quarter of
2004,  the Company used cash of $23.9  million in financing  activities.  During
this period the Company  repaid the  Industrial  Revenue  Bonds of $25.0 million
owing to the Alaska Industrial Development and Export Authority.

As of February 8, 2006,  there were 345.5  million  common shares of the Company
issued and  outstanding.  In  addition,  at the same date,  the  Company had 2.4
million share purchase options  outstanding  under its share option plan and 8.3
million common share purchase warrants outstanding.

BALANCE SHEET
--------------------------------------------------------------------------------
IN US$ MILLIONS                                          AS AT:
                                          --------------------------------------
                                              March 31,         December 31,
                                                2005                2004
--------------------------------------------------------------------------------

Cash and cash equivalents                    $     52.5         $      47.9
Current assets                               $    205.4         $     206.9
Total assets                                 $  1,837.0         $   1,834.2
Current liabilities                          $    157.2         $     172.8
Total debt (a)                               $    155.1         $     138.8
Total liabilities (b)                        $    549.5         $     547.1
Shareholders' equity                         $  1,287.5         $   1,287.1
--------------------------------------------------------------------------------
Statistics
        Working capital                      $     48.2         $      34.1
        Working capital ratio (c)                  1.31x               1.20x
--------------------------------------------------------------------------------

(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.


                                       14
<PAGE>

Cash during the quarter  increased by $4.6 million to $52.5  million,  with cash
provided from operating and financing activities more than offsetting the use of
cash in  investing  activities.  During  the  quarter,  the  Company's  net debt
position (cash and cash  equivalents  less long-term  debt) increased from $75.0
million to $86.5 million. The Company's net working capital increased from $34.1
million to $48.2  million  during the quarter due to the  increase in cash along
with an increase in inventories  and a decrease in account  payables and accrued
liabilities.

CREDIT FACILITY

In December 2004, the Company  replaced its $125 million credit  facility with a
new three-year $200 million  revolving  credit  facility,  which allowed for the
limit to be increased to $300 million. The Company borrowed $105.0 million under
the facility to help finance the  acquisition  of the  remaining 51% interest in
the Paracatu  mine.  In February  2005,  the limit was increased by $15 million,
which the Company drew down on as a LIBOR loan for working capital purposes.  In
March  2005,  the limit was  increased  by $10 million to allow for the issue of
additional letters of credit. In April 2005, the outstanding limit was increased
to $295 million and the maturity date extended to April 30, 2008.

LIQUIDITY OUTLOOK

The  major  uses of  cash  for the  remainder  of  2005,  outside  of  operating
activities  and general  and  administrative  costs,  include:  reclamation  and
remediation  obligation,  explorations  and business  development  expense,  and
additions to property,  plant and equipment.  As of March 31, 2005, $5.5 million
has been spent on reclamation  and  remediation  expenditures,  with a full year
forecast  for  2005  of  approximately  $24  million.   In  the  first  quarter,
exploration  and  business  development  expenditures  of  $4.9  million,  of an
expected $22 million for the year,  have been  incurred.  Additions to property,
plant and equipment  have totalled  $38.1 million during the first three months,
with a full year forecast of approximately $165 million to be spent.

CONTRACTUAL OBLIGATIONS AND COMMITMENTS

Kinross has entered  into an agreement to acquire  Crown  Resources  Corporation
("Crown") in exchange for the issuance of Kinross'  common shares.  Kinross will
not issue  fractional  shares to the  shareholders of Crown resulting in a small
amount that will be paid in cash.  This  acquisition is discussed in the section
entitled "Developments".  For a schedule of contractual obligations please refer
to the Company's 2004 Annual MD&A.

HEDGING ACTIVITIES

From time-to-time,  the Company manages its exposure to fluctuation in commodity
prices,  foreign  exchange rates and interest rates by entering into  derivative
financial  instrument  contracts in accordance with the risk  management  policy
approved by the Company's Board of Directors.

GOLD

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 on
January  1,  2004,  with the  Adoption  of  Accounting  Guideline  13,  "Hedging
Relationships  ("AcG-13"),  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 in 2004
and 2005. During the three months ended March 31, 2004, the Company recognized a
loss on $4.4 million on the delivery of 30,000 ounces.  In the second quarter of
2004, the Company  delivered  55,000 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 remaining portion of the unrealized loss, as determined
on December 31, 2003, remained to be recognized into earnings in accordance with
the original maturity dates of the contracts.

During the three months ended March 31, 2005,  the Company  recognized a loss of
$1.6 million  related to the loss on the deferred  contracts  and the balance of
$3.1 million will be recognized in earnings in the second quarter of 2005.

FOREIGN CURRENCY

From  time-to-time,  the Company uses 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,  with the adoption of AcG-13,  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 both the three months ended March 31,
2004 and 2005, the Company recognized into earnings $0.4 million of the deferred
gain.  The  remaining  deferred  gain of $0.5  million will be  recognized  into
earnings during the second quarter of 2005. Both the realized and unrealized net
gains during 2005 from the strengthening of the Canadian dollar against the U.S.
dollar have been netted  against  operating  costs from the  Company's  Canadian
mines and against Canadian general and administrative expenses.


                                       15
<PAGE>

For  details  on the  hedging  activities  please  refer  to  Note 6  "Financial
instruments" of the accompanying consolidated financial statements.

6.      CRITICAL ACCOUNTING POLICIES

In the 2004  annual  MD&A  there is a full  discussion  and  description  of the
Company's  critical  accounting  policies.  The  preparation  of  the  Company's
consolidated  financial  statements  in  conformity  with Canadian GAAP requires
management to make estimates and assumptions that affect amounts reported in the
consolidated  financial  statements  and  accompanying  notes.  These  are fully
described in the 2004 annual MD&A.

7.      RECENT PRONOUNCEMENTS AND ACCOUNTING CHANGES

For a discussion of recent pronouncements and accounting changes please refer to
Note 4 of the accompanying  interim  consolidated  financial  statements for the
period ended March 31, 2005.

8.      RISK ANALYSIS AND ADDITIONAL INFORMATION

The  operations  of Kinross are  high-risk  due to the nature of the  operation,
exploration,  and  development of mineral  properties.  For a discussion of risk
factors and  additional  information  please refer to the Company's  2004 annual
MD&A, the Annual Information Form and other filings,  which are available on the
Company's  website  www.kinross.com  and on  www.sedar.com or are available upon
request from the Company.

9.      SUMMARY OF QUARTERLY RESULTS

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                           Q3        Q2        Q1         Q4        Q3         Q2        Q1         Q4         Q3
------------------------------------------------------------------------------------------------------------------------------------
(in millions, except per share amounts)   2005      2005      2005       2004      2004       2004      2004       2003       2003
------------------------------------------------------------------------------------------------------------------------------------
<S>                                     <C>       <C>       <C>        <C>       <C>        <C>       <C>        <C>        <C>
Total metal sales                       $ 179.8   $ 179.2   $ 174.6    $ 158.2   $ 154.8    $ 143.3   $ 153.8    $ 157.8    $ 117.0
Net earnings (loss)                     $  (0.9)  $ (88.0)  $   5.5    $  11.7   $   7.7    $(372.8)  $ (11.9)   $ (27.5)   $ (25.5)
Net earnings (loss) attributable to
  common shares                         $  (0.9)  $ (88.0)  $   5.5    $  11.7   $   7.7    $(372.8)  $   2.4    $ (29.7)   $ (27.6)
Basic and diluted earnings (loss)
  per share                             $     -   $ (0.25)  $  0.02    $  0.03   $  0.02    $ (1.21)  $  0.01    $ (0.09)   $ (0.11)
------------------------------------------------------------------------------------------------------------------------------------

Cash flow provided from (used in)
  operating activities                  $  26.8   $  57.9   $  62.9    $  25.4   $  15.0    $  18.7   $  36.7    $  18.1    $  16.0
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>


                                       16

<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEETS
(expressed in millions of U.S. dollars) (unaudited)
=============================================================================================================================
                                                                                                         AS AT
                                                                                         ------------------------------------
                                                                                             MARCH 31,         DECEMBER 31,
                                                                                               2005                2004
-----------------------------------------------------------------------------------------------------------------------------
                                                                                                               Restated (a)
<S>                                                                                       <C>                <C>
ASSETS
  Current assets
    Cash and cash equivalents                                                             $          52.5    $          47.9
    Restricted cash                                                                                   1.4                1.4
    Short-term investments                                                                            3.6                5.7
    Accounts receivable and other assets                                 NOTE 5                      31.6               40.9
    Inventories                                                          NOTE 5                     116.3              111.0
                                                                                         ------------------------------------
                                                                                                    205.4              206.9
  Property, plant and equipment                                          NOTE 5                   1,239.6            1,244.1
  Goodwill                                                               NOTE 5                     329.9              329.9
  Long-term investments                                                  NOTE 5                      26.1               25.7
  Deferred charges and other long-term assets                            NOTE 5                      36.0               27.6
                                                                                         ------------------------------------
                                                                                          $       1,837.0    $       1,834.2
                                                                                         ====================================
LIABILITIES
  Current liabilities
    Accounts payable and accrued liabilities                             NOTE 5           $         129.9    $         143.2
    Current portion of long-term debt                                    NOTE 7                       6.1                6.0
    Current portion of reclamation and remediation obligations                                       21.2               23.6
                                                                                         ------------------------------------
                                                                                                    157.2              172.8
  Long-term debt                                                         NOTE 7                     132.9              116.9
  Reclamation and remediation obligations                                                           108.4              108.1
  Future income and mining taxes                                                                    123.8              123.5
  Other long-term liabilities                                                                        10.9                9.5
  Redeemable retractable preferred shares                                                             2.6                2.6
                                                                                         ------------------------------------
                                                                                                    535.8              533.4
                                                                                         ------------------------------------
COMMITMENTS AND CONTINGENCIES                                            NOTE 11
                                                                                         ------------------------------------
NON-CONTROLLING INTEREST                                                                              0.2                0.4
                                                                                         ------------------------------------
CONVERTIBLE PREFERRED SHARES OF SUBSIDIARY COMPANY                                                   13.5               13.3
                                                                                         ------------------------------------
COMMON SHAREHOLDERS' EQUITY
  Common share capital and common share purchase warrants                NOTE 8                   1,776.1            1,775.8
  Contributed surplus                                                                                34.9               33.9
  Accumulated deficit                                                                              (522.3)            (521.4)
  Cumulative translation adjustments                                                                 (1.2)              (1.2)
                                                                                         ------------------------------------
                                                                                                  1,287.5            1,287.1
                                                                                         ------------------------------------
                                                                                          $       1,837.0    $       1,834.2
                                                                                         ====================================

TOTAL ISSUED AND OUTSTANDING COMMON SHARES (millions)                                               345.2              345.1
=============================================================================================================================

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

(a) See Note 3


                                       2
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF OPERATIONS
(expressed in millions of U.S. dollars, except per share amounts) (unaudited)
=======================================================================================================================
                                                                                             THREE MONTHS ENDED
                                                                                                  MARCH 31,
                                                                                      ---------------------------------
                                                                                            2005             2004
-----------------------------------------------------------------------------------------------------------------------
                                                                                                          Restated (a)
<S>                                                                                    <C>               <C>
REVENUE AND OTHER OPERATING INCOME
  Metal sales                                                                          $        179.8    $       154.8

OPERATING COSTS AND EXPENSES
  Cost of sales (excluding items shown below)                                                   113.1             92.6
  Accretion                                                                                       3.3              2.2
  Depreciation, depletion and amortization                                                       44.3             38.7
                                                                                      ---------------------------------
                                                                                                 19.1             21.3
  Other operating costs                                                                           3.5              1.9
  Exploration and business development                                                            4.9              3.5
  General and administrative                                                                     10.2              6.9
  Impairment of investments                                                                       0.6                -
  Gain on disposal of assets                                                                     (0.1)            (0.4)
                                                                                      ---------------------------------
OPERATING EARNINGS                                                                                  -              9.4

  Other income (expense) - net                                            NOTE 5                  1.7             (1.3)
                                                                                      ---------------------------------
EARNINGS BEFORE TAXES AND OTHER ITEMS                                                             1.7              8.1

  Income and mining tax expense                                                                  (2.6)            (0.2)
  Non-controlling interest                                                                        0.2                -
  Dividends on convertible preferred shares of subsidiary                                        (0.2)            (0.2)
                                                                                      ---------------------------------
NET (LOSS) EARNINGS                                                                    $         (0.9)   $         7.7
                                                                                      ---------------------------------

EARNINGS PER SHARE
  Basic                                                                                $            -    $        0.02
  Diluted                                                                              $            -    $        0.02
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (millions)
  Basic                                                                   NOTE 9                345.1            345.7
  Diluted                                                                 NOTE 9                345.1            346.3
=======================================================================================================================

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

(a) See Note 3

                                       3
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS
(expressed in millions of U.S. dollars) (unaudited)
=======================================================================================================================
                                                                                             THREE MONTHS ENDED
                                                                                                  MARCH 31,
                                                                                      ---------------------------------
                                                                                            2005             2004
-----------------------------------------------------------------------------------------------------------------------
                                                                                                          Restated (a)
<S>                                                                                    <C>               <C>
NET INFLOW (OUTFLOW) OF CASH RELATED TO THE FOLLOWING ACTIVITIES:
OPERATING:
Net earnings                                                                           $       (0.9)     $         7.7
Adjustments to reconcile net earnings (loss) to net cash
  provided from (used in) operating activities:
  Depreciation, depletion and amortization                                                     44.3               38.7
  Impairment of investments                                                                     0.6                  -
  Gain on disposal of assets                                                                   (0.1)              (0.4)
  Future income and mining taxes                                                                0.8               (3.8)
  Deferred revenue recognized                                                                     -               (0.6)
  Non-controlling interest                                                                     (0.2)                 -
  Stock-based compensation expense                                                              0.8                0.5
  Unrealized foreign exchange (gains) losses and other                                         (3.2)              (0.4)
  Changes in operating assets and liabilities:
    Accounts receivable and other assets                                                        5.9               12.7
    Inventories                                                                                (7.2)             (22.5)
    Accounts payable and accrued liabilities                                                  (14.0)             (16.9)
                                                                                      ---------------------------------
CASH FLOW PROVIDED FROM OPERATING ACTIVITIES                                                   26.8               15.0
                                                                                      ---------------------------------
INVESTING:
  Additions to property, plant and equipment                                                  (38.1)             (19.8)
  Proceeds from the sale of marketable securities                                                 -                0.3
  (Additions to) proceeds from long-term investments and other assets - net                    (4.6)              (3.8)
  Proceeds from the sale of property, plant and equipment                                       0.4                0.5
  Additions to short-term investments                                                           3.5                3.7
                                                                                      ---------------------------------
CASH FLOW USED IN INVESTING ACTIVITIES                                                        (38.8)             (19.1)
                                                                                      ---------------------------------
FINANCING:
  Issuance of common shares                                                                     0.5                1.4
  Proceeds from issue of debt                                                                  16.4                  -
  Repayment of debt                                                                            (0.3)             (25.3)
                                                                                      ---------------------------------
CASH FLOW PROVIDED FROM (USED IN) FINANCING ACTIVITIES                                         16.6              (23.9)
                                                                                      ---------------------------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH                                                           -               (0.2)
                                                                                      ---------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                4.6              (28.2)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                                 47.9              245.8
                                                                                      ---------------------------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                                       52.5              217.6
=======================================================================================================================

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

(a) See Note 3

                                        4
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY
(expressed in millions of U.S. dollars) (unaudited)
=======================================================================================================================
                                                                                             THREE MONTHS ENDED
                                                                                                  MARCH 31,
                                                                                      ---------------------------------
                                                                                            2005             2004
-----------------------------------------------------------------------------------------------------------------------
                                                                                                          Restated (a)
<S>                                                                                    <C>               <C>
COMMON SHARES
  Balance at the beginning of the period                                               $    1,775.8      $     1,783.5
    Common shares issued                                                                        0.5                1.4
    Transfer of fair value of exercised options                                                   -                0.2
    Transfer of fair value of expired warrants and options                                     (0.2)              (0.9)
                                                                                      ---------------------------------
  Balance at the end of the period                                                     $    1,776.1      $     1,784.2
                                                                                      ---------------------------------

CONTRIBUTED SURPLUS
  Balance at the beginning of the period                                               $       33.9      $        30.0
    Transfer of fair value of expired warrants                                                  0.2                0.9
    Transfer of fair value of exercised options                                                   -               (0.2)
    Adoption of new accounting standards                                                          -                2.5
    Stock option compensation                                                                   0.8                0.5
                                                                                      ---------------------------------
  Balance at the end of the period                                                     $       34.9      $        33.7
                                                                                      ---------------------------------

ACCUMULATED DEFICIT
  Balance at the beginning of the period                                               $     (521.4)     $      (455.8)
    Adoption of new accounting standards                                                          -               (2.5)
    Net earnings                                                                               (0.9)               7.7
                                                                                      ---------------------------------
  Balance at the end of the period                                                     $     (522.3)     $      (450.6)
                                                                                      ---------------------------------

CUMULATIVE TRANSLATION ADJUSTMENTS
  Balance at the beginning of the period                                               $       (1.2)     $        (1.2)
                                                                                      ---------------------------------
  Balance at the end of the period                                                     $       (1.2)     $        (1.2)
                                                                                      ---------------------------------

                                                                                      ---------------------------------
TOTAL COMMON SHAREHOLDERS' EQUITY                                                      $    1,287.5      $     1,366.1
=======================================================================================================================

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

(a) See Note 3

                                       5
<PAGE>

           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
                       For the three months ended March 31
  (millions of U.S. dollars, except per share amounts, unless otherwise stated)


1.      NATURE OF OPERATIONS

        Kinross  Gold  Corporation  and  its  subsidiaries  and  joint  ventures
        (collectively,  "Kinross" or the  "Company")  are engaged in gold mining
        and  related  activities,   including  exploration  and  acquisition  of
        gold-bearing   properties,   extraction,   processing  and  reclamation.
        Kinross' gold  production  and  exploration  activities  are carried out
        principally  in the United States,  Canada,  Russia,  Brazil,  Chile and
        Australia.  Gold, the Company's  primary product is produced in the form
        of dore,  which is shipped to refineries for final  processing.  Kinross
        also  produces and sells a limited  amount of silver as a by-product  of
        gold mining activities.

2.      BASIS OF PRESENTATION

        The unaudited interim consolidated  financial statements (the "financial
        statements")  of the Company have been prepared in  accordance  with the
        accounting  principles  and  methods  of  application  disclosed  in the
        consolidated financial statements for the year ended December 31, 2004.

        The accompanying  unaudited interim  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 the financial  statements  should be read in
        conjunction with the Company's audited restated financial statements for
        the year ended December 31, 2004.

        COMPARATIVE FIGURES

        Certain 2004 figures in the accompanying  unaudited interim consolidated
        financial  statements  have been  reclassified  to  conform  to the 2005
        presentation.

3.      RESTATEMENT  FOR  CORRECTION  OF FOREIGN  CURRENCY  IMPACT ON FUTURE TAX
        LIABILITIES

        During its preparation of the interim financial statements for 2005, the
        Company and its auditors  discovered  an error  relating to its restated
        financial  statements for the years ended December 31, 2003 and 2004 and
        the respective  interim periods.  In the previously  released  financial
        statements  the Company had not properly  assessed the impact of changes
        in foreign  currency rates  affecting the timing  differences  resulting
        from a difference between accounting and tax basis, which form the basis
        for the future tax liabilities.  As a result of the  restatement,  these
        liabilities are adjusted for 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
        related  primarily  to the  future  tax  liabilities  of  the  Brazilian
        operations.  This non-cash  adjustment  had no impact on operating  cash
        flows or cash balances previously reported. The financial statements for
        the respective interim periods in 2005 are not restated.

        All amounts  included  in this report have been  adjusted to reflect the
        2004  restatement.  The  following  is a summary  of the  effects of the
        aforementioned adjustments on our consolidated financial statements:

        CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
        ===================================================================================================
                                                           AS PREVIOUSLY
                                                            REPORTED (a)      ADJUSTMENTS    AS RESTATED
        ---------------------------------------------------------------------------------------------------
<S>                                                         <C>                <C>           <C>
         AS AT DECEMBER 31, 2004
        LIABILITIES
          Future income and mining taxes                    $      90.6        $    32.9     $     123.5
        COMMON SHAREHOLDERS' EQUITY
          Accumulated deficit                               $    (487.7)       $   (33.7)    $    (521.4)
          Cumulative translation adjustment                 $      (2.0)       $     0.8     $      (1.2)
        ===================================================================================================
</TABLE>

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


                                       6
<PAGE>

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

<TABLE>
<CAPTION>
        =========================================================================================================================
                                                                                 AS PREVIOUSLY
                                                                                  REPORTED (a)       ADJUSTMENTS   AS RESTATED
        -------------------------------------------------------------------------------------------------------------------------
<S>                                                                               <C>                <C>           <C>
        THREE MONTHS ENDED MARCH 31, 2004
        Operating earnings                                                        $       9.4        $       -     $       9.4
          Other (expense) income - net                                            $      (2.1)       $     0.8     $      (1.3)
        Earnings before taxes and other items                                     $       7.3        $     0.8     $       8.1
        Income and mining tax expense                                             $      (0.9)       $     0.7     $      (0.2)
        Non-controlling interest                                                  $         -        $       -     $         -
        Share in loss of investee companies                                       $         -        $       -     $         -
        Dividends on convertible preferred shares of subsidiary company           $      (0.2)       $       -     $      (0.2)
        Net earnings                                                              $       6.2        $     1.5     $       7.7
        Net earnings attributable to common shareholders                          $       6.2        $     1.5     $       7.7
        Earnings per share
          Basic and diluted                                                       $      0.02        $       -     $      0.02
        =========================================================================================================================
</TABLE>

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

4.      RECENT ACCOUNTING PRONOUNCEMENTS AND ACCOUNTING CHANGES

        RECENT PRONOUNCEMENTS

(a)     On  January  27,  2005,  the  CICA  ("Canadian  Institute  of  Chartered
        Accountants")  issued three new accounting  standards:  Handbook Section
        1530,   "Comprehensive   Income",   Handbook  Section  3855,  "Financial
        Instruments - Recognition and  Measurement",  and Handbook Section 3865,
        "Hedges".  These standards will be effective for years  commencing after
        November 1, 2006. The impact of implementing  these new standards on the
        Company's  consolidated financial statements is not yet determinable and
        is dependent on the outstanding positions and related fair values at the
        time of transition.

        OTHER COMPREHENSIVE INCOME
        As  a  result  of  adopting  these  standards,  a  new  category,  Other
        Comprehensive  Income,  will be added  to  shareholders'  equity  on the
        consolidated  balance  sheets.  Major  components for this category will
        include  unrealized gains and losses on financial  assets  classified as
        available-for-sale, unrealized foreign currency translation amounts, net
        of hedging, arising from self-sustaining foreign operations, and changes
        in the  fair  value  of the  effective  portion  of  cash  flow  hedging
        instruments.

        FINANCIAL INSTRUMENTS - RECOGNITION AND MEASUREMENT
        Under the new standard,  all financial instruments will be classified as
        one  of  the  following:   held-to-maturity,   loans  and   receivables,
        held-for-trading or available-for-sale. Financial assets and liabilities
        held-for-trading  will be  measured  at fair value with gains and losses
        recognized in net income. Financial assets  held-to-maturity,  loans and
        receivables and financial liabilities other than those held-for-trading,
        will be measured at amortized cost. Available-for-sale  instruments will
        be measured at fair value with unrealized gains and losses recognized in
        other comprehensive income. The standard also permits designation of any
        financial instrument as held-for-trading upon initial recognition.

        HEDGES
        This new standard  specifies the criteria  under which hedge  accounting
        can be applied and how hedge  accounting can be executed for each of the
        permitted hedging  strategies:  fair value hedges,  cash flow hedges and
        hedges  of  a  foreign  currency  exposure  of  a  net  investment  in a
        self-sustaining foreign operation. In a fair value hedging relationship,
        the  carrying  value of the hedged  item is  adjusted by gains or losses
        attributable  to the hedged  risk and  recognized  in net  income.  This
        change in fair value of the hedged item,  to the extent that the hedging
        relationship is effective, is offset by changes in the fair value of the
        derivative.  In a cash flow hedging relationship,  the effective portion
        of the  change  in the fair  value  of the  hedging  derivative  will be
        recognized in other  comprehensive  income. The ineffective portion will
        be   recognized  in  net  income.   The  amounts   recognized  in  other
        comprehensive  income will be  reclassified to net income in the periods
        in which net income is affected by the  variability in the cash flows of
        the  hedged  item.  In  hedging a  foreign  currency  exposure  of a net
        investment in a  self-sustaining  foreign  operation,  foreign  exchange
        gains and losses on the hedging  instruments will be recognized in other
        comprehensive income.

(b)     In June  2005,  the CICA  issued  Handbook  Section  3831  "Non-Monetary
        Transactions" to revise and replace Handbook Section 3830  "Non-Monetary
        Transactions". Section 3831 requires all non-monetary transactions to be
        measured at fair value, subject to certain exceptions. The standard also
        requires  that  commercial  substance  will replace  culmination  of the
        earnings  process as the test for fair value  measurement.  The standard
        defines  commercial  substance as a function of the cash flows  expected
        from the assets.  These revised standards are effective for non-monetary
        transactions  initiated in fiscal periods  beginning on or after January
        1, 2006 and early adoption is permitted for fiscal periods  beginning on
        or after July 1, 2005.


                                       7
<PAGE>

(c)     In October  2005,  the  Emerging  Issues  Committee  of the CICA  issued
        Abstract  No.  157,   "Implicit   Variable   Interests   Under   AcG-15"
        ("EIC-157").  This EIC clarifies  that implicit  variable  interests are
        implied financial interests in an entity that change with changes in the
        fair value of the entity's net assets  exclusive of variable  interests.
        An  implicit  variable  interest  is  similar  to an  explicit  variable
        interest except that it involves absorbing and/or receiving  variability
        indirectly from the entity.  The  identification of an implicit variable
        interest is a matter of judgment that depends on the relevant  facts and
        circumstances. EIC-157 will be effective in the first quarter of 2006.

        ACCOUNTING CHANGES

(i)     In November 2004, the Emerging  Issues  Committee of the CICA issued EIC
        149, "Accounting for Retractable or Mandatorily Redeemable Shares" ("EIC
        149").   EIC  149  clarifies  the  accounting   for  certain   financial
        instruments  with   characteristics  of  both  liabilities  and  equity,
        including mandatorily redeemable non-controlling interests, and requires
        that those  instruments  be  classified  as  liabilities  on the balance
        sheets. Previously,  many of those financial instruments were classified
        as equity.  EIC 149 is effective at the  beginning of the first  interim
        period  beginning  after  November 5, 2004. The impact of EIC 149 on the
        Company's  future  results of  operations  or financial  condition  will
        depend on the terms contained in contracts  signed or contracts  amended
        in the  future.  The  Company  continues  to  disclose  its  mandatorily
        redeemable  preferred  shares  as a  component  of  liabilities  in  its
        consolidated balance sheets, which is consistent with EIC 149.

(ii)    In December 2004, the Emerging  Issues  Committee of the CICA issued EIC
        150, "Determining Whether an Arrangement Contains a Lease", ("EIC 150").
        EIC 150  provides  guidance on how to determine  whether an  arrangement
        contains a lease that is within the scope of CICA Handbook Section 3065,
        "Leases".  The  guidance in EIC 150 is based on whether the  arrangement
        conveys  to the  purchaser  the right to use a  tangible  asset,  and is
        effective  for the Company  for  arrangements  entered  into or modified
        after  January 1, 2005.  The impact of EIC 150 on the  Company's  future
        results of operations  and financial  condition will depend on the terms
        contained in contracts signed or contracts amended in the future.

5.      CONSOLIDATED FINANCIAL STATEMENT DETAILS

        The following consolidated financial statement details are presented for
        each  of the  three  months  ended  March  31,  2005  and  2004  for the
        consolidated  statements of operations  and  consolidated  statements of
        cash  flows  and as of March  31,  2005 and  December  31,  2004 for the
        consolidated balance sheets.

        CONSOLIDATED BALANCE SHEETS

        Accounts receivable and other assets

<TABLE>
<CAPTION>
        ======================================================================================================
                                                                               MARCH 31,       December 31,
                                                                                 2005             2004
        ------------------------------------------------------------------------------------------------------
<S>                                                                          <C>               <C>
        Trade receivables                                                    $        2.4      $        2.2
        Taxes recoverable                                                             6.8               7.9
        Deferred costs associated with business and property acquisitions               -               3.3
        Deferred hedge losses                                                         3.6               4.7
        Fair value of non-hedge derivatives                                             -               4.1
        Marketable securities (a)                                                     0.3               0.3
        Prepaid expenses                                                              7.6               4.0
        Other                                                                        10.9              14.4
        ------------------------------------------------------------------------------------------------------
                                                                             $       31.6      $       40.9
        ======================================================================================================
</TABLE>

        (a)     Quoted market value: 2005 - $0.3 million, 2004 - $0.4 million.


                                       8
<PAGE>

        INVENTORIES

<TABLE>
<CAPTION>
        ======================================================================================================
                                                                               MARCH 31,       December 31,
                                                                                 2005             2004
        ------------------------------------------------------------------------------------------------------
<S>                                                                          <C>               <C>
        In-process                                                           $        7.9      $        9.1
        Finished metal                                                               26.2              25.8
        Ore in stockpiles (a)                                                        22.6              24.2
        Ore on leach pads (b)                                                        15.7              15.7
        Materials and supplies                                                       62.4              51.1
        ------------------------------------------------------------------------------------------------------
                                                                                    134.8             125.9
        Long-term portion of ore in stockpiles (a)                                  (18.5)            (14.9)
        ------------------------------------------------------------------------------------------------------
                                                                             $      116.3      $      111.0
        ======================================================================================================
</TABLE>

        (a)     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. See deferred charges and other long-term assets.
        (b)     Ore on leach pads at March 31, 2005 and December 31, 2004 relate
                entirely to the Company's 50% owned Round  Mountain  mine. As at
                March 31, 2005, the weighted average cost per recoverable  ounce
                of gold on the leach pads was $215 per ounce  (December 31, 2004
                - $200 per  ounce).  Based on current  mine  plans,  the Company
                expects to place the last tonne of ore on its current  leach pad
                in 2009.  The Company  expects that all economic  ounces will be
                recovered within  approximately 12 months following the date the
                last tonne of ore is placed on the leach pad.

        PROPERTY, PLANT AND EQUIPMENT - NET

<TABLE>
<CAPTION>
        ======================================================================================================
                                                                               MARCH 31,       December 31,
                                                                                 2005             2004
        ------------------------------------------------------------------------------------------------------
<S>                                                                          <C>               <C>
        PROPERTY, PLANT AND EQUIPMENT
        COST - NET OF WRITEDOWN
        Producing properties
          Plant and equipment amortized on a straight line basis             $      175.1      $      165.6
          Plant and equipment amortized on units of production basis              1,005.8             983.4
        Development properties                                                       44.1              39.9
        Exploration properties   (a)                                                  6.1               6.1
        ------------------------------------------------------------------------------------------------------
        MINERAL INTERESTS
        GROSS CARRYING VALUE
        Production stage                                                     $      680.6      $      680.5
        Development properties                                                       36.6              36.6
        Exploration properties                                                       88.3              88.3
        ------------------------------------------------------------------------------------------------------
                                                                             $    2,036.6      $    2,000.4
        ------------------------------------------------------------------------------------------------------
        PROPERTY, PLANT AND EQUIPMENT
        ACCUMULATED DEPRECIATION
        Producing properties
          Plant and equipment amortized on a straight line basis             $      (80.9)     $      (75.7)
          Plant and equipment amortized on units of production basis               (573.5)           (552.8)
        ------------------------------------------------------------------------------------------------------
        MINERAL INTERESTS
        ACCUMULATED DEPRECIATION
        Production stage                                                     $     (142.6)     $     (127.8)
        Development properties                                                          -                 -
        Exploration properties                                                          -                 -
        ------------------------------------------------------------------------------------------------------
                                                                             $     (797.0)     $     (756.3)
        ------------------------------------------------------------------------------------------------------
        Property, Plant and Equipment - net                                  $    1,239.6      $    1,244.1
        ======================================================================================================
</TABLE>

        (a)     Includes  Norseman  property in Australia that was held for sale
                as of March 31, 2005.

        GOODWILL

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


                                       9
<PAGE>

<TABLE>
<CAPTION>
        ======================================================================================================
                                                                                    2005
                                                    ----------------------------------------------------------
                                                     Dec 31, 2004    Additions    Impairment    Mar 31, 2005
                                                    ----------------------------------------------------------
<S>                                                  <C>             <C>          <C>           <C>
        OPERATING SEGMENTS
          Fort Knox                                  $          -    $       -    $        -    $          -
          Kubaka                                                -            -             -               -
          Round Mountain                                     86.5            -             -            86.5
          La Coipa                                           71.4            -             -            71.4
          Crixas                                             38.0            -             -            38.0
          Paracatu                                           65.5            -             -            65.5
          Musselwhite                                        31.0            -             -            31.0
          Porcupine Joint Venture                               -            -             -               -
          Other operations                                   37.5            -             -            37.5
        CORPORATE AND OTHER                                     -            -             -               -
        ------------------------------------------------------------------------------------------------------
        TOTAL                                        $      329.9    $       -    $        -    $      329.9
        ======================================================================================================
</TABLE>

        LONG-TERM INVESTMENTS

        During the three  months  ended March 31,  2005,  the Company  purchased
        511,640 newly issued shares of Crown Resources  Corporation in a private
        placement for $1.0 million. See Note 12 a) for further discussion.

        DEFERRED CHARGES AND OTHER LONG-TERM ASSETS

        Deferred  charges  and  other  long-term  assets  are  comprised  of the
        following:

<TABLE>
<CAPTION>
        ======================================================================================================
                                                                               MARCH 31,       December 31,
                                                                                 2005             2004
        ------------------------------------------------------------------------------------------------------
<S>                                                                          <C>               <C>
        Long-term ore in stockpiles (a)                                      $       18.5      $       14.9
        Deferred charges, net of amortization                                         2.3               2.4
        Long-term receivables                                                         7.7               5.3
        Long-term deposits                                                            0.9               2.6
        Crown Acquisition Costs                                                       3.8                 -
        Other                                                                         2.8               2.4
        ------------------------------------------------------------------------------------------------------
                                                                             $       36.0      $       27.6
        ======================================================================================================
</TABLE>

        (a)     Ore in  stockpiles  represents  stockpiled  ore at the Company's
                Fort Knox mine and its proportionate  share of stockpiled ore at
                Round Mountain and the Porcupine Joint Venture.

        ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

        Accounts payable and accrued liabilities are comprised of the following:

<TABLE>
<CAPTION>
        ======================================================================================================
                                                                               MARCH 31,       December 31,
                                                                                 2005             2004
        ------------------------------------------------------------------------------------------------------
<S>                                                                          <C>               <C>
        Trade payables                                                       $       32.6      $       33.1
        Accrued liabilties                                                           24.5              27.4
        Employee related accrued liabilities                                         14.6              22.9
        Taxes payable                                                                22.2              18.4
        Other tax related                                                             9.9               9.9
        Accruals related to acquisition                                              10.6              10.6
        Other accruals                                                               15.5              20.9
        ------------------------------------------------------------------------------------------------------
                                                                             $      129.9      $      143.2
        ======================================================================================================
</TABLE>

        CONSOLIDATED STATEMENT OF OPERATIONS

        IMPAIRMENT CHARGES

        During the three months ended March 31,  2005,  the Company  recorded an
        impairment associated with long-term investments of $0.6 million.  There
        was no such impairment in the similar period of 2004.


                                       10
<PAGE>

        OTHER INCOME (EXPENSE) - NET:

<TABLE>
<CAPTION>
        ======================================================================================================
                                                                           THREE MONTHS ENDED MARCH 31,
                                                                     -----------------------------------------
                                                                              2005                2004
        ------------------------------------------------------------------------------------------------------
<S>                                                                       <C>                 <C>
        Interest income and other                                         $       1.9         $       1.8
        Interest expense                                                         (1.9)               (0.6)
        Foreign exchange gains (losses)                                           1.7                (1.7)
        Non-hedge derivative losses                                                 -                (0.8)
        ------------------------------------------------------------------------------------------------------
                                                                          $       1.7         $      (1.3)
        ======================================================================================================
</TABLE>

        CONSOLIDATED STATEMENTS OF CASH FLOWS

        CASH INTEREST AND INCOME TAXES PAID:

<TABLE>
<CAPTION>
        ======================================================================================================
                                                                           THREE MONTHS ENDED MARCH 31,
                                                                     -----------------------------------------
                                                                              2005                2004
        ------------------------------------------------------------------------------------------------------
<S>                                                                       <C>                 <C>
        Interest                                                          $       1.6         $       0.4
        Income taxes                                                      $       1.6         $       1.7
        ======================================================================================================
</TABLE>

6.      FINANCIAL INSTRUMENTS

        From time to time, 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.

        During  2005,  the  Company  has  elected  to  mark-to-market   all  its
        derivative contracts.

        GOLD

        The outstanding  number of ounces,  average expected realized prices and
        maturities for the gold commodity  derivative  contracts as at March 31,
        2005 are as follows:

<TABLE>
<CAPTION>
        ----------------------------------------------------------------------------------------------------------------------------
                                                                                                     PUT OPTIONS
                                            SPOT DEFERRED   AVERAGE    CALL OPTIONS     AVERAGE           BOUGHT        AVERAGE
        EXPECTED YEAR OF DELIVERY           OUNCES HEDGED     PRICE    SOLD (OUNCES)  STRIKE PRICE       (OUNCES)     STRIKE PRICE
        ----------------------------------------------------------------------------------------------------------------------------
<S>                                                   <C>     <C>              <C>          <C>          <C>             <C>
        2005                                            -     $   -               -             -        112,500         $   250
        2006                                            -         -               -             -        150,000         $   250
        ----------------------------------------------------------------------------------------------------------------------------
                                                        -     $   -               -         $   -        262,500         $   250
        ============================================================================================================================
</TABLE>

        Spot  deferred  contracts for the sale of gold held at December 31, 2003
        did not meet the requirements  for formal hedge accounting  during 2004.
        For  accounting   purposes  the  portion  of  the  unrealized  loss,  as
        determined  on December 31, 2003,  was deferred on the balance sheet and
        is recognized  into earnings in  accordance  with the original  maturity
        dates of the  contracts.  During the three  months ended March 31, 2005,
        $1.6 million of these  deferred  losses were  recognized in metal sales.
        The remaining  $3.1 million will be  recognized  during the three months
        ended June 30, 2005.

        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.  The Company had no gold call options
        outstanding as at March 31, 2005 or December 31, 2004.

        FOREIGN CURRENCY

        At March 31, 2005, the Company's  consolidated  foreign currency program
        consists of:

<TABLE>
<CAPTION>
        ----------------------------------------------------------------------------------------------------------------------------
                                                  MATURITY                     AVERAGE                                  UNREALIZED
                                                    PERIOD                       PRICE                   DEFERRED             GAIN
                                              (TO THE YEAR)         QUANTITY   (C$/USD)    FAIR VALUE        GAIN       RECOGNIZED
        ----------------------------------------------------------------------------------------------------------------------------
                                                             (millions of USD)                           (millions of USD)
<S>                                                   <C>              <C>      <C>           <C>           <C>              <C>
        Fixed forward contracts                       2005             $ 5.0    1.4358        $ 0.9        $ 0.5            $ 0.4
        ============================================================================================================================
</TABLE>


                                       11
<PAGE>

        The Company uses fixed forward contracts to partially hedge its Canadian
        dollar  denominated mine operating costs and general and  administrative
        costs. Fixed forward contracts held at December 31, 2003, failed to meet
        the requirements for formal hedge accounting during 2004. For accounting
        purposes the unrealized  gain on these contracts as at December 31, 2003
        was $0.9  million.  This gain was deferred on the balance sheet and will
        be recognized in earnings in connection with the original maturity dates
        of the  contracts.  During the three months  ended March 31,  2005,  the
        Company  recognized into earnings $0.4 million of the deferred gain. The
        remaining deferred gain of $0.5 million will be recognized into earnings
        during  the  three  months  ended  June  30,  2005.  Both  realized  and
        unrealized net gains during 2005 from the  strengthening of the Canadian
        dollar against the U.S. dollar have been netted against  operating costs
        from the  Company's  Canadian  mines and  against  Canadian  general and
        administrative expenses.

7.      LONG-TERM DEBT

        The following table shows the breakdown of long-term debt:

<TABLE>
<CAPTION>
        ==============================================================================================================
                                                                                                  AS AT
                                                                                  ------------------------------------
                                                                                      MARCH 31,         DECEMBER 31,
                                                                                        2005                2004
        --------------------------------------------------------------------------------------------------------------
<S>                                                                               <C>                <C>
        Corporate revolving credit facility                     Variable            $      120.0        $      105.0
        Kubaka project-financing debt - EBRD loan               Variable                     2.8                 2.7
        Fort Knox capital leases                              5.0% - 5.25%                   1.7                 2.1
        Refugio capital leases                                5.7% - 6.2%                   14.5                13.1
        --------------------------------------------------------------------------------------------------------------
                                                                                           139.0               122.9
        Less: current portion                                                               (6.1)               (6.0)
        --------------------------------------------------------------------------------------------------------------
        Long-term debt                                                              $      132.9        $      116.9
        ==============================================================================================================
</TABLE>

        CORPORATE REVOLVING CREDIT FACILITY

        During the three  months  ended March 31,  2005,  one of the  facility's
        lenders  increased  its limit by $15 million.  The Company  subsequently
        drew down on this additional  amount as a LIBOR loan, which was used for
        working  capital  purposes,   bringing  the  total  of  the  LIBOR  loan
        outstanding  under the facility to $120.0  million as at March 31, 2005.
        The  facility  also  provides  credit  support  for letters of credit to
        satisfy  financial  assurance  requirements,  primarily  associated with
        reclamation related activities.  As at March 31, 2005, letters of credit
        totaling  $99.5  million had been issued  under this  facility,  up from
        $94.9 million at December 31, 2004.

        In April 2005, the  outstanding  limit was increased to $295 million and
        the maturity date extended to April 30, 2008. Upon each of the first two
        anniversaries of the facility, with the lenders consent, the Company may
        extend the maturity of the facility by one year. Please refer to Note 12
        b) for changes related to the credit facility.

8.      COMMON SHARE CAPITAL

        At  March  31,  2005,   the  Company  had   345,153,000   common  shares
        outstanding.  If all outstanding options and warrants had been exercised
        and all preferred shares converted a total of 357,659,000  common shares
        would have been outstanding.


                                       12
<PAGE>

        A summary of common share  transactions for the three months ended March
        31, 2005 is as follows:

<TABLE>
<CAPTION>
        -------------------------------------------------------------------------------------------------------------
                                                                                           THREE MONTHS ENDED
                                                                                             MARCH 31, 2005
        -------------------------------------------------------------------------------------------------------------
                                                                                        Number of
                                                                                         shares           Amount
        -------------------------------------------------------------------------------------------------------------
                                                                                         (000's)            $
<S>                                                                                      <C>             <C>
        COMMON SHARES
        Balance, beginning of period                                                     345,066         $  1,766.4
        Issued (cancelled):
          Under employee share purchase plan                                                  57                0.4
          Under stock option and restricted share plan                                        29                0.1
          Expiry of TVX and Echo Bay options                                                   -               (0.2)
        Conversions:
          Kinam preferred shares                                                               1                  -
        -------------------------------------------------------------------------------------------------------------
        Balance, end of period                                                           345,153         $  1,766.7
        -------------------------------------------------------------------------------------------------------------

        COMMON SHARE PURCHASE WARRANTS
        Balance, beginning and end of period                                               8,333         $      9.4
        -------------------------------------------------------------------------------------------------------------
        Total common share capital                                                                       $  1,776.1
        -------------------------------------------------------------------------------------------------------------
</TABLE>

9.      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
        per common share for the following periods:

<TABLE>
<CAPTION>
        -------------------------------------------------------------------------------------------------------------
                                                                                           THREE MONTHS ENDED
                                                                                  -----------------------------------
                                                                                       MARCH 31,         MARCH 31,
        (NUMBER OF COMMON SHARES IN THOUSANDS)                                         2005  (a)           2004
        -------------------------------------------------------------------------------------------------------------
<S>                                                                                     <C>                <C>
        Basic weighted average shares outstanding:                                      345,079            345,780
        Weighted average shares dilution adjustments:
          Dilutive stock options (b)                                                          -                352
          Restricted shares                                                                   -                206
        -------------------------------------------------------------------------------------------------------------
        Diluted weighted average shares outstanding                                     345,079            346,338
        -------------------------------------------------------------------------------------------------------------

        Weighted average shares dilution adjustments - exclusions: (c)
          Dilutive stock options                                                              -                  -
          Restricted shares                                                                   -                  -
          Redeemable preferred shares                                                         -              1,058
          Kinam preferred shares                                                              -                334
        -------------------------------------------------------------------------------------------------------------
</TABLE>

        (a)     As a result of the net loss from  continuing  operations for the
                three months ended March 31,  2005,  diluted  earnings per share
                was  calculated   using  the  basic   weighted   average  shares
                outstanding because to do otherwise would be anti-dilutive.
        (b)     Dilutive  stock  options were  determined by using the Company's
                average  share price for the period.  For the three months ended
                March 31,  2005 and 2004,  the  average  share  prices used were
                $6.60 and $7.14 per share, respectively.
        (c)     These adjustments were excluded,  as they were anti-dilutive for
                the three months ended March 31, 2005 and 2004, respectively.


                                       13
<PAGE>

10.     SEGMENTED INFORMATION

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

<TABLE>
<CAPTION>
        ============================================================================================================================
                                                                                                                          SEGMENT
                                         METAL   COST OF                                                                 EARNINGS
                                         SALES    SALES    ACCRETION   DD&A (a)   EXPLORATION    IMPAIRMENT   OTHER (c)    (LOSS)
        ----------------------------------------------------------------------------------------------------------------------------
<S>                                    <C>       <C>         <C>       <C>        <C>            <C>          <C>         <C>
        For the three months ended
          March 31, 2005:
        OPERATING SEGMENTS
          Fort Knox                    $  30.5   $  17.5     $ 0.3     $  7.7     $       0.1    $        -   $    0.3    $   4.6
          Kubaka                          18.3      13.5       0.1        3.7             0.5             -        0.1        0.4
          Round Mountain                  39.9      24.1       0.5       10.9             0.1             -          -        4.3
          La Coipa                        17.6      12.5       0.1        4.4             0.2             -        0.3        0.1
          Crixas                          10.3       3.5         -        2.9             0.1             -          -        3.8
          Paracatu (b)                    18.6      12.3       0.2        3.6             0.4             -          -        2.1
          Musselwhite                      8.8       6.4         -        3.1             0.4             -          -       (1.1)
          Porcupine Joint Venture         22.0      13.3       0.2        4.7             1.0             -          -        2.8
          Other operations                14.1      10.2       0.4        2.8               -             -        2.3       (1.6)
        CORPORATE AND OTHER (d )          (0.3)     (0.2)      1.5        0.5             2.1           0.6       10.6      (15.4)
        ----------------------------------------------------------------------------------------------------------------------------
        TOTAL                          $ 179.8   $ 113.1     $ 3.3     $ 44.3     $       4.9    $      0.6   $   13.6    $     -
        ============================================================================================================================


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

        (a)     Depreciation,  depletion  and  amortization  is  referred  to as
                "DD&A" in the tables above.
        (b)     The  acquisition of Paracatu was completed on December 31, 2004,
                therefore,  the  Company's  49% portion  of  Paracatu  operating
                results have been  included for the three months ended March 31,
                2004 and 100% for the three months ended March 31, 2005.
        (c)     Other includes other operating costs, general and administrative
                expenses and (gain) loss on disposal of assets.
        (d)     Includes corporate, shutdown and other non-core operations.


                                       14
<PAGE>

        SEGMENT ASSETS AND CAPITAL EXPENDITURES

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

<TABLE>
<CAPTION>
        =======================================================================================================================
                                                                   SEGMENT ASSETS                      CAPITAL EXPENDITURES
                                                            -----------------------------         -----------------------------
                                                                       AS AT                           THREE MONTHS ENDED
                                                            -----------------------------                   MARCH 31,
                                                                MARCH 31,      DEC 31,            -----------------------------
                                                                  2005          2004                   2005           2004
        -----------------------------------------------------------------------------------------------------------------------
<S>                                                            <C>           <C>                     <C>           <C>
        OPERATING SEGMENTS
          Fort Knox                                            $   291.2     $    284.2              $    10.5     $      7.2
          Kubaka                                                    51.0           50.5                    0.1            4.5
          Round Mountain                                           196.3          205.8                    1.0            1.8
          La Coipa                                                 154.2          162.3                    1.0            0.3
          Crixas                                                   104.5          102.9                    1.4            0.7
          Paracatu (a)                                             540.3          539.1                    3.9            0.7
          Musselwhite                                              125.4          127.0                    1.2            0.4
          Porcupine Joint Venture                                   89.5           89.3                    6.1            2.3
          Other Operations                                         152.6          196.4                   12.6            1.7
        CORPORATE AND OTHER (b)                                    132.0           76.7                    0.3            0.2
        -----------------------------------------------------------------------------------------------------------------------
        TOTAL                                                  $ 1,837.0     $  1,834.2              $    38.1     $     19.8
        =======================================================================================================================
</TABLE>

        (a)     Segment  assets and capital  expenditures  for the three  months
                ended March 31, 2005 reflect the 100%  interest in the assets of
                Paracatu as a result of the December 31,  2004,  acquisition  of
                the remaining 51% interest in the Paracatu mine.
        (b)     Includes  corporate,  shutdown  operations  and  other  non-core
                operations.  Also  includes  $23.3  million and $14.4 million in
                cash  and cash  equivalents  held at the  corporate  level as at
                March 31, 2005 and December 31, 2004, respectively.

        METAL SALES AND PROPERTY, PLANT & EQUIPMENT BY GEOGRAPHICAL REGIONS

<TABLE>
<CAPTION>
        =======================================================================================================================
                                                                      METAL SALES                  PROPERTY, PLANT & EQUIPMENT
                                                            -----------------------------         -----------------------------
                                                                  THREE MONTHS ENDED                          AS AT
                                                                        MARCH 31,                 -----------------------------
                                                            ------------------------------           MARCH 31,    DECEMBER 31,
                                                                 2005           2004                   2005          2004
        -----------------------------------------------------------------------------------------------------------------------
<S>                                                            <C>           <C>                    <C>           <C>
        GEOGRAPHIC INFORMATION:
        United States                                          $   77.2      $    79.6              $    342.4    $     351.4
        Canada                                                     36.5           27.5                   217.8          217.8
        Russia                                                     18.3           12.0                     5.3            9.0
        Chile                                                      18.9           16.7                   126.7          117.1
        Brazil (a)                                                 28.9           19.0                   545.7          547.1
        Other                                                         -              -                     1.7            1.7
        -----------------------------------------------------------------------------------------------------------------------
        Total                                                  $  179.8      $   154.8              $  1,239.6    $   1,244.1
        =======================================================================================================================
</TABLE>

        (a)     Property,  plant and  equipment  and  metal  sales for the three
                months  ended  March 31, 2005  reflect the 100%  interest in the
                assets  of  Paracatu  as a  result  of  the  acquisition  of the
                remaining 51% interest in the Paracatu mine.

        The  Company  is not  economically  dependent  on a  limited  number  of
        customers  for the sale of its product  because gold can be sold through
        numerous commodity market traders worldwide.  For the three months ended
        March 31, 2005 sales to five  customers  totaled  $46.3  million,  $23.6
        million, $22.6 million,  $22.2 million and $19.3 million,  respectively.
        For the three  months  ended  March 31,  2004  sales to three  customers
        totaled $53.4 million, $30.9 million and $24.1 million, respectively.

11.     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.


                                       15
<PAGE>

        LEGAL MATTERS

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

        CLASS ACTION

        The Company was named as a defendant in a Class Action  Complaint  filed
        on or about April 26, 2002 (the "Complaint"),  entitled Robert A. Brown,
        et  al.   v.   Kinross   Gold   U.S.A.,   Inc.,   et   al.,   Case   No.
        CV-S-02-0605-PMP-RJJ,  in the  United  States  District  Court  for  the
        District of Nevada.  The Complaint named as defendants the Company,  its
        subsidiaries,  Kinross Gold U.S.A., Inc. and Kinam Gold, Inc. ("Kinam"),
        and Robert M. Buchan,  former  President and C.E.O. of the Company.  The
        Complaint  was  filed  on  behalf  of  one  potential  class  and  three
        subclasses,  i.e.,  those  who  tendered  their  Kinam  $3.75  Series  B
        Preferred  Stock (the "Kinam  Preferred")  into the tender offer for the
        Kinam  Preferred  made by the  Kinross  Gold  U.S.A.,  those who did not
        tender their Kinam  Preferred  but later sold it directly to the Company
        or any of its controlled  entities after closure of the tender offer and
        delisting of the Kinam  Preferred,  and those who continue to hold Kinam
        Preferred.  The  Complaint  alleged,  among other  things,  that amounts
        historically   advanced   to  Kinam   should  be   treated   as  capital
        contributions  rather than loans,  that the purchase of Kinam  Preferred
        from  certain  institutional   investors  in  July  2001  constituted  a
        constructive   redemption  of  the  Kinam  Preferred,  an  impermissible
        amendment  to the  conversion  rights  of the  Kinam  Preferred,  or 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,  and that the amount offered in the tender offer
        of $16.00 per share was not a fair valuation of the Kinam Preferred. The
        Complaint  alleged breach of contract based on the governing  provisions
        of the Kinam Preferred;  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;  federal
        securities  fraud  in  violation  of  Section  10(b)  and  14(c)  of the
        Securities  Exchange  Act of 1934,  as  amended,  and  Rules  10b-5  and
        14c-6(a) thereunder;  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 named the same parties as defendants.  This action has been
        consolidated  into the Brown case,  and the Brown  plaintiffs  have been
        designated as lead plaintiffs. Among other remedies, the plaintiffs seek
        damages ranging from $9.80 per share, plus accrued dividends,  to $39.25
        per share of Kinam  Preferred  or, in the  alternative,  the issuance of
        26.875 to 80.625  shares of the  Company for each Kinam  Preferred.  The
        Company  brought a motion for judgment on the pleadings  with respect to
        the federal  securities  fraud claims.  On September 29, 2003, the Court
        ruled  that  plaintiffs  had  failed to  adequately  state  any  federal
        securities  fraud claim,  but allowed the  Plaintiffs an  opportunity to
        file an amended complaint.  In response, the plaintiffs filed an Amended
        Class Action Complaint (the "Amended Complaint"),  and the Company again
        moved for  judgment on the  pleadings  on the federal  securities  fraud
        claims.  On  November  2, 2004,  the Court  granted  the second  motion,
        dismissing with prejudice Counts V, VI and VII of the Amended Complaint.
        Subsequently,  the Company  moved for judgment on the pleadings on Count
        III (the Best Price Rule) and Count IV (the  Nevada Rico  Claims) of the
        Amended  Complaint.  The Plaintiffs opposed the motion and filed a cross
        motion for summary  judgment on Count III (the Best Price Rule).  On May
        27, 2005,  the Court granted the Company's  motion and dismissed  Counts
        III and IV of the Amended Complaint. On June 14, 2005, the Court granted
        plaintiffs'  unopposed  motion for  certification of the class and three
        subclasses. 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).

        THE HELLENIC GOLD PROPERTIES LITIGATION

        Pursuant to an October 14, 1998 judgment of the Ontario  Court  (General
        Division),  Kinross  had been  holding  a 12%  carried  interest  in the
        Hellenic Gold  Properties as  constructive  trustee for the Alpha Group.
        The Alpha Group  commenced  an action for damages  against TVX Gold Inc.
        ("TVX")  and Kinross  alleging  among  other  things,  a breach of trust
        arising from Kinross' decision to return the Hellenic Gold Properties to
        the Greek Government and place TVX Hellas into  bankruptcy.  In November
        2005,  Kinross entered into a settlement  agreement with the Alpha Group
        pursuant to which Kinross paid the Alpha Group $8.0 million inclusive of
        legal costs and the parties  exchanged  mutual releases which brings all
        litigation between Kinross and the Alpha Group to an end (See note 12 d)
        for discussion on subsequent events).

        1235866  Ontario Inc.  ("1235866"),  the successor to Curragh  Resources
        Inc.  commenced  an  action  against  the  Alpha  Group  and TVX in 1998
        relating  to the  Hellenic  Gold  Properties.  The action  alleged  that
        members of Alpha  Group had used  confidential  Curragh  information  in
        their  pursuit of the Hellenic  Gold  Properties  and that Alpha and TVX
        held their respective interest in these properties in trust for 1235866.

        On July 28, 1999,  TVX entered into an  agreement  with 1235866  whereby
        1235866 agreed to limit any claim against TVX and diligently  pursue its
        claim against the Alpha Group.  In the event that 1235866 was successful
        in its actions  against the Alpha Group,  it would become  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


                                       16
<PAGE>

        connection with the acquisition,  exploration, development and operation
        of the  Hellenic  mines  to the  date of the  exercise  of the  right to
        acquire the participating interest.

        As  a  result  of  Kinross'  decision  to  return  the  Hellenic  Mining
        Properties to the Greek Government, place TVX Hellas into bankruptcy and
        settle with the Alpha Group;  1235866 has  threatened an action  against
        Kinross  for  breach of trust and  breach of the  agreement.  To date no
        pleadings have been  exchanged  with respect to the  threatened  action.
        Kinross believes that it has a good defence to this threatened action.

        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  Manhattan  mines
        ("Royalty  Lawsuit.")  The Manhattan mine is no longer in production and
        the McCoy/Cove mine was sold in January 2003. The assets and liabilities
        of the Subsidiaries  are included under the heading  Corporate and other
        in the  segmented  information  (see  Note  10).  The  first  trial  was
        conducted in the Eighth Judicial  District Court  ("District  Court") of
        Nevada April 1997, with Summa claiming more than $13.0 million in unpaid
        royalties and accrued interest.  In September 1997, judgment was entered
        on  behalf  of  the  Subsidiaries  and  the  Subsidiaries  were  awarded
        approximately  $300,000 in attorney's fees and litigation  costs.  Summa
        appealed  this  judgment to the Nevada  Supreme Court and in April 2002,
        the Supreme Court,  sitting en banc,  reversed the Judgment of the trial
        court  and  returned  the  action  to the  District  Court  for  further
        proceedings consistent with its appellate opinion.

        In  September  2004,  the  District  Court  ordered  that a new trial be
        conducted in February  2005.  In the new trial,  Summa updated its claim
        for unpaid royalties and accrued  interest to the approximate  amount of
        $25.0 million.  In May 2005, judgment was again entered in favour of the
        Subsidiaries,  with Summa receiving nothing by way of its complaint. The
        Subsidiaries'  Motions for Litigation Costs and Attorney's Fees for both
        trial proceedings were granted, resulting in a judgment against Summa in
        the approximate amount of $700,000. Summa has filed its notice of appeal
        in July 2005. The appellate schedule has not been set yet.

        In March, 2004, Summa's successor in interest,  Howard Hughes Properties
        ("Hughes"),  filed an action in District  Court against Echo Bay and its
        Subsidiaries  (collectively,  ("Echo Bay Entities"),  as well as Newmont
        Mining  Corporation  ("Newmont")  more than  thirty  current  and former
        directors of the Echo Bay Entities,  Kinross and Newmont  ("Director and
        Officer   Defendants")   and   fifty   Doe   defendants   (collectively,
        "Defendants".)   The  lawsuit   alleges  claims  based  upon  a  general
        allegation of a scheme or artifice to defraud,  in which Defendants,  at
        various  indeterminate  times and places,  diverted and  distributed the
        assets of Echo Bay Entities (to render the Echo Bay Entities  insolvent)
        to each  other,  so Hughes  would be unable to collect  any  judgment it
        might obtain  against the Echo Bay  Defendants  (Echo Bay Management and
        Echo Bay  Exploration) in the Royalty Lawsuit.  Immediately  after being
        served,  the Echo Bay Entities  filed a Demand for Change of Venue as of
        Right and  simultaneously  moved for a Change of Venue. In May 2004, the
        District Court denied the motion without  explanation,  although,  as of
        that date,  none of the  defendants  that had appeared  resided in Clark
        County.  The Echo Bay Entities  immediately filed their Notice of Appeal
        from this venue  ruling.  The Echo Bay Entities  also filed a Demand for
        Stay  of the  District  Court  proceedings  pending  resolution  of that
        appeal.  The District Court granted that motion in part and denied it in
        part, staying all claims in Respondent's  Complaint except for the claim
        asserting  violation  of the Nevada  Uniform  Fraudulent  Transfers  Act
        ("NUFTA").

        In  September  2004,  Hughes  filed  a  First  Amended  Complaint.   All
        Defendants  filed a series of motions  pursuant  to Nevada Rule of Civil
        Procedure 12 to the remaining NUFTA claim, including a Motion to Dismiss
        for  Lack  of  Personal  Jurisdiction,  a  Motion  for  Judgment  on the
        Pleadings  and a Motion to Dismiss as a sanction  for  failure to comply
        with the District  Court's Order to Amend. In January 2005, the District
        Court  entered an Order  granting  all motions  except for the Motion of
        Judgment on the Pleadings.

        On June 10, 2005,  the Echo Bay Entities and Kinross  filed a Motion for
        Judgment on the  Pleadings and to Dismiss,  based on res judicata,  as a
        final judgment was entered against  Respondents in the Royalty  Lawsuit.
        In response, Respondent filed a Motion to Stay All Proceedings and later
        filed an  Opposition,  arguing that the judgment  entered in the Royalty
        Lawsuit is not a final  judgment,  and that until the  judgment  becomes
        final (by affirmation  from this Court or otherwise),  the NUFTA lawsuit
        should be stayed.  The Echo Bay Entities and Kinross  opposed the motion
        to stay.

        All of the pending  motions  were heard on July 5, 2005 by the  District
        Court. The District Court denied  Appellants' Motion for Judgment on the
        Pleadings and to Dismiss. However, the District Court did agree with the
        Echo Bay  Defendants  that all of Hughes'  common law claims (Counts 1-2
        and 4-8) were not ripe for adjudication and dismissed those claims.  The
        District Court  declined to dismiss the NUFTA claim and instead  entered
        an Order  staying  that the claim  pending  the  outcome of the  Royalty
        Lawsuit appeal.

        After this extensive motion practice,  all claims from Hughes' Complaint
        have been dismissed, except for the NUFTA claim, which is stayed pending
        the outcome of the appeal on the Royalty  Lawsuit.  The only  defendants
        remaining are the Echo Bay Entities, Kinross, Newmont Mining Corporation
        and five of the individual defendants (who did not join in the motion to
        dismiss for lack of personal  jurisdiction.)  Hughes' motion to stay the
        Venue appeal remains pending.


                                       17
<PAGE>

        INCOME TAXES

        The  Company  operates  in  numerous  countries  around  the  world  and
        accordingly  is  subject  to, and pays  annual  income  taxes  under the
        various regimes in countries in which it operates. These tax regimes are
        determined under general  corporate income tax laws of the country.  The
        Company has  historically  filed,  and  continues to file,  all required
        income tax returns and to pay the taxes reasonably determined to be due.
        The tax rules and  regulations in many countries are complex and subject
        to  interpretation.  From time to time the Company will undergo a review
        of its  historic  tax  returns  and in  connection  with  such  reviews,
        disputes  can  arise  with the  taxing  authorities  over the  Company's
        interpretation  of the country's  income tax rules. As at March 31, 2005
        the  Company  had  the  following  disputes  and  has  not  accrued  any
        additional tax liabilities in relation to the disputes listed below:

        BRAZIL

        In  September  2005,  Mineracao  Serra  Grande,  S.A.  ("MSG")  received
        assessments  relating  to  payments  of  sales  taxes on  exported  gold
        deliveries  from tax  inspectors  for the State of Goias.  The Company's
        share of the assessments is approximately $29.0 million. The counsel for
        MSG believes the suit is in  violation of Federal  legislation  on sales
        taxes  and that  there is a remote  chance of  success  for the State of
        Goias. The assessment has been appealed.  This  reassessment  relates to
        the Crixas operating segment.

12.     SUBSEQUENT EVENTS

a)      AGREEMENT TO ACQUIRE CROWN RESOURCES CORPORATION
        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 Mines Ltd.  ("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 $10.0  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.

        As a result of the restatement discussed in Note 3, the Company plans to
        engage in further  discussions  with Crown  Resources to  determine  the
        future process for this transaction.

b)      SYNDICATED CREDIT FACILITY
        In December  2004,  Kinross  replaced its existing  $125 million  credit
        facility with a new three-year $200 million  revolving  credit facility.
        The  facility  allowed for the limit to be increased to $300 million and
        allows for up to seventy percent of the outstanding limit to be drawn in
        gold. In April 2005, the outstanding limit was increased to $295 million
        and the maturity  date  extended to April 30, 2008. A total of ten banks
        have  participated in the facility.  Obligations  under the facility are
        secured  by the assets of the Fort Knox mine as well as by the pledge of
        shares in various wholly owned subsidiaries.

c)      SALE OF INVESTMENTS
        On September 2, 2005, the Company agreed to sell 23.33% of the shares of
        KF Ltd. to Balloch Resources Ltd.,  ("Balloch") and retain 11.67% of the
        initial interest.  The payment of the consideration for the sale of such
        shares in the amount of CDN $5.5 million is subject to the  satisfaction
        of various conditions, including regulatory approvals and the completion
        of a private  placement  by Balloch of at least CDN $10.0  million.  Art
        Ditto,  a former  director  and  officer  of the  Company,  owns a 17.4%
        interest in the outstanding common shares of Balloch and upon closing of
        the private placement which was completed on October 19, 2005, Mr. Ditto
        was appointed as the President and Chief  Executive  Officer of Balloch.
        Mr. Robert Buchan a former  officer and director of the Company was also
        appointed the  non-executive  Chairman of Balloch.  On November 30, 2005
        Balloch Resources changed its name to Katanga Mining Ltd.

d)      SETTLEMENT OF LITIGATION
        On November 4, 2005, the Company settled the litigation  associated with
        the Alpha group regarding the Hellenic mines for $8.0 million.  The cost
        of this settlement was included in the accrual for litigation in 2004.


                                       18
<PAGE>

e)      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 proceeds which will be
        ultimately valued on closing were estimated to be $14.3 million.  During
        the three  months ended  September 30, 2005, the Company has recorded an
        impairment  charge  related to  carrying  value of  property,  plant and
        equipment and goodwill of the Aquarius project for $36.8 million.


                                       19

<PAGE>

        MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
                          FINANCIAL CONDITION ("MD&A")


THIS MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL
CONDITION  ("MD&A") SHOULD BE READ IN CONJUNCTION WITH THE INTERIM  CONSOLIDATED
FINANCIAL  STATEMENTS OF KINROSS GOLD  CORPORATION  ("KINROSS" OR THE "COMPANY")
FOR THE  PERIOD  ENDED  JUNE 30,  2005.  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  THE  COMPANY'S
RESTATED  ANNUAL AUDITED  CONSOLIDATED  FINANCIAL  STATEMENTS  AND  MANAGEMENT'S
DISCUSSION  AND  ANALYSIS FOR THE YEAR ENDED  DECEMBER  31, 2004 FOR  ADDITIONAL
DETAILS,  WHICH ARE AVAILABLE ON THE COMPANY'S  WEBSITE  WWW.KINROSS.COM  AND ON
WWW.SEDAR.COM.  THE  INTERIM  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 AS A NOTE TO THE
ANNUAL  AUDITED  FINANCIAL  STATEMENTS.  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, 2005.  THIS
MD&A HAS BEEN PREPARED AS OF FEBRUARY 15, 2006.

1.      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 and many of
the costs associated with the Company's operations 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.

CONSOLIDATED FINANCIAL AND OPERATING HIGHLIGHTS

<TABLE>
<CAPTION>
------------------------------------------------- ----------------------- ----------- ----------------------- -----------
                                                    Three months ended                   Six months ended
                                                          June 30,            Q2              June 30,            YTD
------------------------------------------------- ----------------------- ----------- ----------------------- -----------
(IN MILLIONS EXCEPT OUNCES AND PER SHARE AMOUNTS     2005         2004      CHANGE       2005         2004      CHANGE
------------------------------------------------- ----------- ----------- ----------- ----------- ----------- -----------
<S>                                                <C>         <C>               <C>   <C>         <C>               <C>
Gold equivalent ounces - produced (a)                413,597     420,093         (2%)    824,077     817,104          1%
Average realized gold price ($/ounce)              $     421   $     389          8%   $     425   $     395          8%
Metal sales                                        $   174.6   $   158.2         10%   $   354.4   $   313.0         13%
Net earnings (loss)                                $   (16.4)  $    11.7          nm   $   (17.3)  $    19.4          nm
Basic and diluted earnings (loss) per share        $   (0.05)  $    0.03          nm   $   (0.05)  $    0.06          nm
Cash flow from operating activities                $    30.6   $    25.4         20%   $    57.4   $    40.4         42%
------------------------------------------------- ----------- ----------- ----------- ----------- ----------- -----------
</TABLE>

(a)     Gold equivalent ounces include silver ounces produced  converted to gold
        based on the ratio of the average spot market prices for the commodities
        for each period.  This ratio for the three and six months ended June 30,
        2005 was 59.75:1 and 60.51:1,  respectively,  compared  with 62.94:1 and
        61.98:1 for the three and six months ended June 30, 2004.

(b)     "nm" refers to not meaningful.

2.      IMPACT OF KEY ECONOMIC TRENDS

Kinross' 2004 annual MD&A containS a discussion of the key economic  trends that
affect the Company  and its  financial  statements.  Included in this MD&A is an
update that reflects any  significant  changes since the preparation of the 2004
Annual MD&A.

PRICE OF GOLD

The price of gold is the largest single factor in determining  profitability and
cash flow from operations. During the second quarter of 2005, the average market
price of gold was $427 per  ounce,  compared  with an  average of $393 per ounce
during the comparable period in 2004. Year-to-date,  the average market price of
gold was also $427 per ounce,  ranging between a low of $411 per ounce to a high
of $444 per ounce,  compared with an average of $401 per ounce in the first half
of 2004.  During the first six months of 2005,  the Company  realized an average
price of $425 per ounce on its sale of gold.

U.S. DOLLAR AGAINST FOREIGN CURRENCIES

Kinross receives its revenues through the sale of gold in U.S. dollars. However,
for the Company's  non-U.S.  operations,  a portion of the  operating  costs and
capital  expenditures are denominated in the local currency.  Kinross'  non-U.S.
operations are located in Canada, Brazil, Chile and Russia, and movements in the
exchange rate between the currencies of these countries and the U.S. dollar have
an  impact on  profitability  and cash  flow.  During  the  first  half of 2005,
compared  with the same period in 2004,  the Canadian  dollar,  Brazilian  real,
Chilean  peso and the Russian  ruble were all stronger  against the U.S.  dollar
resulting in increased costs to the Company.


                                       1
<PAGE>

INFLATIONARY COST PRESSURES

In addition to the weaker U.S. dollar, the Company's profitability has also been
negatively  impacted by rising  development  and operating costs with respect to
labour,  energy  and  consumables  in  general.  Mining is an  energy  intensive
activity,  and energy prices in the form of both fuel and electricity can have a
significant impact on operations. Other consumables, such as steel, concrete and
tires,  have  also had a  recent  increase  in  price.  One of the  goals of the
Company's  focus on continuous  improvement is to seek to mitigate the impact of
higher  consumable  prices  by  extending  the life of  capital  assets  and the
efficient use of materials and supplies in general.

3.      DEVELOPMENTS

RESTATEMENT FOR CORRECTION OF FOREIGN CURRENCY IMPACT ON FUTURE TAX LIABILITIES

During its preparation of the interim financial statements for 2005, the Company
and  its  auditors  discovered  an  error  relating  to  its  audited  financial
statements  for the years ended  December  31, 2003 and 2004 and the  respective
interim periods. In the previously released financial statements the Company had
not properly  assessed the impact of changes in foreign currency rates affecting
the timing  differences  resulting from a difference  between accounting and tax
basis,  which form the basis for the future tax liabilities.  As a result of the
restatement,  these  liabilities  are adjusted for 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 the  foreign  currency  exchange  rate
related  primarily to the future tax  liabilities  of the Brazilian  operations.
This non-cash  adjustment had no impact on operating cash flows or cash balances
previously reported. The financial statements for the respective interim periods
in 2005 are not restated.

All  amounts  included  in this  report  have been  adjusted to reflect the 2004
restatement.  The  following  is a summary of the effects of the  aforementioned
adjustments on our consolidated financial statements:

CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------
                                   As previously
                                     reported (a)        Adjustments        As restated
------------------------------------------------------------------------------------------
<S>                                    <C>                 <C>                <C>
As at December 31, 2004
Liabilities
  Future income and mining taxes       $   90.6            $  32.9            $  123.5
Common shareholders' equity
  Accumulated deficit                  $ (487.7)           $ (33.7)           $ (521.4)
  Cumulative translation adjustment    $   (2.0)           $   0.8            $   (1.2)
------------------------------------------------------------------------------------------
</TABLE>
(a)     As  previously  disclosed in the 2004  financial  statements  filed with
        regulators in November 2005.


                                       2
<PAGE>

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
------------------------------------------------------------------------------------------------------
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) recovery                     $   (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
------------------------------------------------------------------------------------------------------
</TABLE>
(a)     As previously  disclosed in the second quarter 2004 financial statements
        filed with regulators in November 2005.

AGREEMENT TO ACQUIRE CROWN RESOURCES CORPORATION

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 kilometres
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 United  States
Securities  and Exchange  Commission  and approval by Crown  shareholders.  As a
result of the review  undertaken of the  accounting for goodwill in the TVX Gold
Inc. ("TVX") and Echo Bay Mines Ltd. ("Echo Bay") transaction, the completion of
the registration statement has been delayed.

On January 7, 2005, 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  purchased  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 has the
right to convert all amounts  due under this  debenture  to shares of its common
stock by providing 30 days' prior notice to Kinross.

As a result of the  restatement  of the years ended  December 31, 2004 and 2003,
for the correction of the foreign currency impact on future tax liabilities, the
Company  plans to engage in  further  discussions  with Crown to  determine  the
future process for this transaction.

SALE OF AQUARIUS GOLD PROPERTY

On December 7, 2005,  Kinross signed a letter of intent whereby it will sell its
Aquarius  gold property to St Andrew  Goldfields  Ltd. ("St Andrew") in exchange
for 100 million common shares of St Andrew and warrants to acquire 25 million St
Andrew common shares at a price of CDN$0.17 per share for a period of 24 months.
Based on an  estimated  value  of  $14.3  million  for the  consideration  to be
received and a carrying  value for the Aquarius gold property of $51.1  million,
the Company will record an  impairment  of $36.8  million on the property in the
third quarter of 2005.

                                       3
<PAGE>

RESERVE INCREASE AT PARACATU

On November 21, 2005, the Company  announced that estimated  proven and probable
reserves at the Paracatu mine had increased to 13.3 million ounces,  an increase
of 4.8 million  ounces  above the reserves  reported at December  31, 2004.  The
increase was the result of a drill program initiated at the mine site in January
2005,  following  the purchase of the  remaining  51% of Paracatu from Rio Tinto
Plc. on December 31, 2004. The current  reserves were  estimated,  as at October
31, 2005, using a gold price of $400 per ounce,  compared with $350 per ounce at
December 31, 2004.(1)

SALE OF INTEREST IN KINROSS FORREST

On September 2, 2005, the Company agreed to sell 23.33% of the shares of Kinross
Forrest Ltd. ("KF Ltd.") to Balloch Resources Ltd. ("Balloch") and retain 11.67%
of the initial  interest.  The payment of the consideration for the sale of such
shares in the  amount of CDN $5.5  million is  subject  to the  satisfaction  of
various  conditions,  including  regulatory  approvals  and the  completion of a
private  placement by Balloch of at least CDN $10 million.  Art Ditto,  a former
director and officer of the Company,  owns a 17.4%  interest in the  outstanding
common  shares of Balloch and upon closing of the private  placement,  which was
completed  on October 19,  2005,  Mr. Ditto was  appointed  President  and Chief
Executive  Officer of Balloch.  Mr. Robert Buchan, a former officer and director
of the Company,  was also appointed the  non-executive  Chairman of Balloch.  On
November 30, 2005, Balloch changed its name to Katanga Mining Ltd.

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

(1)     For details  concerning  mineral reserve and mineral resource  estimates
        refer to the mineral reserves and mineral  resources tables and notes in
        the company's annual information form.


                                       4
<PAGE>

4.      CONSOLIDATED FINANCIAL RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE
        30, 2005

SUMMARY OF CONSOLIDATED FINANCIAL AND OPERATING PERFORMANCE

<TABLE>
<CAPTION>
------------------------------------------------- --------------------------- ------------- --------------------------- ------------
                                                       Three months ended                        Six months ended
                                                            June 30,                Q2                June 30,              YTD
------------------------------------------------- --------------------------- ------------- --------------------------- ------------
(IN MILLIONS EXCEPT OUNCES AND PER SHARE AMOUNTS       2005          2004         CHANGE         2005         2004         CHANGE
------------------------------------------------- ------------- ------------- ------------- ------------- ------------- ------------
<S>                                                <C>           <C>                <C>      <C>           <C>                 <C>
Gold equivalent ounces - sold                          413,306       406,925          2%         829,074       794,405          4%
Gold ounces - sold                                     399,825       391,737          2%         800,939       765,863          5%
Silver ounces - sold                                   803,913       952,697        (16%)      1,702,367     1,769,010         (4%)
Average realized gold price ($/ounce)              $       421   $       389          8%     $       425   $       395          8%
Gold sales - revenue                               $     170.9   $     154.7         10%     $     343.1   $     308.5         11%
Gold deferred revenue (expense) realized                  (2.5)         (2.2)       (14%)           (2.8)         (6.3)        56%
Silver sales revenue                                       6.2           5.7          9%            14.1          10.8          31%
                                                   -----------   -----------       ----      -----------         -----         ---
Total metal sales                                  $     174.6   $     158.2        10%      $     354.4   $     313.0         13%
Operating earnings (loss)                          $      (0.7)  $      (0.4)      (75%)     $      (0.7)  $       9.0          nm
Net earnings (loss)                                $     (16.4)  $      11.7         nm      $     (17.3)  $      19.4          nm
Basic and diluted earnings (loss) per share        $     (0.05)  $      0.03         nm      $     (0.05)  $      0.06          nm
------------------------------------------------- ------------- ------------- ------------- ------------- ------------- ------------
</TABLE>

-------------------------------------------------- ------------- ---------------
                                                         As at           As at
                                                       June 30,   December 31,
                                                          2005            2004
-------------------------------------------------- ------------- ---------------
Cash and cash equivalents                           $      56.7    $     47.9
Current assets                                      $     207.9    $    206.9
Total assets                                        $   1,846.3    $  1,834.2
Current liabilities                                 $     149.7    $    172.8
Total liabilities                                   $     573.8    $    547.1
Shareholders' equity                                $   1,272.5    $  1,287.1
================================================== ============= ===============

SECOND QUARTER 2005 VS. SECOND QUARTER 2004

o       The Company's share of gold equivalent  ounces sold for the three months
        ended June 30, 2005 was 2% higher than the corresponding period in 2004.
        Increased  attributable  production  at Paracatu and Fort Knox more than
        offset lower production resulting from the shutdown of New Britannia and
        Lupin.
o       Revenues from metal sales increased by 10% quarter-over-quarter due to a
        higher number of gold equivalent  ounces sold and a higher realized gold
        price.  The Company sold 399,825 ounces of gold at a realized gold price
        of $421 per ounce,  compared  with 391,737  ounces of gold at an average
        realized price of $389 per ounce during the prior year's quarter.
o       Despite the increased  production and revenue,  the Company  recorded an
        operating  loss of $0.7  million  during the quarter,  compared  with an
        operating loss of $0.4 million during the corresponding quarter in 2004.
        The  increased  revenue  was offset by higher  operating  costs,  higher
        depreciation,  depletion and  amortization,  and  increased  general and
        administrative expenses.
o       Cost of sales  increased by 13% due to the inclusion of 100% of Paracatu
        (up from 49% in 2004) and higher costs across all  reportable  operating
        segments.  This was  partially  offset by lower cost of sales  resulting
        from the shutdown of New Britannia and Lupin.
o       During the quarter,  the Company  recorded a net loss of $16.4  million,
        compared with net earnings of $11.7 million during the second quarter of
        2004. The loss was largely the result of other expenses of $14.6 million
        in the second  quarter  of 2005,  compared  with  other  income of $12.2
        million in the corresponding period in 2004.
o       Cash flow provided by operating  activities increased by 20%, from $25.4
        million in the three months ended June 30, 2004 to $30.6 million  during
        the same  period in 2005.  Cash flow  provided by  operating  activities
        increased due to a higher realized gold price and a smaller  increase in
        working capital requirements in 2005 versus 2004.

FIRST HALF OF 2005 VS. FIRST HALF OF 2004

o       The Company's share of gold equivalent ounces sold for the first half of
        2005 was 4% higher  than the  corresponding  period  in 2004.  Increased
        attributable production at Paracatu, Fort Knox, Kubaka,  Musselwhite and
        Crixas more than offset lower production  resulting from the shutdown of
        New Britannia and Lupin and lower production from La Coipa.


                                       5
<PAGE>

o       Revenues from metal sales increased by 13%  period-over-period  due to a
        higher number of gold equivalent  ounces sold and a higher realized gold
        price.  The Company sold 800,939 ounces of gold at a realized gold price
        of $425 per  ounce in the  first  half of 2005,  compared  with  765,863
        ounces of gold at an average realized price of $395 per ounce in 2004.
o       Despite the higher  realized gold price and an increase in the number of
        gold  equivalent  ounces being sold,  the Company  recorded an operating
        loss of $0.7  million  in the first six  months of 2005,  compared  with
        operating  earnings  of $9.0  million  in the  first  half of 2004.  The
        decrease  was the result of an 18%  increase  in costs of sales,  higher
        depreciation,  depletion  and  amortization  and  increased  general and
        administrative expense.
o       The cost of sales  increase in 2005 was due to the  inclusion of 100% of
        Paracatu (up from 49% in 2004) and higher  costs  across all  reportable
        operating  segments with the exception of Fort Knox.  This was partially
        offset by lower cost of sales at New  Britannia and Lupin as a result of
        their shutdown.
o       The  Company  recorded a net loss of $17.3  million in the first half of
        2005,  compared  with net  earnings of $19.4  million in the  comparable
        period in 2004. The net loss was the result of the operating loss, along
        with other  expenses  of $12.9  million,  versus  other  income of $10.9
        million in the first half of 2004.  In addition,  a provision for income
        and mining taxes of $3.5 million was recorded in the first six months of
        2005.
o       Cash flow provided by operating  activities increased by 42%, from $40.4
        million  in the  first  half of 2004 to $57.4  million  during  the same
        period in 2005. Cash flow provided by operating activities increased due
        to a higher  realized  gold  price and a  smaller  increase  in  working
        capital  requirements  in 2005 versus 2004.  During the six months ended
        June 30,  2005,  cash  increased  $8.8  million,  from $47.9  million at
        December 31, 2004 to $56.7 million at June 30, 2005.

SEGMENT EARNINGS (LOSS)

<TABLE>
<CAPTION>
---------------------------- ----------------------- ----------------------- ----------------------- -----------------------
IN US$ MILLIONS                Three months ended             Q2                Six months ended              YTD
                                     June 30,             2005 VS 2004              June 30,             2005 VS 2004
                             ----------- ----------- ----------------------- ----------- ----------- -----------------------
                                 2005        2004     Change $     Change %      2005        2004     Change $     Change %
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
<S>                           <C>         <C>         <C>             <C>     <C>         <C>         <C>              <C>
OPERATING SEGMENTS
  Fort Knox                   $    4.6    $    1.1    $   3.5         318%    $    9.2    $    6.8    $   2.4          35%
  Paracatu (a)                    (0.3)        2.0       (2.3)         nm          1.8         4.5       (2.7)        (60%)
  Round Mountain                   5.0         3.7        1.3          35%         9.3        11.9       (2.6)        (22%)
  Porcupine Joint Venture          3.9         2.4        1.5          63%         6.7         3.8        2.9          76%
  La Coipa                        (1.5)       (0.6)      (0.9)       (150%)       (1.4)        1.8       (3.2)         nm
  Crixas                           3.8         2.8        1.0          36%         7.6         6.2        1.4          23%
  Musselwhite                     (2.0)       (0.9)      (1.1)       (122%)       (3.1)       (2.0)      (1.1)        (55%)
  Kubaka                           0.6         4.1       (3.5)        (85%)        1.0         6.3       (5.3)        (84%)
  Other operations (b)            (0.2)       (1.3)       1.1          85%        (1.8)       (3.5)       1.7          49%
CORPORATE & OTHER                (14.6)      (13.7)      (0.9)         (7%)      (30.0)      (26.8)      (3.2)        (12%)
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
TOTAL                         $   (0.7)   $   (0.4)   $  (0.3)        (75%)   $   (0.7)   $    9.0     $ (9.7)         nm
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
</TABLE>

(a)     On  December  31,  2004,  the  Company  completed  the  purchase  of the
        remaining  51%  interest  in the  Paracatu  mine.  For the three and six
        months ended June 30, 2004,  the Company had only a 49% interest,  which
        has been reflected in the segment earnings.
(b)     Other operations include Kettle River, Refugio, Lupin and New Britannia.


                                       6
<PAGE>

MINING OPERATIONS

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

<TABLE>
<CAPTION>
---------------------------- ----------------------- ----------------------- ----------------------- -----------------------
                                Three months ended             Q2                Six months ended              YTD
                                     June 30,             2005 VS 2004              June 30,             2005 VS 2004
                             ----------- ----------- ----------------------- ----------- ----------- -----------------------
                                 2005        2004     Change $     Change %      2005        2004     Change $     Change %
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
<S>                           <C>         <C>         <C>             <C>     <C>         <C>         <C>              <C>
OPERATING STATISTICS
Tonnes processed (000's)          3,313       3,091        222          7%        6,320       6,308         12          0%
Grade (grams/tonne)                0.94        0.89       0.05          6%         0.91        0.90       0.01          1%
Recovery (%)                       86.5%       89.0%      (2.5%)       (3%)        86.8%       85.0%       1.8%         2%
Gold equivalent ounces
  Produced                       86,426      79,007      7,419          9%      160,379     154,987      5,392          3%
  Sold                           87,632      69,348     18,284         26%      158,508     155,703      2,805          2%

FINANCIAL DATA
  (in US$ millions)
Metal sales                   $    37.6   $    27.2   $   10.4         38%    $    68.1   $    63.0   $    5.1          8%
Cost of sales (a)                  23.1        19.1        4.0         21%         40.6        41.8       (1.2)        (3%)
Accretion                           0.3         0.4       (0.1)       (25%)         0.6         0.7       (0.1)       (14%)
DD&A (b)                            9.3         6.5        2.8         43%         17.0        13.6        3.4         25%
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
                              $     4.9   $     1.2   $    3.7        308%    $     9.9   $     6.9   $    3.0         43%
Exploration                         0.1         0.1          -          0%          0.2         0.1        0.1          0%
Other                               0.2           -        0.2         nm           0.5           -        0.5         nm
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
Segment earnings              $     4.6   $     1.1   $    3.5        318%    $     9.2   $     6.8   $    2.4        35%
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
</TABLE>
(a)     Cost  of  sales   excludes   accretion,   depreciation,   depletion  and
        amortization.
(b)     Depreciation, depletion and amortization is referred to as "DD&A" in the
        table above.

The  Company  acquired  the Fort  Knox open pit mine,  located  near  Fairbanks,
Alaska, in 1998.

SECOND QUARTER 2005 VS. SECOND QUARTER 2004

o       Gold equivalent  production  increased 9% to 86,426 ounces in the second
        quarter  of  2005,  compared  to  the  corresponding  period,  due to an
        increase  in the number of tonnes  processed.  The  elimination  of True
        North ore was offset by increased  mill  throughput  from phase 5 of the
        Fort Knox pit.  The 6%  increase  in grade was also due to the switch to
        phase 5 ore. Mining has been suspended at True North.
o       Revenues  from metal sales  improved by 38% as the number of ounces sold
        increased by 26% and the Company realized higher gold prices.
o       Cost of sales  increased  by 21% due to a higher  number of ounces being
        sold,  partially offset by higher tonnes being  processed.  Increases in
        fuel and power costs continued to adversely impact cost of sales.
o       Depreciation,  depletion  and  amortization  was  higher  by 43% due the
        increased number of ounces sold and due to the acquisition of new larger
        capacity mining equipment being added to the fleet during 2005 to reduce
        costs on a per ounce basis.

FIRST HALF OF 2005 VS. FIRST HALF OF 2004

o       Gold  equivalent  production was higher by 3% due to improved grades and
        recovery from phase 5 ore.
o       Revenues from metal sales  increased by 8% due to more ounces being sold
        at a higher realized gold price.
o       Despite  an  increase  to the  number  of  ounces  sold,  cost of  sales
        decreased  by  3%  in  the  first  half  of  2005,   compared  with  the
        corresponding  period  in  2004.  This  was  the  result  of  processing
        higher-grade  ore  and a  higher  recovery  rate,  partially  offset  by
        increases to fuel and power costs.
o       Depreciation,  depletion  and  amortization  increased by 25% due to the
        acquisition of new larger capacity  mining  equipment being added to the
        fleet.


                                       7
<PAGE>

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

<TABLE>
<CAPTION>
---------------------------- ----------------------- ----------------------- ----------------------- -----------------------
                                Three months ended                               Six months ended
                                     June 30,                  Q2                   June 30,                   YTD
                             ----------- -----------      2005 VS 2004       ----------- -----------     2005 VS 2004
                                 2005        2004     Change $     Change %      2005        2004     Change $     Change %
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
<S>                           <C>         <C>         <C>             <C>     <C>         <C>         <C>              <C>
OPERATING STATISTICS (a)
Tonnes processed (000's) (b)     15,892      17,309     (1,417)        (8%)      32,388      34,743     (2,355)        (7%)
Grade (grams/tonne)                0.79        0.66       0.13         20%         0.72        0.65       0.07         11%
Gold equivalent ounces
  Produced                      100,745      99,554      1,191          1%      196,138     194,538      1,600          1%
  Sold                           93,647      97,256     (3,609)        (4%)     186,491     186,857       (366)        (0%)

FINANCIAL DATA
 (in US$ millions)
Metal sales                   $    39.5   $    36.8   $    2.7          7%    $    79.4   $    73.6   $    5.8          8%
Cost of sales (c)                  22.9        21.0        1.9          9%         47.0        38.6        8.4         22%
Accretion                           0.4         0.4          -          0%          0.9         0.9          -          0%
DD&A (d)                           10.8        11.6       (0.8)        (7%)        21.7        22.1       (0.4)        (2%)
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
                                    5.4         3.8        1.6         42%          9.8        12.0       (2.2)       (18%)
Exploration                         0.4         0.1        0.3        300%          0.5         0.2        0.3        150%
Other                                 -           -          -          0%            -        (0.1)       0.1        100%
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
Segment earnings              $     5.0   $     3.7   $    1.3         35%    $     9.3   $    11.9   $   (2.6)       (22%)
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
</TABLE>
(a)     Due to the  nature of heap leach  operations  recovery  rates  cannot be
        accurately measured on a quarterly basis.
(b)     Tonnes processed represent 100% of mine production.
(c)     Cost  of  sales   excludes   accretion,   depreciation,   depletion  and
        amortization.
(d)     Depreciation, depletion and amortization is referred to as "DD&A" in the
        table above.

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 2005 VS. SECOND QUARTER 2004

o       Tonnes  processed  were  lower due to the  mining  of harder  ore and an
        increase in the mining of waste in the second quarter of 2005,  compared
        with the corresponding period in 2004.
o       Gold  equivalent  production  was  higher  during  the  quarter  due  to
        recoveries from higher-grade oxide ore.
o       Revenues  from  metal  sales  were up 7% due to a higher  realized  gold
        price, which was partially offset by fewer ounces sold.
o       Costs of sales  were up by 9%  despite  fewer  ounces  being sold due to
        higher electricity and other consumable costs.

FIRST HALF 2005 VS. FIRST HALF 2004

o       Tonnes  processed  were  lower  during the first half of 2005 due to the
        mining of harder  ore and an  increase  in the  mining of waste in 2005,
        compared to 2004.
o       Gold equivalent  production was higher during the first half of 2005 due
        to recoveries from higher-grade oxide ore.
o       Despite fewer ounces being sold, revenues from metal sales were up by 8%
        as a result of higher realized gold prices.
o       Costs of  sales  were up by 22%  during  the  first  half of 2005 due to
        higher electricity, maintenance and other consumable costs.


                                       8
<PAGE>

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

<TABLE>
<CAPTION>
---------------------------- ----------------------- ----------------------- ----------------------- -----------------------
                                Three months ended                               Six months ended
                                     June 30,                  Q2                   June 30,                   YTD
                             ----------- -----------      2005 VS 2004       ----------- -----------       2005 VS 2004
                                 2005        2004     Change $     Change %      2005        2004     Change $     Change %
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
<S>                           <C>         <C>         <C>             <C>     <C>         <C>         <C>              <C>
OPERATING STATISTICS
Tonnes processed (000's) (a)      1,094         996         98         10%        2,168       1,980        188          9%
Grade (grams/tonne)                3.12        3.69      (0.57)       (15%)        3.13        3.67      (0.54)       (15%)
Recovery (%)                       94.1%       92.0%       2.1%         2%         93.1%       91.8%       1.3%         1%
Gold equivalent ounces
  Produced                       51,474      53,225     (1,751)        (3%)     104,365     105,092       (727)        (1%)
  Sold                           52,600      58,051     (5,451)        (9%)     102,660     109,734     (7,074)        (6%)

Financial data
  (in US$ millions)
Metal sales                   $    22.6   $    19.9   $    2.7         14%    $    44.6   $    40.3   $    4.3         11%
Cost of sales (b)                  13.4        10.7        2.7         25%         26.7        23.3        3.4         15%
Accretion                           0.3         0.1        0.2        200%          0.5         0.3        0.2         67%
DD&A (c)                            3.9         5.7       (1.8)       (32%)         8.6        11.1       (2.5)       (23%)
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
                                    5.0         3.4        1.6         47%          8.8         5.6        3.2         57%
Exploration                         0.9         1.0       (0.1)       (10%)         1.9         1.8        0.1          6%
Other                               0.2           -        0.2          0%          0.2           -        0.2         nm
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
Segment earnings              $     3.9   $     2.4   $    1.5         63%    $     6.7   $     3.8   $    2.9         76%
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
</TABLE>
(a)     Tonnes processed represent 100% of mine production.
(b)     Cost  of  sales   excludes   accretion,   depreciation,   depletion  and
        amortization.
(c)     Depreciation, depletion and amortization is referred to as "DD&A" in the
        table above.

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 2005 VS. SECOND QUARTER 2004

o       Higher mill  throughput  and  recoveries  were more than offset by lower
        grade  during  the  quarter  leading  to a 3% drop  in  gold  equivalent
        production.  The grade  reflected  the lower  grade being mined from the
        Dome open pit and no Dome underground production.
o       Despite a drop in the number of ounces sold,  revenues  from metal sales
        increased by 14% due to higher gold prices realized by the Company.
o       Cost of sales increased by 25% despite a 9% drop in the number of ounces
        sold. The increase was due to higher energy and other  commodity  costs,
        and the mining of lower grade ore. Cost of sales also increased due to a
        9%  appreciation  of the CDN  dollar  versus  the U.S.  dollar  from the
        previous year.

FIRST HALF 2005 VS. FIRST HALF 2004

o       Gold  production for the first six months of 2005 was  marginally  lower
        than the first six months of 2004.  Higher mill  throughput and recovery
        were offset by planned lower ore grade  reflecting the lower grade being
        mined from the Dome open pit and no production from the Dome underground
        mine, which was placed on care and maintenance during the second quarter
        of 2004.
o       The higher mill throughput for both the quarter and year-to-date was the
        result of the mill expansion.  Mill recovery  increased in the first six
        months of 2005  reflecting  the  positive  effects of  additional  leach
        retention times on the Dome and Hoyle pond ores.
o       Revenues from metal sales increased in the first half of 2005 due to the
        higher realized gold prices.
o       Costs of sales  were  higher  during  the  first  half of 2005,  despite
        selling fewer ounces,  due to lower grade and higher tonnes being milled
        and higher energy and other commodity costs. In addition,  cost of sales
        was negatively  impacted by an 8% appreciation of the CDN dollar against
        the U.S. dollar period-over-period.
o       Work  continued  on the  Pamour  open pit  project  during the first six
        months of 2005.  Material  from waste rock  stripping  during the second
        quarter  was used as  construction  material  for the  required  highway
        re-alignment.


                                       9
<PAGE>

PARACATU (100% OWNERSHIP AND OPERATOR) - BRAZIL

<TABLE>
<CAPTION>
---------------------------- ----------------------- ----------------------- ----------------------- -----------------------
                                Three months ended                               Six months ended
                                     June 30,                  Q2                   June 30,                   YTD
                             ----------- -----------      2005 VS 2004       ----------- -----------       2005 VS 2004
                                 2005      2004(a)    Change $     Change %      2005      2004(a)      Change $     Change %
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
<S>                           <C>         <C>         <C>             <C>     <C>         <C>         <C>              <C>
OPERATING STATISTICS
Tonnes processed (000's) (b)      3,990       4,271       (281)        (7%)       7,890       8,770       (880)       (10%)
Grade (grams/tonne)                0.45        0.45          -          0%         0.43        0.45      (0.02)        (4%)
Recovery (%)                       77.0%       75.2%       1.8%         2%         77.0%       75.4%       1.6%         2%
Gold equivalent ounces
  Produced                       43,252      22,096     21,156         96%       83,861      46,436     37,425         81%
  Sold                           40,831      24,365     16,466         68%       84,315      47,520     36,795         77%

FINANCIAL DATA
  (in US$ millions)
Metal sales                   $    17.4   $     9.6   $    7.8         81%    $    36.0   $    19.1   $   16.9         88%
Cost of sales (c)                  11.3         5.1        6.2        122%         23.6         9.6       14.0        146%
Accretion                           0.2         0.2          -          0%          0.4         0.3        0.1         33%
DD&A (d)                            4.4         2.3        2.1         91%          8.0         4.7        3.3         70%
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
                                    1.5         2.0       (0.5)       (25%)         4.0         4.5       (0.5)       (11%)
Exploration                         1.8           -        1.8         nm           2.2           -        2.2         nm
Other                                 -           -          -         nm             -           -          -         nm
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
Segment earnings              $    (0.3)  $     2.0   $   (2.3)        nm     $     1.8   $     4.5   $   (2.7)       (60%)
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
</TABLE>

(a)     On  December  31,  2004,  the  Company  completed  the  purchase  of the
        remaining  51%  interest  in the  Paracatu  mine.  For the three and six
        months ended June 30, 2004,  the Company had only a 49% interest,  which
        has been reflected in the segment earnings.
(b)     Tonnes mined/processed represent 100% of mine production.
(c)     Cost  of  sales   excludes   accretion,   depreciation,   depletion  and
        amortization.
(d)     Depreciation, depletion and amortization is referred to as "DD&A" in the
        table above.

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.  On December  31,  2004,  the  Company  completed  the
purchase of the remaining 51% of Paracatu from Rio Tinto Plc.

SECOND QUARTER 2005 VS. SECOND QUARTER 2004

o       Gold production in the second quarter of 2005 increased by 96%, over the
        corresponding  period in 2004,  due to the purchase of the remaining 51%
        of the mine.  However,  on a 100% basis,  production was down by 4%. The
        reduced  production  was the  result of fewer  tonnes  being  processed,
        partially  offset by a higher recovery rate. The lower tonnes  processed
        was mainly caused by planned mill stoppages for repairs.
o       Revenues from metal sales increased by 81%, quarter-over-quarter, due to
        a 68% increase in the number of ounces sold and a higher  realized  gold
        price.  On a 100%  basis,  the  number of  ounces  sold was down by 18%,
        quarter-over-quarter.
o       Cost of sales  increased  by 122%  largely  due to the  purchase  of the
        remaining 51% of the mine. On a 100% basis,  cost of sales  increased by
        9%, despite the reduction of the number of ounces sold. The increase was
        due to the  appreciation  of the Brazilian real against the U.S.  dollar
        and higher energy and consumable costs over the comparable quarters.

FIRST HALF OF 2005 VS. FIRST HALF OF 2004

o       On a 100% basis, gold production during the first half of 2005 decreased
        by 12% compared with the first half of 2004. The decrease was the result
        of lower tonnes processed and lower grade,  partially offset by a higher
        recovery  rate.  The lower  tonnes  processed  was  mainly  caused by an
        unexpected increase in ore hardness and some mill stoppages for repairs.
o       On a 100% basis,  revenues  from metal sales  decreased by 8%,  compared
        with the first half of 2004. The decrease was the result of a drop, on a
        100%  basis,  in the  number of ounces  sold in the first  half of 2005,
        partially offset by a higher realized gold price.
o       Cost of sales,  on a 100%  basis,  increased  20% over the first half of
        2004 despite a drop in the number of ounces  sold.  The increase was due
        to the  appreciation  of the  Brazilian  real and  increased  energy and
        consumable costs.


                                       10
<PAGE>

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

<TABLE>
<CAPTION>
---------------------------- ----------------------- ----------------------- ----------------------- -----------------------
                                Three months ended                               Six months ended
                                     June 30,                  Q2                   June 30,                   YTD
                             ----------- -----------      2005 VS 2004       ----------- -----------       2005 VS 2004
                                 2005        2004     Change $     Change %      2005        2004     Change $     Change %
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
<S>                           <C>         <C>         <C>             <C>     <C>         <C>         <C>              <C>
OPERATING STATISTICS
Tonnes processed (000's) (a)      1,586       1,596        (10)        (1%)       3,288       3,189         99          3%
Grade (grams/tonne)
      - Gold                       0.95        0.94       0.01          1%         0.97        1.16      (0.19)       (16%)
      - Silver                    45.25       54.61      (9.36)       (17%)       46.16       54.57      (8.41)       (15%)
Recovery (%)
      - Gold                       79.3%       82.4%      (3.1%)       (4%)        80.6%       82.4%      (1.8%)       (2%)
      - Silver                     57.2%       56.4%       0.8%         1%         57.5%       52.8%       4.7%         9%
Gold equivalent ounces
  Produced                       30,352      32,454     (2,102)        (6%)      64,376      73,003     (8,627)       (12%)
  Sold                           33,251      35,713     (2,462)        (7%)      74,710      74,322        388          1%

FINANCIAL DATA
  (in US$ millions)
Metal sales                   $    14.2   $    14.1   $    0.1          1%    $    31.8   $    29.9   $    1.9          6%
Cost of sales (b)                  11.6        10.2        1.4         14%         24.1        18.5        5.6         30%
Accretion                           0.1           -        0.1         nm           0.2         0.1        0.1        100%
DD&A (c)                            3.7         4.3       (0.6)       (14%)         8.1         9.3       (1.2)       (13%)
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
                                   (1.2)       (0.4)      (0.8)      (200%)        (0.6)        2.0       (2.6)        nm
Exploration                         0.3         0.1        0.2        200%          0.5         0.1        0.4        400%
Other                                 -         0.1       (0.1)      (100%)         0.3         0.1        0.2        200%
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
Segment earnings (loss)       $    (1.5)  $    (0.6)  $   (0.9)      (150%)   $    (1.4)  $     1.8   $   (3.2)        nm
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
</TABLE>
(a)     Tonnes processed represent 100% of mine production.
(b)     Cost  of  sales   excludes   accretion,   depreciation,   depletion  and
        amortization.
(c)     Depreciation, depletion and amortization is referred to as "DD&A" in the
        table above.

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 2005 VS. SECOND QUARTER 2004

o       Gold  equivalent  production  decreased 6% during the second  quarter of
        2005  largely due to a lower  silver  grade.  The lower grade was due to
        changes in the mine plan due to pit slopes  failures in the Brecha Norte
        pit,  lower load  equipment  availability  and poor weather  conditions.
        There was no significant  change during the quarter to the average ratio
        for conversion of silver into equivalent gold ounces.
o       Revenues from metal sales increased by 1% as a result of higher realized
        gold prices.  The impact of the higher gold prices was partially  offset
        by lower production and fewer ounces sold.
o       Costs of sales  increased by 14% despite a 7% reduction in the number of
        ounces sold. The increase was the result of a stronger  Chilean peso and
        increased operating costs.

FIRST HALF OF 2005 VS. FIRST HALF OF 2004

o       Gold equivalent  production  decreased 12% during the first half of 2005
        mainly due to lower gold and silver  grades.  The lower  grades were the
        result of  changes  to the mine plan due to pit  slope  failures  in the
        Brecha Norte and Coipa Norte pits.  The ratio to converting  silver into
        gold equivalent ounces was similar period-over-period.
o       Revenues  from metal sales  increased by 6% due to higher  realized gold
        prices.
o       Cost of sales  increased by 30% during the first half of 2005 due to the
        appreciation of the Chilean peso and higher power and other costs.


                                       11
<PAGE>

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

<TABLE>
<CAPTION>
---------------------------- ----------------------- ----------------------- ----------------------- -----------------------
                                Three months ended                               Six months ended
                                     June 30,                  Q2                   June 30,                   YTD
                             ----------- -----------      2005 VS 2004       ----------- -----------       2005 VS 2004
                                 2005        2004     Change $     Change %      2005        2004     Change $     Change %
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
<S>                           <C>         <C>         <C>             <C>     <C>         <C>         <C>              <C>
OPERATING STATISTICS
Tonnes processed (000's) (a)        187         185          2          1%          375         368          7          2%
Grade (grams/tonne)                8.43        8.25       0.18          2%         8.40        8.14       0.26          3%
Recovery (%)                       95.3%       95.3%       0.0%         0%         95.5%       95.4%       0.1%         0%
Gold equivalent ounces
  Produced                       24,153      23,440        713          3%       48,345      45,951      2,394          5%
  Sold                           24,895      22,154      2,741         12%       49,049      45,530      3,519          8%

FINANCIAL DATA
  (in US$ millions)
Metal sales                   $    10.7   $     8.7   $    2.0         23%    $    21.0   $    18.2   $    2.8         15%
Cost of sales (b)                   3.7         2.7        1.0         37%          7.2         5.7        1.5         26%
Accretion                           0.1           -        0.1         nm           0.1           -        0.1         nm
DD&A (c)                            3.1         3.2       (0.1)        (3%)         6.0         6.2       (0.2)        (3%)
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
                                    3.8         2.8        1.0         36%          7.7         6.3        1.4         22%
Exploration                           -           -          -          0%          0.1         0.1          -          0%
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
Segment earnings              $     3.8   $     2.8   $    1.0         36%    $     7.6   $     6.2   $    1.4         23%
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
</TABLE>
(a)     Tonnes processed represent 100% of mine production.
(b)     Cost  of  sales   excludes   accretion,   depreciation,   depletion  and
        amortization.
(c)     Depreciation, depletion and amortization is referred to as "DD&A" in the
        table above.

The Company  acquired its  ownership  interest in the Crixas  underground  mine,
located in the State of Goias,  upon completion of the  combination  with TVX on
January 31, 2003.

SECOND QUARTER 2005 VS. SECOND QUARTER 2004

o       Gold  production  increased  by 3% during  the  second  quarter of 2005,
        compared with the corresponding  period in 2004. The increase was due to
        slightly higher throughput and higher grade.
o       Higher revenues from metal sales were the result of an increased  number
        of ounces sold and a higher realized gold price.
o       Cost of sales  increased by 37% due to the 12% increase in the number of
        ounces sold,  the  appreciation  of the Brazilian  real against the U.S.
        dollar during the second quarter of 2005,  compared with the same period
        in 2004, and increased operating costs.

FIRST HALF OF 2005 VS. FIRST HALF OF 2004

o       Gold production  increased by 5% during the first half of 2005, compared
        with the corresponding period in 2004. The increase was due to increased
        throughput and higher grade.  The increased  tonnage was due to a better
        ore blending and increased availability of the plant.
o       Higher revenues from metal sales were the result of an increased  number
        of ounces sold and a higher realized gold price.
o       Cost of sales during the first half of 2005  increased by 26% due to the
        8%  increase  in the  number of ounces  sold,  the  appreciation  of the
        Brazilian  real  against the U.S.  dollar  during the second  quarter of
        2005,  compared with the same period in 2004, and high commodity  prices
        and service costs.


                                       12
<PAGE>

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

<TABLE>
<CAPTION>
---------------------------- ----------------------- ----------------------- ----------------------- -----------------------
                                Three months ended                               Six months ended
                                     June 30,                  Q2                   June 30,                   YTD
                             ----------- -----------      2005 VS 2004       ----------- -----------       2005 VS 2004
                                 2005        2004     Change $     Change %      2005        2004     Change $     Change %
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
<S>                           <C>         <C>         <C>             <C>     <C>         <C>         <C>              <C>
OPERATING STATISTICS
Tonnes processed (000's) (a)        359         364         (5)        (1%)         714         728        (14)        (2%)
Grade (grams/tonne)                5.60        5.46       0.14          3%         5.80        5.21       0.59         11%
Recovery (%)                       95.3%       96.0%      (0.7%)       (1%)        95.4%       96.0%      (0.6%)       (1%)
Gold equivalent ounces
   Produced                      19,403      19,600       (197)        (1%)      40,947      37,149      3,798         10%
   Sold                          21,300      20,400        900          4%       41,640      39,603      2,037          5%

FINANCIAL DATA
   (in US$ millions)
Metal sales                   $     9.0   $     8.0   $    1.0         13%    $    17.8   $    16.0   $    1.8         11%
Cost of sales (b)                   6.9         5.0        1.9         38%         13.3        10.6        2.7         25%
Accretion                           0.1         0.1          -          0%          0.1         0.1          -          0%
DD&A (c)                            3.3         3.3          -          0%          6.4         6.2        0.2          3%
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
                                   (1.3)       (0.4)      (0.9)      (225%)        (2.0)       (0.9)      (1.1)      (122%)
Exploration                         0.7         0.5        0.2         40%          1.1         1.1          -          0%
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
Segment loss                  $    (2.0)  $    (0.9)  $   (1.1)      (122%)   $    (3.1)  $    (2.0)  $   (1.1)       (55%)
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
</TABLE>
(a)     Tonnes processed represent 100% of mine production.
(b)     Cost  of  sales   excludes   accretion,   depreciation,   depletion  and
        amortization.
(c)     Depreciation, depletion and amortization is referred to as "DD&A" in the
        table above.

The Company acquired its ownership interest in the Musselwhite underground mine,
located in north-western Ontario, upon completion of the combination with TVX on
January 31, 2003.

SECOND QUARTER 2005 VS. SECOND QUARTER 2004

o       Gold equivalent production during the second quarter of 2005 was similar
        to the  comparable  period in 2004  with an  increased  grade  offset by
        decreases in tonnes processed and recoveries.
o       Metal  sales were up by 13% due to higher gold prices and an increase in
        the number of ounces sold.
o       Cost of sales  increased  by 38% due to an  increased  portion of higher
        cost  underground  tonnes  mined,   increased   underground  mining  and
        development  costs, and higher energy and commodity costs. Cost of sales
        was also  negatively  impacted by an appreciation in the Canadian dollar
        against the U.S.  dollar during the second quarter of 2005,  compared to
        2004.

FIRST HALF OF 2005 VS. FIRST HALF OF 2004

o       Gold  equivalent  production for the first six months of 2005 was higher
        than the first six  months of 2004 due to  higher-grade  ore,  offset by
        lower mill throughput and recoveries.  Grade was higher during the first
        half of 2005 due to higher tonnes mined and milled from the underground,
        versus lower grade  tonnage from open pit mining that was milled  during
        the first six months of 2004.
o       Revenues from metal sales  increased by 11% due to the increased  number
        of ounces sold and a higher realized gold price.
o       Cost of sales  increased  by 25% due to an  increased  portion of higher
        cost  underground  tonnes  mined,   increased   underground  mining  and
        development  costs, and higher energy and commodity costs. Cost of sales
        was also  negatively  impacted  by an 8%  appreciation  in the  Canadian
        dollar against the U.S.  dollar during the first half of 2005,  compared
        to 2004.


                                       13
<PAGE>

KUBAKA (98.1% OWNERSHIP AND OPERATOR) - RUSSIA

<TABLE>
<CAPTION>
---------------------------- ----------------------- ----------------------- ----------------------- -----------------------
                                Three months ended                               Six months ended
                                     June 30,                  Q2                   June 30,                   YTD
                             ----------- -----------      2005 VS 2004       ----------- -----------       2005 VS 2004
                                 2005        2004     Change $     Change %      2005        2004     Change $     Change %
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
<S>                           <C>         <C>         <C>             <C>     <C>         <C>         <C>              <C>
OPERATING STATISTICS
Tonnes processed (000's) (a)         222        216          6          3%          431         434         (3)        (1%)
Grade (grams/tonne)                 5.17       5.75      (0.58)       (10%)        6.08        5.02       1.06         21%
Recovery (%)                        97.3%      98.0%      (0.7%)       (1%)        97.6%       97.0%       0.6%         1%
Gold equivalent ounces
   Produced                       35,975     39,121     (3,146)        (8%)      82,136      68,380     13,756         20%
   Sold                           36,726     40,743     (4,017)       (10%)      78,882      69,135      9,747         14%

FINANCIAL DATA
   (in US$ millions)
Metal sales                   $     16.0  $    16.5   $   (0.5)        (3%)   $    34.3   $    28.5   $    5.8         20%
Cost of sales (b)                   12.1       10.0        2.1         21%         25.6        17.7        7.9         45%
Accretion                            0.1        0.1          -          0%          0.2         0.2          -          0%
DD&A (c)                             2.6        2.1        0.5         24%          6.3         3.8        2.5         66%
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
                                     1.2        4.3       (3.1)       (72%)         2.2         6.8       (4.6)       (68%)
Exploration                          0.3          -        0.3         nm           0.8         0.1        0.7        700%
Other                                0.3        0.2        0.1         50%          0.4         0.4          -          0%
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
Segment earnings              $      0.6  $     4.1   $   (3.5)       (85%)   $     1.0   $     6.3   $   (5.3)       (84%)
---------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
</TABLE>
(a)     Tonnes processed represent 100% of mine production.
(b)     Cost  of  sales   excludes   accretion,   depreciation,   depletion  and
        amortization.
(c)     Depreciation, depletion and amortization is referred to as "DD&A" in the
        table above.

Kinross  acquired a 54.7%  interest in the Kubaka open pit mine,  located in the
Magadan Oblast in far eastern Russia, in three transactions in 1998 and 1999. On
February  28, 2003,  the Company  completed a step-up  transaction  to bring its
ownership interest to the current 98.1%.

SECOND QUARTER OF 2005 VS. SECOND QUARTER OF 2004

o       Gold  equivalent  production  was  down  by 8% due to  lower  grade  and
        recoveries, partially offset by higher mill throughput.
o       Lower production and ounces sold resulted in reduced revenues from metal
        sales. This was partially offset by higher realized gold prices.
o       Cost of sales  increased  by 21% due to an  increase  in the  number  of
        ounces sold,  higher  operating  costs and the processing of higher cost
        Birkachan stockpiled ore.

FIRST HALF OF 2005 VS. FIRST HALF OF 2004

o       The 20%  increase  in gold  equivalent  production  was  the  result  of
        processing higher-grade ore during the first half of 2005.
o       The increase in the ounces  sold,  along with the higher  realized  gold
        price, lead to a 20% increase in revenues from metal sales.
o       Increased  cost of sales was due to an  increase in the number of ounces
        produced and sold and higher overall operating costs.
o       Depreciation,  depletion and amortization was up by 66% during the first
        half of 2005.  The increase was due to the higher  number of ounces sold
        and the decision to close the mine at the end of 2005.
o       All mining  activity at the Kubaka  underground  mine and  Birkachan was
        completed  by  June  1,  2005,  with  only  stockpiles  remaining  to be
        processed.

OTHER OPERATING SEGMENTS

REFUGIO (50% OWNERSHIP AND OPERATOR) - CHILE

Kinross  acquired  its 50%  interest in the Refugio  open pit mine,  located 120
kilometres northeast of Copiapo, Chile, in 1998. In 2001, due to low gold prices
and operational difficulties, mining activities were suspended and the operation
was placed on care and  maintenance.  In late 2002,  a  multi-phase  exploration
program  commenced  and in  2003  it was  determined  that  the  mine  would  be
recommissioned.


                                       14
<PAGE>

The mine is expected to achieve its continuous  production rate of 40,000 tonnes
per day by year-end 2005. The Company's share of the capital cost is expected to
total approximately $67 million, which is above budget. The increased costs were
due to unexpected delays and higher input costs. The recommissioned mine will be
capable  of  producing  approximately  115,000  to 130,000  ounces  annually  to
Kinross' account.

KETTLE RIVER (100% OWNERSHIP AND OPERATOR) - U.S.A.

Kinross acquired Kettle River, located in the state of Washington,  U.S.A., upon
completion of the combination  with Echo Bay on January 31, 2003. At the time of
acquisition the mine was shutdown.  The Company  recommenced  operations in late
December 2003.  Gold  equivalent  production was 19,869 ounces and 38,635 ounces
during the three and six months ended June 30, 2005, respectively, which is down
from  22,362  ounces  and 47,709  ounces  from the  respective  periods in 2004.
Production  was lower  and costs  higher  due to a  planned  decrease  in mining
activity at Emanuel Creek and continuing ground problems at the mine.

DEPRECIATION, DEPLETION AND AMORTIZATION

Depreciation, depletion and amortization was $44.6 million in the second quarter
of  2005,   compared  with  $43.0  million  in  the  second   quarter  of  2004.
Year-to-date,  depreciation, depletion and amortization increased by 9% to $88.9
million.  Depreciation  increased  at  Paracatu  with  the  acquisition  of  the
remaining  51% of the mine and at  Kubaka  with the  increase  in the  number of
ounces sold and a reduced reserve base. Depreciation also increased at Fort Knox
over the comparable three and six month periods.

EXPLORATION AND BUSINESS DEVELOPMENT

Exploration and business development expenses for the three and six months ended
June 30, 2005 was $6.4 million and $11.3  million,  respectively,  compared with
$5.4  million  and $8.9  million  for the  corresponding  periods  in 2004.  The
increase between the comparable  six-month  periods is largely the result of the
2004 expenditures being lower than planned as certain projects were delayed. The
focus of the Company's  exploration  program is to replace and increase reserves
at existing mines and increase reserves at its development projects.

GENERAL AND ADMINISTRATIVE

General and  administrative  costs include  corporate office expenses related to
the  overall  management  of the  business  which  are not part of  direct  mine
operating costs. General and administrative expense for the three and six months
ended June 30, 2005 was $10.7 million and $20.9 million, respectively,  compared
with $8.5 million and $15.4 million in the  corresponding  periods in 2004.  The
increase was largely the result of increased  professional  fees  resulting from
the review of the  accounting  for the  acquisition of TVX and Echo Bay, and the
strength of the Canadian dollar against the U.S. dollar.

OTHER INCOME (EXPENSE) - NET

<TABLE>
<CAPTION>
----------------------------------- ----------------------- ----------------------- ----------------------- -----------------------
IN US$ MILLIONS                       Three months ended                               Six months ended
                                            June 30,                  Q2                   June 30,                   YTD
                                    ----------- -----------      2005 VS 2004       ----------- -----------       2005 VS 2004
                                        2005        2004     Change $     Change %      2005        2004     Change $     Change %
----------------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
<S>                                  <C>         <C>            <C>            <C>   <C>         <C>            <C>           <C>
Interest and other income            $     1.6   $     1.9       (0.3)        (16%)  $     3.5   $     3.7       (0.2)        (5%)
Interest expense                          (1.7)       (0.5)      (1.2)       (240%)       (3.6)       (1.1)      (2.5)      (227%)
Foreign exchange gains (losses)          (14.6)        6.7      (21.3)         nm        (12.9)        5.0      (17.9)        nm
Non-hedge derivative gains (losses)        0.1         4.1       (4.0)        (98%)        0.1         3.3       (3.2)       (97%)
----------------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
Other income (expense) - net         $   (14.6)  $    12.2      (26.8)         nm    $   (12.9)  $    10.9      (23.8)        nm
----------------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
</TABLE>

INTEREST EXPENSE

Interest expense totalled $1.7 million and $3.6 million,  respectively,  for the
three and six months  ended June 30, 2005,  compared  with $0.5 million and $1.1
million during the corresponding  period in 2004. The increased interest expense
is the result of increased  long-term  debt  including  the LIBOR loan under the
credit facility.

NON-HEDGE DERIVATIVE LOSSES

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 2005, the Company  recorded a decrease
to the liability on call options sold of $0.1 million  versus a decrease of $3.3
million in 2004.


                                       15
<PAGE>

FOREIGN EXCHANGE GAINS (LOSSES)

During the second quarter,  the Company  recorded a loss on foreign  exchange of
$14.6 million,  compared with a gain of $6.7 million in the corresponding period
in 2004. A foreign  exchange loss of $12.9 million was recorded  year-to-date in
2005, versus a gain of $5.0 million in 2004.

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.

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 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.  During the first half of
2005,  the  Company  recorded a  provision  for income and mining  taxes of $3.5
million on a loss before tax of $13.6 million.  During the corresponding  period
in 2004, the Company's provision for income and mining taxes was nil on earnings
before  tax  of  $19.9  million.   There  are  a  number  of  factors  that  can
significantly impact the Company's effective tax rate including:  the geographic
distribution  of  income,   varying  rates  in  different   jurisdictions,   the
non-recognition of tax assets, mining allowance,  foreign currency exchange rate
movements,  changes  in tax laws and the  impact of  specific  transactions  and
assessments.  The income and mining tax  recovery in 2005 and the low effect tax
rate in 2004 is largely due to movement in the future tax liability  set-up with
the purchase accounting for the acquisition of TVX and Echo Bay.

RELATED PARTY TRANSACTIONS

On September 2, 2005, the Company agreed to sell 23.33% of the shares of KF Ltd.
to Balloch  Resources and retain 11.67% of the initial  interest.  Art Ditto,  a
former  director  and  officer  of the  Company,  owns a 17.4%  interest  in the
outstanding  common shares of Balloch and upon closing of the private  placement
which was completed on October 19, 2005,  Mr. Ditto was appointed  President and
Chief Executive Officer of Balloch. Further discussion on the sale of KF Ltd. to
Balloch is included above in the "Developments" section.

5.      LIQUIDITY AND CAPITAL RESOURCES

The following table summarizes Kinross' cash flow activity for the three and six
months ended June 30, 2005 and 2004:

<TABLE>
<CAPTION>
----------------------------------- ----------------------- ----------------------- ----------------------- -----------------------
IN US$ MILLIONS                       Three months ended                               Six months ended
                                            June 30,                  Q2                   June 30,                   YTD
                                    ----------- -----------      2005 VS 2004       ----------- -----------       2005 VS 2004
                                        2005        2004     Change $     Change %      2005        2004     Change $     Change %
----------------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
<S>                                  <C>         <C>            <C>            <C>   <C>         <C>            <C>           <C>
Cash flow:
  Provided from operating
    activities                       $    30.6   $    25.4   $      5.2        20%   $    57.4   $    40.4   $    17.0        42%
  Used in investing activities           (45.8)      (60.1)        14.3        24%       (84.6)      (79.2)       (5.4)       (7%)
  Provided by (used in) financing
    acitvities                            19.4         5.3         14.1       266%        36.0       (18.6)       54.6        nm
Effect of exchange rate changes
   on cash                                   -        (0.5)         0.5       100%           -        (0.7)        0.7       100%
----------------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
Increase (decrease) in cash and
   cash equivalents                        4.2       (29.9)        34.1        nm          8.8       (58.1)       66.9        nm
Cash and cash equivalents:
   Beginning of period                    52.5       217.6       (165.1)      (76%)       47.9       245.8      (197.9)      (81%)
----------------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
   End of period                     $    56.7   $   187.7   $   (131.0)      (70%)  $    56.7   $   187.7   $  (131.0)      (70%)
----------------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
</TABLE>


                                       16
<PAGE>

OPERATING ACTIVITIES

Cash flow provided by operating activities was $30.6 million in the three months
ended June 30, 2005, compared with $25.4 million in the corresponding  period in
2004. During the six months ended June 30, 2005, cash flow provided by operating
activities  increased by 42% to $57.4 million. The increase for both the quarter
and year-to-date is due to higher realized gold prices and a smaller increase in
working capital requirements in 2005 versus 2004.

INVESTING ACTIVITIES

Net cash used in investing activities was $45.8 million in the second quarter of
2005,  compared to $60.1 million in the second  quarter of 2004. The reduced use
of cash is largely related to net additions to marketable  securities in 2004 of
$10.5  million.  Additions to property,  plant and equipment were similar in the
corresponding  quarters. Net cash used in investing activities in the first half
of 2005 was $84.6  million,  which was an  increase of 7% over the first half of
2004.  The  increase  was largely due to the  increase in additions to property,
plant and  equipment.  The following  provides a breakdown by segment of capital
expenditures:

<TABLE>
<CAPTION>
----------------------------------- ----------------------- ----------------------- ----------------------- -----------------------
IN US$ MILLIONS                       Three months ended                               Six months ended
                                            June 30,                  Q2                   June 30,                   YTD
                                    ----------- -----------      2005 VS 2004       ----------- -----------       2005 VS 2004
                                        2005        2004     Change $     Change %      2005        2004     Change $     Change %
----------------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
<S>                                  <C>         <C>            <C>            <C>   <C>         <C>            <C>           <C>
OPERATING SEGMENTS
  Fort Knox                          $    11.8   $    12.2   $     (0.4)       (3%)  $    22.3   $    19.4   $     2.9        15%
  Paracatu (a)                             5.4         1.2          4.2       350%         9.3         1.9         7.4       389%
  Round Mountain                           1.7         1.7            -         0%         2.7         3.5        (0.8)      (23%)
  Porcupine Joint Venture                  6.7         4.8          1.9        40%        12.8         7.1         5.7        80%
  La Coipa                                 1.2         0.1          1.1      1100%         2.2         0.4         1.8       450%
  Crixas                                   1.5         1.3          0.2        15%         2.9         2.0         0.9        45%
  Musselwhite                              0.7         1.2         (0.5)      (42%)        1.9         1.6         0.3        19%
  Kubaka                                   0.1         5.5         (5.4)      (98%)        0.2        10.0        (9.8)      (98%)
  Other operations                         8.9        12.3         (3.4)      (28%)       21.5        14.0         7.5        54%
CORPORATE & OTHER                          0.6         0.1          0.5       500%         0.9         0.3         0.6       200%
----------------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
                                     $    38.6   $    40.4   $    (1.8)       (4%)   $    76.7   $    60.2   $    16.5        27%
----------------------------------- ----------- ----------- ----------------------- ----------- ----------- -----------------------
</TABLE>
(a)     On  December  31,  2004,  the  company  completed  the  purchase  of the
        remaining  51%  interest in the  paracatu  mine.  For the three and nine
        months ended June 30, 2004, the company had only a 49% interest.

Capital  expenditures  during the first half of 2005  included  costs related to
accessing  phase five and phase six ore zones at Fort Knox,  development  of the
Pamour pit at the Porcupine Joint Venture, costs at Paracatu related to the mine
and mill expansion and continued recommissioning costs at Refugio.

FINANCING ACTIVITIES

Financing  activities in the second  quarter and first half of 2005 provided net
cash of  $19.4  million  and  $36.0  million,  respectively.  Cash  provided  by
financing  activities  in 2005  primarily  related the increase in the Company's
LIBOR  loan  drawn on the  Company's  revolving  credit  facility.  The  Company
increased  the  loan by  $15.0  million  in the  first  quarter  of 2005  and an
additional  $20.0 million in the second quarter.  During the first half of 2004,
the Company had a net used cash of $18.6  million in financing  activities.  The
use of cash largely  related to the  repayment of the  Industrial  Revenue Bonds
owing to the Alaska Industrial Development and Export Authority,  with principal
totalling $25.0 million.

As of February 8, 2006,  there were 345.5  million  common shares of the Company
issued and  outstanding.  In  addition,  at the same date,  the  Company had 2.4
million share purchase options  outstanding  under its share option plan and 8.3
million common share purchase warrants outstanding.


                                       17
<PAGE>

BALANCE SHEET

------------------------------------------------ -------------------------------
IN US$ MILLIONS                                               AS AT:
                                                 --------------- ---------------
                                                      June 30,     December 31,
                                                        2005           2004
------------------------------------------------ --------------- ---------------
Cash and cash equivalents                           $      56.7    $      47.9
Current assets                                      $     207.9    $     206.9
Total assets                                        $   1,846.3    $   1,834.2
Current liabilities                                 $     149.7    $     172.8
Total debt (a)                                      $     174.0    $     138.8
Total liabilities (b)                               $     573.8    $     547.1
Shareholders' equity                                $   1,272.5    $   1,287.1
------------------------------------------------ --------------- ---------------
Statistics

        Working capital                             $      58.2    $      34.1
        Working capital ratio (c)                          1.39x          1.20x
------------------------------------------------ --------------- ---------------
(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.

Year-to-date,  cash increased by $8.8 million to $56.7  million,  with cash flow
from  operating  and financing  activities  more than  offsetting  the Company's
investing  activities.  During the first half of 2005,  the  Company's  net debt
position (cash and cash  equivalents  less long-term  debt) increased from $75.0
million to $101.1 million. The increase in the net debt position was largely the
result of the  increase  in the  Company's  LIBOR  loan and  continuing  capital
expenditures.  The increase in cash along with an increase in inventories  and a
decrease in account payables and accrued liabilities  resulted in an increase to
net working capital of $34.1 million to $58.2 million.

CREDIT FACILITY

In December 2004, the Company  replaced the $125 million credit  facility with a
new three-year $200 million  revolving  credit  facility,  which allowed for the
limit to be increased to $300 million. The Company borrowed $105.0 million under
the facility to help finance the  acquisition  of the  remaining 51% interest in
the Paracatu  mine.  In February  2005,  the limit was increased by $15 million,
which the Company drew down on as a LIBOR loan for working capital purposes.  In
March  2005,  the limit was  increased  by $10 million to allow for the issue of
additional letters of credit. In April 2005, the outstanding limit was increased
to $295 million and the maturity date extended to April 30, 2008.

LIQUIDITY OUTLOOK

The  major  uses of  cash  for the  remainder  of  2005,  outside  of  operating
activities  and general  and  administrative  costs,  include:  reclamation  and
remediation  obligation,  explorations  and  business  development  expense  and
additions to property,  plant and equipment.  As of June 30, 2005,  $8.4 million
has been spent on reclamation  and  remediation  expenditures,  with a full year
forecast for 2005 of approximately $24 million.  In the first half,  exploration
and  business  development  expenditures  of $11.3  million,  of an expected $22
million for the year,  have been  incurred.  Additions  to  property,  plant and
equipment have totalled  $76.7 million during the first six months,  with a full
year forecast of approximately $165 million to be spent.

CONTRACTUAL OBLIGATIONS AND COMMITMENTS

Kinross has entered  into an agreement to acquire  Crown  Resources  Corporation
("Crown") in exchange for the issuance of Kinross'  common shares.  Kinross will
not issue  fractional  shares to the  shareholders of Crown resulting in a small
amount that will be paid in cash.  This  acquisition is discussed in the section
entitled "Developments".  For a schedule of contractual obligations please refer
to the Company's 2004 Annual MD&A.

HEDGING ACTIVITIES

From time-to-time,  the Company manages its exposure to fluctuation in commodity
prices,  foreign  exchange rates and interest rates by entering into  derivative
financial  instrument  contracts in accordance with the risk  management  policy
approved by the Company's Board of Directors.

GOLD

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,  following  the adoption of Accounting  Guideline 13,  "Hedging
Relationships" ("AcG-13"), these contracts, while still


                                       18
<PAGE>

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  in 2004 and 2005.  During the six months  ended  June 30,  2004,  the
Company delivered 85,000 ounces into these contracts.  In addition,  the Company
financially  closed out the  remaining  90,000 ounces at a cost of $9.6 million.
However,  for accounting  purposes the remaining portion of the unrealized loss,
as determined on December 31, 2003,  remained to be recognized  into earnings in
accordance with the original maturity dates of the contracts.

During the six months ended June 30, 2005, the Company  recognized into earnings
the remaining $4.7 million related to the loss on the deferred contracts.

FOREIGN CURRENCY

From  time-to-time,  the Company uses 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,  with the adoption of AcG-13,  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.  During the
six months  ended June 30,  2005,  the  Company  recognized  into  earnings  the
remaining  $0.9 million of the deferred  gain.  Both the realized and unrealized
net gains during 2005 from the  strengthening of the Canadian dollar against the
U.S. dollar have been netted against operating costs from the Company's Canadian
mines and against Canadian general and administrative expenses.

At June 30, 2005, the Company had fixed forward  contracts to sell U.S.  dollars
and buy  Canadian  dollars of CDN$10.1  million at an average  exchange  rate of
1.2590.

For  details  on the  hedging  activities  please  refer  to  Note 6  "Financial
instruments" of the accompanying consolidated financial statements.

6.      CRITICAL ACCOUNTING POLICIES

In the 2004  annual  MD&A  there is a full  discussion  and  description  of the
Company's  critical  accounting  policies.  The  preparation  of  the  Company's
consolidated  financial  statements  in  conformity  with Canadian GAAP requires
management to make estimates and assumptions that affect amounts reported in the
consolidated  financial  statements  and  accompanying  notes.  These  are fully
described in the 2004 annual MD&A.

7.      RECENT PRONOUNCEMENTS AND ACCOUNTING CHANGES

For a discussion of recent pronouncements and accounting changes please refer to
Note 4 of the accompanying  interim  consolidated  financial  statements for the
period ended June 30, 2005.

8.      RISK ANALYSIS AND ADDITIONAL INFORMATION

The  operations  of Kinross are  high-risk  due to the nature of the  operation,
exploration,  and  development of mineral  properties.  For a discussion of risk
factors and  additional  information  please refer to the Company's  2004 annual
MD&A, the Annual Information Form and other filings,  which are available on the
Company's  website  WWW.KINROSS.COM  and on  WWW.SEDAR.COM or are available upon
request from the Company.

9.      SUMMARY OF QUARTERLY RESULTS

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                           Q3        Q2        Q1         Q4        Q3         Q2        Q1         Q4         Q3
------------------------------------------------------------------------------------------------------------------------------------
(in millions, except per share amounts)   2005      2005      2005       2004      2004       2004      2004       2003       2003
------------------------------------------------------------------------------------------------------------------------------------
<S>                                     <C>       <C>       <C>        <C>       <C>        <C>       <C>        <C>        <C>
Total metal sales                       $ 174.6   $ 179.8   $ 179.2    $ 174.6   $ 158.2    $ 154.8   $ 143.3    $ 153.8    $ 157.8
Net earnings (loss)                     $ (16.4)  $  (0.9)  $ (88.0)   $   5.5   $  11.7    $   7.7   $(372.8)   $ (11.9)   $ (27.5)
Net earnings (loss) attributable to
  common shares                         $ (16.4)  $  (0.9)  $ (88.0)   $   5.5   $  11.7    $   7.7   $(372.8)   $   2.4    $ (29.7)
Basic and diluted earnings (loss)
  per share                             $ (0.05)  $     -   $ (0.25)   $  0.02   $  0.03    $  0.02   $ (1.21)   $  0.01    $ (0.09)
------------------------------------------------------------------------------------------------------------------------------------

Cash flow provided from (used in)
  operating activities                  $  30.6   $  26.8   $  57.9    $  62.9   $  25.4    $  15.0   $  18.7    $  36.7    $  18.1
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>


                                       19
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEETS
(expressed in millions of U.S. dollars) (unaudited)
<S>                                                                                     <C>               <C>
=========================================================================================================================
                                                                                                     AS AT
                                                                                     ------------------------------------
                                                                                          JUNE 30,        DECEMBER 31,
                                                                                            2005              2004
-------------------------------------------------------------------------------------------------------------------------
Assets                                                                                                    Restated (a)
  Current assets
    Cash and cash equivalents                                                           $      56.7       $      47.9
    Restricted cash                                                                             1.5               1.4
    Short-term investments                                                                      0.9               5.7
    Accounts receivable and other assets                               NOTE 5                  29.8              40.9
    Inventories                                                        NOTE 5                 119.0             111.0
                                                                                     ------------------------------------
                                                                                              207.9             206.9
  Property, plant and equipment                                        NOTE 5               1,231.7           1,244.1
  Goodwill                                                             NOTE 5                 329.9             329.9
  Long-term investments                                                NOTE 5                  35.1              25.7
  Deferred charges and other long-term assets                          NOTE 5                  41.7              27.6
                                                                                     ------------------------------------
                                                                                        $   1,846.3       $   1,834.2
                                                                                     ------------------------------------
LIABILITIES
  Current liabilities
    Accounts payable and accrued liabilities                           NOTE 5           $     124.9       $     143.2
    Current portion of long-term debt                                  NOTE 7                   5.8               6.0
    Current portion of reclamation and remediation obligations                                 19.0              23.6
                                                                                     ------------------------------------
                                                                                              149.7             172.8
  Long-term debt                                                       NOTE 7                 152.0             116.9
  Reclamation and remediation obligations                                                     110.1             108.1
  Future income and mining taxes                                                              134.7             123.5
  Other long-term liabilities                                                                  10.9               9.5
  Redeemable retractable preferred shares                                                       2.5               2.6
                                                                                     ------------------------------------
                                                                                              559.9             533.4
                                                                                     ------------------------------------
COMMITMENTS AND CONTINGENCIES                                          NOTE 11
                                                                                     ------------------------------------
NON-CONTROLLING INTEREST                                                                        0.2               0.4
                                                                                     ------------------------------------
CONVERTIBLE PREFERRED SHARES OF SUBSIDIARY COMPANY                                             13.7              13.3
                                                                                     ------------------------------------
COMMON SHAREHOLDERS' EQUITY
  Common share capital and common share purchase warrants              NOTE 8               1,776.7           1,775.8
  Contributed surplus                                                                          35.7              33.9
  Accumulated deficit                                                                        (538.7)           (521.4)
  Cumulative translation adjustments                                                           (1.2)             (1.2)
                                                                                     ------------------------------------
                                                                                            1,272.5           1,287.1
                                                                                     ------------------------------------
                                                                                        $   1,846.3       $   1,834.2
                                                                                     ------------------------------------

TOTAL ISSUED AND OUTSTANDING COMMON SHARES (millions)                                         345.3             345.1
=========================================================================================================================

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

(a) See Note 3


                                                            2
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF OPERATIONS
(expressed in millions of U.S. dollars, except per share amounts) (unaudited)
==============================================================================================================================
                                                                       THREE MONTHS ENDED             SIX MONTHS ENDED
                                                                            JUNE 30,                      JUNE 30,
                                                                  -----------------------------  -----------------------------
                                                                      2005            2004           2005            2004
------------------------------------------------------------------------------------------------------------------------------
                                                                                   Restated (a)                  Restated (a)
<S>                                                                <C>             <C>            <C>            <C>
REVENUE AND OTHER OPERATING INCOME
  Metal sales                                                      $   174.6       $     158.2    $   354.4      $     313.0

OPERATING COSTS AND EXPENSES
  Cost of sales (excluding items shown below)                          111.0              97.8        224.1            190.4
  Accretion                                                              2.6               2.2          5.9              4.4
  Depreciation, depletion and amortization                              44.6              43.0         88.9             81.7
                                                                  -----------------------------  -----------------------------
                                                                        16.4              15.2         35.5             36.5
  Other operating costs                                                  0.9               2.0          4.4              3.9
  Exploration and business development                                   6.4               5.4         11.3              8.9
  General and administrative                                            10.7               8.5         20.9             15.4
  Impairment of investments                          NOTE 5                -                 -          0.6                -
  Gain on disposal of assets                                            (0.9)             (0.3)        (1.0)            (0.7)
                                                                  -----------------------------  -----------------------------
OPERATING EARNINGS (LOSS)                                               (0.7)             (0.4)        (0.7)             9.0

  Other income (expense) - net                       NOTE 5            (14.6)             12.2        (12.9)            10.9
                                                                  -----------------------------  -----------------------------
EARNINGS (LOSS) BEFORE
  TAXES AND OTHER ITEMS                                                (15.3)             11.8        (13.6)            19.9

  Income and mining taxes recovery (expense)                            (0.9)              0.2         (3.5)               -
  Non-controlling interest                                                 -              (0.1)         0.2             (0.1)
  Dividends on convertible preferred
   shares of subsidiary                                                 (0.2)             (0.2)        (0.4)            (0.4)
                                                                  -----------------------------  -----------------------------

                                                                  -----------------------------  -----------------------------
NET EARNINGS (LOSS)                                                $   (16.4)      $      11.7    $   (17.3)     $      19.4
                                                                  -----------------------------  -----------------------------

EARNINGS (LOSS) PER SHARE
  Basic                                                            $   (0.05)      $      0.03    $   (0.05)     $      0.06
  Diluted                                                          $   (0.05)      $      0.03    $   (0.05)     $      0.06
WEIGHTED AVERAGE NUMBER OF
  COMMON SHARES OUTSTANDING
(millions)
  Basic                                              NOTE 9            345.2             346.0        345.1            345.9
  Diluted                                            NOTE 9            345.2             346.3        345.1            346.3
==============================================================================================================================

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

(a) See Note 3


                                                               3
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS
(expressed in millions of U.S. dollars)
==============================================================================================================================
                                                                       THREE MONTHS ENDED             SIX MONTHS ENDED
                                                                            JUNE 30,                      JUNE 30,
                                                                  -----------------------------  -----------------------------
                                                                      2005            2004           2005            2004
------------------------------------------------------------------------------------------------------------------------------
                                                                                   Restated (a)                  Restated (a)
<S>                                                                <C>             <C>            <C>            <C>
OPERATING ACTIVITIES:
Net earnings (loss)                                                $   (16.4)      $      11.7    $   (17.3)     $      19.4
Adjustments to reconcile net earnings (loss) to net cash
  provided from (used in) operating activities:
  Depreciation, depletion and amortization                              44.6              43.0         88.9             81.7
  Impairment of investments                                                -                 -          0.6                -
  Gain on disposal of assets                                            (0.9)             (0.3)        (1.0)            (0.7)
  Future income and mining taxes                                        (2.3)             (3.4)        (1.5)            (7.2)
  Deferred revenue recognized                                              -              (0.5)           -             (1.1)
  Non-controlling interest                                                 -                 -         (0.2)               -
  Stock-based compensation                                               0.8               0.4          1.6              0.9
  Unrealized foreign exchange (gains) losses and other                  12.5              (7.8)         9.3             (8.4)
  Changes in operating assets and liabilities:
    Accounts receivable and other assets                                 1.7             (11.3)         7.6              1.4
    Inventories                                                         (3.9)             (2.0)       (11.1)           (24.5)
    Accounts payable and accrued liabilities                            (5.5)             (4.4)       (19.5)           (21.1)
                                                                  -----------------------------  -----------------------------
CASH FLOW PROVIDED FROM OPERATING ACTIVITIES                            30.6              25.4         57.4             40.4
                                                                  -----------------------------  -----------------------------
INVESTING:
  Additions to property, plant and equipment                           (38.6)            (40.4)       (76.7)           (60.2)
  (Additions to) proceeds from the sale of marketable securities         0.1             (10.5)         0.1            (10.2)
  (Additions to) proceeds from
    long-term investments and other assets - net                       (13.6)             (9.6)       (18.2)           (13.4)
  Proceeds from the sale of property, plant and equipment                3.5               0.3          3.9              0.8
  Additions to short-term investments                                    2.9               0.1          6.4              3.8
  Increase in restricted cash                                           (0.1)                -         (0.1)               -
                                                                  -----------------------------  -----------------------------
CASH FLOW USED IN INVESTING ACTIVITIES                                 (45.8)            (60.1)       (84.6)           (79.2)
                                                                  -----------------------------  -----------------------------
FINANCING:
  Issuance of common shares                                              0.6               1.6          1.1              3.0
  Proceeds from issue of debt                                           19.4               4.4         35.8              4.4
  Repayment of debt                                                     (0.6)             (0.7)        (0.9)           (26.0)
                                                                  -----------------------------  -----------------------------
CASH FLOW PROVIDED FROM (USED IN) FINANCING ACTIVITIES                  19.4               5.3         36.0            (18.6)
                                                                  -----------------------------  -----------------------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH                                    -              (0.5)           -             (0.7)
                                                                  -----------------------------  -----------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                         4.2             (29.9)         8.8            (58.1)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                          52.5             217.6         47.9            245.8
                                                                  -----------------------------  -----------------------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                56.7             187.7         56.7            187.7
==============================================================================================================================

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

(a) See Note 3


                                                               4
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY
(expressed in millions of U.S. dollars)
==============================================================================================================================
                                                                       THREE MONTHS ENDED             SIX MONTHS ENDED
                                                                            JUNE 30,                      JUNE 30,
                                                                  -----------------------------  -----------------------------
                                                                      2005            2004           2005            2004
------------------------------------------------------------------------------------------------------------------------------
                                                                                   Restated (a)                  Restated (a)
<S>                                                                <C>             <C>            <C>            <C>
COMMON SHARES
  Balance at the beginning of the period                           $  1,776.1      $   1,784.2    $  1,775.8     $   1,783.5
    Common shares issued                                                  0.6              1.6           1.1             3.0
    Transfer of fair value of exercised options                             -                -             -             0.2
    Transfer of fair value of expired warrants and options                  -             (0.3)         (0.2)           (1.2)
                                                                  -----------------------------  -----------------------------
  Balance at the end of the period                                 $  1,776.7      $   1,785.5    $  1,776.7     $   1,785.5
                                                                  -----------------------------  -----------------------------

CONTRIBUTED SURPLUS
  Balance at the beginning of the period                           $     34.9      $      33.7    $     33.9     $      30.0
    Transfer of fair value of expired warrants and options                  -              0.3           0.2             1.2
    Transfer of fair value of exercised options                             -                -             -            (0.2)
    Adoption of new accounting standards                                    -                -             -             2.5
    Stock option compensation                                             0.8              0.4           1.6             0.9
                                                                  -----------------------------  -----------------------------
  Balance at the end of the period                                 $     35.7      $      34.4    $     35.7     $      34.4
                                                                  -----------------------------  -----------------------------

ACCUMULATED DEFICIT
  Balance at the beginning of the period                           $   (522.3)     $    (450.6)   $   (521.4)    $    (455.8)
    Adoption of new accounting standards                                    -                -             -            (2.5)
    Net earnings (loss)                                                 (16.4)            11.7         (17.3)           19.4
                                                                  -----------------------------  -----------------------------
  Balance at the end of the period                                 $   (538.7)     $    (438.9)   $   (538.7)    $    (438.9)
                                                                  -----------------------------  -----------------------------

CUMULATIVE TRANSLATION ADJUSTMENTS
  Balance at the beginning of the period                           $     (1.2)     $      (1.2)   $     (1.2)    $      (1.2)
                                                                  -----------------------------  -----------------------------
  Balance at the end of the period                                 $     (1.2)     $      (1.2)   $     (1.2)    $      (1.2)
                                                                  -----------------------------  -----------------------------

                                                                  -----------------------------  -----------------------------
TOTAL SHAREHOLDERS' EQUITY                                         $  1,272.5      $   1,379.8    $  1,272.5     $    1,379.8
==============================================================================================================================

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

(a) See Note 3


                                                               5
<PAGE>

           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
                       For the three months ended June 30
  (millions of U.S. dollars, except per share amounts, unless otherwise stated)

1.      NATURE OF OPERATIONS

        Kinross  Gold  Corporation  and  its  subsidiaries  and  joint  ventures
        (collectively,  "Kinross" or the  "Company")  are engaged in gold mining
        and  related  activities,   including  exploration  and  acquisition  of
        gold-bearing   properties,   extraction,   processing  and  reclamation.
        Kinross' gold  production  and  exploration  activities  are carried out
        principally  in the United States,  Canada,  Russia,  Brazil,  Chile and
        Australia.  Gold, the Company's  primary product is produced in the form
        of dore,  which is shipped to refineries for final  processing.  Kinross
        also  produces and sells a limited  amount of silver as a by-product  of
        gold mining activities.

2.      BASIS OF PRESENTATION

        The unaudited interim consolidated  financial statements (the "financial
        statements")  of the Company have been prepared in  accordance  with the
        accounting  principles  and  methods  of  application  disclosed  in the
        consolidated financial statements for the year ended December 31, 2004.

        The accompanying  unaudited interim  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 the financial  statements  should be read in
        conjunction with the Company's restated audited financial statements for
        the year ended December 31, 2004.

        COMPARATIVE FIGURES

        Certain 2004 figures in the accompanying  unaudited interim consolidated
        financial  statements  have been  reclassified  to  conform  to the 2005
        presentation.

3.      RESTATEMENT  FOR  CORRECTION  OF FOREIGN  CURRENCY  IMPACT ON FUTURE TAX
        LIABILITIES

        During its preparation of the interim financial statements for 2005, the
        Company and its  auditors  discovered  an error  relating to its audited
        financial  statements for the years ended December 31, 2003 and 2004 and
        the respective  interim periods.  In the previously  released  financial
        statements  the Company had not properly  assessed the impact of changes
        in foreign  currency rates  affecting the timing  differences  resulting
        from a difference between accounting and tax basis, which form the basis
        for the future tax liabilities.  As a result of the  restatement,  these
        liabilities are adjusted for 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
        related  primarily  to the  future  tax  liabilities  of  the  Brazilian
        operations.  This non-cash  adjustment  had no impact on operating  cash
        flows or cash balances previously reported. The financial statements for
        the respective interim periods in 2005 are not restated.

        All amounts  included  in this report have been  adjusted to reflect the
        2004  restatement.  The  following  is a summary  of the  effects of the
        aforementioned adjustments on our consolidated financial statements:

        CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
        =====================================================================================================
                                                           AS PREVIOUSLY
                                                            REPORTED (a)      ADJUSTMENTS      AS RESTATED
        -----------------------------------------------------------------------------------------------------
<S>                                                         <C>               <C>               <C>
         AS AT DECEMBER 31, 2004
         LIABILITIES
          Future income and mining taxes                    $      90.6       $      32.9       $     123.5
         COMMON SHAREHOLDERS' EQUITY
          Accumulated deficit                               $    (487.7)      $     (33.7)      $    (521.4)
          Cumulative translation adjustment                 $      (2.0)      $       0.8       $      (1.2)
        =====================================================================================================
</TABLE>

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


                                       6
<PAGE>

        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)
Share in loss of investee companies                          $      -        $     -        $      -
Dividends on convertible preferred shares
  of subsidiary                                              $   (0.2)       $     -        $   (0.2)
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
------------------------------------------------------------------------------------------------------
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) recovery                     $   (1.3)       $   1.3        $      -
Non-controlling interest                                     $   (0.1)       $     -        $   (0.1)
Share in loss of investee companies                          $      -        $     -        $      -
Dividends on convertible preferred shares
  of subsidiary                                              $   (0.4)       $     -        $   (0.4)
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
------------------------------------------------------------------------------------------------------
</TABLE>
        (a)     As  previously   disclosed  in  the  second  quarter   financial
                statements filed with regulators in November 2005.

4.      RECENT ACCOUNTING PRONOUNCEMENTS AND ACCOUNTING CHANGES

        RECENT PRONOUNCEMENTS

(a)     On  January  27,  2005,  the  CICA  ("Canadian  Institute  of  Chartered
        Accountants")  issued three new accounting  standards:  Handbook Section
        1530,   "Comprehensive   Income",   Handbook  Section  3855,  "Financial
        Instruments - Recognition and  Measurement",  and Handbook Section 3865,
        "Hedges".  These standards will be effective for years  commencing after
        November 1, 2006. The impact of implementing  these new standards on the
        Company's  consolidated financial statements is not yet determinable and
        is dependent on the outstanding positions and related fair values at the
        time of transition.

        OTHER COMPREHENSIVE INCOME
        As  a  result  of  adopting  these  standards,  a  new  category,  Other
        Comprehensive  Income,  will be added  to  shareholders'  equity  on the
        consolidated  balance  sheets.  Major  components for this category will
        include  unrealized gains and losses on financial  assets  classified as
        available-for-sale, unrealized foreign currency translation amounts, net
        of hedging, arising from self-sustaining foreign operations, and changes
        in the  fair  value  of the  effective  portion  of  cash  flow  hedging
        instruments.

        FINANCIAL INSTRUMENTS - RECOGNITION AND MEASUREMENT
        Under the new standard,  all financial instruments will be classified as
        one  of  the  following:   held-to-maturity,   loans  and   receivables,
        held-for-trading or available-for-sale. Financial assets and liabilities
        held-for-trading  will be  measured  at fair value with gains and losses
        recognized in net income. Financial assets  held-to-maturity,  loans and
        receivables and financial liabilities other than those held-for-trading,
        will be measured at amortized cost. Available-for-sale  instruments will
        be measured at fair value with unrealized gains and losses recognized in
        other comprehensive income. The standard also permits designation of any
        financial instrument as held-for-trading upon initial recognition.

        HEDGES
        This new standard  specifies the criteria  under which hedge  accounting
        can be applied and how hedge  accounting can be executed for each of the
        permitted hedging  strategies:  fair value hedges,  cash flow hedges and
        hedges  of  a  foreign  currency  exposure  of  a  net  investment  in a
        self-sustaining foreign operation. In a fair value hedging relationship,
        the  carrying  value of the hedged  item is  adjusted by gains or losses
        attributable  to the hedged  risk and  recognized  in net  income.  This
        change in fair value of the hedged item,  to the extent that the hedging
        relationship is effective, is offset by changes in the fair value of the
        derivative.  In a cash flow hedging relationship,  the effective portion
        of the  change  in the fair  value  of the  hedging  derivative  will be
        recognized in other  comprehensive  income. The ineffective portion will
        be   recognized  in  net  income.   The  amounts   recognized  in  other
        comprehensive  income will be  reclassified to net income in


                                       7
<PAGE>

        the periods in which net income is affected  by the  variability  in the
        cash flows of the hedged item. In hedging a foreign currency exposure of
        a  net  investment  in  a  self-sustaining  foreign  operation,  foreign
        exchange gains and losses on the hedging  instruments will be recognized
        in other comprehensive income.

(b)     In June  2005,  the CICA  issued  Handbook  Section  3831  "Non-Monetary
        Transactions" to revise and replace Handbook Section 3830  "Non-Monetary
        Transactions". Section 3831 requires all non-monetary transactions to be
        measured at fair value, subject to certain exceptions. The standard also
        requires  that  commercial  substance  will replace  culmination  of the
        earnings  process as the test for fair value  measurement.  The standard
        defines  commercial  substance as a function of the cash flows  expected
        from the assets.  These revised standards are effective for non-monetary
        transactions  initiated in fiscal periods  beginning on or after January
        1, 2006 and early adoption is permitted for fiscal periods  beginning on
        or after July 1, 2005.

(c)     In October  2005,  the  Emerging  Issues  Committee  of the CICA  issued
        Abstract  No.  157,   "Implicit   Variable   Interests   Under   AcG-15"
        ("EIC-157").  This EIC clarifies  that implicit  variable  interests are
        implied financial interests in an entity that change with changes in the
        fair value of the entity's net assets  exclusive of variable  interests.
        An  implicit  variable  interest  is  similar  to an  explicit  variable
        interest except that it involves absorbing and/or receiving  variability
        indirectly from the entity.  The  identification of an implicit variable
        interest is a matter of judgment that depends on the relevant  facts and
        circumstances. EIC-157 will be effective in the first quarter of 2006.

        ACCOUNTING CHANGES

(i)     In November 2004, the Emerging  Issues  Committee of the CICA issued EIC
        149, "Accounting for Retractable or Mandatorily Redeemable Shares" ("EIC
        149").   EIC  149  clarifies  the  accounting   for  certain   financial
        instruments  with   characteristics  of  both  liabilities  and  equity,
        including mandatorily redeemable non-controlling interests, and requires
        that those  instruments  be  classified  as  liabilities  on the balance
        sheets. Previously,  many of those financial instruments were classified
        as equity.  EIC 149 is effective at the  beginning of the first  interim
        period  beginning  after  November 5, 2004. The impact of EIC 149 on the
        Company's  future  results of  operations  or financial  condition  will
        depend on the terms contained in contracts  signed or contracts  amended
        in the  future.  The  Company  continues  to  disclose  its  mandatorily
        redeemable  preferred  shares  as a  component  of  liabilities  in  its
        consolidated balance sheets, which is consistent with EIC 149.

(ii)    In December 2004, the Emerging  Issues  Committee of the CICA issued EIC
        150, "Determining Whether an Arrangement Contains a Lease", ("EIC 150").
        EIC 150  provides  guidance on how to determine  whether an  arrangement
        contains a lease that is within the scope of CICA Handbook Section 3065,
        "Leases".  The  guidance in EIC 150 is based on whether the  arrangement
        conveys  to the  purchaser  the right to use a  tangible  asset,  and is
        effective  for the Company  for  arrangements  entered  into or modified
        after  January 1, 2005.  The impact of EIC 150 on the  Company's  future
        results of operations  and financial  condition will depend on the terms
        contained in contracts signed or contracts amended in the future.

5.      CONSOLIDATED FINANCIAL STATEMENT DETAILS

        The following consolidated financial statement details are presented for
        each of the six months ended June 30, 2005 and 2004 and the three months
        ended  June  30,  2005  and  2004  for the  consolidated  statements  of
        operations and  consolidated  statement of cash flows and as of June 30,
        2005 and December 31, 2004 for the consolidated balance sheets.

        CONSOLIDATED BALANCE SHEETS

        ACCOUNTS RECEIVABLE AND OTHER ASSETS

<TABLE>
<CAPTION>
        ======================================================================================================
                                                                                JUNE 30,        December 31,
                                                                                  2005             2004
        ------------------------------------------------------------------------------------------------------
<S>                                                                           <C>              <C>
        Trade receivables                                                     $        1.7     $        2.2
        Taxes recoverable                                                              8.7              7.9
        Deferred costs associated with business and property acquisitions                -              3.3
        Deferred hedge losses                                                            -              4.7
        Fair value of non-hedge derivatives                                              -              4.1
        Marketable securities (a)                                                      0.2              0.3
        Prepaid expenses                                                               8.6              4.0
        Other                                                                         10.6             14.4
        ------------------------------------------------------------------------------------------------------
                                                                              $       29.8     $       40.9
        ======================================================================================================
</TABLE>

        (a)     Quoted market value: 2005 - $0.3 million, 2004 - $0.4 million.


                                       8
<PAGE>

        INVENTORIES

<TABLE>
<CAPTION>
        ======================================================================================================
                                                                                JUNE 30,        December 31,
                                                                                  2005             2004
        ------------------------------------------------------------------------------------------------------
<S>                                                                           <C>              <C>
        In-process                                                            $       5.8       $       9.1
        Finished metal                                                               28.9              25.8
        Ore in stockpiles (a)                                                        23.7              24.2
        Ore on leach pads (b)                                                        15.6              15.7
        Materials and supplies                                                       64.8              51.1
        ------------------------------------------------------------------------------------------------------
                                                                                    138.8             125.9
        Long-term portion of ore in stockpiles (a)                                  (19.8)            (14.9)
        ------------------------------------------------------------------------------------------------------
                                                                              $     119.0       $     111.0
        ======================================================================================================
</TABLE>

        (a)     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. See deferred charges and other long-term assets.
        (b)     Ore on leach pads at June 30, 2005 and  December 31, 2004 relate
                entirely to the Company's 50% owned Round  Mountain  mine. As at
                June 30, 2005, the weighted  average cost per recoverable  ounce
                of gold on the leach pads was $206 per ounce  (December 31, 2004
                - $200 per  ounce).  Based on current  mine  plans,  the Company
                expects to place the last tonne of ore on its current  leach pad
                in 2009.  The Company  expects that all economic  ounces will be
                recovered within  approximately 12 months following the date the
                last tonne of ore is placed on the leach pad.

        PROPERTY, PLANT AND EQUIPMENT - NET

<TABLE>
<CAPTION>
        ======================================================================================================
                                                                                JUNE 30,        December 31,
                                                                                  2005             2004
        ------------------------------------------------------------------------------------------------------
<S>                                                                           <C>              <C>
        PROPERTY, PLANT AND EQUIPMENT
        Cost - net of writedown
        Producing properties
          Plant and equipment amortized on a straight line basis              $     177.0       $     165.6
          Plant and equipment amortized on units of production basis              1,076.2             983.4
        Development properties (a)                                                      -              39.9
        Exploration properties (b)                                                    6.1               6.1
        ------------------------------------------------------------------------------------------------------
        MINERAL INTERESTS
        GROSS CARRYING VALUE
        Production stage                                                      $     680.6       $     680.5
        Development properties                                                       36.6              36.6
        Exploration properties                                                       88.3              88.3
        ------------------------------------------------------------------------------------------------------
                                                                              $   2,064.8       $   2,000.4
        ------------------------------------------------------------------------------------------------------
        PROPERTY, PLANT AND EQUIPMENT
        ACCUMULATED DEPRECIATION
        Producing properties
          Plant and equipment amortized on a straight line basis              $     (85.8)      $     (75.7)
          Plant and equipment amortized on units of production basis               (589.6)           (552.8)
        ------------------------------------------------------------------------------------------------------
        MINERAL INTERESTS
        ACCUMULATED DEPRECIATION
        Production stage                                                      $    (157.7)      $    (127.8)
        Development properties                                                          -                 -
        Exploration properties                                                          -                 -
        ------------------------------------------------------------------------------------------------------
                                                                              $    (833.1)      $    (756.3)
        ------------------------------------------------------------------------------------------------------
        Property, Plant and Equipment - net                                   $   1,231.7       $   1,244.1
        ======================================================================================================
</TABLE>

        (a)     The Pamour  Development  Project at the Porcupine  Joint Venture
                was   reclassified  to  producing   following   commencement  of
                production.
        (b)     Includes  Norseman  property in Australia that was held for sale
                as of June 30, 2005.

        GOODWILL

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


                                       9
<PAGE>

<TABLE>
<CAPTION>
        ==============================================================================================================
                                                                                           2005
                                                      ----------------------------------------------------------------
                                                         Dec 31, 2004     Additions     Impairment     Jun 30, 2005
                                                      ----------------------------------------------------------------
<S>                                                      <C>              <C>           <C>            <C>
        OPERATING SEGMENTS
          Fort Knox                                      $          -     $       -     $        -     $          -
          Kubaka                                                    -             -              -                -
          Round Mountain                                         86.5             -              -             86.5
          La Coipa                                               71.4             -              -             71.4
          Crixas                                                 38.0             -              -             38.0
          Paracatu                                               65.5             -              -             65.5
          Musselwhite                                            31.0             -              -             31.0
          Porcupine Joint Venture                                   -             -              -                -
          Other operations                                       37.5             -              -             37.5
        CORPORATE AND OTHER                                         -             -              -                -
        --------------------------------------------------------------------------------------------------------------
        TOTAL                                            $      329.9     $       -     $        -     $      329.9
        ==============================================================================================================
</TABLE>

        LONG-TERM INVESTMENTS

        During the six months ended June 30, 2005, the Company purchased 511,640
        newly issued shares of Crown  Resources  Corporation  ("Crown") for $1.0
        million  and  a  $10  million  convertible  debenture  as  part  of  the
        acquisition  of  Crown.  See Note 12 a) for  further  discussion  of the
        acquisition.

        During the three months  ended June 30,  2005,  the Company sold 647,500
        shares of Guyana  Goldfields Inc. for $1.3 million,  which resulted in a
        gain on disposal of $0.4 million.

        DEFERRED CHARGES AND OTHER LONG-TERM ASSETS

        Deferred  charges  and  other  long-term  assets  are  comprised  of the
        following:

<TABLE>
<CAPTION>
        ======================================================================================================
                                                                                JUNE 30,        December 31,
                                                                                  2005             2004
        ------------------------------------------------------------------------------------------------------
<S>                                                                           <C>              <C>
        Long-term ore in stockpiles (a)                                       $      19.8       $      14.9
        Deferred charges, net of amortization                                         2.5               2.4
        Long-term receivables                                                        10.7               5.3
        Long-term deposits                                                            0.9               2.6
        Crown acquisition costs                                                       4.9                 -
        Other                                                                         2.9               2.4
        ------------------------------------------------------------------------------------------------------
                                                                              $      41.7       $      27.6
        ======================================================================================================
</TABLE>

        (a)     Ore in  stockpiles  represents  stockpiled  ore at the Company's
                Fort Knox mine and its proportionate  share of stockpiled ore at
                Round Mountain and the Porcupine Joint Venture.

        ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

        Accounts payable and accrued liabilities are comprised of the following:

<TABLE>
<CAPTION>
        ======================================================================================================
                                                                                JUNE 30,        December 31,
                                                                                  2005             2004
        ------------------------------------------------------------------------------------------------------
<S>                                                                           <C>              <C>
        Trade payables                                                        $      31.4       $      33.1
        Accrued liabilties                                                           21.5              27.4
        Employee related accrued liabilities                                         14.8              22.9
        Taxes payable                                                                18.9              18.4
        Other tax related                                                            11.2               9.9
        Accruals related to acquisition                                              10.6              10.6
        Other accruals                                                               16.5              20.9
        ------------------------------------------------------------------------------------------------------
                                                                              $     124.9       $     143.2
        ======================================================================================================
</TABLE>


                                       10
<PAGE>

        CONSOLIDATED STATEMENT OF OPERATIONS

        IMPAIRMENT CHARGES

        During  the six  months  ended  June  30,  2005,  the  Company  recorded
        impairments  associated  with long-term  investments of $0.6 million and
        marketable securities of $0.1 million. There were no such impairments in
        the similar period of 2004.

        OTHER INCOME (EXPENSE) - NET

<TABLE>
<CAPTION>
        =======================================================================================================================
                                                               THREE MONTHS ENDED JUNE 30,        SIX MONTHS ENDED JUNE 30,
                                                            -------------------------------------------------------------------
                                                                 2005           2004                2005           2004
        -----------------------------------------------------------------------------------------------------------------------
<S>                                                            <C>            <C>                 <C>            <C>
        Interest income and other                              $    1.6       $    1.9            $    3.5       $    3.7
        Interest expense                                           (1.7)          (0.5)               (3.6)          (1.1)
        Foreign exchange (losses) gains                           (14.6)           6.7               (12.9)           5.0
        Non-hedge derivative gains (losses)                         0.1            4.1                 0.1            3.3
        -----------------------------------------------------------------------------------------------------------------------
                                                               $  (14.6)      $   12.2            $  (12.9)      $   10.9
        =======================================================================================================================
</TABLE>

        CONSOLIDATED STATEMENTS OF CASH FLOWS

        CASH INTEREST AND INCOME TAXES PAID

<TABLE>
<CAPTION>
        =======================================================================================================================
                                                               THREE MONTHS ENDED JUNE 30,        SIX MONTHS ENDED JUNE 30,
                                                            -------------------------------------------------------------------
                                                                 2005           2004                2005           2004
        -----------------------------------------------------------------------------------------------------------------------
<S>                                                           <C>             <C>                <C>             <C>
        Interest                                              $    2.2        $    0.2           $    3.8        $    0.6
        Income taxes                                          $    1.7        $    4.6           $    3.4        $    6.3
        =======================================================================================================================
</TABLE>

6.      FINANCIAL INSTRUMENTS

        From time to time, 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.

        During  2005,  the  Company  has  elected  to  mark-to-market   all  its
        derivative contracts.

        Gold

        The outstanding  number of ounces,  average expected realized prices and
        maturities  for the gold commodity  derivative  contracts as at June 30,
        2005 are as follows:

<TABLE>
<CAPTION>
        ============================================================================================================================
                                                                                                     PUT OPTIONS
                                            SPOT DEFERRED   AVERAGE    CALL OPTIONS     AVERAGE           BOUGHT        AVERAGE
        EXPECTED YEAR OF DELIVERY           OUNCES HEDGED     PRICE    SOLD (OUNCES)  STRIKE PRICE       (OUNCES)     STRIKE PRICE
        ----------------------------------------------------------------------------------------------------------------------------
<S>                                                   <C>     <C>              <C>          <C>          <C>             <C>
        2005                                            -         -               -          -            75,000         $   250
        2006                                            -         -               -          -           150,000         $   250
        ----------------------------------------------------------------------------------------------------------------------------
                                                        -         -               -          -           225,000         $   250
        ============================================================================================================================
</TABLE>

        Spot  deferred  contracts for the sale of gold held at December 31, 2003
        did not meet the requirements  for formal hedge accounting  during 2004.
        For  accounting   purposes  the  portion  of  the  unrealized  loss,  as
        determined  on December 31, 2003,  was deferred on the balance sheet and
        is recognized  into earnings in  accordance  with the original  maturity
        dates of the  contracts.  During the three  months ended March 31, 2005,
        $1.6 million of these deferred  losses were  recognized  metal sales and
        the  remaining  $3.1  million was  recognized  in metal sales during the
        three months ended June 30, 2005.

        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.  The Company had no gold call options
        outstanding as at June 30, 2005 or March 31, 2005.


                                       11
<PAGE>

        FOREIGN CURRENCY

        At June 30, 2005, the Company's  consolidated  foreign  currency program
        consists of:

<TABLE>
<CAPTION>
        ----------------------------------------------------------------------------------------------------------------------------
                                                  MATURITY                     AVERAGE                                  UNREALIZED
                                                    PERIOD                       PRICE                   DEFERRED             GAIN
        Millions of US$                       (TO THE YEAR)         QUANTITY   (C$/USD)    FAIR VALUE        GAIN       RECOGNIZED
        ----------------------------------------------------------------------------------------------------------------------------
<S>                                                   <C>           <C>         <C>        <C>           <C>            <C>
        Fixed forward contracts                       2005          $    8.0    1.2590     $      0.2    $    0.2       $      0.2
        ============================================================================================================================
</TABLE>

        The Company uses fixed forward contracts to partially hedge its Canadian
        dollar  denominated mine operating costs and general and  administrative
        costs. Fixed forward contracts held at December 31, 2003, failed to meet
        the requirements for formal hedge accounting during 2004. For accounting
        purposes, the unrealized gain on these contracts as at December 31, 2003
        was $0.9  million.  This gain was deferred on the balance  sheet and has
        been  recognized  in earnings in connection  with the original  maturity
        dates of the  contracts.  During the three  months ended March 31, 2005,
        the Company  recognized into earnings $0.4 million of the deferred gain.
        The remaining  deferred gain of $0.5 million was  recognized in earnings
        during  the  three  months  ended  June  30,  2005.  Both  realized  and
        unrealized net gains during 2005 from the  strengthening of the Canadian
        dollar against the U.S. dollar have been netted against  operating costs
        from the  Company's  Canadian  mines and  against  Canadian  general and
        administrative expenses.

7.      LONG-TERM DEBT

        The following table shows the breakdown of long-term debt:

<TABLE>
<CAPTION>
        ======================================================================================================
                                                                                           AS AT
                                                                             ---------------------------------
                                                                                JUNE 30,        December 31,
                                                                                  2005             2004
        ------------------------------------------------------------------------------------------------------
<S>                                                                           <C>              <C>
        Corporate revolving credit facility               Variable            $     140.0       $     105.0
        Kubaka project-financing debt - EBRD loan         Variable                    2.8               2.7
        Fort Knox capital leases                        5.0% - 5.25%                  1.2               2.1
        Refugio capital leases                          5.7% - 6.2%                  13.8              13.1
        ------------------------------------------------------------------------------------------------------
                                                                                    157.8             122.9
        Less: current portion                                                        (5.8)             (6.0)
        ------------------------------------------------------------------------------------------------------
        Long-term debt                                                        $     152.0       $     116.9
        ======================================================================================================
</TABLE>

        Corporate revolving credit facility

        During the six months ended June 30, 2005, one of the facility's lenders
        increased its limit by $15 million.  The Company  subsequently drew down
        on this  additional  amount as a LIBOR loan,  which was used for working
        capital purposes, bringing the total of the LIBOR loan outstanding under
        the facility to $140.0  million as at June 30, 2005.  The facility  also
        provides  credit  support  for  letters of credit to  satisfy  financial
        assurance  requirements,  primarily  associated with reclamation related
        activities. As at June 30, 2005, letters of credit totaling $108 million
        had been issued under this  facility,  up from $94.9 million at December
        31, 2004.

        In April 2005, the  outstanding  limit was increased to $295 million and
        the maturity date extended to April 30, 2008. Upon each of the first two
        anniversaries of the facility, with the lenders consent, the Company may
        extend the maturity of the facility by one year.

8.      COMMON SHARE CAPITAL

        At June 30, 2005, the Company had 345,299,000 common shares outstanding.
        If all  outstanding  options and  warrants  had been  exercised  and all
        preferred  shares  converted a total of 357,613,000  common shares would
        have been outstanding.


                                       12
<PAGE>

        A summary of common share transactions for the six months ended June 30,
        2005 is as follows:

<TABLE>
<CAPTION>
        ==========================================================================================================================
                                                                                                        SIX MONTHS ENDED
                                                                                                          JUNE 30, 2005
        --------------------------------------------------------------------------------------------------------------------------
                                                                                                  Number of
                                                                                                    shares             Amount
        --------------------------------------------------------------------------------------------------------------------------
                                                                                                    (000's)               $
<S>                                                                                                 <C>              <C>
        COMMON SHARES
        Balance, at beginning of period                                                             345,066          $  1,766.4
        Issued (cancelled):
          Under employee share purchase plan                                                            111                 0.7
          Under stock option and restricted share plan                                                  121                 0.4
          Expiry of TVX and Echo Bay options                                                              -                (0.2)
        Conversions:
          Kinam preferred shares                                                                          1                   -
        --------------------------------------------------------------------------------------------------------------------------
        Balance, end of period                                                                      345,299          $  1,767.3
        --------------------------------------------------------------------------------------------------------------------------

        Common share purchase warrants
        Balance, beginning and end of period                                                          8,333          $      9.4
        --------------------------------------------------------------------------------------------------------------------------
        Total common share capital                                                                                   $  1,776.7
        ==========================================================================================================================
</TABLE>

9.      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
        per common share for the following periods:

<TABLE>
<CAPTION>
        ==========================================================================================================================
                                                                                 THREE MONTHS ENDED           SIX MONTHS ENDED
                                                                                       JUNE 30,                   JUNE 30,
                                                                               ------------------------   ------------------------
        (NUMBER OF COMMON SHARES IN THOUSANDS)                                   2005 (a)     (2004)        2005 (a)      (2004)
        --------------------------------------------------------------------------------------------------------------------------
<S>                                                                              <C>        <C>             <C>         <C>
        Basic weighted average shares outstanding:                               345,199    345,972         345,139     345,898
        Weighted average shares dilution adjustments:
          Dilutive stock options (b)                                                   -        139               -         134
          Restricted shares                                                            -        228               -         228
        --------------------------------------------------------------------------------------------------------------------------
        Diluted weighted average shares outstanding                              345,199    346,339         345,139     346,260
        --------------------------------------------------------------------------------------------------------------------------

        Weighted average shares dilution adjustments - exclusions: (c)
          Dilutive stock options                                                       -          -               -           -
          Restricted shares                                                            -          -               -           -
          Redeemable preferred shares                                                  -      1,058               -       1,058
          Kinam preferred shares                                                       -        332               -         332
        --------------------------------------------------------------------------------------------------------------------------
                                                                                       -          -               -           -
        ==========================================================================================================================
</TABLE>

        (a)     As a result of the net loss from  continuing  operations for the
                three month  period and six month  period  ended June 30,  2005,
                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, 2005,  the average  share prices used were
                $5.54 and $6.06 per share,  respectively.  For the three  months
                and six months  ended June 30,  2004,  the average  share prices
                used were $5.96 and $6.55 per share, respectively.
        (c)     These adjustments were excluded,  as they were anti-dilutive for
                the three months ended June 30, 2005 and 2004, respectively.


                                       13
<PAGE>

10.     SEGMENTED INFORMATION

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

<PAGE>

<TABLE>
<CAPTION>
        ============================================================================================================================
                                                                                                                          SEGMENT
                                         METAL   COST OF                                                                 EARNINGS
                                         SALES    SALES    ACCRETION   DD&A (a)   EXPLORATION    IMPAIRMENT   OTHER (b)    (LOSS)
        ----------------------------------------------------------------------------------------------------------------------------
<S>                                    <C>       <C>       <C>         <C>        <C>            <C>          <C>         <C>
        For the three months ended
          June 30, 2005:
        OPERATING SEGMENTS
          Fort Knox                    $  37.6   $  23.1   $     0.3   $   9.3    $       0.1    $        -   $    0.2    $    4.6
          Kubaka                          16.0      12.1         0.1       2.6            0.3             -        0.3         0.6
          Round Mountain                  39.5      22.9         0.4      10.8            0.4             -          -         5.0
          La Coipa                        14.2      11.6         0.1       3.7            0.3             -          -        (1.5)
          Crixas                          10.7       3.7         0.1       3.1              -             -          -         3.8
          Paracatu                        17.4      11.3         0.2       4.4            1.8             -          -        (0.3)
          Musselwhite                      9.0       6.9         0.1       3.3            0.7             -          -        (2.0)
          Porcupine Joint Venture         22.6      13.4         0.3       3.9            0.9             -        0.2         3.9
          Other operations                10.1       6.5         0.7       2.8            0.2             -        0.1        (0.2)
        CORPORATE AND OTHER (c)          (2.5)      (0.5)        0.3       0.7            1.7             -        9.9       (14.6)
        ----------------------------------------------------------------------------------------------------------------------------
        TOTAL                          $ 174.6   $ 111.0   $     2.6   $  44.6    $       6.4    $        -   $   10.7    $   (0.7)
        ============================================================================================================================


        ============================================================================================================================
                                                                                                                          SEGMENT
                                         METAL   COST OF                                                                 EARNINGS
                                         SALES    SALES    ACCRETION   DD&A (a)   EXPLORATION    IMPAIRMENT   OTHER (b)    (LOSS)
        ----------------------------------------------------------------------------------------------------------------------------
        For the three months ended
          June 30, 2004:
        OPERATING SEGMENTS
          Fort Knox                    $  27.2  $   19.1   $     0.4   $    6.5   $       0.1    $        -   $      -    $    1.1
          Kubaka                          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 (c)           (2.2)        -         0.4        0.4           2.5             -        8.2       (13.7)
        ----------------------------------------------------------------------------------------------------------------------------
        TOTAL                          $ 158.2   $  97.8   $     2.2   $   43.0   $       5.4    $        -   $   10.2    $   (0.4)
        ============================================================================================================================


        ============================================================================================================================
                                                                                                                          SEGMENT
                                         METAL   COST OF                                                                 EARNINGS
                                         SALES    SALES    ACCRETION   DD&A (a)   EXPLORATION    IMPAIRMENT   OTHER (b)    (LOSS)
        ----------------------------------------------------------------------------------------------------------------------------
        For the six months ended
          June 30, 2005:
        OPERATING SEGMENTS
          Fort Knox                    $  68.1   $  40.6   $     0.6   $   17.0   $       0.2    $        -   $    0.5    $    9.2
          Kubaka                          34.3      25.6         0.2        6.3           0.8             -        0.4         1.0
          Round Mountain                  79.4      47.0         0.9       21.7           0.5             -          -         9.3
          La Coipa                        31.8      24.1         0.2        8.1           0.5             -        0.3        (1.4)
          Crixas                          21.0       7.2         0.1        6.0           0.1             -          -         7.6
          Paracatu                        36.0      23.6         0.4        8.0           2.2             -          -         1.8
          Musselwhite                     17.8      13.3         0.1        6.4           1.1             -          -        (3.1)
          Porcupine Joint Venture         44.6      26.7         0.5        8.6           1.9             -        0.2         6.7
          Other operations                24.2      16.7         1.1        5.6           0.2             -        2.4        (1.8)
        CORPORATE AND OTHER (c)           (2.8)     (0.7)        1.8        1.2           3.8           0.6       20.5       (30.0)
        ----------------------------------------------------------------------------------------------------------------------------
        TOTAL                          $ 354.4   $ 224.1   $     5.9   $   88.9   $      11.3    $      0.6   $   24.3    $   (0.7)
        ============================================================================================================================
</TABLE>

                                       14
<PAGE>

<TABLE>
<CAPTION>
        ============================================================================================================================
                                                                                                                          SEGMENT
                                         METAL   COST OF                                                                 EARNINGS
                                         SALES    SALES    ACCRETION   DD&A (a)   EXPLORATION    IMPAIRMENT   OTHER (b)    (LOSS)
        ----------------------------------------------------------------------------------------------------------------------------
<S>                                    <C>       <C>       <C>         <C>        <C>            <C>          <C>         <C>
        For the six months ended
          June 30, 2004:
        OPERATING SEGMENTS
          Fort Knox                    $  63.0   $  41.8   $     0.7   $   13.6   $       0.1    $        -   $      -    $    6.8
          Kubaka                          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 (c)           (6.3)      0.7         0.8          -           4.1             -       14.9       (26.8)
        ----------------------------------------------------------------------------------------------------------------------------
        TOTAL                          $ 313.0   $ 190.4   $     4.4   $   81.7   $       8.9    $        -   $   18.6    $    9.0
        ============================================================================================================================
</TABLE>

        (a)     Depreciation,  depletion  and  amortization  is  referred  to as
                "DD&A" in the tables above.
        (b)     Other includes other operating costs, general and administrative
                expenses and (gain) loss on disposal of assets.
        (c)     Includes corporate, shutdown and other non-core operations.

        SEGMENT ASSETS AND CAPITAL EXPENDITURES

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

<TABLE>
<CAPTION>
        ============================================================================================================================
                                                        SEGMENT ASSETS                         CAPITAL EXPENDITURES
                                                 -----------------------------  ----------------------------------------------------
                                                             AS AT                  THREE MONTHS ENDED        SIX MONTHS ENDED
                                                 -----------------------------
                                                    JUNE 30,        DEC 31,              JUNE 30,                 JUNE 30,
                                                      2005           2004           2005          2004        2005          2004
        -------------------------------------------------------------------------------------------------  -------------------------
<S>                                                <C>            <C>             <C>           <C>          <C>          <C>
        OPERATING SEGMENTS
          Fort Knox                                $   297.0      $    284.2      $   11.8      $   12.2        22.3          19.4
          Kubaka                                        51.0            50.5           0.1           5.5         0.2          10.0
          Round Mountain                               187.4           205.8           1.7           1.7         2.7           3.5
          La Coipa                                     150.0           162.3           1.2           0.1         2.2           0.4
          Crixas                                       104.3           102.9           1.5           1.3         2.9           2.0
          Paracatu                                     540.4           539.1           5.4           1.2         9.3           1.9
          Musselwhite                                  122.9           127.0           0.7           1.2         1.9           1.6
          Porcupine Joint Venture                       91.6            89.3           6.7           4.8        12.8           7.1
          Other operations                             161.3           196.4           8.9          12.3        21.5          14.0
        CORPORATE AND OTHER (a)                        140.4            76.7           0.6           0.1         0.9           0.3
        -------------------------------------------------------------------------------------------------  -------------------------
        TOTAL                                      $ 1,846.3      $  1,834.2      $   38.6      $   40.4     $  76.7      $   60.2
        ============================================================================================================================
</TABLE>

        (a)     Includes Corporate and other non-core operations.  Also includes
                $27.9  million  and $14.4  million in cash and cash  equivalents
                held at the corporate level as at June 30, 2005 and December 31,
                2004, respectively.


                                       15
<PAGE>

        Metal sales and property, plant & equipment by geographical regions

<TABLE>
<CAPTION>
        ---------------------------------------------------------------------------------------------------------------------------
                                                            MINING REVENUES                         PROPERTY, PLANT & EQUIPMENT
                                           --------------------------------------------------    ----------------------------------
                                              THREE MONTHS ENDED        SIX MONTHS ENDED                       AS AT
                                                  JUNE 30,                   JUNE 30,            ----------------------------------
                                                                    -------------------------       JUNE 30,        DECEMBER 31,
                                             2005          2004        2005           2004            2005              2004
        ---------------------------------------------------------------------------------------------------------------------------
<S>                                        <C>           <C>         <C>           <C>              <C>              <C>
        GEOGRAPHIC INFORMATION:
            United States                  $   85.4      $   72.7    $  162.6      $  152.3         $   332.0        $   351.4
            Canada                             30.0          36.1        66.5          63.6             218.4            217.8
            Russia                             16.0          16.5        34.3          28.5               2.2              9.0
            Chile                              15.1          14.6        34.0          31.3             133.1            117.1
            Brazil                             28.1          18.3        57.0          37.3             544.3            547.1
            Other                                 -             -           -             -               1.7              1.7
        ---------------------------------------------------------------------------------------------------------------------------
        Total                               $ 174.6      $  158.2    $  354.4      $  313.0         $ 1,231.7        $ 1,244.1
        ---------------------------------------------------------------------------------------------------------------------------
</TABLE>

        The  Company  is not  economically  dependent  on a  limited  number  of
        customers  for the sale of its product  because gold can be sold through
        numerous commodity market traders worldwide.  For the three months ended
        June 30, 2005 sales to three  customers  totaled  $44.4  million,  $32.6
        million and $23.4 million, respectively. 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 six months ended June 30, 2005, sales to four customers  totaled
        $90.7 million,  $46.2 million,  $46.0 million and $37.4 million. 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.

11.     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.

        Legal matters

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

        CLASS ACTION

        The Company was named as a defendant in a Class Action  Complaint  filed
        on or about April 26, 2002 (the "Complaint"),  entitled Robert A. Brown,
        et  al.   v.   Kinross   Gold   U.S.A.,   Inc.,   et   al.,   Case   No.
        CV-S-02-0605-PMP-RJJ,  in the  United  States  District  Court  for  the
        District of Nevada.  The Complaint named as defendants the Company,  its
        subsidiaries,  Kinross Gold U.S.A., Inc. and Kinam Gold, Inc. ("Kinam"),
        and Robert M. Buchan,  former  President and C.E.O. of the Company.  The
        Complaint  was  filed  on  behalf  of  one  potential  class  and  three
        subclasses,  i.e.,  those  who  tendered  their  Kinam  $3.75  Series  B
        Preferred  Stock (the "Kinam  Preferred")  into the tender offer for the
        Kinam  Preferred  made by the  Kinross  Gold  U.S.A.,  those who did not
        tender their Kinam  Preferred  but later sold it directly to the Company
        or any of its controlled  entities after closure of the tender offer and
        delisting of the Kinam  Preferred,  and those who continue to hold Kinam
        Preferred.  The  Complaint  alleged,  among other  things,  that amounts
        historically   advanced   to  Kinam   should  be   treated   as  capital
        contributions  rather than loans,  that the purchase of Kinam  Preferred
        from  certain  institutional   investors  in  July  2001  constituted  a
        constructive   redemption  of  the  Kinam  Preferred,  an  impermissible
        amendment  to the  conversion  rights  of the  Kinam  Preferred,  or 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,  and that the amount offered in the tender offer
        of $16.00 per share was not a fair valuation of the Kinam Preferred. The
        Complaint  alleged breach of contract based on the governing  provisions
        of the Kinam Preferred;  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;  federal
        securities  fraud  in  violation  of  Section  10(b)  and  14(c)  of the
        Securities  Exchange  Act of 1934,  as  amended,  and  Rules  10b-5  and
        14c-6(a) thereunder;  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.


                                       16
<PAGE>

        It  named  the  same  parties  as  defendants.   This  action  has  been
        consolidated  into the Brown case,  and the Brown  plaintiffs  have been
        designated as lead plaintiffs. Among other remedies, the plaintiffs seek
        damages ranging from $9.80 per share, plus accrued dividends,  to $39.25
        per share of Kinam  Preferred  or, in the  alternative,  the issuance of
        26.875 to 80.625  shares of the  Company for each Kinam  Preferred.  The
        Company  brought a motion for judgment on the pleadings  with respect to
        the federal  securities  fraud claims.  On September 29, 2003, the Court
        ruled  that  plaintiffs  had  failed to  adequately  state  any  federal
        securities  fraud claim,  but allowed the  Plaintiffs an  opportunity to
        file an amended complaint.  In response, the plaintiffs filed an Amended
        Class Action Complaint (the "Amended Complaint"),  and the Company again
        moved for  judgment on the  pleadings  on the federal  securities  fraud
        claims.  On  November  2, 2004,  the Court  granted  the second  motion,
        dismissing with prejudice Counts V, VI and VII of the Amended Complaint.
        Subsequently,  the Company  moved for judgment on the pleadings on Count
        III (the Best Price Rule) and Count IV (the  Nevada Rico  Claims) of the
        Amended  Complaint.  The Plaintiffs opposed the motion and filed a cross
        motion for summary  judgment on Count III (the Best Price Rule).  On May
        27, 2005,  the Court granted the Company's  motion and dismissed  Counts
        III and IV of the Amended Complaint. On June 14, 2005, the Court granted
        plaintiffs'  unopposed  motion for  certification of the class and three
        subclasses. 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).

        THE HELLENIC GOLD PROPERTIES LITIGATION

        Pursuant to an October 14, 1998 judgment of the Ontario  Court  (General
        Division),  Kinross  had been  holding  a 12%  carried  interest  in the
        Hellenic Gold  Properties as  constructive  trustee for the Alpha Group.
        The Alpha Group  commenced an action for damages against TVX and Kinross
        alleging  among other  things,  a breach of trust  arising from Kinross'
        decision to return the Hellenic Gold Properties to the Greek  Government
        and place TVX Hellas into bankruptcy.  In November 2005, Kinross entered
        into a  settlement  agreement  with the Alpha  Group  pursuant  to which
        Kinross paid the Alpha Group $8.0  million  inclusive of legal costs and
        the  parties  exchanged  mutual  releases  which  brings all  litigation
        between  Kinross  and the  Alpha  Group  to an end  (See  Note 12 c) for
        discussion on subsequent events).

        1235866  Ontario Inc.  ("1235866"),  the successor to Curragh  Resources
        Inc.  commenced  an  action  against  the  Alpha  Group  and TVX in 1998
        relating  to the  Hellenic  Gold  Properties.  The action  alleged  that
        members of Alpha  Group had used  confidential  Curragh  information  in
        their  pursuit of the Hellenic  Gold  Properties  and that Alpha and TVX
        held their respective interest in these properties in trust for 1235866.

        On July 28, 1999,  TVX entered into an  agreement  with 1235866  whereby
        1235866 agreed to limit any claim against TVX and diligently  pursue its
        claim against the Alpha Group.  In the event that 1235866 was successful
        in its actions  against the Alpha Group,  it would become  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  mines to the date of the  exercise of the right to acquire the
        participating interest.

        As  a  result  of  Kinross'  decision  to  return  the  Hellenic  Mining
        Properties to the Greek Government, place TVX Hellas into bankruptcy and
        settle with the Alpha Group;  1235866 has  threatened an action  against
        Kinross  for  breach of trust and  breach of the  agreement.  To date no
        pleadings have been  exchanged  with respect to the  threatened  action.
        Kinross believes that it has a good defence to this threatened action.

        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  Manhattan  mines
        ("Royalty  Lawsuit.")  The Manhattan mine is no longer in production and
        the McCoy/Cove mine was sold in January 2003. The assets and liabilities
        of the Subsidiaries  are included under the heading  Corporate and other
        in the  segmented  information  (see  Note  10).  The  first  trial  was
        conducted in the Eighth Judicial  District Court  ("District  Court") of
        Nevada April 1997, with Summa claiming more than $13.0 million in unpaid
        royalties and accrued interest.  In September 1997, judgment was entered
        on  behalf  of  the  Subsidiaries  and  the  Subsidiaries  were  awarded
        approximately  $300,000 in attorney's fees and litigation  costs.  Summa
        appealed  this  judgment to the Nevada  Supreme Court and in April 2002,
        the Supreme Court,  sitting en banc,  reversed the Judgment of the trial
        court  and  returned  the  action  to the  District  Court  for  further
        proceedings consistent with its appellate opinion.

        In  September  2004,  the  District  Court  ordered  that a new trial be
        conducted in February  2005.  In the new trial,  Summa updated its claim
        for unpaid royalties and accrued  interest to the approximate  amount of
        $25.0 million.  In May 2005, judgment was again entered in favour of the
        Subsidiaries,  with Summa receiving nothing by way of its complaint. The
        Subsidiaries'  Motions for Litigation Costs and Attorney's Fees for both
        trial proceedings were granted, resulting in a judgment against Summa in
        the approximate amount of $700,000. Summa has filed its notice of appeal
        in July 2005. The appellate schedule has not been set yet.


                                       17
<PAGE>

        In March, 2004, Summa's successor in interest,  Howard Hughes Properties
        ("Hughes"),  filed an action in District  Court against Echo Bay and its
        Subsidiaries  (collectively,  ("Echo Bay Entities"),  as well as Newmont
        Mining  Corporation  ("Newmont")  more than  thirty  current  and former
        directors of the Echo Bay Entities,  Kinross and Newmont  ("Director and
        Officer   Defendants")   and   fifty   Doe   defendants   (collectively,
        "Defendants".)   The  lawsuit   alleges  claims  based  upon  a  general
        allegation of a scheme or artifice to defraud,  in which Defendants,  at
        various  indeterminate  times and places,  diverted and  distributed the
        assets of Echo Bay Entities (to render the Echo Bay Entities  insolvent)
        to each  other,  so Hughes  would be unable to collect  any  judgment it
        might obtain  against the Echo Bay  Defendants  (Echo Bay Management and
        Echo Bay  Exploration) in the Royalty Lawsuit.  Immediately  after being
        served,  the Echo Bay Entities  filed a Demand for Change of Venue as of
        Right and  simultaneously  moved for a Change of Venue. In May 2004, the
        District Court denied the motion without  explanation,  although,  as of
        that date,  none of the  defendants  that had appeared  resided in Clark
        County.  The Echo Bay Entities  immediately filed their Notice of Appeal
        from this venue  ruling.  The Echo Bay Entities  also filed a Demand for
        Stay  of the  District  Court  proceedings  pending  resolution  of that
        appeal.  The District Court granted that motion in part and denied it in
        part, staying all claims in Respondent's  Complaint except for the claim
        asserting  violation  of the Nevada  Uniform  Fraudulent  Transfers  Act
        ("NUFTA").

        In  September  2004,  Hughes  filed  a  First  Amended  Complaint.   All
        Defendants  filed a series of motions  pursuant  to Nevada Rule of Civil
        Procedure 12 to the remaining NUFTA claim, including a Motion to Dismiss
        for  Lack  of  Personal  Jurisdiction,  a  Motion  for  Judgment  on the
        Pleadings  and a Motion to Dismiss as a sanction  for  failure to comply
        with the District  Court's Order to Amend. In January 2005, the District
        Court  entered an Order  granting  all motions  except for the Motion of
        Judgment on the Pleadings.

        On June 10, 2005,  the Echo Bay Entities and Kinross  filed a Motion for
        Judgment on the  Pleadings and to Dismiss,  based on res judicata,  as a
        final judgment was entered against  Respondents in the Royalty  Lawsuit.
        In response, Respondent filed a Motion to Stay All Proceedings and later
        filed an  Opposition,  arguing that the judgment  entered in the Royalty
        Lawsuit is not a final  judgment,  and that until the  judgment  becomes
        final (by affirmation  from this Court or otherwise),  the NUFTA lawsuit
        should be stayed.  The Echo Bay Entities and Kinross  opposed the motion
        to stay.

        All of the pending  motions  were heard on July 5, 2005 by the  District
        Court. The District Court denied  Appellants' Motion for Judgment on the
        Pleadings and to Dismiss. However, the District Court did agree with the
        Echo Bay  Defendants  that all of Hughes'  common law claims (Counts 1-2
        and 4-8) were not ripe for adjudication and dismissed those claims.  The
        District Court  declined to dismiss the NUFTA claim and instead  entered
        an Order  staying  that the claim  pending  the  outcome of the  Royalty
        Lawsuit appeal.

        After this extensive motion practice,  all claims from Hughes' Complaint
        have been dismissed, except for the NUFTA claim, which is stayed pending
        the outcome of the appeal on the Royalty  Lawsuit.  The only  defendants
        remaining are the Echo Bay Entities, Kinross, Newmont Mining Corporation
        and five of the individual defendants (who did not join in the motion to
        dismiss for lack of personal  jurisdiction.)  Hughes' motion to stay the
        Venue appeal remains pending.

        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, 2005
        the  Company  had  the  following  disputes  and  has  not  accrued  any
        additional tax liabilities in relation to the disputes listed below:

        BRAZIL

        In  September  2005,  Mineracao  Serra  Grande,  S.A.  ("MSG")  received
        assessments  relating  to  payments  of  sales  taxes on  exported  gold
        deliveries  from tax  inspectors  for the State of Goias.  The Company's
        share of the assessments is approximately $29.0 million. The counsel for
        MSG believes the suit is in  violation of Federal  legislation  on sales
        taxes  and that  there is a remote  chance of  success  for the State of
        Goias. The assessment has been appealed.  This  reassessment  relates to
        the Crixas operating segment.

12.     SUBSEQUENT EVENTS

a)      Agreement to acquire Crown Resources Corporation
        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.


                                       18
<PAGE>

        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.

        As a result of the restatement discussed in Note 3, the Company plans to
        engage in further  discussions  with Crown  Resources to  determine  the
        future process for this transaction.

b)      Sale of investments

        On September 2, 2005, the Company agreed to sell 23.33% of the shares of
        KF Ltd. to Balloch Resources Ltd.,  ("Balloch") and retain 11.67% of the
        initial interest.  The payment of the consideration for the sale of such
        shares in the amount of CDN $5.5 million is subject to the  satisfaction
        of various conditions, including regulatory approvals and the completion
        of a private  placement  by Balloch of at least CDN $10.0  million.  Art
        Ditto,  a former  director  and  officer  of the  Company,  owns a 17.4%
        interest in the outstanding common shares of Balloch and upon closing of
        the private placement which was completed on October 19, 2005, Mr. Ditto
        was appointed as the President and Chief  Executive  Officer of Balloch.
        Mr. Robert  Buchan,  a former  officer and director of the Company,  was
        also appointed the  non-executive  Chairman of Balloch.  On November 30,
        2005 Balloch Resources changed its name to Katange Mining Ltd.

c)      Settlement of litigation
        On November 4, 2005, the Company settled the litigation  associated with
        the Alpha group regarding the Hellenic mines for $8.0 million.  The cost
        of this settlement was included in the accrual for litigation in 2004.

d)      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 proceeds which will be
        ultimately valued on closing were estimated to be $14.3 million.  During
        the three  months ended  September  30, 2005 the Company has recorded an
        impairment  charge  related to  carrying  value of  property,  plant and
        equipment and goodwill of the Aquarius project for $36.8 million.


                                       19
<PAGE>

        MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
                          FINANCIAL CONDITION ("MD&A")


This Management's Discussion and Analysis of Results of Operations and Financial
Condition  ("MD&A") should be read in conjunction with the interim  consolidated
financial  statements of Kinross Gold  Corporation  ("Kinross" or the "Company")
for the period ended  September 30, 2005.  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  the  Company's
restated  annual audited  consolidated  financial  statements  and  management's
discussion  and  analysis for the year ended  December  31, 2004 for  additional
details,  which are available on the Company's  website  www.kinross.com  and on
www.sedar.com.  The  interim  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 as a note to the
annual  audited  financial  statements.  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 nine months ended  September 30, 2005.
This MD&A has been prepared as of February 15, 2006.

1.      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 and many of
the costs associated with the Company's operations 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.

CONSOLIDATED FINANCIAL AND OPERATING HIGHLIGHTS

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                                   Three months ended                            Nine months ended
                                                     September 30,                Q3               September 30,            YTD
-----------------------------------------------------------------------------------------------------------------------------------
(IN MILLIONS EXCEPT OUNCES AND
PER SHARE AMOUNTS)                                  2005           2004         CHANGE(b)      2005           2004        CHANGE(b)
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                             <C>            <C>               <C>         <C>            <C>           <C>
Gold equivalent ounces - produced (a)               406,195        412,196         (1%)       1,230,272      1,229,300       0%
Average realized gold price ($/ounce)           $       440    $       394         12%       $      430     $      394       9%
Metal sales                                     $     181.1    $     174.6          4%       $    535.5     $    487.6      10%
Net earnings (loss)                             $     (44.4)   $       5.5          nm       $    (61.7)    $     24.9       nm
Basic and diluted earnings (loss) per share     $     (0.13)   $      0.02          nm       $    (0.18)    $     0.07       nm
Cash flow from operating activities             $      52.5    $      62.9        (17%)      $    109.9     $    103.3       6%
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)     Gold equivalent ounces include silver ounces produced  converted to gold
        based on the ratio of the average spot market prices for the commodities
        for  each  period.  This  ratio  for the  three  and nine  months  ended
        September 30, 2005 was 62.19:1 and 61.09:1, respectively,  compared with
        62.21:1 and 62.06:1 for the three and nine months  ended  September  30,
        2004.
(b)     "nm" refers to not meaningful.

2.      IMPACT OF KEY ECONOMIC TRENDS

Kinross'  annual MD&A  contains a  discussion  of the key  economic  trends that
affect the Company  and its  financial  statements.  Included in this MD&A is an
update that reflects any  significant  changes since the preparation of the 2004
Annual MD&A.

PRICE OF GOLD

The price of gold is the largest single factor in determining  profitability and
cash flow from operations.  During the third quarter of 2005, the average market
price of gold was $440 per  ounce,  compared  with an  average of $401 per ounce
during the comparable period in 2004. Year-to-date,  the average market price of
gold was $432 per  ounce,  ranging  between a low of $411 per ounce to a high of
$473 per  ounce,  compared  with an  average of $401 per ounce in the first nine
months of 2004.  During the nine months ended  September  30, 2005,  the Company
realized an average price of $430 per ounce on its sale of gold.

U.S. DOLLAR AGAINST FOREIGN CURRENCIES

Kinross receives its revenues through the sale of gold in U.S. dollars. However,
for the Company's  non-U.S.  operations,  a portion of the  operating  costs and
capital  expenditures are denominated in the local currency.  Kinross'  non-U.S.
operations are located in Canada, Brazil, Chile and Russia, and movements in the
exchange rate between the currencies of these countries and the U.S. dollar have
an impact on profitability  and cash flow. During the first nine months of 2005,
compared  with the same period in 2004,  the Canadian  dollar,  Brazilian  real,
Chilean peso and the Russian  ruble were all stronger  against the U.S.  dollar,
resulting in increased costs to the Company.


                                       1
<PAGE>

INFLATIONARY COST PRESSURES

In addition to the weaker U.S. dollar, the Company's profitability has also been
negatively  impacted by rising  development  and operating costs with respect to
labour,  energy  and  consumables  in  general.  Mining is  generally  an energy
intensive activity, and energy prices, in the form of both fuel and electricity,
can have a significant impact on operations.  Other consumables,  such as steel,
concrete and tires,  have also recently  increased in price. One of the goals of
the  Company's  focus on  continuous  improvement  is to mitigate  the impact of
higher  consumable  prices  by  extending  the life of  capital  assets  and the
efficient use of materials and supplies in general.

3.      DEVELOPMENTS

RESTATEMENT FOR CORRECTION OF FOREIGN CURRENCY IMPACT ON FUTURE TAX LIABILITIES

During its preparation of the interim financial statements for 2005, the Company
and  its  auditors  discovered  an  error  relating  to  its  audited  financial
statements  for the years ended  December  31, 2003 and 2004 and the  respective
interim periods. In the previously released financial statements the Company had
not properly  assessed the impact of changes in foreign currency rates affecting
the timing  differences  resulting from a difference  between accounting and tax
basis,  which form the basis for the future tax liabilities.  As a result of the
restatement,  these  liabilities  are adjusted for 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 the  foreign  currency  exchange  rate
related  primarily to the future tax  liabilities  of the Brazilian  operations.
This non-cash  adjustment had no impact on operating cash flows or cash balances
previously reported. The financial statements for the respective interim periods
in 2005 are not restated.

All  amounts  included  in this  report  have been  adjusted to reflect the 2004
restatement.  The  following  is a summary of the effects of the  aforementioned
adjustments on our consolidated financial statements:

<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEETS
=====================================================================================================
                                                            AS
                                                        PREVIOUSLY
                                                        REPORTED (a)     ADJUSTMENTS   AS RESTATED
-----------------------------------------------------------------------------------------------------
<S>                                                     <C>              <C>           <C>
-----------------------------------------------------------------------------------------------------
  AS AT DECEMBER 31, 2004
Liabilities
  Future income and mining taxes                        $      90.6      $    32.9     $     123.5
COMMON SHAREHOLDERS' EQUITY
  Accumulated deficit                                   $    (487.7)     $   (33.7)    $    (521.4)
  Cumulative translation adjustment                     $      (2.0)     $     0.8     $      (1.2)
=====================================================================================================
</TABLE>

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


                                       2
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF OPERATIONS
=============================================================================================================
                                                                    AS
                                                                PREVIOUSLY
                                                                REPORTED (a)     ADJUSTMENTS   AS RESTATED
-------------------------------------------------------------------------------------------------------------
<S>                                                             <C>              <C>           <C>
-------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED SEPTEMBER 30, 2004
Operating earnings                                              $       4.6      $      (0.1)  $       4.5
  Other (expense) income - net                                  $       2.3      $      (9.2)  $      (6.9)
Earnings (loss) before taxes and other items                    $       6.9      $      (9.3)  $      (2.4)
Income and mining tax recovery                                  $       7.6      $       0.4   $       8.0
Minority interest                                               $       0.1      $         -   $       0.1
Dividends on convertible preferred shares of the subsidiary     $      (0.2)     $         -   $      (0.2)
Share in loss of investee companies                             $         -      $         -   $         -
Net earnings                                                    $      14.4      $      (8.9)  $       5.5
Net earnings attributable to common shareholders                $      14.4      $      (8.9)  $       5.5
Earnings per share
  Basic and audited                                             $      0.04      $      (0.2)  $      0.02
-------------------------------------------------------------------------------------------------------------
NINE MONTHS ENDED SEPTEMBER 30, 2004
  Operating earnings                                            $      13.5      $         -   $      13.5
Other (expense) income - net                                    $       5.0      $      (1.0)  $       4.0
Earnings before taxes and other items                           $      18.5      $      (1.0)  $      17.5
Income and mining tax recovery                                  $       6.4      $       1.6   $       8.0
Minority interest                                               $         -      $         -   $         -
Dividends on convertible preferred shares of the subsidiary     $      (0.6)     $         -   $      (0.6)
Loss on share of investor companies                             $         -      $         -   $         -
Net earnings                                                    $      24.3      $       0.6   $      24.9
Net earnings attributable to common shareholders                $      24.3      $       0.6   $      24.9
Earnings per share
  Basic and diluted                                             $      0.07      $         -   $      0.07
-------------------------------------------------------------------------------------------------------------
</TABLE>

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

AGREEMENT TO ACQUIRE CROWN RESOURCES CORPORATION

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 kilometres
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 United  States
Securities  and Exchange  Commission  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, 2005, 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  purchased  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 has the
right to convert all amounts  due under this  debenture  to shares of its common
stock by providing 30 days' prior notice to Kinross.

As a result of the  restatement  of the years ended  December 31, 2004 and 2003,
for the correction of the foreign currency impact on future tax liabilities, the
Company  plans to engage in  further  discussions  with Crown to  determine  the
future process for this transaction.

SALE OF AQUARIUS GOLD PROPERTY

On  December  7,  2005,  Kinross  entered  signed a letter of intent to sell its
Aquarius  gold property to St Andrew  Goldfields  Ltd. ("St Andrew") in exchange
for 100 million common shares of St Andrew and warrants to acquire 25 million St
Andrew common shares at a price of CDN$0.17 per share for a period of 24 months.
Based on a value of  approximately  $14.3  million for the  consideration  to be
received and a carrying  value for the Aquarius gold property of $51.1  million,
the Company has recorded an impairment charge to the carrying value of property,
plant and equipment and goodwill of $36.8 million in the third quarter.


                                       3
<PAGE>

RESERVE INCREASE AT PARACATU

On November 21, 2005, the Company  announced that estimated  proven and probable
reserves at the Paracatu mine in Brazil had increased to 13.3 million ounces, an
increase of 4.8 million ounces above the reserves reported at December 31, 2004.
The  increase  was the result of a drill  program  initiated  at the minesite in
January  2005,  following the purchase of the remaining 51% of Paracatu from Rio
Tinto Plc. on December 31, 2004.  The current  reserves  were  estimated,  as at
October 31, 2005,  using a gold price of $400 per ounce,  compared with $350 per
ounce at December 31, 2004.(1)

SALE OF INTEREST IN KINROSS FORREST

On September 2, 2005, the Company agreed to sell 23.33% of the shares of Kinross
Forrest Ltd. ("KF Ltd.") to Balloch Resources Ltd. ("Balloch") and retain 11.67%
of the initial  interest.  The payment of the consideration for the sale of such
shares in the amount of  CDN$5.5  million  is  subject  to the  satisfaction  of
various  conditions,  including  regulatory  approvals  and the  completion of a
private placement by Balloch of at least CDN$10 million. No gain on disposal has
been  recorded  during the three  months  ended  September  30,  2005 due to the
conditions  of the sale  condition  not  being  met.  The  carrying  value as at
September  30,  2005,  included in  long-term  investments  on the  consolidated
balance  sheets,  is less than $0.1 million.  Art Ditto,  a former  director and
officer of the Company,  owns a 17.4% interest in the outstanding  common shares
of Balloch and upon  closing of the private  placement,  that was  completed  on
October 19, 2005, Mr. Ditto was appointed  President and Chief Executive Officer
of Balloch. Mr. Robert Buchan, a former officer and director of the Company, was
also  appointed  the  non-executive  Chairman of Balloch.  On November 30, 2005,
Balloch changed its name to Katanga Mining Ltd.

4.      CONSOLIDATED FINANCIAL RESULTS FOR THREE AND NINE MONTHS ENDED SEPTEMBER
        30, 2005

<TABLE>
<CAPTION>
SUMMARY OF CONSOLIDATED FINANCIAL AND OPERATING PERFORMANCE
-----------------------------------------------------------------------------------------------------------------------------------
                                                   Three months ended                            Nine months ended
                                                     September 30,                Q3               September 30,            YTD
-----------------------------------------------------------------------------------------------------------------------------------
(IN MILLIONS EXCEPT OUNCES AND
PER SHARE AMOUNTS)                                  2005           2004          CHANGE         2005           2004        CHANGE
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                             <C>            <C>               <C>         <C>            <C>           <C>
Gold equivalent ounces - sold                        409,564        446,246        (8%)        1,238,638      1,240,651      (0%)
Gold ounces - sold                                   399,372        425,443        (6%)        1,200,311      1,191,306       1%
Silver ounces - sold                                 638,889      1,293,398       (51%)        2,341,256      3,062,408     (24%)
Average realized gold price ($/ounce)             $      440     $      394        12%        $      430     $      394       9%
Gold sales - revenue                              $    177.6     $    171.3         4%        $    520.7     $    479.8       9%
Gold deferred revenue (expense) realized                (1.8)          (3.8)       53%              (4.6)         (10.1)     54%
Silver sales revenue                                     5.3            7.1       (25%)             19.4           17.9       8%
                                                  ----------     ----------       -----       ----------     ----------     -----
Total metal sales                                 $    181.1     $    174.6         4%        $    535.5     $    487.6      10%
Operating earnings (loss)                         $    (34.1)    $      4.5         nm        $    (34.8)    $     13.5       nm
Net earnings (loss)                               $    (44.4)    $      5.5         nm        $    (61.7)    $     24.9       nm
Basic and diluted earnings (loss) per share       $    (0.13)    $     0.02         nm        $    (0.18)    $     0.07       nm
-----------------------------------------------------------------------------------------------------------------------------------


-------------------------------------------------------------------------------
                                                       AS AT          As at
                                                    SEPT 30,        Dec 31,
                                                        2005           2004
-------------------------------------------------------------------------------
Cash and cash equivalents                         $     81.6     $     47.9
Current assets                                    $    234.0     $    206.9
Total assets                                      $  1,821.6     $  1,834.2
Current liabilities                               $    159.3     $    172.8
Total liabilities                                 $    592.3     $    547.1
Shareholders' equity                              $  1,229.3     $  1,287.1
===============================================================================
</TABLE>

----------------------------
(1)     For details  concerning  mineral reserve and mineral resource  estimates
        refer to the Mineral Reserves and Mineral  Resources tables and notes in
        the Company's Annual Information Form.


                                       4
<PAGE>

THIRD QUARTER 2005 VS. THIRD QUARTER 2004

o       The Company's share of gold equivalent  ounces sold for the three months
        ended September 30, 2005 was 9% lower than the  corresponding  period in
        2004.  Increased  attributable  production at Paracatu,  Kubaka and Fort
        Knox was offset by lower  production  resulting from the shutdown of New
        Britannia and Lupin and reduced production from Round Mountain, La Coipa
        and the Porcupine Joint Venture.
o       Revenues from metal sales increased by 4% quarter-over-quarter  due to a
        higher  realized gold price,  partially  offset by fewer gold equivalent
        ounces sold.  The Company sold 399,372 ounces of gold at a realized gold
        price of $440 per  ounce,  compared  with  425,443  ounces of gold at an
        average  realized  price of $394  per  ounce  during  the  prior  year's
        quarter.
o       Despite  increased  revenues  from metal  sales and lower  depreciation,
        depletion  and  amortization,  operating  earnings  decreased  from $4.5
        million in the third quarter of 2004, to a loss of $34.1 million  during
        the third quarter in 2005. The decrease was due to the impairment charge
        against the Aquarius  property,  along with higher  operating  costs and
        increased general and administrative expenses.
o       Cost of sales  increased by 5% due to the  inclusion of 100% of Paracatu
        (up from 49% in 2004) and higher costs across all  reportable  operating
        segments except for Fort Knox and Kubaka.  This was partially  offset by
        lower cost of sales  resulting  from the shutdown of New  Britannia  and
        Lupin.
o       There was a net loss during the quarter of $44.4 million,  compared with
        net earnings of $5.5 million  during the third quarter of 2004.  The net
        loss was the result of the  Aquarius  impairment  of $36.8  million  and
        other  expenses of $9.5 million.  During the third quarter of 2004,  the
        Company had other  expenses of $6.9 million and an income and mining tax
        recovery of $8.0 million.
o       Cash flow provided by operating  activities decreased by 17%, from $62.9
        million in the three months ended  September  30, 2004, to $52.5 million
        during  the same  period  in  2005.  Cash  flow  provided  by  operating
        activities  decreased due to fewer ounces being sold,  higher  operating
        costs and a smaller reduction in working capital requirements.  This was
        partially offset by a higher realized gold price.

FIRST NINE MONTHS OF 2005 VS. FIRST NINE MONTHS OF 2004

o       The Company's  share of gold  equivalent  ounces sold for the first nine
        months  of  2005  was  similar  to the  corresponding  period  in  2004.
        Increased  attributable  production  at  Paracatu,  Fort  Knox,  Kubaka,
        Musselwhite, Crixas and Refugio was offset by lower production resulting
        from the shutdown of New Britannia and Lupin and lower  production  from
        La Coipa, Round Mountain and Kettle River.
o       Revenue  from metal sales  increased by 10% during the first nine months
        of 2005 due to a higher  number  of gold  equivalent  ounces  sold and a
        higher realized gold price. The Company sold 1,200,311 ounces of gold at
        a realized  gold price of $430 per ounce,  while the  average  spot gold
        price was $432 per ounce. This compares with 1,191,306 ounces sold at an
        average  realized  price of $394 per ounce,  while the average spot gold
        price was $401 per ounce in the first nine months of 2004.
o       Despite the higher  realized  gold price,  operating  earnings were down
        from $13.5  million in the first nine  months of 2004 to a loss of $34.8
        million in the  corresponding  period in 2005.  The decrease was largely
        the result of the Aquarius impairment, along with higher operating costs
        and general and administrative costs.
o       The cost of sales  increase in 2005 was due to the  inclusion of 100% of
        Paracatu (up from 49% in 2004) and higher  costs  across all  reportable
        operating  segments with the exception of Fort Knox.  This was partially
        offset  by  lower  cost of sales  resulting  from  the  shutdown  of New
        Britannia and Lupin.
o       The  Company  recorded  a net loss of $61.7  million  in the first  nine
        months of 2005,  compared with net earnings of $24.9 million  during the
        same  period  in  2004.  The  loss  in  2005  was  due to  the  Aquarius
        impairment,  other  expense of $22.4  million and a provision for income
        and mining taxes of $4.0 million.  During the first nine months of 2004,
        a recovery of income and mining taxes of $8.0 million was recorded along
        with other income of $4.0 million.
o       Cash flow provided by operating  activities increased by 6%, from $103.3
        million in the first nine  months of 2004 to $109.9  million  during the
        same  period  in  2005.  Cash  flow  provided  by  operating  activities
        increased due to a higher realized gold price and a smaller  increase in
        working capital requirements in 2005 versus 2004. During the nine months
        ended  September 30, 2005,  cash  increased  $33.7  million,  from $47.9
        million at December 31, 2004 to $81.6 million at September 30, 2005.


                                       5
<PAGE>

<TABLE>
<CAPTION>
SEGMENT EARNINGS (LOSS)
------------------------------------------------------------------------------------------------------------------------------------
                                  Three months ended                Q3               Nine months ended               YTD
                                     September 30,             2005 VS 2004            September 30,             2005 VS 2004
                               -----------------------------------------------------------------------------------------------------
(IN US$ MILLIONS)                  2005         2004      Change $    Change %       2005         2004       Change $    Change %
------------------------------------------------------------------------------------------------------------------------------------
<S>                              <C>          <C>          <C>           <C>      <C>          <C>           <C>           <C>
OPERATING SEGMENTS
  Fort Knox                      $    3.7     $    6.5     $  (2.8)      (43%)    $    12.9    $    13.3     $  (0.4)        (3%)
  Paracatu (a)                        0.7          1.7        (1.0)      (59%)          2.5          6.2        (3.7)       (60%)
  Round Mountain                     10.8          6.2         4.6        74%          20.1         18.1         2.0         11%
  Porcupine Joint Venture             0.9          1.9        (1.0)      (53%)          7.6          5.7         1.9         33%
  La Coipa                           (2.3)        (1.1)       (1.2)     (109%)         (3.7)         0.7        (4.4)         nm
  Crixas                              2.5          3.2        (0.7)      (22%)         10.1          9.4         0.7          7%
  Musselwhite                        (1.4)        (1.0)       (0.4)      (40%)         (4.5)        (3.0)       (1.5)       (50%)
  Kubaka                              3.1         (1.3)        4.4         nm           4.1          5.0        (0.9)       (18%)
  Other operations (b)              (35.3)         2.1       (37.4)        nm         (37.1)        (1.4)      (35.7)         nm
CORPORATE & OTHER                   (16.8)       (13.7)       (3.1)      (23%)        (46.8)       (40.5)       (6.3)       (16%)
------------------------------------------------------------------------------------------------------------------------------------
TOTAL                            $  (34.1)    $    4.5     $ (38.6)        nm     $   (34.8)   $    13.5     $ (48.3)         nm
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)     On  December  31,  2004,  the  Company  completed  the  purchase  of the
        remaining  51%  interest in the  Paracatu  mine.  For the three and nine
        months ended  September  30, 2004,  the Company had only a 49% interest,
        which has been reflected in the segment earnings.
(b)     Other operations include Kettle River, Refugio, Lupin and New Britannia.

MINING OPERATIONS

<TABLE>
<CAPTION>
FORT KNOX (100% OWNERSHIP AND OPERATOR) - U.S.A
------------------------------------------------------------------------------------------------------------------------------------
                                  Three months ended                Q3               Nine months ended               YTD
                                     September 30,             2005 VS 2004            September 30,             2005 VS 2004
                               -----------------------------------------------------------------------------------------------------
                                   2005         2004      Change $      Change%      2005         2004       Change $    Change %
------------------------------------------------------------------------------------------------------------------------------------
<S>                              <C>          <C>          <C>           <C>      <C>          <C>           <C>           <C>
OPERATING STATISTICS
Tonnes processed (000's)            3,396        3,349          47           1%        9,716       9,657           59           1%
Grade (grams/tonne)                  0.92         0.79        0.13          16%         0.91        0.81         0.10          12%
Recovery (%)                        88.1%        89.0%       (0.9%)         (1%)       87.2%       86.0%         1.2%           1%
Gold equivalent ounces
    Produced                       88,298       84,738       3,560           4%      248,677     239,725        8,952           4%
    Sold                           78,670       92,700     (14,030)        (15%)     237,178     248,403      (11,225)         (5%)

FINANCIAL DATA (in US$ millions)
Metal sales                       $  34.9      $  37.2    $   (2.3)         (6%)   $   103.0   $   100.2     $    2.8           3%
Cost of sales (a)                    21.9         22.4        (0.5)         (2%)        62.5        64.2         (1.7)         (3%)
Accretion                             0.3          0.3           -           0%          0.9         1.0         (0.1)        (10%)
DD&A (b)                              8.6          7.8         0.8          10%         25.6        21.4          4.2          20%
------------------------------------------------------------------------------------------------------------------------------------
                                      4.1          6.7        (2.6)        (39%)        14.0        13.6          0.4           3%
Exploration                           0.3          0.2         0.1          50%          0.5         0.3          0.2          67%
Other                                 0.1            -         0.1           nm          0.6           -          0.6           nm
------------------------------------------------------------------------------------------------------------------------------------
Segment earnings                  $   3.7      $   6.5    $   (2.8)        (43%)   $   12.9    $    13.3     $   (0.4)         (3%)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)     Cost  of  sales   excludes   accretion,   depreciation,   depletion  and
        amortization.
(b)     Depreciation, depletion and amortization is referred to as "DD&A" in the
        table above.

The  Company  acquired  the Fort  Knox open pit mine,  located  near  Fairbanks,
Alaska, in 1998.

THIRD QUARTER 2005 VS. THIRD QUARTER 2004

o       Gold  equivalent  production  increased 4% to 88,298 ounces in the third
        quarter of 2005,  compared to the  corresponding  period in 2004, due to
        increased  grade and an  increase  in the  number  of tonnes  processed,
        slightly offset by lower  recovery.  The higher grade was primarily from
        phase 5 ore in the Fort Knox pit.
o       Despite the increase in production, ounces sold were down by 15% and, as
        a result,  revenues  from  metal  sales were down by 6%. The drop in the
        number of ounces sold was  partially  offset by a higher  realized  gold
        price.
o       A 2% decrease in the cost of sales is the result of fewer  ounces  being
        sold.  However,  this was largely  offset by increases in fuel and power
        costs, and supplies and bulk commodity costs.


                                       6
<PAGE>

FIRST NINE MONTHS OF 2005 VS. FIRST NINE MONTHS OF 2004

o       Gold  equivalent  production  was higher by 4% due to  increased  tonnes
        processed and higher grade and recoveries.
o       Revenues  from metal sales were up by 3% due to a higher  realized  gold
        price, partially offset by the sale of 5% fewer ounces.
o       Despite 5% fewer ounces being sold,  cost of sales  decreased by only 3%
        between  periods.  This reflected  increases in prices for fuel,  power,
        supplies and other commodities.
o       Depreciation,  depletion  and  amortization  was 20%  higher  due to the
        haulage fleet additions during 2005.

<TABLE>
<CAPTION>
ROUND MOUNTAIN (50% OWNERSHIP AND OPERATOR) - U.S.A
------------------------------------------------------------------------------------------------------------------------------------
IN US$ MILLIONS                   Three months ended                Q3               Nine months ended               YTD
                                     September 30,             2005 VS 2004            September 30,             2005 VS 2004
                               -----------------------------------------------------------------------------------------------------
                                   2005         2004      Change $      Change%      2005         2004       Change $    Change %
------------------------------------------------------------------------------------------------------------------------------------
<S>                              <C>          <C>          <C>           <C>      <C>          <C>           <C>           <C>
OPERATING STATISTICS (a)
Tonnes processed (000's) (b)       13,623       16,167      (2,544)        (16%)     46,011       50,909      (4,898)        (10%)
Grade (grams/tonne)                  0.79         0.64        0.15          23%        0.75         0.65        0.10          15%
Gold equivalent ounces
    Produced                       98,357      107,599      (9,242)         (9%)    294,495      302,137      (7,642)         (3%)
    Sold                          106,985      112,624      (5,639)         (5%)    293,476      299,480      (6,004)         (2%)

FINANCIAL DATA (in US$ millions)
Metal sales                      $   47.8     $   47.9     $  (0.1)         (0%)   $  127.2     $  121.5     $   5.7           5%
Cost of sales (c)                    26.8         25.9         0.9           3%        73.8         64.5         9.3          14%
Accretion                             0.5          0.5           -           0%         1.4          1.4           -           0%
DD&A (d)                              9.0         14.9        (5.9)        (40%)       30.7         37.0        (6.3)        (17%)
------------------------------------------------------------------------------------------------------------------------------------
                                     11.5          6.6         4.9          74%        21.3         18.6         2.7          15%
Exploration                           0.7          0.3         0.4         133%         1.2          0.5         0.7         140%
Other                                   -          0.1        (0.1)       (100%)          -            -           -           0%
------------------------------------------------------------------------------------------------------------------------------------
Segment earnings                 $   10.8     $    6.2     $   4.6          74%    $   20.1     $   18.1     $   2.0          11%
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)     Due to the  nature of heap leach  operations  recovery  rates  cannot be
        accurately measured on a quarterly basis.
(b)     Tonnes processed represent 100% of mine production.
(c)     Cost  of  sales   excludes   accretion,   depreciation,   depletion  and
        amortization.
(d)     Depreciation, depletion and amortization is referred to as "DD&A" in the
        table above.

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.

THIRD QUARTER 2005 VS. THIRD QUARTER 2004

o       Tonnes  processed  were  lower  during the third  quarter  due to loader
        availability,   increased  waste  mining,  pit  phasing  and  pit  slope
        failures.
o       Gold  equivalent  production was lower during the quarter due to a lower
        grade on the dedicated pads and fewer tonnes being processed.
o       Despite fewer ounces being produced and sold,  revenues from metal sales
        remained  similar to the third quarter of 2004 due to a higher  realized
        gold price.
o       Costs of sales  increased by 3%, despite fewer ounces being sold, due to
        increased  commodity  related  costs,   increased  contractor  costs  on
        equipment  maintenance and higher  royalties and taxes due to the higher
        gold price.

FIRST NINE MONTHS OF 2005 VS. FIRST NINE MONTHS OF 2004

o       Tonnes  processed were lower during the first nine months of 2005 due to
        increased waste mining, pit phasing and pit slope failures.
o       Gold equivalent production was 3% lower due to fewer tonnes delivered to
        the dedicated pad at a lower grade, partially offset by higher-grade ore
        on the reusable pad.
o       Despite fewer ounces being sold, revenues from metal sales were up by 5%
        as a result of higher realized gold prices.
o       Costs of sales were up by 14%  despite  fewer  ounces  being sold due to
        increased  commodity  related costs,  high costs on  replacement  parts,
        increased contractor costs on equipment maintenance and higher royalties
        and taxes due to the higher gold price.


                                       7
<PAGE>

<TABLE>
<CAPTION>
PORCUPINE JOINT VENTURE (49% INTEREST, PLACER DOME 51%, OPERATOR) - CANADA
------------------------------------------------------------------------------------------------------------------------------------
                                  Three months ended                Q3               Nine months ended               YTD
                                     September 30,             2005 VS 2004            September 30,             2005 VS 2004
                               -----------------------------------------------------------------------------------------------------
                                   2005         2004      Change $      Change%      2005         2004       Change $    Change %
------------------------------------------------------------------------------------------------------------------------------------
<S>                              <C>          <C>          <C>           <C>      <C>          <C>           <C>           <C>
OPERATING STATISTICS
Tonnes processed (000's) (a)         1,568        1,019          549        54%        3,736        2,999          737       25%
Grade (grams/tonne)                   2.80         3.04        (0.24)       (8%)        2.97         3.45        (0.48)     (14%)
Recovery (%)                         92.5%        93.0%        (0.5%)       (1%)       92.9%        92.0%         0.9%        1%
Gold equivalent ounces
    Produced                        38,747       45,079       (6,332)      (14%)     143,112      150,171       (7,059)      (5%)
    Sold                            38,358       47,034       (8,676)      (18%)     141,018      156,767      (15,749)     (10%)

FINANCIAL DATA (in US$ millions)
Metal sales                        $  17.4      $  19.1     $   (1.7)       (9%)    $   62.0     $   59.4     $    2.6        4%
Cost of sales (b)                     12.4         10.8          1.6        15%         39.1         34.1          5.0       15%
Accretion                              0.2          0.2            -         0%          0.7          0.5          0.2       40%
DD&A (c)                               2.9          5.3         (2.4)      (45%)        11.5         16.4         (4.9)     (30%)
------------------------------------------------------------------------------------------------------------------------------------
                                       1.9          2.8         (0.9)      (32%)        10.7          8.4          2.3       27%
Exploration                            1.0          0.7          0.3        43%          2.9          2.5          0.4       16%
Other                                    -          0.2         (0.2)     (100%)         0.2          0.2            -        0%
------------------------------------------------------------------------------------------------------------------------------------
Segment earnings                   $   0.9      $   1.9     $   (1.0)      (53%)    $   7.6      $    5.7     $    1.9       33%
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)     Tonnes processed represent 100% of mine production.
(b)     Cost  of  sales   excludes   accretion,   depreciation,   depletion  and
        amortization.
(c)     Depreciation, depletion and amortization is referred to as "DD&A" in the
        table above.

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.

THIRD QUARTER 2005 VS. THIRD QUARTER 2004

o       Gold production for the third quarter of 2005 was 14% lower due to lower
        grade and recovery rates.
o       Revenues  from metal sales  decreased  by 9% due to fewer  ounces  sold,
        which was partially offset by a higher realized gold price.
o       Cost of sales  increased  by 15%  despite a drop in the number of ounces
        sold.  The increase was due to higher energy and other  commodity  costs
        and an unscheduled  mill liner change during the quarter.  Cost of sales
        also  increased due to an 8%  appreciation  of the CDN dollar versus the
        U.S. dollar from the earlier year.

FIRST NINE MONTHS OF 2005 VS. FIRST NINE MONTHS OF 2004

o       Gold  production for the first nine months of 2005 was 5% lower than the
        first nine months of 2004. Gold production was positively  impacted by a
        slightly higher recovery rate and greater mill throughput.  However this
        was more than offset by the lower grade.
o       The higher mill  throughput is largely the result of the mill expansion.
        The grade was lower than plan for both the  quarter  and nine months due
        to localized  highwall  instability,  lower grade than expected from the
        Pamour pit due to  rescheduling  for  higher  waste  tonnes for  highway
        construction and no production from the Dome underground mine.
o       Revenue  from  metal  sales  increased  by 4%  despite a 10% drop in the
        number of ounces sold. The increase was the result of a higher  realized
        gold price.
o       Costs of sales were higher  during the first nine months of 2005 despite
        selling fewer ounces.  This was due to higher tonnes milled,  and higher
        energy and commodity  costs.  In addition,  cost of sales was negatively
        impacted by an 8% appreciation of the CDN dollar against the U.S. dollar
        period-over-period.
o       Work  continued  on the Pamour  open pit  project  during the first nine
        months of 2005.


                                       8
<PAGE>

<TABLE>
<CAPTION>
PARACATU (100% OWNERSHIP AND OPERATOR) - BRAZIL
------------------------------------------------------------------------------------------------------------------------------------
                                  Three months ended                Q3               Nine months ended               YTD
                                     September 30,             2005 VS 2004            September 30,             2005 VS 2004
                               -----------------------------------------------------------------------------------------------------
                                   2005      2004 (a)     Change $      Change%      2005       2004  (a)     Change $    Change %
------------------------------------------------------------------------------------------------------------------------------------
<S>                              <C>          <C>          <C>           <C>      <C>          <C>           <C>           <C>
OPERATING STATISTICS
Tonnes processed (000's) (b)         4,477      4,409           68         2%       12,367       13,179         (812)        (6%)
Grade (grams/tonne)                   0.43       0.44        (0.01)       (2%)        0.43         0.45        (0.02)        (4%)
Recovery (%)                         78.5%      78.2%         0.3%         0%        77.5%        76.3%         1.2%          2%
Gold equivalent ounces
    Produced                        48,366     23,372       24,994       107%      132,227       69,810       62,417         89%
    Sold                            48,066     23,275       24,791       107%      132,381       70,795       61,586         87%

FINANCIAL DATA (in US$ millions)
Metal sales                        $  21.1    $   9.3     $   11.8       127%     $   57.1      $  28.4      $  28.7        101%
Cost of sales (c)                     12.8        5.1          7.7       151%         36.4         14.7         21.7        148%
Accretion                              0.2        0.1          0.1       100%          0.6          0.4          0.2         50%
DD&A (d)                               4.4        2.4          2.0        83%         12.4          7.1          5.3         75%
------------------------------------------------------------------------------------------------------------------------------------
                                       3.7        1.7          2.0       118%          7.7          6.2          1.5         24%
Exploration                            2.5          -          2.5         nm          4.7            -          4.7          nm
Other                                  0.5          -          0.5         nm          0.5            -          0.5          nm
------------------------------------------------------------------------------------------------------------------------------------
Segment earnings                   $   0.7    $   1.7     $   (1.0)      (59%)    $    2.5      $   6.2      $  (3.7)       (60%)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)     On  December  31,  2004,  the  Company  completed  the  purchase  of the
        remaining  51%  interest in the  Paracatu  mine.  For the three and nine
        months ended  September  30, 2004,  the Company had only a 49% interest,
        which has been reflected in the segment earnings.
(b)     Tonnes processed represent 100% of mine production.
(c)     Cost  of  sales   excludes   accretion,   depreciation,   depletion  and
        amortization.
(d)     Depreciation, depletion and amortization is referred to as "DD&A" in the
        table above.

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.  On December  31,  2004,  the  Company  completed  the
purchase of the remaining 51% of Paracatu from Rio Tinto Plc.

THIRD QUARTER 2005 VS. THIRD QUARTER 2004

o       Gold production in the third quarter of 2005 increased by 107%, over the
        corresponding  period in 2004,  due to the purchase of the remaining 51%
        of the mine.  However,  on a 100% basis,  production was essentially the
        same with an  increase  quarter-over-quarter  of 1%. The 2%  increase in
        tonnes processed was offset by the 2% decrease in grade.
o       Revenue from metal sales,  on a 100% basis,  was up by 11% due to higher
        realized gold prices.
o       Cost of  sales,  on a 100%  basis,  increased  by 23%  during  the third
        quarter  of  2005.  The  increase  was  due to the  appreciation  of the
        Brazilian real against the U.S.  dollar and higher energy and consumable
        costs.

FIRST NINE MONTHS OF 2005 VS. FIRST NINE MONTHS OF 2004

o       Gold  production for the first nine months of 2005 was down by 7% versus
        production,  on a 100% basis,  in the  comparable  period from 2004. The
        decrease was due to lower tonnes  processed  and lower grade.  The lower
        tonnes  processed was mainly  caused by some planned mill  stoppages for
        repairs.
o       Year-to-date,  revenue  from metal sales was 2% lower in 2005,  compared
        with 2004,  on a 100% basis,  due to fewer ounces  being sold.  This was
        partially offset by a higher realized gold price.
o       On a 100%  basis,  cost  of  sales  in the  first  nine  months  of 2005
        increased  by  21%  compared  to  2004.  The  increase  was  due  to the
        appreciation  of the Brazilian real and increased  energy and consumable
        costs.
o       On November 21, 2005, the Company  announced  that estimated  proven and
        probable  reserves at Paracatu had increased to 13.3 million ounces,  an
        increase of 4.8 million  ounces above the reserves  reported at December
        31, 2004. Additional discussion is provided in the "Development" section
        under "Reserve Increases at Paracatu".


                                       9
<PAGE>

<TABLE>
<CAPTION>
LA COIPA (50% OWNERSHIP, PLACER DOME 50%, OPERATOR) - CHILE
------------------------------------------------------------------------------------------------------------------------------------
                                  Three months ended                Q3               Nine months ended               YTD
                                     September 30,             2005 VS 2004            September 30,             2005 VS 2004
                               -----------------------------------------------------------------------------------------------------
                                   2005       2004        Change $      Change%      2005       2004         Change $    Change %
------------------------------------------------------------------------------------------------------------------------------------
<S>                              <C>          <C>          <C>           <C>      <C>          <C>           <C>           <C>
OPERATING STATISTICS
Tonnes processed (000's) (a)         1,517      1,712        (195)        (11%)      4,805        4,901          (96)        (2%)
Grade (grams/tonne)
       - Gold                         0.99       0.76        0.23          30%        0.98         1.02        (0.04)        (4%)
       - Silver                      45.40      67.86      (22.46)        (33%)      45.92        59.21       (13.29)       (22%)
Recovery (%)
       - Gold                        78.6%      80.2%       (1.6%)         (2%)      80.0%        81.8%        (1.8%)        (2%)
       - Silver                      46.4%      62.0%      (15.6%)        (25%)      54.1%        56.5%        (2.4%)        (4%)
Gold equivalent ounces
    Produced                        27,701     35,129      (7,428)        (21%)     92,077      108,132      (16,055)       (15%)
    Sold                            28,365     35,387      (7,022)        (20%)    103,075      109,710       (6,635)        (6%)

FINANCIAL DATA (in US$ millions)
Metal sales                        $  12.5    $  14.2     $  (1.7)        (12%)   $   44.3     $   44.1     $    0.2          0%
Cost of sales (b)                     10.8       11.2        (0.4)         (4%)       34.9         29.7          5.2         18%
Accretion                              0.1        0.1           -           0%         0.3          0.2          0.1         50%
DD&A (c)                               3.7        3.6         0.1           3%        11.8         12.9         (1.1)        (9%)
------------------------------------------------------------------------------------------------------------------------------------
                                      (2.1)      (0.7)       (1.4)       (200%)       (2.7)         1.3         (4.0)         nm
Exploration                            0.2        0.1         0.1         100%         0.7          0.2          0.5        250%
Other                                    -        0.3        (0.3)       (100%)        0.3          0.4         (0.1)       (25%)
------------------------------------------------------------------------------------------------------------------------------------
Segment earnings (loss)            $  (2.3)   $  (1.1)    $  (1.2)       (109%)   $   (3.7)    $    0.7     $   (4.4)         nm
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)     Tonnes processed represent 100% of mine production.
(b)     Cost  of  sales   excludes   accretion,   depreciation,   depletion  and
        amortization.
(c)     Depreciation, depletion and amortization is referred to as "DD&A" in the
        table above.

The Company  acquired its ownership  interest in the La Coipa open pit mine upon
completion of the combination with TVX on January 31, 2003.

THIRD QUARTER 2005 VS. THIRD QUARTER 2004

o       Gold equivalent production was down 21% during the third quarter of 2005
        largely  due to fewer  tonnes  being  processed.  Higher  gold grade was
        offset by a lower silver grade. The lower tonnes processed,  higher gold
        grades and lower silver  grades were the result of a series of pit slope
        failures  in the  first  half of 2005.  Geotechnical  studies  are being
        carried  out in order to  assess  the  current  situation.  There was no
        significant   change  during  the  quarter  to  the  average  ratio  for
        conversion of silver into equivalent gold ounces.
o       Revenues  from metal  sales  decreased  by 12% due to fewer  ounces sold
        during the quarter.  This was partially  offset by higher  realized gold
        prices.
o       Despite a 20%  decrease  in the  number of ounces  sold,  costs of sales
        decreased by only 4%. This was largely the result of a stronger  Chilean
        peso.

FIRST NINE MONTHS OF 2005 VS. FIRST NINE MONTHS OF 2004

o       Gold equivalent  production was down 15% during the first nine months of
        2005.  The decrease was due to fewer  tonnes being  processed  and lower
        grade and  recovery  rates for both gold and  silver.  The lower  tonnes
        processed and the lower grade and recovery  rates were the result of pit
        slope failures.  There was no significant  change during the year to the
        average ratio for conversion of silver into equivalent gold ounces.
o       There was little  change in revenue  from metal  sales in the first nine
        months of 2005 when  compared with the same period from 2004. A decrease
        in the number of ounces sold was offset by higher realized gold prices.
o       Cost of sales  increased by 18% during the first nine months of 2005 due
        to the  appreciation  of the  Chilean  peso and  higher  power and other
        costs.


                                       10
<PAGE>

<TABLE>
<CAPTION>
CRIXAS (50% OWNERSHIP, ANGLOGOLD ASHANTI 50%, OPERATOR) - BRAZIL
------------------------------------------------------------------------------------------------------------------------------------
                                  Three months ended                Q3               Nine months ended               YTD
                                     September 30,             2005 VS 2004            September 30,             2005 VS 2004
                               -----------------------------------------------------------------------------------------------------
                                   2005       2004        Change $      Change%      2005       2004         Change $    Change %
------------------------------------------------------------------------------------------------------------------------------------
<S>                              <C>          <C>          <C>           <C>      <C>          <C>           <C>           <C>
OPERATING STATISTICS
Tonnes processed (000's) (a)          187        191           (4)         (2%)         562          559           3         1%
Grade (grams/tonne)                  8.38       8.17         0.21           3%         8.40         8.15        0.25         3%
Recovery (%)                        95.4%      95.2%         0.2%           0%        95.4%        95.3%        0.1%         0%
Gold equivalent ounces
    Produced                       24,055     23,858          197           1%       72,400       69,809       2,591         4%
    Sold                           20,308     24,379       (4,071)        (17%)      69,357       69,909        (552)       (1%)

FINANCIAL DATA (in US$ millions)
Metal sales                       $   8.9    $   9.9     $   (1.0)        (10%)    $   29.9      $  28.1      $  1.8         6%
Cost of sales (b)                     3.2        3.2            -           0%         10.4          8.9         1.5        17%
Accretion                               -        0.1         (0.1)       (100%)         0.1          0.1           -         0%
DD&A (c)                              3.1        3.3         (0.2)         (6%)         9.1          9.5        (0.4)       (4%)
------------------------------------------------------------------------------------------------------------------------------------
                                      2.6        3.3         (0.7)        (21%)        10.3          9.6         0.7         7%
Exploration                           0.1        0.1            -           0%          0.2          0.2           -         0%
Other                                   -          -            -           0%            -            -           -         0%
------------------------------------------------------------------------------------------------------------------------------------
Segment earnings                  $   2.5    $   3.2     $   (0.7)        (22%)    $   10.1      $   9.4      $  0.7         7%
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)     Tonnes processed represent 100% of mine production.
(b)     Cost  of  sales   excludes   accretion,   depreciation,   depletion  and
        amortization.
(c)     Depreciation, depletion and amortization is referred to as "DD&A" in the
        table above.

The Company  acquired its  ownership  interest in the Crixas  underground  mine,
located in the State of Goias,  upon completion of the  combination  with TVX on
January 31, 2003.

THIRD QUARTER 2005 VS. THIRD QUARTER 2004

o       Gold production  increased  marginally during the third quarter of 2005,
        compared with the  corresponding  period in 2004.  Lower  throughput was
        offset by higher grade.
o       Revenues  from metal  sales  decreased  by 10% during the  quarter.  The
        decrease  resulted  from a 17%  reduction  in  number  of  ounces  sold,
        partially offset by higher realized gold prices.
o       There  was no  change  in the  cost of sales  quarter-over-quarter.  The
        decrease in the number of ounces sold was offset by the  appreciation of
        the Brazilian  real against the U.S.  dollar during the third quarter of
        2005, compared with the same period in 2004.

FIRST NINE MONTHS OF 2005 VS. FIRST NINE MONTHS OF 2004

o       Gold  production  increased  by 4% during the first nine months of 2005,
        compared with the corresponding  period in 2004. The increase was due to
        increased throughput and higher grade.
o       Higher  revenues  from metal sales were the result of a higher  realized
        gold price.
o       Cost of sales during the first nine months of 2005  increased by 17% due
        to the  appreciation  of the Brazilian  real against the U.S.  dollar in
        2005, compared with 2004, and higher commodity prices and service costs.


                                       11
<PAGE>

<TABLE>
<CAPTION>
MUSSELWHITE (31.93% OWNERSHIP, PLACER DOME 68.07%, OPERATOR) - CANADA
------------------------------------------------------------------------------------------------------------------------------------
                                  Three months ended                Q3               Nine months ended               YTD
                                     September 30,             2005 VS 2004            September 30,             2005 VS 2004
                               -----------------------------------------------------------------------------------------------------
                                   2005       2004        Change $      Change%      2005       2004         Change $    Change %
------------------------------------------------------------------------------------------------------------------------------------
<S>                              <C>          <C>          <C>           <C>      <C>          <C>           <C>           <C>
OPERATING STATISTICS
Tonnes processed (000's) (a)         359        373         (14)         (4%)        1,089        1,101         (12)        (1%)
Grade (grams/tonne)                 5.50       5.20        0.30           6%          5.70         5.20        0.50         10%
Recovery (%)                       94.8%      96.1%       (1.3%)         (1%)        95.2%        96.0%       (0.8%)        (1%)
Gold equivalent ounces
    Produced                      20,877     19,020       1,857          10%        61,824       56,171       5,653         10%
    Sold                          19,560     19,925        (365)         (2%)       61,200       59,528       1,672          3%

FINANCIAL DATA (in US$ millions)
Metal sales                      $   9.2    $   8.0     $   1.2          15%      $   27.0     $   24.0     $   3.0         13%
Cost of sales (b)                    7.0        5.6         1.4          25%          20.3         16.2         4.1         25%
Accretion                              -          -           -           0%           0.1          0.1           -          0%
DD&A (c)                             3.2        2.9         0.3          10%           9.6          9.1         0.5          5%
------------------------------------------------------------------------------------------------------------------------------------
                                    (1.0)      (0.5)       (0.5)       (100%)         (3.0)        (1.4)       (1.6)      (114%)
Exploration                          0.3        0.5        (0.2)        (40%)          1.4          1.6        (0.2)       (13%)
Other                                0.1          -         0.1           nm           0.1            -         0.1          nm
------------------------------------------------------------------------------------------------------------------------------------
Segment loss                     $  (1.4)   $  (1.0)    $  (0.4)        (40%)     $   (4.5)    $   (3.0)    $  (1.5)       (50%)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)     Tonnes processed represent 100% of mine production.
(b)     Cost  of  sales   excludes   accretion,   depreciation,   depletion  and
        amortization.
(c)     Depreciation, depletion and amortization is referred to as "DD&A" in the
        table above.

The Company acquired its ownership interest in the Musselwhite underground mine,
located in northwestern  Ontario, upon completion of the combination with TVX on
January 31, 2003.

THIRD QUARTER 2005 VS. THIRD QUARTER 2004

o       Gold  equivalent  production  during  the third  quarter of 2005 was 10%
        higher than the  corresponding  period in 2004.  The increase was due to
        the higher grade of ore processed.
o       Despite a reduction  in the number of ounces sold,  revenues  from metal
        sales were up by 15% due to higher gold prices.
o       Cost  of  sales  increased  by  25%  due  to  an  increased  portion  of
        higher-cost  underground tonnes mined, increased underground development
        costs and higher  energy  and  commodity  costs.  Cost of sales was also
        negatively  impacted by a 9% appreciation of the Canadian dollar against
        the U.S. dollar during the third quarter of 2005, compared with the 2004
        quarter.

FIRST NINE MONTHS OF 2005 VS. FIRST NINE MONTHS OF 2004

o       Gold  equivalent  production  for the first nine  months of 2005 was 10%
        higher  than the  first  nine  months of 2004 due to  higher-grade  ore,
        offset slightly by lower mill throughput and recovery.  Grade was higher
        in 2005 as a result of increased tonnage of higher-grade underground ore
        offsetting lower grade tonnage from open pit mining in 2004.
o       Revenues from metal sales  increased by 13% due to the increased  number
        of ounces sold and a higher realized gold price.
o       Cost  of  sales  increased  by  25%  due  to  an  increased  portion  of
        higher-cost  underground tonnes mined, increased underground development
        costs and higher  energy  and  commodity  costs.  Cost of sales was also
        negatively impacted by an 8% appreciation in the Canadian dollar against
        the U.S.  dollar  during the first nine  months of 2005,  compared  with
        2004.


                                       12
<PAGE>

<TABLE>
<CAPTION>
KUBAKA (98.1% OWNERSHIP AND OPERATOR) - RUSSIA
------------------------------------------------------------------------------------------------------------------------------------
                                  Three months ended                Q3               Nine months ended               YTD
                                     September 30,             2005 VS 2004            September 30,             2005 VS 2004
                               -----------------------------------------------------------------------------------------------------
                                   2005       2004        Change $      Change%      2005       2004         Change $    Change %
------------------------------------------------------------------------------------------------------------------------------------
<S>                              <C>          <C>          <C>           <C>      <C>          <C>           <C>           <C>
OPERATING STATISTICS
Tonnes processed (000's) (a)         216         115         101          88%         646          549           97         18%
Grade (grams/tonne)                 5.63        4.62        1.01          22%        5.93         4.93         1.00         20%
Recovery (%)                       97.0%       97.0%        0.0%           0%       97.4%        97.0%         0.4%          0%
Gold equivalent ounces
    Produced                      37,744      16,603      21,141         127%     119,880       84,983       34,897         41%
    Sold                          38,440      23,496      14,944          64%     117,322       92,631       24,691         27%

FINANCIAL DATA (in US$ millions)
Metal sales                      $  17.3    $    9.7     $   7.6          78%    $   51.6      $  38.2      $  13.4         35%
Cost of sales (b)                   10.6         7.7         2.9          38%        36.2         25.4         10.8         43%
Accretion                            0.1         0.1           -           0%         0.3          0.3            -          0%
DD&A (c)                             3.0         1.4         1.6         114%         9.3          5.2          4.1         79%
------------------------------------------------------------------------------------------------------------------------------------
                                     3.6         0.5         3.1         620%         5.8          7.3         (1.5)       (21%)
Exploration                          0.6           -         0.6           nm         1.4          0.1          1.3       1300%
Other                               (0.1)        1.8        (1.9)       (106%)        0.3          2.2         (1.9)       (86%)
------------------------------------------------------------------------------------------------------------------------------------
Segment earnings (loss)          $   3.1    $   (1.3)    $   4.4           nm    $    4.1      $   5.0      $  (0.9)       (18%)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)     Tonnes processed represent 100% of mine production.
(b)     Cost  of  sales   excludes   accretion,   depreciation,   depletion  and
        amortization.
(c)     Depreciation, depletion and amortization is referred to as "DD&A" in the
        table above.

Kinross  acquired a 54.7%  interest in the Kubaka open pit mine,  located in the
Magadan Oblast in far eastern Russia, in three transactions in 1998 and 1999. On
February  28, 2003,  the Company  completed a step-up  transaction  to bring its
ownership interest to the current 98.1%.

THIRD QUARTER OF 2005 VS. THIRD QUARTER OF 2004

o       Gold  equivalent  production  increased  by 127% due to higher grade and
        increased mill throughput as the mine processed higher-grade  stockpiled
        Birkachan ore during the quarter.
o       A 64%  increase  in the  number  of  ounces  sold,  along  with a higher
        realized  gold price  resulted in a 78% increased in revenues from metal
        sales.
o       Cost of sales  increased  by 38% due to the  increase  in the  number of
        ounces  sold  and  higher  operating  costs,  partially  offset  by  the
        increased  efficiencies  of  processing  more  tonnes of a  higher-grade
        stockpiled ore.

FIRST NINE MONTHS OF 2005 VS. FIRST NINE MONTHS OF 2004

o       The 41%  increase  in gold  equivalent  production  was the result of an
        increase  to  the  tonnes  of  ore  processed  and  the  milling  of the
        higher-grade  Birkachan  stockpiled  ore during the first nine months of
        2005.
o       The increase in the ounces  sold,  along with the higher  realized  gold
        price, lead to a 35% increase in revenues from metal sales.
o       Increased  cost of sales was due to an  increase in the number of ounces
        produced and sold and higher  operating costs overall,  partially offset
        by the lower cost of processing the  higher-grade  stockpiled ore in the
        third quarter of 2005.
o       Depreciation,  depletion and amortization was up by 79% during the first
        nine months of 2005. In addition to an increased  number of ounces sold,
        depreciation,  depletion and  amortization was higher as a result of the
        decision to close the mine at the end of 2005.
o       All mining  activity at the Kubaka  underground  mine and  Birkachan was
        completed  by  June  1,  2005,  with  only  stockpiles  remaining  to be
        processed.


                                       13
<PAGE>

OTHER OPERATING SEGMENTS

REFUGIO (50% OWNERSHIP AND OPERATOR) - CHILE

Kinross  acquired  its 50%  interest in the Refugio  open pit mine,  located 120
kilometres northeast of Copiapo, Chile, in 1998. In 2001, due to low gold prices
and operational difficulties, mining activities were suspended and the operation
was placed on care and  maintenance.  In late 2002,  a  multi-phase  exploration
program  commenced  and in  2003  it was  determined  that  the  mine  would  be
recommissioned.

The mine is expected to achieve its continuous  production rate of 40,000 tonnes
per day by year-end 2005. The Company's share of the capital cost is expected to
total approximately $67 million, which is above budget. The increased costs were
due to unexpected delays and higher input costs. The recommissioned mine will be
capable  of  producing  approximately  115,000  to 130,000  ounces  annually  to
Kinross' account.

KETTLE RIVER (100% OWNERSHIP AND OPERATOR) - U.S.A.

Kinross acquired Kettle River, located in the state of Washington,  U.S.A., upon
completion of the combination  with Echo Bay on January 31, 2003. At the time of
acquisition the mine was shutdown.  The Company  recommenced  operations in late
December 2003.  Gold  equivalent  production was 15,811 ounces and 54,446 ounces
during  the  three and nine  months  ended  September  30,  2005,  respectively,
compared  with 21,698  ounces and 69,407  ounces for the  respective  periods in
2004.  Production was lower and costs higher due to a planned decrease in mining
activity at Emanuel Creek and continuing ground problems at the mine.

DEPRECIATION, DEPLETION AND AMORTIZATION

Depreciation,  depletion and amortization was $41.3 million in the third quarter
of 2005,  compared  with  $45.5  million  in the third  quarter  of 2004,  which
represents  a  decrease  of  9%.  Year-to-date,   depreciation,   depletion  and
amortization  increased  by 2% to $130.2  million.  For the three and nine month
periods depreciation increased at Paracatu with the acquisition of the remaining
51% of the mine and at Kubaka with the increase in the number of ounces sold and
reduced reserve base.  Depreciation also increased at Fort Knox and decreased at
Round  Mountain and the Porcupine  Joint Venture over the  comparable  three and
nine month periods.

EXPLORATION AND BUSINESS DEVELOPMENT

Exploration and business development expense for the three and nine months ended
September 30, 2005 was $7.3 million and $18.6  million,  respectively,  compared
with $5.7  million and $14.6  million for the  comparable  periods in 2004.  The
increase  between  the  comparable  three and nine month  periods is largely the
result of the 2004  expenditures  being lower than  planned as certain  projects
were delayed.  The focus of the Company's  exploration program is to replace and
increase  reserves at existing  mines and increase  reserves at its  development
projects.

GENERAL AND ADMINISTRATIVE

General and  administrative  costs include  corporate office expenses related to
the  overall  management  of the  business  which  are not part of  direct  mine
operating  costs.  General and  administrative  expenses  for the three and nine
months  ended   September  30,  2005  were  $12.9  million  and  $33.8  million,
respectively,  compared with $6.6 million and $22.0  million for the  comparable
periods in 2004.  The increase was largely the result of increased  professional
fees due to the review of the  accounting  for the  acquisition  of TVX and Echo
Bay,  severance expenses and the strength of the Canadian dollar versus the U.S.
dollar.


                                       14
<PAGE>

<TABLE>
<CAPTION>
OTHER INCOME (EXPENSE) - NET
------------------------------------------------------------------------------------------------------------------------------------
IN US$ MILLIONS                     Three months ended                Q3               Nine months ended               YTD
                                       September 30,             2005 VS 2004            September 30,             2005 VS 2004
                                 ---------------------------------------------------------------------------------------------------
                                     2005       2004        Change $      Change%      2005       2004         Change $    Change %
------------------------------------------------------------------------------------------------------------------------------------
<S>                              <C>          <C>          <C>           <C>      <C>          <C>           <C>           <C>
Interest and other income           $   1.8    $   1.6         0.2          13%      $   5.3     $   5.3            -          0%
Interest expense                       (2.0)      (0.8)       (1.2)       (150%)        (5.6)       (1.9)        (3.7)      (195%)
Foreign exchange losses                (8.5)      (7.6)       (0.9)        (12%)       (21.4)       (2.6)       (18.8)      (723%)
Non-hedge derivative gains (losses)    (0.8)      (0.1)       (0.7)       (700%)        (0.7)        3.2         (3.9)         nm
------------------------------------------------------------------------------------------------------------------------------------
Other income (expense) - net        $  (9.5)   $  (6.9)       (2.6)        (38%)     $ (22.4)    $   4.0        (26.4)         nm
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

INTEREST EXPENSE

Interest  expense totaled $2.0 million and $5.6 million,  respectively,  for the
three and nine months ended  September 30, 2005,  compared with $0.8 million and
$1.9 million during the  corresponding  period in 2004.  The increased  interest
expense is the result of increased long-term debt including the LIBOR loan under
the credit facility.

NON-HEDGE DERIVATIVE LOSSES

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 nine months of 2005, the Company  recorded an
increase to the liability on call options sold of $0.7 million versus a decrease
of $3.2 million in 2004.

FOREIGN EXCHANGE LOSSES

There was a net foreign  exchange loss of $8.5 million and $21.4 million for the
three and nine months ended  September  30, 2005.  This  compared with a loss of
$7.6 million  during the third quarter of 2004 and a loss of $2.6 million in the
first nine  months of 2004.  The losses on foreign  exchange  were  largely  the
result of strengthening  foreign  currencies on net monetary  liabilities in the
Company's foreign operations.

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.

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 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. During the first nine months
of 2005, the Company  recorded income and mining tax expenses of $4.0 million on
losses before tax of $57.2 million. During the corresponding period in 2004, the
Company  recorded a  recovery  of income  and  mining  taxes of $8.0  million on
earnings  before tax of $17.5  million.  There are a number of factors  that can
significantly  impact the Company's  effective tax rate including the geographic
distribution  of  income,   varying  rates  in  different   jurisdictions,   the
non-recognition of tax assets, mining allowance,  foreign currency exchange rate
movements,  changes  in tax laws and the  impact of  specific  transactions  and
assessments.  The income and mining tax expense in 2005 and the recovery in 2004
is largely due  movement  in the future tax  liability  setup with the  purchase
accounting for the acquisition of TVX and Echo Bay.

RELATED PARTY TRANSACTIONS

On September 2, 2005, the Company agreed to sell 23.33% of the shares of KF Ltd.
to Balloch Resources Ltd. ("Balloch") and retain 11.67% of the initial interest.
Art Ditto, a former  director and officer of the Company,  owns a 17.4% interest
in the  outstanding  common  shares of Balloch  and upon  closing of the private
placement  which was completed on October 19, 2005,  Mr. Ditto will be appointed
as the President and Chief Executive Officer of Balloch.  Further  discussion on
the sale of KF Ltd. to Balloch is included above in the  "Developments"  section
and in Note 11, "Related party transactions",  in the September 30, 2005 interim
consolidated financial statements.


                                       15
<PAGE>

5.      LIQUIDITY AND CAPITAL RESOURCES

The  following  table  summarizes  Kinross' cash flow activity for the three and
nine months ended September 30, 2005 and 2004:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
IN US$ MILLIONS                     Three months ended                Q3               Nine months ended               YTD
                                       September 30,             2005 VS 2004            September 30,             2005 VS 2004
                                 ---------------------------------------------------------------------------------------------------
                                     2005       2004        Change $      Change%      2005       2004         Change $    Change %
------------------------------------------------------------------------------------------------------------------------------------
<S>                              <C>          <C>          <C>           <C>      <C>          <C>           <C>           <C>
Cash flow:
   Provided from operating
     activities                     $  52.5    $  62.9     $  (10.4)        (17%)    $  109.9    $ 103.3       $    6.6        6%
   Used in investing activities       (27.6)     (44.6)        17.0          38%       (112.2)    (123.8)          11.6        9%
   Provided by (used in) financing
      acitvities                          -        1.5         (1.5)       (100%)        36.0      (17.1)          53.1        nm
Effect of exchange rate changes
   on cash                                -        1.1         (1.1)       (100%)           -        0.4           (0.4)    (100%)
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in cash and
   cash equivalents                    24.9       20.9          4.0          19%         33.7      (37.2)          70.9        nm
Cash and cash equivalents:
   Beginning of period                 56.7      187.7       (131.0)        (70%)        47.9      245.8         (197.9)     (81%)
------------------------------------------------------------------------------------------------------------------------------------
   End of period                    $ 81.6     $ 208.6     $ (127.0)        (61%)    $   81.6    $ 208.6       $ (127.0)     (61%)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

OPERATING ACTIVITIES

Cash flow provided by operating  activities  was $52.5 million  during the three
months  ended  September  30,  2005,  compared  with  $62.9  million  during the
corresponding  period in 2004. The decrease was largely the result of changes in
working capital requirements in the respective quarters.  During the nine months
ended September 30, 2005, cash flow provided by operating  activities  increased
by 6% to $109.9  million.  The increase is due to a reduction in working capital
requirements in 2005, versus 2004.

INVESTING ACTIVITIES

Net cash used in investing  activities was $27.6 million in the third quarter of
2005,  compared to $44.6 million in the third quarter of 2004.  Net cash used in
investing activities in the first nine months of 2005 was $112.2 million,  which
is a  decrease  of 9% over  the  corresponding  period  in  2004.  Cash  used in
investing  activities is largely the result of additions to property,  plant and
equipment along with net sales of short-term investments. The following provides
a breakdown by segment of capital expenditures:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
IN US$ MILLIONS                     Three months ended                Q3               Nine months ended               YTD
                                       September 30,             2005 VS 2004            September 30,             2005 VS 2004
                                 ---------------------------------------------------------------------------------------------------
                                     2005       2004        Change $      Change%      2005       2004         Change $    Change %
------------------------------------------------------------------------------------------------------------------------------------
<S>                              <C>          <C>          <C>           <C>      <C>          <C>           <C>           <C>
OPERATING SEGMENTS
  Fort Knox                         $ 11.0     $ 18.8       $  (7.8)       (41%)     $  33.3    $  38.2       $  (4.9)       (13%)
  Paracatu                             4.5        1.2           3.3        275%         13.8        3.1          10.7        345%
  Round Mountain                       0.9        3.2          (2.3)       (72%)         3.6        6.7          (3.1)       (46%)
  Porcupine Joint Venture              5.5        7.5          (2.0)       (27%)        18.3       14.6           3.7         25%
  La Coipa                             0.6        0.2           0.4        200%          2.8        0.6           2.2        367%
  Crixas                               1.9        0.7           1.2        171%          4.8        2.7           2.1         78%
  Musselwhite                          1.3        1.0           0.3         30%          3.2        2.6           0.6         23%
  Kubaka                                 -        3.7          (3.7)      (100%)         0.2       13.7         (13.5)       (99%)
  Other operations                     5.8       10.3          (4.5)       (44%)        27.3       24.3           3.0         12%
CORPORATE & OTHER                      1.3        0.2           1.1        550%          2.2        0.5           1.7        340%
------------------------------------------------------------------------------------------------------------------------------------
                                    $ 32.8     $ 46.8       $ (14.0)       (30%)     $ 109.5    $ 107.0       $   2.5          2%
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

Capital expenditures during the first nine months of 2005 included costs related
to accessing phase five and phase six ore zones at Fort Knox, development of the
Pamour pit at the Porcupine Joint Venture, costs at Paracatu related to the mine
and mill expansion and continued recommissioning costs at Refugio.


                                       16
<PAGE>

FINANCING ACTIVITIES

During the first nine months of 2005,  financing activities provided net cash of
$36.0 million. This was primarily from proceeds from issuance of debt, which was
the result of a $35.0 million  increase to the Company's LIBOR loan drawn on the
Company's  revolving credit facility.  During the first nine months of 2004, the
Company had a net use of cash in financing  activities of $17.1 million. The use
of cash largely  related to the repayment of the Industrial  Revenue Bonds owing
to the  Alaska  Industrial  Development  and  Export  Authority  with  principal
totaling $25.0 million.

As of February 8, 2006,  there were 345.5  million  common shares of the Company
issued and  outstanding.  In  addition,  at the same date,  the  Company had 2.4
million share purchase options  outstanding  under its share option plan and 8.3
million common share purchase warrants outstanding.

BALANCE SHEET

Key items and statistics are highlighted below:

--------------------------------------------------------------------------------
IN US$ MILLIONS                                           AS AT:
                                           -------------------------------------
                                             September 30,        December 31,
                                                 2005                2004
--------------------------------------------------------------------------------

Cash and cash equivalents                    $       81.6         $      47.9
Current assets                               $      234.0         $     206.9
Total assets                                 $    1,821.6         $   1,834.2
Current liabilities                          $      159.3         $     172.8
Total debt (a)                               $      174.0         $     138.8
Total liabilities (b)                        $      592.3         $     547.1
Shareholders' equity                         $    1,229.3         $   1,287.1
--------------------------------------------------------------------------------
Statistics
        Working capital                      $       74.7         $      34.1
        Working capital ratio (c)                    1.47x               1.20x
--------------------------------------------------------------------------------

(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.

Year-to-date,  cash increased by $33.7 million to $81.6 million,  with cash from
operating and financing  activities more than offsetting the Company's investing
activities.  During  the first  nine  months  of 2005,  the  Company's  net debt
position (cash and cash  equivalents  less long-term debt) increased  marginally
from $75.0 million to $75.8 million. The increase in cash along with an increase
in  inventories  and a decrease  in account  payables  and  accrued  liabilities
resulted  in an  increase  to net  working  capital  of $34.1  million  to $74.7
million.

CREDIT FACILITY

In December 2004, the Company  replaced the $125 million credit  facility with a
new three-year $200 million  revolving  credit  facility,  which allowed for the
limit to be increased to $300 million. The Company borrowed $105.0 million under
the facility to help finance the  acquisition  of the  remaining 51% interest in
the Paracatu  mine.  In February  2005,  the limit was increased by $15 million,
which the Company drew down on as a LIBOR loan for working capital purposes.  In
March  2005,  the limit was  increased  by $10 million to allow for the issue of
additional letters of credit. In April 2005, the outstanding limit was increased
to $295 million and the maturity date extended to April 30, 2008.

LIQUIDITY OUTLOOK

The  major  uses of  cash  for the  remainder  of  2005,  outside  of  operating
activities  and  general  and  administrative  costs,  include  reclamation  and
remediation  obligation,  explorations  and  business  development  expense  and
additions to property,  plant and  equipment.  As of September  30, 2005,  $16.9
million has been spent on reclamation and remediation expenditures,  with a full
year forecast for 2005 of approximately $24 million. In the first nine months of
2005, exploration and business development  expenditures of $18.6 million, of an
expected $22 million for the year,  have been  incurred.  Additions to property,
plant and equipment  have totaled  $109.5  million during the first nine months,
with a full year forecast of approximately $165 million to be spent.


                                       17
<PAGE>

CONTRACTUAL OBLIGATIONS AND COMMITMENTS

Kinross has entered  into an agreement to acquire  Crown  Resources  Corporation
("Crown") in exchange for the issuance of Kinross'  common shares.  Kinross will
not issue  fractional  shares to the  shareholders of Crown resulting in a small
amount that will be paid in cash.  This  acquisition is discussed in the section
entitled "Developments".  For a schedule of contractual obligations please refer
to the Company's 2004 Annual MD&A.

At December 31, 2004,  the  undiscounted  amount of estimated cash flows to meet
the reclamation and  remediation  obligations was estimated to be  approximately
$163.3  million.  The  Company is  currently  in the  process of  reviewing  the
estimated  reclamation and remediation  obligations.  It is expected that rising
labour,  power and  consumable  costs in general  will  increase  the  Company's
estimated reclamation and remediation obligations.

HEDGING ACTIVITIES

From time to time, the Company  manages its exposure to fluctuation in commodity
prices,  foreign  exchange rates and interest rates by entering into  derivative
financial  instrument  contracts in accordance with the risk  management  policy
approved by the Company's Board of Directors.

GOLD

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,  with the  adoption  of  Accounting  Guideline  13,  "Hedging
Relationships"  ("AcG-13"),  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 in 2004
and 2005. In the second quarter of 2004, the Company  financially closed out the
remaining  90,000  ounces at a cost of $9.6  million.  However,  for  accounting
purposes the remaining portion of the unrealized loss, as determined on December
31,  2003,  remained  to be  recognized  into  earnings in  accordance  with the
original maturity dates of the contracts. During the nine months ended September
30, 2004,  the Company  recognized a loss on $16.4 million based on the original
delivery dates.

During the nine months ended  September 30, 2005,  the Company  recognized  into
earnings  the  remaining  $4.7  million  related  to the  loss  on the  deferred
contracts.

As at September  30, 2005,  the Company had spot  deferred  contracts to deliver
125,000 ounces of gold in the fourth  quarter of 2005,  having a fair value loss
of $1.7  million  based on the spot  price of gold of $473 as at that  date.  At
September  30, 2005,  the Company had  outstanding  call options sold on 100,000
ounces.  Mark-to-market adjustment on the call options sold totaled $0.8 million
for the nine months ended  September 30, 2005. This amount was recorded in third
quarter earnings.

FOREIGN CURRENCY

From time to time, the Company uses 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,  with the adoption of AcG-13,  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 nine months ended  September  30,
2004,  the Company  recognized  into earnings $0.9 million of the deferred gain.
During the nine months ended  September 30, 2005,  the Company  recognized  into
earnings the remaining $0.9 million of the deferred gain.  Both the realized and
unrealized net gains during 2005 from the  strengthening  of the Canadian dollar
against  the U.S.  dollar  have been  netted  against  operating  costs from the
Company's  Canadian  mines  and  against  Canadian  general  and  administrative
expenses.

At  September  30, 2005,  the Company had no  derivative  financial  instruments
outstanding relating to foreign currency.

For  details  on the  hedging  activities  please  refer  to  Note 6  "Financial
instruments" of the accompanying consolidated financial statements.


                                       18
<PAGE>

6.      CRITICAL ACCOUNTING POLICIES

In the 2004  annual  MD&A  there is a full  discussion  and  description  of the
Company's  critical  accounting  policies.  The  preparation  of  the  Company's
consolidated  financial  statements  in  conformity  with Canadian GAAP requires
management to make estimates and assumptions that affect amounts reported in the
consolidated  financial  statements  and  accompanying  notes.  These  are fully
described in the 2004 annual MD&A.

7.      RECENT PRONOUNCEMENTS AND ACCOUNTING CHANGES

For a discussion of recent  pronouncements  and accounting  changes please refer
Note 4 of the accompanying  interim  consolidated  financial  statements for the
period ended September 30, 2005.

8.      RISK ANALYSIS AND ADDITIONAL INFORMATION

The  operations  of Kinross are  high-risk  due to the nature of the  operation,
exploration,  and  development of mineral  properties.  For a discussion of risk
factors and  additional  information  please refer to the Company's  2004 annual
MD&A, the Annual Information Form and other filings,  which are available on the
Company's  website  www.kinross.com  and on  www.sedar.com or are available upon
request from the Company.

9.      SUMMARY OF QUARTERLY RESULTS

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                           Q3        Q2        Q1         Q4        Q3         Q2        Q1         Q4         Q3
------------------------------------------------------------------------------------------------------------------------------------
(in millions, except per share amounts)   2005      2005      2005       2004      2004       2004      2004       2003       2003
------------------------------------------------------------------------------------------------------------------------------------
<S>                                     <C>       <C>       <C>        <C>       <C>        <C>       <C>        <C>        <C>
Total metal sales                       $ 181.1   $ 174.6   $ 179.8    $ 179.2   $ 174.6    $ 158.2   $ 154.8    $ 143.3    $ 153.8
Net earnings (loss)                     $ (44.4)  $ (16.4)  $  (0.9)   $ (88.0)  $   5.5    $  11.7   $   7.7    $(372.8)   $ (11.9)
Net earnings (loss) attributable to
  common shares                         $ (44.4)  $ (16.4)  $  (0.9)   $ (88.0)  $   5.5    $  11.7   $   7.7    $(372.8)   $   2.4
Basic and diluted earnings (loss)
  per share                             $ (0.13)  $ (0.05)  $     -    $ (0.25)  $  0.02    $  0.03   $  0.02    $ (1.21)   $  0.01
------------------------------------------------------------------------------------------------------------------------------------

Cash flow provided from
  operating activities                  $  52.5   $ 30.6    $  26.8    $  57.9   $  62.9    $  25.4   $  15.0    $  18.7    $  36.7
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>


                                       19

<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEETS
(expressed in millions of U.S. dollars) (unaudited)
<S>                                                                                      <C>               <C>
==========================================================================================================================
                                                                                                    AS AT
                                                                                      ------------------------------------
                                                                                         SEPTEMBER 30,     DECEMBER 31,
                                                                                             2005              2004
--------------------------------------------------------------------------------------------------------------------------
ASSETS                                                                                                     Restated (a)
  Current assets
    Cash and cash equivalents                                                            $       81.6      $      47.9
    Restricted cash                                                                               1.3              1.4
    Short-term investments                                                                        2.6              5.7
    Accounts receivable and other assets                                NOTE 5                   28.1             40.9
    Inventories                                                         NOTE 5                  120.4            111.0
                                                                                      ------------------------------------
                                                                                                234.0            206.9
  Property, plant and equipment                                         NOTE 5                1,191.3          1,244.1
  Goodwill                                                              NOTE 5                  323.2            329.9
  Long-term investments                                                 NOTE 5                   33.1             25.7
  Deferred charges and other long-term assets                           NOTE 5                   40.0             27.6
                                                                                      ------------------------------------
                                                                                         $    1,821.6      $   1,834.2
                                                                                      ------------------------------------
LIABILITIES
  Current liabilities
    Accounts payable and accrued liabilities                            NOTE 5           $      142.8      $     143.2
    Current portion of long-term debt                                   NOTE 7                    5.7              6.0
    Current portion of reclamation and remediation obligations                                   10.8             23.6
                                                                                      ------------------------------------
                                                                                                159.3            172.8
  Long-term debt                                                        NOTE 7                  151.7            116.9
  Reclamation and remediation obligations                                                       111.3            108.1
  Future income and mining taxes                                                                141.5            123.5
  Other long-term liabilities                                                                    11.7              9.5
  Redeemable retractable preferred shares                                                         2.7              2.6
                                                                                      ------------------------------------
                                                                                                578.2            533.4
                                                                                      ------------------------------------
COMMITMENTS AND CONTINGENCIES                                           NOTE 12
                                                                                      ------------------------------------
NON-CONTROLLING INTEREST                                                                          0.2              0.4
                                                                                      ------------------------------------
CONVERTIBLE PREFERRED SHARES OF SUBSIDIARY COMPANY                                               13.9             13.3
                                                                                      ------------------------------------
COMMON SHAREHOLDERS' EQUITY
  Common share capital and common share purchase warrants               NOTE 8                1,777.1          1,775.8
  Contributed surplus                                                                            36.5             33.9
  Accumulated deficit                                                                          (583.1)          (521.4)
  Cumulative translation adjustments                                                             (1.2)            (1.2)
                                                                                      ------------------------------------
                                                                                              1,229.3          1,287.1
                                                                                      ------------------------------------
                                                                                         $    1,821.6      $   1,834.2
                                                                                      ------------------------------------

TOTAL ISSUED AND OUTSTANDING COMMON SHARES (millions)                                           345.4            345.1
==========================================================================================================================

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

(a) See Note 3

                                                             2
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF OPERATIONS
(expressed in millions of U.S. dollars, except per share amounts) (unaudited)
====================================================================================================================================
                                                                             THREE MONTHS ENDED             NINE MONTHS ENDED
                                                                               SEPTEMBER 30,                   SEPTEMBER 30,
                                                                        -----------------------------  -----------------------------
                                                                            2005            2004            2005           2004
------------------------------------------------------------------------------------------------------------------------------------
                                                                                        Restated (a)                   Restated (a)
<S>                                                                      <C>            <C>              <C>           <C>
REVENUE AND OTHER OPERATING INCOME
  Metal sales                                                            $    181.1     $     174.6      $    535.5    $     487.6

OPERATING COSTS AND EXPENSES
  Cost of sales (excluding items shown below)                                 113.1           107.8           337.2          298.2
  Accretion                                                                     3.1             2.2             9.0            6.6
  Depreciation, depletion and amortization                                     41.3            45.5           130.2          127.2
                                                                        -----------------------------  -----------------------------
                                                                               23.6            19.1            59.1           55.6
  Other operating costs                                                         0.7             3.0             5.1            6.9
  Exploration and business development                                          7.3             5.7            18.6           14.6
  General and administrative                                                   12.9             6.6            33.8           22.0
  Impairment charges:
    Goodwill                                                                    6.7               -             6.7              -
    Plant, property and equipment                                              30.1               -            30.1              -
    Investments                                                                 0.1               -             0.7              -
  Gain on disposal of assets                                                   (0.1)           (0.7)           (1.1)          (1.4)
                                                                        -----------------------------  -----------------------------
OPERATING EARNINGS (LOSS)                                                     (34.1)            4.5           (34.8)          13.5
                                                              NOTE 5
  Other income (expense) - net                                                 (9.5)           (6.9)          (22.4)           4.0
                                                                        -----------------------------  -----------------------------
EARNINGS (LOSS) BEFORE TAXES AND OTHER ITEMS                                  (43.6)           (2.4)          (57.2)          17.5

  Income and mining taxes recovery (expense)                                   (0.5)            8.0            (4.0)           8.0
  Non-controlling interest                                                     (0.1)            0.1             0.1              -
  Dividends on convertible preferred shares of subsidiary                      (0.2)           (0.2)           (0.6)          (0.6)
                                                                        -----------------------------  -----------------------------
NET EARNINGS (LOSS)                                                      $    (44.4)    $       5.5      $    (61.7)   $      24.9
                                                                        -----------------------------  -----------------------------

EARNINGS (LOSS) PER SHARE
  Basic                                                                  $    (0.13)    $      0.02      $    (0.18)   $      0.07
  Diluted                                                                $    (0.13)    $      0.02      $    (0.18)   $      0.07
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING (millions)
  Basic                                                       NOTE 9          345.3           346.2           345.2          346.0
  Diluted                                                     NOTE 9          345.3           346.5           345.2          346.4
====================================================================================================================================

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

(a) See Note 3


                                                                 3
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS
(expressed in millions of U.S. dollars)
====================================================================================================================================
                                                                             THREE MONTHS ENDED             NINE MONTHS ENDED
                                                                               SEPTEMBER 30,                   SEPTEMBER 30,
                                                                        -----------------------------  -----------------------------
                                                                            2005            2004            2005           2004
------------------------------------------------------------------------------------------------------------------------------------
                                                                                        Restated (a)                   Restated (a)
<S>                                                                      <C>            <C>              <C>           <C>
OPERATING ACTIVITIES:
Net earnings (loss)                                                      $    (44.4)    $       5.5      $    (61.7)   $      24.9
Adjustments to reconcile net earnings (loss) to net cash
  provided from (used in) operating activities:
  Depreciation, depletion and amortization                                     41.3            45.5           130.2          127.2
  Impairment charges:
    Goodwill                                                                    6.7               -             6.7              -
    Plant, property and equipment                                              30.1               -            30.1              -
    Investments                                                                 0.1               -             0.7              -
  Gain on disposal of assets                                                   (0.1)           (0.7)           (1.1)          (1.4)
  Future income and mining taxes                                               (3.4)          (11.7)           (4.9)         (18.8)
  Deferred revenue recognized                                                     -             2.9               -            1.8
  Non-controlling interest                                                      0.1               -            (0.1)             -
  Stock-based compensation                                                      1.6             0.4             3.2            1.3
  Unrealized foreign exchange (gains) losses and other                         10.8             4.0            20.1           (4.5)
  Changes in operating assets and liabilities:
    Accounts receivable and other assets                                        1.5             2.6             9.1            4.0
    Inventories                                                                (2.9)           12.2           (14.0)         (12.3)
    Accounts payable and accrued liabilities                                   11.1             2.2            (8.4)         (18.9)
                                                                        -----------------------------  -----------------------------
CASH FLOW PROVIDED FROM OPERATING ACTIVITIES                                   52.5            62.9           109.9          103.3
                                                                        -----------------------------  -----------------------------
INVESTING:
  Additions to property, plant and equipment                                  (32.8)          (46.8)         (109.5)        (107.0)
  Proceeds from the sale of marketable securities                               0.5            10.9             0.6            0.7
  Proceeds from (additions to)
    long-term investments and other assets                                      3.8            (3.5)          (14.4)         (16.9)
  Proceeds from the sale of property, plant and equipment                       2.4             0.2             6.3            1.0
  (Additions to) proceeds from short-term investments                          (1.7)           (5.3)            4.7           (5.3)
  Decrease (increase) in restricted cash                                        0.2            (0.1)            0.1            3.7
                                                                        -----------------------------  -----------------------------
CASH FLOW USED IN INVESTING ACTIVITIES                                        (27.6)          (44.6)         (112.2)        (123.8)
                                                                        -----------------------------  -----------------------------
FINANCING:
  Issuance of common shares                                                     0.4             0.6             1.5            3.6
  Proceeds from issue of debt                                                     -             1.2            35.8            5.6
  Repayment of debt                                                            (0.4)           (0.3)           (1.3)         (26.3)
                                                                        -----------------------------  -----------------------------
CASH FLOW PROVIDED FROM (USED IN) FINANCING ACTIVITIES                            -             1.5            36.0          (17.1)
                                                                        -----------------------------  -----------------------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH                                           -             1.1               -            0.4
                                                                        -----------------------------  -----------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                               24.9            20.9            33.7          (37.2)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                 56.7           187.7            47.9          245.8
                                                                        -----------------------------  -----------------------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                       81.6           208.6            81.6          208.6
====================================================================================================================================

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

(a) See note 3


                                                                 4
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY
(expressed in millions of U.S. dollars)
====================================================================================================================================
                                                                             THREE MONTHS ENDED             NINE MONTHS ENDED
                                                                               SEPTEMBER 30,                   SEPTEMBER 30,
                                                                        -----------------------------  -----------------------------
                                                                            2005            2004            2005           2004
------------------------------------------------------------------------------------------------------------------------------------
                                                                                        Restated (a)                   Restated (a)
<S>                                                                      <C>            <C>              <C>           <C>
COMMON SHARES
  Balance at the beginning of the period                                 $  1,776.7     $   1,785.5      $  1,775.8    $   1,783.5
    Common shares issued                                                        0.4             1.2             1.5            4.2
    Transfer of fair value of exercised options                                   -               -               -            0.2
    Transfer of fair value of expired warrants and options                        -               -            (0.2)          (1.2)
                                                                        -----------------------------  -----------------------------
  Balance at the end of the period                                       $  1,777.1     $   1,786.7      $  1,777.1    $   1,786.7
                                                                        -----------------------------  -----------------------------

CONTRIBUTED SURPLUS
  Balance at the beginning of the period                                 $     35.7     $      34.4      $     33.9    $      30.0
    Transfer of fair value of expired warrants and options                        -               -             0.2            1.2
    Transfer of fair value of exercised options                                   -               -               -           (0.2)
    Adoption of new accounting standards                                          -               -               -            2.5
    Stock option compensation                                                   0.8             0.4             2.4            1.3
                                                                        -----------------------------  -----------------------------
  Balance at the end of the period                                       $     36.5     $      34.8      $     36.5    $      34.8
                                                                        -----------------------------  -----------------------------

ACCUMULATED DEFICIT
  Balance at the beginning of the period                                 $   (538.7)    $    (438.9)     $   (521.4)   $    (455.8)
    Adoption of new accounting standards                                          -               -               -           (2.5)
    Net earnings (loss)                                                       (44.4)            5.5           (61.7)          24.9
                                                                        -----------------------------  -----------------------------
  Balance at the end of the period                                       $   (583.1)    $    (433.4)     $   (583.1)   $    (433.4)
                                                                        -----------------------------  -----------------------------

CUMULATIVE TRANSLATION ADJUSTMENTS
  Balance at the beginning of the period                                 $     (1.2)    $      (1.2)     $     (1.2)   $     (1.2)
                                                                        -----------------------------  -----------------------------
  Balance at the end of the period                                       $     (1.2)    $      (1.2)     $     (1.2)   $     (1.2)
                                                                        -----------------------------  -----------------------------

                                                                        -----------------------------  -----------------------------
TOTAL SHAREHOLDERS' EQUITY                                               $  1,229.3     $   1,386.9      $  1,229.3    $  1,386.9
====================================================================================================================================

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

(a) See Note 3


                                                                 5
<PAGE>

           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
                     FOR THE THREE MONTHS ENDED SEPTEMBER 30
  (millions of U.S. dollars, except per share amounts, unless otherwise stated)

1.      NATURE OF OPERATIONS

        Kinross  Gold  Corporation  and  its  subsidiaries  and  joint  ventures
        (collectively,  "Kinross" or the  "Company")  are engaged in gold mining
        and  related  activities,   including  exploration  and  acquisition  of
        gold-bearing   properties,   extraction,   processing  and  reclamation.
        Kinross' gold  production  and  exploration  activities  are carried out
        principally  in the United  States,  Canada,  Russia,  Brazil and Chile.
        Gold,  the  Company's  primary  product is produced in the form of dore,
        which is  shipped  to  refineries  for final  processing.  Kinross  also
        produces and sells a limited  amount of silver as a  by-product  of gold
        mining activities.

2.      BASIS OF PRESENTATION

        The unaudited interim consolidated  financial statements (the "financial
        statements")  of the Company have been prepared in  accordance  with the
        accounting  principles  and  methods  of  application  disclosed  in the
        consolidated financial statements for the year ended December 31, 2004.

        The accompanying  unaudited interim  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 the financial  statements  should be read in
        conjunction with the Company's restated audited financial statements for
        the year ended December 31, 2004.

        COMPARATIVE FIGURES

        Certain 2004 figures in the accompanying  unaudited interim consolidated
        financial  statements  have been  reclassified  to  conform  to the 2005
        presentation.

3.      RESTATEMENT  FOR  CORRECTION  OF FOREIGN  CURRENCY  IMPACT ON FUTURE TAX
        LIABILITIES

        During its preparation of the interim financial statements for 2005, the
        Company and its  auditors  discovered  an error  relating to its audited
        financial  statements for the years ended December 31, 2003 and 2004 and
        the respective  interim periods.  In the previously  released  financial
        statements  the Company had not properly  assessed the impact of changes
        in foreign  currency rates  affecting the timing  differences  resulting
        from a difference between accounting and tax basis, which form the basis
        for the future tax liabilities.  As a result of the  restatement,  these
        liabilities are adjusted for 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
        related  primarily  to the  future  tax  liabilities  of  the  Brazilian
        operations.  This non-cash  adjustment  had no impact on operating  cash
        flows or cash balances previously reported. The financial statements for
        the respective interim periods in 2005 are not restated.

        All amounts  included  in this report have been  adjusted to reflect the
        2004  restatement.  The  following  is a summary  of the  effects of the
        aforementioned adjustments on our consolidated financial statements:

        CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
                                               As previously                            As
                                                reported (a)      Adjustments        restated
-----------------------------------------------------------------------------------------------
<S>                                            <C>                 <C>              <C>
As at December 31, 2004
Liabilities
  Future income and mining taxes               $   90.6            $   32.9         $  123.5
Common shareholders' equity
  Accumulated deficit                          $ (487.7)           $  (33.7)        $ (521.4)
  Cumulative translation adjustments           $   (2.0)           $    0.8         $   (1.2)
-----------------------------------------------------------------------------------------------
</TABLE>

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


                                       6
<PAGE>

        CONSOLIDATED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
                                                            As previously
                                                             reported (a)   Adjustments   As restated
------------------------------------------------------------------------------------------------------
<S>                                                          <C>             <C>            <C>
THREE MONTHS ENDED SEPTEMBER 30, 2004
Operating earnings                                           $    4.6        $    (0.1)      $    4.5
  Other income (expense) - net                               $    2.3        $    (9.2)      $   (6.9)
Earnings (loss) before taxes and other items                 $    6.9        $    (9.3)      $   (2.4)
Income and mining tax recovery                               $    7.6        $     0.4       $    8.0
Minority interest                                            $    0.1        $       -       $    0.1
Share in loss of investee companies                          $      -        $       -       $      -
Dividends on convertible preferred shares of the subsidiary  $   (0.2)       $       -       $   (0.2)
Net earnings                                                 $   14.4        $    (8.9)      $    5.5
Net earnings attributable to common shareholders             $   14.4        $    (8.9)      $    5.5
Earnings per share
  Basic and diluted                                          $   0.04        $   (0.02)      $   0.02
------------------------------------------------------------------------------------------------------
Nine months ended September 30, 2004
Operating earnings                                           $   13.5        $       -       $   13.5
  Other income (expense) - net                               $    5.0        $    (1.0)      $    4.0
Earnings before taxes and other items                        $   18.5        $    (1.0)      $   17.5
Income and mining tax recovery                               $    6.4        $     1.6       $    8.0
Minority interest                                            $      -        $       -       $      -
Share in loss of investee companies                          $      -        $       -       $      -
Dividends on convertible preferred shares of the subsidiary  $   (0.6)       $       -       $   (0.6)
Net earnings                                                 $   24.3        $     0.6       $   24.9
Net earnings attributable to common shareholders             $   24.3        $     0.6       $   24.9
Earnings per share
  Basic and diluted                                          $   0.07        $       -       $   0.07
------------------------------------------------------------------------------------------------------
</TABLE>

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

4.      RECENT ACCOUNTING PRONOUNCEMENTS AND ACCOUNTING CHANGES

        RECENT PRONOUNCEMENTS

(a)     On  January  27,  2005,  the  CICA  ("Canadian  Institute  of  Chartered
        Accountants")  issued three new accounting  standards:  Handbook Section
        1530,   "Comprehensive   Income",   Handbook  Section  3855,  "Financial
        Instruments - Recognition and  Measurement",  and Handbook Section 3865,
        "Hedges".  These standards will be effective for years  commencing after
        November 1, 2006. The impact of implementing  these new standards on the
        Company's  consolidated financial statements is not yet determinable and
        is dependent on the outstanding positions and related fair values at the
        time of transition.

        OTHER COMPREHENSIVE INCOME
        As  a  result  of  adopting  these  standards,  a  new  category,  Other
        Comprehensive  Income,  will be added  to  shareholders'  equity  on the
        consolidated  balance  sheets.  Major  components for this category will
        include  unrealized gains and losses on financial  assets  classified as
        available-for-sale, unrealized foreign currency translation amounts, net
        of hedging, arising from self-sustaining foreign operations, and changes
        in the  fair  value  of the  effective  portion  of  cash  flow  hedging
        instruments.

        FINANCIAL INSTRUMENTS - RECOGNITION AND MEASUREMENT.
        Under the new standard,  all financial instruments will be classified as
        one  of  the  following:   held-to-maturity,   loans  and   receivables,
        held-for-trading or available-for-sale. Financial assets and liabilities
        held-for-trading  will be  measured  at fair value with gains and losses
        recognized in net income. Financial assets  held-to-maturity,  loans and
        receivables and financial liabilities other than those held-for-trading,
        will be measured at amortized cost. Available-for-sale  instruments will
        be measured at fair value with unrealized gains and losses recognized in
        other comprehensive income. The standard also permits designation of any
        financial instrument as held-for-trading upon initial recognition.

        HEDGES
        This new standard  specifies the criteria  under which hedge  accounting
        can be applied and how hedge  accounting can be executed for each of the
        permitted hedging  strategies:  fair value hedges,  cash flow hedges and
        hedges  of  a  foreign  currency  exposure  of  a  net  investment  in a
        self-sustaining foreign operation. In a fair value hedging relationship,
        the  carrying  value of the hedged  item is  adjusted by gains or losses
        attributable  to the hedged  risk and  recognized  in net  income.  This
        change in fair value of the hedged item,  to the extent that the hedging
        relationship is effective, is offset by changes in the fair value of the
        derivative.  In a cash flow hedging relationship,  the effective portion
        of the  change  in the fair  value  of the  hedging  derivative  will be
        recognized in other  comprehensive  income. The ineffective portion will
        be   recognized  in  net  income.   The  amounts   recognized  in  other
        comprehensive  income will be  reclassified to net income in the periods
        in which net income is affected by the  variability in the cash flows of
        the  hedged  item.  In  hedging a  foreign  currency  exposure  of a net
        investment in a  self-sustaining  foreign  operation,  foreign  exchange
        gains and losses on the hedging  instruments will be recognized in other
        comprehensive income.


                                       7
<PAGE>

(b)     In June  2005,  the CICA  issued  Handbook  Section  3831  "Non-Monetary
        Transactions" to revise and replace Handbook Section 3830  "Non-Monetary
        Transactions". Section 3831 requires all non-monetary transactions to be
        measured at fair value, subject to certain exceptions. The standard also
        requires  that  commercial  substance  will replace  culmination  of the
        earnings  process as the test for fair value  measurement.  The standard
        defines  commercial  substance as a function of the cash flows  expected
        from the assets.  These revised standards are effective for non-monetary
        transactions  initiated in fiscal periods  beginning on or after January
        1, 2006 and early adoption is permitted for fiscal periods  beginning on
        or after July 1, 2005.

(c)     In October  2005,  the  Emerging  Issues  Committee  of the CICA  issued
        Abstract  No.  157,   "Implicit   Variable   Interests   Under   AcG-15"
        ("EIC-157").  This EIC clarifies  that implicit  variable  interests are
        implied financial interests in an entity that change with changes in the
        fair value of the entity's net assets  exclusive of variable  interests.
        An  implicit  variable  interest  is  similar  to an  explicit  variable
        interest except that it involves absorbing and/or receiving  variability
        indirectly from the entity.  The  identification of an implicit variable
        interest is a matter of judgment that depends on the relevant  facts and
        circumstances. EIC-157 will be effective in the first quarter of 2006.

        ACCOUNTING CHANGES

(i)     In November 2004, the Emerging  Issues  Committee of the CICA issued EIC
        149, "Accounting for Retractable or Mandatorily Redeemable Shares" ("EIC
        149").   EIC  149  clarifies  the  accounting   for  certain   financial
        instruments  with   characteristics  of  both  liabilities  and  equity,
        including mandatorily redeemable non-controlling interests, and requires
        that those  instruments  be  classified  as  liabilities  on the balance
        sheets. Previously,  many of those financial instruments were classified
        as equity.  EIC 149 is effective at the  beginning of the first  interim
        period  beginning  after  November 5, 2004. The impact of EIC 149 on the
        Company's  future  results of  operations  or financial  condition  will
        depend on the terms contained in contracts  signed or contracts  amended
        in the  future.  The  Company  continues  to  disclose  its  mandatorily
        redeemable  preferred  shares  as a  component  of  liabilities  in  its
        consolidated balance sheets, which is consistent with EIC 149.

(ii)    In December 2004, the Emerging  Issues  Committee of the CICA issued EIC
        150, "Determining Whether an Arrangement Contains a Lease", ("EIC 150").
        EIC 150  provides  guidance on how to determine  whether an  arrangement
        contains a lease that is within the scope of CICA Handbook Section 3065,
        "Leases".  The  guidance in EIC 150 is based on whether the  arrangement
        conveys  to the  purchaser  the right to use a  tangible  asset,  and is
        effective  for the Company  for  arrangements  entered  into or modified
        after  January 1, 2005.  The impact of EIC 150 on the  Company's  future
        results of operations  and financial  condition will depend on the terms
        contained in contracts signed or contracts amended in the future.

5.      CONSOLIDATED FINANCIAL STATEMENT DETAILS

        The following consolidated financial statement details are presented for
        each of the nine months ended  September 30, 2005 and 2004 and the three
        months ended September 30, 2005 and 2004 for the consolidated statements
        of  operations  and  consolidated  statement  of  cash  flows  and as of
        September  30, 2005 and December 31, 2004 for the  consolidated  balance
        sheets.

        CONSOLIDATED BALANCE SHEETS

        ACCOUNTS RECEIVABLE AND OTHER ASSETS

<TABLE>
<CAPTION>
        ========================================================================================================
                                                                                SEPTEMBER 30,     December 31,
                                                                                    2005              2004
        --------------------------------------------------------------------------------------------------------
<S>                                                                             <C>               <C>
        Trade receivables                                                       $        3.7      $       2.2
        Taxes recoverable                                                                9.4              7.9
        Deferred costs associated with business and property acquisitions                  -              3.3
        Deferred hedge losses                                                              -              4.7
        Fair value of non-hedge derivatives                                                -              4.1
        Marketable securities (a)                                                          -              0.3
        Prepaid expenses                                                                 4.8              4.0
        Other                                                                           10.2             14.4
        --------------------------------------------------------------------------------------------------------
                                                                                $       28.1      $      40.9
        ========================================================================================================
</TABLE>

        (a)     Quoted  market value:  2005 less than $0.1 million,  2004 - $0.4
                million.


                                       8
<PAGE>

        INVENTORIES

<TABLE>
<CAPTION>
        =======================================================================================================
                                                                              SEPTEMBER 30,     December 31,
                                                                                  2005             2004
        -------------------------------------------------------------------------------------------------------
<S>                                                                                   <C>              <C>
        In-process                                                            $        9.0      $       9.1
        Finished metal                                                                30.8             25.8
        Ore in stockpiles (a)                                                         24.4             24.2
        Ore on leach pads (b)                                                         16.1             15.7
        Materials and supplies                                                        60.3             51.1
        -------------------------------------------------------------------------------------------------------
                                                                                     140.6            125.9
        Long-term portion of ore in stockpiles (a)                                    20.2            (14.9)
        -------------------------------------------------------------------------------------------------------
                                                                              $      120.4      $     111.0
        =======================================================================================================
</TABLE>

        (a)     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. See deferred charges and other long-term assets.

        (b)     Ore on leach pads at  September  30, 2005 and  December 31, 2004
                relate to the  Company's  50% owned Round  Mountain  and Refugio
                mines.  As at September 30, 2005, the weighted  average cost per
                recoverable  ounce of gold on the leach  pads was $233 per ounce
                at Round  Mountain and $151 per ounce at Refugio  (December  31,
                2004 - $200 per ounce,  Round  Mountain).  Based on current mine
                plans, the Company expects to place the last tonne of ore on its
                current  leach pad at Round  Mountain  in 2009 and at Refugio in
                2017.  The  Company  expects  that all  economic  ounces will be
                recovered within  approximately 12 months following the date the
                last tonne of ore is placed on the leach pad.

        PROPERTY, PLANT AND EQUIPMENT - NET

<TABLE>
<CAPTION>
        =======================================================================================================
                                                                              SEPTEMBER 30,     December 31,
                                                                                  2005             2004
        -------------------------------------------------------------------------------------------------------
<S>                                                                           <C>               <C>
        PROPERTY, PLANT AND EQUIPMENT
        Cost - net of writedown
        Producing properties
          Plant and equipment amortized on a straight line basis              $      183.2      $     165.6
          Plant and equipment amortized on units of production basis               1,100.4            983.4
        Development properties                                                           -             39.9
        Exploration properties  (a)                                                    4.4              6.1
        -------------------------------------------------------------------------------------------------------
        MINERAL INTERESTS
        GROSS CARRYING VALUE
        Production stage                                                      $      680.6      $     680.5
        Development properties                                                         5.8             36.6
        Exploration properties                                                        88.3             88.3
        -------------------------------------------------------------------------------------------------------
                                                                              $    2,062.7      $   2,000.4
        -------------------------------------------------------------------------------------------------------
        PROPERTY, PLANT AND EQUIPMENT
        ACCUMULATED DEPRECIATION
        Producing properties
          Plant and equipment amortized on a straight line basis              $      (89.0)     $     (75.7)
          Plant and equipment amortized on units of production basis                (609.9)          (552.8)
        -------------------------------------------------------------------------------------------------------
        MINERAL INTERESTS
        ACCUMULATED DEPRECIATION
        Production stage                                                      $     (172.5)     $    (127.8)
        Development properties                                                           -                -
        Exploration properties                                                           -                -
        -------------------------------------------------------------------------------------------------------
                                                                              $     (871.4)     $    (756.3)
        -------------------------------------------------------------------------------------------------------
        Property, Plant and Equipment - net                                   $    1,191.3      $   1,244.1
        =======================================================================================================
</TABLE>

        (a)     The Norseman  Property in Australia that was held for sale as of
                June 30, 2005, was sold during the three months ended  September
                30, 2005 for $1.7 million.

        As a result of signing a letter of intent to sell the Aquarius property,
        the Company recognized the triggering event and the resulting impairment
        related to the carrying value of mineral interests of $30.1 million.  As
        a  result  of  this  impairment  included  on the  balance  sheet  as at
        September  30, 2005 within  property,  plant and equipment is a carrying
        value for Aquarius of $14.3  million,  which is considered an asset held
        for sale. See Note 13 c) for additional disclosure.


                                       9
<PAGE>

        GOODWILL

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

<TABLE>
<CAPTION>
        ==============================================================================================================
                                                                                            2005
                                                        --------------------------------------------------------------
                                                          Dec 31, 2004    Additions   Impairment (a)   Sept 30, 2005
                                                        --------------------------------------------------------------
<S>                                                       <C>             <C>         <C>              <C>
        OPERATING SEGMENTS
          Fort Knox                                       $          -    $       -   $          -     $           -
          Kubaka                                                     -            -              -                 -
          Round Mountain                                          86.5            -              -              86.5
          La Coipa                                                71.4            -              -              71.4
          Crixas                                                  38.0            -              -              38.0
          Paracatu                                                65.5            -              -              65.5
          Musselwhite                                             31.0            -              -              31.0
          Porcupine Joint Venture                                    -            -              -                 -
          Other operations                                        37.5            -           (6.7)             30.8
        CORPORATE AND OTHER                                          -            -              -                 -
        --------------------------------------------------------------------------------------------------------------
        TOTAL                                             $      329.9    $       -   $       (6.7)    $       323.2
        ==============================================================================================================
</TABLE>

        (a)     The impairment relates to the writedown  resulting from the sale
                of Aquarius subsequent to September 30, 2005. See Note 13 c) for
                further discussion.

        LONG-TERM INVESTMENTS

        During the six months ended June 30, 2005, the Company purchased 511,640
        newly issued shares of Crown  Resources  Corporation  ("Crown") for $1.0
        million  and a  $10.0  million  convertible  debenture  as  part  of the
        acquisition  of  Crown.  See Note 13 a) for  further  discussion  of the
        acquisition.

        During the three months  ended June 30,  2005,  the Company sold 647,500
        shares of Guyana  Goldfields Inc. for $1.3 million,  which resulted in a
        gain on disposal of $0.4 million.

        During the three  months  ended  September  30,  2005,  the Company sold
        2,222,222 shares of White Knight Resources Ltd. for $1.6 million,  which
        resulted in a gain on disposal of $0.2 million.

        DEFERRED CHARGES AND OTHER LONG-TERM ASSETS

        Deferred  charges  and  other  long-term  assets  are  comprised  of the
        following:

<TABLE>
<CAPTION>
        =========================================================================================
                                                                  SEPTEMBER 30,     DECEMBER 31,
                                                                      2005             2004
        -----------------------------------------------------------------------------------------
<S>                                                               <C>               <C>
        Long-term ore in stockpiles (a)                           $       20.2      $      14.9
        Deferred charges, net of amortization                              2.3              2.4
        Long-term receivables                                              7.3              5.3
        Long-term deposits                                                 0.9              2.6
        Crown acquisition costs                                            6.6                -
        Other                                                              2.7              2.4
        -----------------------------------------------------------------------------------------
                                                                  $       40.0      $      27.6
        =========================================================================================
</TABLE>

        (a)     Ore in  stockpiles  represents  stockpiled  ore at the Company's
                Fort Knox mine and its proportionate  share of stockpiled ore at
                Round Mountain and the Porcupine Joint Venture.


                                       10
<PAGE>

        ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

        Accounts payable and accrued liabilities are comprised of the following:

<TABLE>
<CAPTION>
        =========================================================================================
                                                                  SEPTEMBER 30,     DECEMBER 31,
                                                                      2005             2004
        -----------------------------------------------------------------------------------------
<S>                                                               <C>               <C>
        Trade payables                                            $       40.2      $      33.1
        Accrued liabilties                                                46.1             27.4
        Employee related accrued liabilities                               8.6             22.9
        Taxes payable                                                     15.2             18.4
        Other tax related                                                 11.8              9.9
        Accruals related to acquisition                                   10.6             10.6
        Other accruals                                                    10.3             20.9
        -----------------------------------------------------------------------------------------
                                                                  $      142.8      $     143.2
        =========================================================================================
</TABLE>

        CONSOLIDATED STATEMENT OF OPERATIONS

        IMPAIRMENT CHARGES

        During the nine months ended  September 30, 2005,  the Company  recorded
        impairments  associated  with long-term  investments of $0.6 million and
        marketable securities of $0.1 million. There were no such impairments in
        the similar period of 2004.

        OTHER INCOME (EXPENSE) - NET

<TABLE>
<CAPTION>
        ==========================================================================================================
                                                                 THREE MONTHS ENDED          NINE MONTHS ENDED
                                                                    SEPTEMBER 30,              SEPTEMBER 30,
                                                            ------------------------------------------------------
                                                                 2005          2004          2005         2004
        ----------------------------------------------------------------------------------------------------------
<S>                                                            <C>           <C>           <C>          <C>
        Interest income and other                              $    1.8      $    1.6      $     5.3    $    5.3
        Interest expense                                           (2.0)         (0.8)          (5.6)       (1.9)
        Foreign exchange losses                                    (8.5)         (7.6)         (21.4)       (2.6)
        Non-hedge derivative (losses) gains                        (0.8)         (0.1)          (0.7)        3.2
        ----------------------------------------------------------------------------------------------------------
                                                               $   (9.5)     $   (6.9)     $   (22.4)   $    4.0
        ==========================================================================================================
</TABLE>

        CONSOLIDATED STATEMENTS OF CASH FLOWS

        CASH INTEREST AND INCOME TAXES PAID

<TABLE>
<CAPTION>
        ==========================================================================================================
                                                                 THREE MONTHS ENDED          NINE MONTHS ENDED
                                                                    SEPTEMBER 30,              SEPTEMBER 30,
                                                            ------------------------------------------------------
                                                                 2005          2004          2005         2004
        ----------------------------------------------------------------------------------------------------------
<S>                                                            <C>           <C>           <C>          <C>
        Interest                                               $    2.3      $    0.1      $     6.3    $     0.7
        Income taxes                                           $    0.9      $    2.7      $     4.3    $     9.0
        ==========================================================================================================
</TABLE>

6.      FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

        From time to time, 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.

        During  2005,  the  Company  has  elected  to  mark-to-market   all  its
        derivative contracts.


                                       11
<PAGE>

        GOLD

        The outstanding  number of ounces,  average expected realized prices and
        maturities for the gold commodity  derivative  contracts as at September
        30, 2005 are as follows:

<TABLE>
<CAPTION>
        ============================================================================================================================
                                                                                                     PUT OPTIONS
                                            SPOT DEFERRED   AVERAGE    CALL OPTIONS     AVERAGE           BOUGHT        AVERAGE
        EXPECTED YEAR OF DELIVERY           OUNCES HEDGED     PRICE    SOLD (OUNCES)  STRIKE PRICE       (OUNCES)     STRIKE PRICE
        ----------------------------------------------------------------------------------------------------------------------------
<S>                                                   <C>     <C>              <C>          <C>          <C>             <C>
        2005                                     125,000      $ 460         100,000         $   465       37,500         $   250
        2006                                           -      $   -               -         $     -      150,000         $   250
        ----------------------------------------------------------------------------------------------------------------------------
                                                 125,000      $ 460         100,000         $   465      187,500         $   250
        ============================================================================================================================
</TABLE>

        As at  September  30, 2005 the Company had spot  deferred  contracts  to
        deliver  125,000  ounces of gold in the fourth  quarter of 2005 having a
        fair value loss of $1.7 million  based on the spot price of gold of $473
        as at that  date.

        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.   The  mark-to-market   adjustment
        increased  the  liability  on the  Company's  call  options sold by $0.8
        million for the three and nine months ended  September  30,  2005.  This
        unrealized loss was recorded in third quarter earnings.

        FOREIGN CURRENCY

        At  September  30,  2005,  the  Company  had  no  derivative   financial
        instruments outstanding relating to foreign currency.

7.      LONG-TERM DEBT

<TABLE>
<CAPTION>
        ===============================================================================================================
                                                                                                 As at
                                                                               ----------------------------------------
                                                                                    SEPTEMBER 30,       December 31,
                                                                                        2005               2004
        ---------------------------------------------------------------------------------------------------------------
<S>                                                                                 <C>                 <C>
        Corporate revolving credit facility                     Variable            $      140.0        $     105.0
        Kubaka project-financing debt - EBRD loan               Variable                     2.8                2.7
        Fort Knox capital leases                              5.0% - 5.25%                   0.8                2.1
        Refugio capital leases                                5.7% - 6.2%                   13.8               13.1
        ---------------------------------------------------------------------------------------------------------------
                                                                                           157.4              122.9
        Less: current portion                                                               (5.7)              (6.0)
        ---------------------------------------------------------------------------------------------------------------
        Long-term debt                                                              $      151.7        $     116.9
        ===============================================================================================================
</TABLE>

        CORPORATE REVOLVING CREDIT FACILITY

        During the nine months ended  September 30, 2005,  one of the facility's
        lenders  increased  its limit by $15 million.  The Company  subsequently
        drew down on this additional  amount as a LIBOR loan, which was used for
        working  capital  purposes,   bringing  the  total  of  the  LIBOR  loan
        outstanding  under the facility to $140.0  million as at  September  30,
        2005. The facility also provides credit support for letters of credit to
        satisfy  financial  assurance  requirements,  primarily  associated with
        reclamation  related  activities.  As at September 30, 2005,  letters of
        credit totaling  $113.1 million had been issued under this facility,  up
        from $94.9 million at December 31, 2004.

        In April 2005, the  outstanding  limit was increased to $295 million and
        the maturity date extended to April 30, 2008. Upon each of the first two
        anniversaries of the facility, with the lenders consent, the Company may
        extend the maturity of the facility by one year.

8.      COMMON SHARE CAPITAL

        At  September  30,  2005,  the Company  had  345,354,000  common  shares
        outstanding.  If all outstanding options and warrants had been exercised
        and all preferred shares converted a total of 357,401,000  common shares
        would have been outstanding.


                                       12
<PAGE>

        A  summary  of  common  share  transactions  for the nine  months  ended
        September 30, 2005 is as follows:

<TABLE>
<CAPTION>
        =============================================================================================================
                                                                                            NINE MONTHS ENDED
                                                                                           SEPTEMBER 30, 2005
        -------------------------------------------------------------------------------------------------------------
                                                                                      Number of
                                                                                        shares            Amount
        -------------------------------------------------------------------------------------------------------------
                                                                                        (000's)              $
<S>                                                                                     <C>             <C>
        COMMON SHARES
        Balance, at beginning of period                                                 345,066         $ 1,766.4
        Issued (cancelled):
          Under employee share purchase plan                                                173               1.1
          Under stock option and restricted share plan                                      114               0.4
          Expiry of TVX and Echo Bay options                                                  -              (0.2)
        Conversions:
          Kinam preferred shares                                                              1                 -
        -------------------------------------------------------------------------------------------------------------
        Balance, end of period                                                          345,354         $ 1,767.7
        -------------------------------------------------------------------------------------------------------------

        Common share purchase warrants
        Balance, beginning and end of period                                              8,333         $     9.4
        -------------------------------------------------------------------------------------------------------------
        Total common share capital                                                                      $ 1,777.1
        =============================================================================================================
</TABLE>

9.      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
        per common share for the following periods.

<TABLE>
<CAPTION>
        ====================================================================================================================
                                                                            THREE MONTHS ENDED         NINE MONTHS ENDED
                                                                               SEPTEMBER 30,             SEPTEMBER 30,
                                                                         ------------------------- -------------------------
        (NUMBER OF COMMON SHARES IN THOUSANDS)                             2005  (a)       2004      2005  (a)       2004
        --------------------------------------------------------------------------------------------------------------------
<S>                                                                         <C>          <C>          <C>          <C>
        Basic weighted average shares outstanding:                          345,300      346,213      345,194      346,011
        Weighted average shares dilution adjustments:
          Dilutive stock options (b)                                              -           61            -          145
          Restricted shares                                                       -          230            -          230
        --------------------------------------------------------------------------------------------------------------------
        Diluted weighted average shares outstanding                         345,300      346,504      345,194      346,386
        --------------------------------------------------------------------------------------------------------------------

        Weighted average shares dilution adjustments - exclusions: (c)
          Dilutive stock options                                                  -            -            -            -
          Restricted shares                                                       -            -            -            -
          Redeemable preferred shares                                             -        1,058            -        1,058
          Kinam preferred shares                                                  -          332            -          332
        ====================================================================================================================
</TABLE>

        (a)     As a result of the net loss from  continuing  operations for the
                three month period and nine month period  ending  September  30,
                2005,  diluted earnings per share was calculated using the basic
                weighted average shares  outstanding  because to do so 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
                nine months ended  September 30, 2005,  the average share prices
                used were $6.53 and $6.22 per share, respectively. For the three
                months and nine months ended  September  30,  2004,  the average
                share prices used were $5.76 and $6.28 per share, respectively.
        (c)     These adjustments were excluded,  as they were anti-dilutive for
                the three  months and nine months ended  September  30, 2005 and
                2004, respectively.


                                       13
<PAGE>

10.     SEGMENTED INFORMATION

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

<TABLE>
<CAPTION>
        ============================================================================================================================
                                                                                                                          SEGMENT
                                         METAL   COST OF                                                                 EARNINGS
                                         SALES    SALES    ACCRETION   DD&A (a)   EXPLORATION    IMPAIRMENT   OTHER (b)    (LOSS)
        ----------------------------------------------------------------------------------------------------------------------------
<S>                                    <C>       <C>         <C>       <C>        <C>            <C>          <C>         <C>
        For the three months ended
          September 30, 2005:
        OPERATING SEGMENTS
          Fort Knox                    $  34.9   $  21.9   $     0.3   $   8.6    $       0.3     $       -   $    0.1    $    3.7
          Kubaka                          17.3      10.6         0.1       3.0            0.6             -       (0.1)        3.1
          Round Mountain                  47.8      26.8         0.5       9.0            0.7             -          -        10.8
          La Coipa                        12.5      10.8         0.1       3.7            0.2             -          -        (2.3)
          Crixas                           8.9       3.2           -       3.1            0.1             -          -         2.5
          Paracatu                        21.1      12.8         0.2       4.4            2.5             -        0.5         0.7
          Musselwhite                      9.2       7.0           -       3.2            0.3             -        0.1        (1.4)
          Porcupine Joint Venture         17.4      12.4         0.2       2.9            1.0             -          -         0.9
          Other operations                13.8       7.2         1.5       2.9            0.1          36.8        0.6       (35.3)
        CORPORATE AND OTHER (c)           (1.8)      0.4         0.2       0.5            1.5           0.1       12.3       (16.8)
        ----------------------------------------------------------------------------------------------------------------------------
        TOTAL                          $ 181.1   $ 113.1   $     3.1   $  41.3    $       7.3     $    36.9   $   13.5    $  (34.1)
        ============================================================================================================================


        ============================================================================================================================
                                                                                                                          SEGMENT
                                         METAL   COST OF                                                                 EARNINGS
                                         SALES    SALES    ACCRETION   DD&A (a)   EXPLORATION    IMPAIRMENT   OTHER (b)    (LOSS)
        ----------------------------------------------------------------------------------------------------------------------------
        For the three months ended
          September 30, 2004:
        OPERATING SEGMENTS
          Fort Knox                    $  37.2   $  22.4   $     0.3   $   7.8    $       0.2    $        -   $      -    $    6.5
          Kubaka                           9.7       7.7         0.1       1.4              -             -        1.8        (1.3)
          Round Mountain                  47.9      25.9         0.5      14.9            0.3             -        0.1         6.2
          La Coipa                        14.2      11.2         0.1       3.6            0.1             -        0.3        (1.1)
          Crixas                           9.9       3.2         0.1       3.3            0.1             -          -         3.2
          Paracatu                         9.3       5.1         0.1       2.4              -             -          -         1.7
          Musselwhite                      8.0       5.6           -       2.9            0.5             -          -        (1.0)
          Porcupine Joint Venture         19.1      10.8         0.2       5.3            0.7             -        0.2         1.9
          Other operations                23.1      15.5         0.4       3.6            1.0             -        0.5         2.1
        CORPORATE AND OTHER (c)           (3.8)      0.4         0.4       0.3            2.8             -        6.0       (13.7)
        ----------------------------------------------------------------------------------------------------------------------------
        TOTAL                          $ 174.6   $ 107.8   $     2.2   $  45.5    $       5.7    $        -   $    8.9    $    4.5
        ============================================================================================================================


        ============================================================================================================================
                                                                                                                          SEGMENT
                                         METAL   COST OF                                                                 EARNINGS
                                         SALES    SALES    ACCRETION   DD&A (a)   EXPLORATION    IMPAIRMENT   OTHER (b)    (LOSS)
        ----------------------------------------------------------------------------------------------------------------------------
        For the nine months ended
          September 30, 2005:
        OPERATING SEGMENTS
          Fort Knox                    $ 103.0   $  62.5   $     0.9   $  25.6    $       0.5    $        -   $    0.6    $   12.9
          Kubaka                          51.6      36.2         0.3       9.3            1.4             -        0.3         4.1
          Round Mountain                 127.2      73.8         1.4      30.7            1.2             -          -        20.1
          La Coipa                        44.3      34.9         0.3      11.8            0.7             -        0.3        (3.7)
          Crixas                          29.9      10.4         0.1       9.1            0.2             -          -        10.1
          Paracatu                        57.1      36.4         0.6      12.4            4.7             -        0.5         2.5
          Musselwhite                     27.0      20.3         0.1       9.6            1.4             -        0.1        (4.5)
          Porcupine Joint Venture         62.0      39.1         0.7      11.5            2.9             -        0.2         7.6
          Other operations                38.0      23.9         2.6       8.5            0.3          36.8        3.0       (37.1)
        CORPORATE AND OTHER (c)           (4.6)     (0.3)        2.0       1.7            5.3           0.7       32.8       (46.8)
        ----------------------------------------------------------------------------------------------------------------------------
        TOTAL                          $ 535.5   $ 337.2   $     9.0   $ 130.2    $      18.6    $     37.5   $   37.8    $  (34.8)
        ============================================================================================================================
</TABLE>


                                       14
<PAGE>
<TABLE>
<CAPTION>
        ============================================================================================================================
                                                                                                                          SEGMENT
                                         METAL   COST OF                                                                 EARNINGS
                                         SALES    SALES    ACCRETION   DD&A (a)   EXPLORATION    IMPAIRMENT   OTHER (b)    (LOSS)
        ----------------------------------------------------------------------------------------------------------------------------
<S>                                    <C>       <C>       <C>         <C>        <C>            <C>          <C>         <C>
        For the nine months ended
          September 30, 2004:
        OPERATING SEGMENTS
          Fort Knox                    $ 100.2   $  64.2   $     1.0   $   21.4   $       0.3    $        -   $      -    $   13.3
          Kubaka                          38.2      25.4         0.3        5.2           0.1             -        2.2         5.0
          Round Mountain                 121.5      64.5         1.4       37.0           0.5             -          -        18.1
          La Coipa                        44.1      29.7         0.2       12.9           0.2             -        0.4         0.7
          Crixas                          28.1       8.9         0.1        9.5           0.2             -          -         9.4
          Paracatu                        28.4      14.7         0.4        7.1             -             -          -         6.2
          Musselwhite                     24.0      16.2         0.1        9.1           1.6             -          -        (3.0)
          Porcupine Joint Venture         59.4      34.1         0.5       16.4           2.5             -        0.2         5.7
          Other operations                53.8      39.4         1.4        8.3           2.3             -        3.8        (1.4)
        CORPORATE AND OTHER (c)          (10.1)      1.1         1.2        0.3           6.9             -       20.9       (40.5)
        ----------------------------------------------------------------------------------------------------------------------------
        TOTAL                          $ 487.6   $ 298.2   $     6.6   $  127.2   $      14.6    $        -   $   27.5    $   13.5
        ============================================================================================================================
</TABLE>

        (a)     Depreciation,  depletion  and  amortization  is  referred  to as
                "DD&A" in the tables above.
        (b)     Other includes other operating costs, general and administrative
                expenses and (gain) loss on disposal of assets.
        (c)     Includes corporate, shutdown and other non-core operations.

        SEGMENT ASSETS AND CAPITAL EXPENDITURES

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

<TABLE>
<CAPTION>
        ====================================================================================================================
                                                       SEGMENT ASSETS                          CAPITAL EXPENDITURE
                                                 --------------------------- -----------------------------------------------
                                                           AS AT               THREE MONTHS ENDED        NINE MONTHS ENDED
                                                 ---------------------------      SEPTEMBER 30,             SEPTEMBER 30,
                                                    SEPT 30,       DEC 31,   -----------------------------------------------
                                                      2005          2004       2005          2004        2005        2004
        --------------------------------------------------------------------------------------------------------------------
<S>                                                <C>           <C>            <C>         <C>        <C>             <C>
        OPERATING SEGMENTS
          Fort Knox                                $    303.8    $    284.2     11.0        $ 18.8     $  33.3         38.2
          Kubaka                                         46.5          50.5        -           3.7         0.2         13.7
          Round Mountain                                178.7         205.8      0.9           3.2         3.6          6.7
          La Coipa                                      147.5         162.3      0.6           0.2         2.8          0.6
          Crixas                                         99.1         102.9      1.9           0.7         4.8          2.7
          Paracatu                                      540.3         539.1      4.5           1.2        13.8          3.1
          Musselwhite                                   120.8         127.0      1.3           1.0         3.2          2.6
          Porcupine Joint Venture                        95.9          89.3      5.5           7.5        18.3         14.6
          Other operations                              127.7         196.4      5.8          10.3        27.3         24.3
        CORPORATE AND OTHER (A)                         161.3          76.7      1.3           0.2         2.2          0.5
        --------------------------------------------------------------------------------------------------------------------
        TOTAL                                      $  1,821.6    $  1,834.2   $ 32.8        $ 46.8     $ 109.5      $ 107.0
        ====================================================================================================================
</TABLE>

        (a)     Includes Corporate and other non-core operations.  Also includes
                $49.5  million  and $14.4  million in cash and cash  equivalents
                held  at the  corporate  level  as at  September  30,  2005  and
                December 31, 2004, respectively.


                                       15
<PAGE>

        METAL SALES AND PROPERTY, PLANT & EQUIPMENT BY GEOGRAPHICAL REGIONS

<TABLE>
<CAPTION>
        ========================================================================================================================
                                                              METAL SALES                         PROPERTY, PLANT & EQUIPMENT
                                        -----------------------------------------------------  ---------------------------------
                                                                       NINE MONTHS ENDED                     AS AT
                                               NINE MONTHS ENDED          SEPTEMBER 30,        ---------------------------------
                                                 SEPTEMBER 30,      -------------------------   SEPTEMBER 30,     DECEMBER 31,
                                              2005         2004         2005         2004           2005             2004
        ------------------------------------------------------------------------------------------------------------------------
<S>                                         <C>          <C>          <C>           <C>          <C>               <C>
        GEOGRAPHIC INFORMATION:
        United States                       $  77.2      $  95.6      $ 253.6       $ 247.9      $   324.1         $   351.4
        Canada                                 36.5         34.8         94.1          98.4          189.3             217.8
        Russia                                 18.3          9.7         51.6          38.2            0.2               9.0
        Chile                                  18.9         15.3         49.2          46.6          135.7             117.1
        Brazil                                 28.9         19.2         87.0          56.5          542.0             547.1
        Other                                     -            -            -             -              -               1.7
        ------------------------------------------------------------------------------------------------------------------------
        Total                               $ 179.8      $ 174.6      $ 535.5       $ 487.6      $ 1,191.3         $ 1,244.1
        ========================================================================================================================
</TABLE>

        The  Company  is not  economically  dependent  on a  limited  number  of
        customers  for the sale of its product  because gold can be sold through
        numerous commodity market traders worldwide.  For the three months ended
        September 30, 2005 sales to five customers totaled $32.0 million,  $28.9
        million, $27.1 million, $22.6 million, and $20.1 million,  respectively.
        For the three months ended  September  30, 2004 sales to five  customers
        totaled $34.5 million,  $34.2 million,  $34.0 million, $29.3 million and
        $25.1 million, respectively.

        For the nine months  ended  September  30, 2005 sales to four  customers
        totaled $169.0 million,  $83.6 million, $80.0 million and $79.6 million.
        For the nine months  ended  September  30, 2004 sales to four  customers
        totaled $144.4 million,  $85.7 million, $81.9 million and $63.4 million,
        respectively.

11.     RELATED PARTY TRANSACTION

        On September 2, 2005, the Company agreed to sell 23.33% of the shares of
        KF Ltd. to Balloch Resources Ltd.,  ("Balloch") and retain 11.67% of the
        initial interest.  The payment of the consideration for the sale of such
        shares in the amount of CDN $5.5 million is subject to the  satisfaction
        of various conditions, including regulatory approvals and the completion
        of a private  placement  by  Balloch  of at least CDN 10.0 million.  Art
        Ditto,  a former  director  and  officer  of the  Company,  owns a 17.4%
        interest in the outstanding common shares of Balloch and upon closing of
        the private placement which was completed on October 19, 2005, Mr. Ditto
        will be  appointed  as the  President  and Chief  Executive  Officer  of
        Balloch.  Mr.  Robert  Buchan,  a former  officer  and  director  of the
        Company, was the non-executive  Chairman of Balloch. No gain on disposal
        has been recorded  during the three months ended  September 30, 2005 due
        to the  conditions  of the sale  condition  not being met. The long-term
        investments  in the  consolidated  balance  sheet include less than $0.1
        million, as the carrying value of this investment at September 30, 2005.
        On November 30, 2005, Balloch was renamed Katanga Mining Ltd.

12.     COMMITMENTS AND CONTINGENCIES

        GENERAL

        The Company follows Section 3290 of the CICA handbook in determining its
        accruals   and   disclosures   with   respect  to  loss   contingencies.
        Accordingly,  estimated losses from loss  contingencies are accrued by a
        charge to income when information available prior to the issuance of the
        financial  statements  indicates  that it is likely that a future  event
        will confirm that an asset has been impaired or a liability  incurred at
        the date of the financial  statements  and the amount of the loss can be
        reasonably estimated.

        LEGAL MATTERS

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

        Class action

        The Company was named as a defendant in a Class Action  Complaint  filed
        on or about April 26, 2002 (the "Complaint"),  entitled Robert A. Brown,
        et  al.   v.   Kinross   Gold   U.S.A.,   Inc.,   et   al.,   Case   No.
        CV-S-02-0605-PMP-RJJ,  in the  United  States  District  Court  for  the
        District of Nevada.  The Complaint named as defendants the Company,  its
        subsidiaries,  Kinross Gold U.S.A., Inc. and Kinam Gold, Inc. ("Kinam"),
        and Robert M. Buchan,  former  President and C.E.O. of the Company.  The
        Complaint  was  filed  on  behalf  of  one  potential  class  and  three
        subclasses,  i.e.,  those  who  tendered  their  Kinam  $3.75  Series  B
        Preferred  Stock (the "Kinam  Preferred")  into the tender offer for the
        Kinam  Preferred  made by the  Kinross  Gold  U.S.A.,  those who did not
        tender their Kinam  Preferred  but later sold it directly to the Company
        or any of its controlled  entities after closure of the tender offer and
        delisting of the Kinam  Preferred,  and those who continue to hold Kinam
        Preferred.  The  Complaint  alleged,  among other  things,  that amounts
        historically   advanced   to  Kinam   should  be   treated   as  capital
        contributions  rather than loans,  that the purchase of Kinam  Preferred
        from  certain  institutional   investors  in  July  2001  constituted  a
        constructive   redemption  of  the  Kinam  Preferred,  an  impermissible
        amendment  to the  conversion  rights  of the  Kinam  Preferred,  or 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,  and that the amount offered in the tender offer
        of $16.00 per share was not a fair valuation of the Kinam Preferred. The
        Complaint  alleged breach of contract based on the governing  provisions
        of the Kinam Preferred;  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;  federal
        securities  fraud  in  violation  of  Section  10(b)  and  14(c)  of the
        Securities  Exchange  Act of 1934,  as  amended,  and  Rules  10b-5  and
        14c-6(a) thereunder;  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 named the same parties as defendants.  This action has been
        consolidated  into the Brown case,  and the Brown  plaintiffs  have been
        designated as lead plaintiffs. Among other remedies, the plaintiffs seek
        damages ranging from $9.80 per share, plus accrued dividends,  to $39.25
        per share of Kinam  Preferred  or, in the  alternative,  the issuance of
        26.875 to 80.625  shares of the  Company for each Kinam  Preferred.  The
        Company  brought a motion for judgment on the pleadings  with respect to
        the federal  securities  fraud claims.  On September 29, 2003, the Court
        ruled  that  plaintiffs  had  failed to  adequately  state  any  federal
        securities  fraud claim,  but allowed the  Plaintiffs an  opportunity to
        file an amended complaint.  In response, the plaintiffs filed an Amended
        Class Action Complaint (the "Amended Complaint"),  and the Company again
        moved for  judgment on the  pleadings  on the federal  securities  fraud
        claims.  On  November  2, 2004,  the Court  granted  the second  motion,
        dismissing with prejudice Counts V, VI and VII of the Amended Complaint.
        Subsequently,  the Company  moved for judgment on the pleadings on Count
        III (the Best Price Rule) and Count IV (the  Nevada Rico  Claims) of the
        Amended  Complaint.  The Plaintiffs opposed the motion and filed a cross
        motion for summary  judgment on Count III (the Best Price Rule).  On May
        27, 2005,  the Court granted the Company's  motion and dismissed  Counts
        III and IV of the Amended Complaint. On June 14, 2005, the Court granted
        plaintiffs'  unopposed  motion for  certification of the class and three
        subclasses. 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).

        THE HELLENIC GOLD PROPERTIES LITIGATION

        Pursuant to an October 14, 1998 judgment of the Ontario  Court  (General
        Division),  Kinross  had been  holding  a 12%  carried  interest  in the
        Hellenic Gold  Properties as  constructive  trustee for the Alpha Group.
        The Alpha Group  commenced an action for damages against TVX and Kinross
        alleging  among other  things,  a breach of trust  arising from Kinross'
        decision to return the Hellenic Gold Properties to the Greek  Government
        and place TVX Hellas into bankruptcy.  In November 2005, Kinross entered
        into a  settlement  agreement  with the Alpha  Group  pursuant  to which
        Kinross paid the Alpha Group $8.0  million  inclusive of legal costs and
        the  parties  exchanged  mutual  releases  which  brings all  litigation
        between  Kinross  and the  Alpha  Group  to an end  (See  Note 13 b) for
        discussion on subsequent events).


                                       16
<PAGE>

        1235866  Ontario Inc.  ("1235866"),  the successor to Curragh  Resources
        Inc.  commenced  an  action  against  the  Alpha  Group  and TVX in 1998
        relating  to the  Hellenic  Gold  Properties.  The action  alleged  that
        members of Alpha  Group had used  confidential  Curragh  information  in
        their  pursuit of the Hellenic  Gold  Properties  and that Alpha and TVX
        held their respective interest in these properties in trust for 1235866.

        On July 28, 1999,  TVX entered into an  agreement  with 1235866  whereby
        1235866 agreed to limit any claim against TVX and diligently  pursue its
        claim against the Alpha Group.  In the event that 1235866 was successful
        in its actions  against the Alpha Group,  it would become  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  mines to the date of the  exercise of the right to acquire the
        participating interest.

        As  a  result  of  Kinross'  decision  to  return  the  Hellenic  Mining
        Properties to the Greek Government, place TVX Hellas into bankruptcy and
        settle with the Alpha Group;  1235866 has  threatened an action  against
        Kinross  for  breach of trust and  breach of the  agreement.  To date no
        pleadings have been  exchanged  with respect to the  threatened  action.
        Kinross believes that it has a good defence to this threatened action.

        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  Manhattan  mines
        ("Royalty  Lawsuit.")  The Manhattan mine is no longer in production and
        the  McCoy/Cove  mine  was  sold  in  January  2003.  , The  assets  and
        liabilities of the Subsidiaries are included under the heading Corporate
        and other in the  segmented  information  (see Note 10). The first trial
        was conducted in the Eighth Judicial  District Court ("District  Court")
        of Nevada April 1997,  with Summa  claiming  more than $13.0  million in
        unpaid royalties and accrued interest.  In September 1997,  judgment was
        entered on behalf of the Subsidiaries and the Subsidiaries  were awarded
        approximately  $300,000 in attorney's fees and litigation  costs.  Summa
        appealed  this  judgment to the Nevada  Supreme Court and in April 2002,
        the Supreme Court,  sitting en banc,  reversed the Judgment of the trial
        court  and  returned  the  action  to the  District  Court  for  further
        proceedings consistent with its appellate opinion.

        In  September  2004,  the  District  Court  ordered  that a new trial be
        conducted in February  2005.  In the new trial,  Summa updated its claim
        for unpaid royalties and accrued  interest to the approximate  amount of
        $25.0 million.  In May 2005, judgment was again entered in favour of the
        Subsidiaries,  with Summa receiving nothing by way of its complaint. The
        Subsidiaries'  Motions for Litigation Costs and Attorney's Fees for both
        trial proceedings were granted, resulting in a judgment against Summa in
        the approximate amount of $700,000. Summa has filed its notice of appeal
        in July 2005. The appellate schedule has not been set yet.

        In March, 2004, Summa's successor in interest,  Howard Hughes Properties
        ("Hughes"),  filed an action in District  Court against Echo Bay and its
        Subsidiaries  (collectively,  ("Echo Bay Entities"),  as well as Newmont
        Mining  Corporation  ("Newmont")  more than  thirty  current  and former
        directors of the Echo Bay Entities,  Kinross and Newmont  ("Director and
        Officer   Defendants")   and   fifty   Doe   defendants   (collectively,
        "Defendants".)   The  lawsuit   alleges  claims  based  upon  a  general
        allegation of a scheme or artifice to defraud,  in which Defendants,  at
        various  indeterminate  times and places,  diverted and  distributed the
        assets of Echo Bay Entities (to render the Echo Bay Entities  insolvent)
        to each  other,  so Hughes  would be unable to collect  any  judgment it
        might obtain  against the Echo Bay  Defendants  (Echo Bay Management and
        Echo Bay  Exploration) in the Royalty Lawsuit.  Immediately  after being
        served,  the Echo Bay Entities  filed a Demand for Change of Venue as of
        Right and  simultaneously  moved for a Change of Venue. In May 2004, the
        District Court denied the motion without  explanation,  although,  as of
        that date,  none of the  defendants  that had appeared  resided in Clark
        County.  The Echo Bay Entities  immediately filed their Notice of Appeal
        from this venue  ruling.  The Echo Bay Entities  also filed a Demand for
        Stay  of the  District  Court  proceedings  pending  resolution  of that
        appeal.  The District Court granted that motion in part and denied it in
        part, staying all claims in Respondent's  Complaint except for the claim
        asserting  violation  of the Nevada  Uniform  Fraudulent  Transfers  Act
        ("NUFTA").

        In  September  2004,  Hughes  filed  a  First  Amended  Complaint.   All
        Defendants  filed a series of motions  pursuant  to Nevada Rule of Civil
        Procedure 12 to the remaining NUFTA claim, including a Motion to Dismiss
        for  Lack  of  Personal  Jurisdiction,  a  Motion  for  Judgment  on the
        Pleadings  and a Motion to Dismiss as a sanction  for  failure to comply
        with the District  Court's Order to Amend. In January 2005, the District
        Court  entered an Order  granting  all motions  except for the Motion of
        Judgment on the Pleadings.

        On June 10, 2005,  the Echo Bay Entities and Kinross  filed a Motion for
        Judgment on the  Pleadings and to Dismiss,  based on res judicata,  as a
        final judgment was entered against  Respondents in the Royalty  Lawsuit.
        In response, Respondent filed a Motion to Stay All Proceedings and later
        filed an  Opposition,  arguing that the judgment  entered in the Royalty
        Lawsuit is not a final  judgment,  and that until the  judgment  becomes
        final (by affirmation  from this Court or otherwise),  the NUFTA lawsuit
        should be stayed.  The Echo Bay Entities and Kinross  opposed the motion
        to stay.

        All of the pending  motions  were heard on July 5, 2005 by the  District
        Court. The District Court denied  Appellants' Motion for Judgment on the
        Pleadings and to Dismiss. However, the District Court did agree with the
        Echo Bay  Defendants  that all of Hughes'  common law claims (Counts 1-2
        and 4-8) were not ripe for adjudication and dismissed those claims.  The
        District Court  declined to dismiss the NUFTA claim and instead  entered
        an Order  staying  that the claim  pending  the  outcome of the  Royalty
        Lawsuit appeal.

        After this extensive motion practice,  all claims from Hughes' Complaint
        have been dismissed, except for the NUFTA claim, which is stayed pending
        the outcome of the appeal on the Royalty  Lawsuit.  The only  defendants
        remaining are the Echo Bay Entities, Kinross, Newmont Mining Corporation
        and five of the individual defendants (who did not join in the motion to
        dismiss for lack of personal  jurisdiction.)  Hughes' motion to stay the
        Venue appeal remains pending.

        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 September 30,
        2005 the  Company  had the  following  disputes  and has not accrued any
        additional tax liabilities in relation to the disputes listed below:

        BRAZIL

        In  September  2005,  Mineracao  Serra  Grande,  S.A.  ("MSG")  received
        assessments  relating  to  payments  of  sales  taxes on  exported  gold
        deliveries  from tax  inspectors  for the State of Goias.  The Company's
        share of the assessments is approximately $29.0 million. The counsel for
        MSG believes the suit is in  violation of Federal  legislation  on sales
        taxes  and that  there is a remote  chance of  success  for the State of
        Goias. The assessment has been appealed.  This  reassessment  relates to
        the Crixas operating segment.

13.     SUBSEQUENT EVENTS

a)      AGREEMENT TO ACQUIRE CROWN RESOURCES CORPORATION
        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 $10.0  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.

        As a result of the restatement discussed in Note 3, the Company plans to
        engage in further  discussions  with Crown  Resources to  determine  the
        future process for this transaction.

b)      SETTLEMENT OF LITIGATION
        On November 4, 2005, the Company settled the litigation  associated with
        the Alpha group regarding the Hellenic mines for $8.0 million.  The cost
        of this settlement was included in the accrual for litigation in 2004.


                                       17
<PAGE>

c)      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 proceeds which will be
        ultimately valued on closing were estimated to be $14.3 million.  During
        the three  months ended  September  30, 2005 the Company has recorded an
        impairment  charge  related to  carrying  value of  property,  plant and
        equipment and goodwill of the Aquarius project for $36.8 million.


                                       18
</TEXT>
</DOCUMENT>
