-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 HMttf1Afc/9IR6Fs8A62/XpxhhmjVmid+WsJibSKdGSPX61zM2V4B+nPCGNkxXip
 RlkJyjVlda1CbzujUEdiiA==

<SEC-DOCUMENT>0001188112-06-000410.txt : 20060217
<SEC-HEADER>0001188112-06-000410.hdr.sgml : 20060217
<ACCEPTANCE-DATETIME>20060216184118
ACCESSION NUMBER:		0001188112-06-000410
CONFORMED SUBMISSION TYPE:	40-F
PUBLIC DOCUMENT COUNT:		9
CONFORMED PERIOD OF REPORT:	20041231
FILED AS OF DATE:		20060217
DATE AS OF CHANGE:		20060216

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KINROSS GOLD CORP
		CENTRAL INDEX KEY:			0000701818
		STANDARD INDUSTRIAL CLASSIFICATION:	GOLD & SILVER ORES [1040]
		IRS NUMBER:				650430083
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		40-F
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13382
		FILM NUMBER:		06626769

	BUSINESS ADDRESS:	
		STREET 1:		185 SOUTH STATE STREET
		STREET 2:		STE 400
		CITY:			SALT LAKE CITY
		STATE:			UT
		ZIP:			84111
		BUSINESS PHONE:		8013639152

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PLEXUS RESOURCES CORP
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>40-F
<SEQUENCE>1
<FILENAME>t40f-8988.txt
<DESCRIPTION>40-F
<TEXT>
<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                    FORM 40-F
[Check one]

[  ]   REGISTRATION STATEMENT PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE
       ACT OF 1934
                                       OR

[X]    ANNUAL REPORT PURSUANT TO SECTION 13(A) OR 15(D) OF THE SECURITIES
       EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2004       Commission File Number 0-10321
                          -----------------                              -------

                            KINROSS GOLD CORPORATION
                            ------------------------
             (Exact name of Registrant as specified in its charter)

                                       N/A
                                       ---
         (Translation of Registrant's name into English (if applicable))

                           PROVINCE OF ONTARIO, CANADA
                           ---------------------------
        (Province or other jurisdiction of incorporation or organization)

                                      1041
                                      ----
    (Primary Standard Industrial Classification Code Number (if applicable))

                                    650430083
                                    ---------
             (I.R.S. Employer Identification Number (if applicable))

        52ND FLOOR, SCOTIA PLAZA, 40 KING STREET WEST, TORONTO, ONTARIO,
        ----------------------------------------------------------------
                         CANADA M5H 3Y2 (416) 365-5123
                         -----------------------------
   (Address and telephone number of Registrant's principal executive offices)

             SCOTT W. LOVELESS, PARR WADDOUPS BROWN GEE & LOVELESS,
             ------------------------------------------------------
       185 SOUTH STATE STREET, SUITE 1300, SALT LAKE CITY, UTAH 84111-1537
       -------------------------------------------------------------------
                                 (801) 532-7840
                                 --------------
 (Name, address (including zip code) and telephone number (including area code)
                   of agent for service in the United States)

Securities registered or to be registered pursuant to Section 12(b) of the Act.

   Title of each class                 Name of each exchange on which registered

   COMMON SHARES, NO PAR VALUE                  NEW YORK STOCK EXCHANGE
   ---------------------------                  -----------------------
                                                TORONTO STOCK EXCHANGE
                                                ----------------------

Securities registered or to be registered pursuant to Section 12(g) of the Act.

                                      NONE
                                      ----
                                (Title of Class)

Securities for which there is a reporting obligation pursuant to Section 15(d)
of the Act.

                           COMMON SHARES, NO PAR VALUE
                           ---------------------------
                                (Title of Class)

For annual reports, indicate by check mark the information filed with this Form:
        [X] ANNUAL INFORMATION FORM     [X] AUDITED ANNUAL FINANCIAL STATEMENTS

        Indicate the number of outstanding shares of each of the issuer's
classes of capital or common stock as of the close of the period covered by the
annual report.

     AS OF DECEMBER 31, 2004, THERE WERE 345,066,324 COMMON SHARES, 311,933
            PREFERRED SHARES AND WARRANTS TO ACQUIRE UP TO 8,333,333
                           COMMON SHARES OUTSTANDING.

        Indicate by check mark whether the Registrant by filing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934
(the "Exchange Act"). If "Yes" is marked, indicate the filing number assigned to
the Registrant in connection with such Rule.

                           YES            NO  X
                              ---            ---

        Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Exchange Act during the
preceding 12 months (or for such shorter period that the Registrant was required
to file such reports) and (2) has been subject to such filing requirements for
the past 90 days.

                          YES  X          NO
                              ---            ---

<PAGE>

           NOTE FOR U.S. READERS ON CANADA/U.S. REPORTING DIFFERENCES

        Pursuant to the requirements of Form 40-F, Kinross' Annual Information
Form dated February 10, 2006 and Management's Discussion and Analysis of
Financial Condition and Results of Operation, which includes the audited
consolidated financial statements and notes thereto as of December 31, 2004 and
2003 and for the three years ended December 31, 2004, are hereby filed under
cover of this form. See Note 22 to the audited consolidated financial statements
for a reconciliation of the financial statements to U.S. GAAP.

        Readers should note that in the United States, reporting standards for
auditors require the addition of an explanatory paragraph (following the opinion
paragraph) when there are changes in accounting principles that have a material
effect on the comparability of the financial statements, such as the changes
described in Note 5 to Kinross' consolidated financial statements. The report of
Deloitte & Touche LLP to the shareholders dated November 18, 2005 except as to
Notes 2 and 25(f) which are as of February 8, 2006 is expressed in accordance
with Canadian reporting standards, which do not require a reference to such
changes in accounting principles in the auditors' report when the changes are
properly accounted for and adequately disclosed in the financial statements.

                             CONTROLS AND PROCEDURES

        As required by Rule 13a-15(b) under the Exchange Act, we have conducted
an evaluation, under the supervision and with the participation of our
management, including the Chief Executive Officer and the Chief Financial
Officer, of the effectiveness of the design and operation of our disclosure
controls and procedures as of December 31, 2004, the end of the period covered
by this annual report on Form 40-F. Disclosure controls and procedures are to be
designed to reasonably assure that material information we must disclose in our
reports filed or submitted under the Securities Exchange Act of 1934, such as
this annual report on Form 40-F, is (i) recorded, processed, summarized and
reported on a timely basis and (ii) accumulated and communicated to our
management, including the Chief Executive Officer and Chief Financial Officer,
as appropriate, to allow timely decisions regarding disclosure. This assessment
has taken into account the restatement of our financial statements for the
fiscal year ended December 31, 2004. In addition, we have assessed the impact of
the restatement of our financial statements for the fiscal year ended December
31, 2003 on our disclosure controls and procedures as of December 31, 2003.

        As a result of those evaluations, our Chief Executive Officer and Chief
Financial Officer have concluded that our disclosure controls and procedures
were not effective as of both December 31, 2004 and December 31, 2003, due to a
material weakness in our disclosure controls and procedures, which is described
below.

        In connection with our proposed acquisition of Crown Resources
Corporation, we filed a registration statement with the U.S. Securities and
Exchange Commission. During the course of the review of the registration
statement, questions were raised as to whether the acquisition of TVX and Echo
Bay had been reflected in our consolidated financial statements in accordance
with the requirements of U.S. generally accepted accounting principles.
Subsequent to discussions with and comments from regulatory agencies and our
further review of applicable accounting guidance, we concluded that a
restatement of our consolidated financial statements for the years ended
December 31, 2003 and the interim periods for both 2003 and 2004 was required.
During the preparation of our interim financial statements for 2005 we
discovered an error in our restated financial statements for 2003 and 2004 filed
on November 30, 2005 related to the impact of foreign currency exchange rates on
future tax liabilities resulting from the acquisition of TVX Gold and Echo Bay
in January 2003. We have concluded that, as of December 31, 2003 and 2004, we
had inadequate controls over the accounting for acquisitions,

<PAGE>

including the impact of foreign currency exchange rates on future tax
liabilities resulting from acquisitions, particularly because the controls did
not require, in appropriate circumstances, the services of independent and
specialized valuation, financial and accounting expertise in connection with the
allocation of the purchase price or the assessment of the value of goodwill.

        While management is not currently required to report on its assessment
of the effectiveness of our internal controls over financial reporting
(Sarbanes-Oxley Section 404) and we have not completed our comprehensive review
of such controls, we nevertheless have discovered significant deficiencies in
other non-related areas. These deficiencies where found in the following areas:

   o    Our ability to consistently record and reconcile information in a timely
        manner
   o    Inconsistent inventory tracking and procedures at different operating
        locations
   o    Inadequate segregation of duties in particular areas
   o    Adequacy of staffing in certain areas and in the training and experience
        of personnel
   o    Inadequate documentation of accounting policies and procedures
   o    Inadequate processes and procedures in our financial statement review
        procedures
   o    Deficiencies in certain areas of our information technology systems

SIGNIFICANT CHANGES IN INTERNAL CONTROLS

        Subsequent to December 31, 2004, management has taken steps towards
addressing the material weakness in disclosure controls and procedures and
significant deficiencies in internal control over financial reporting that are
identified above.

        Specifically, with respect to the controls relating to the allocation of
the purchase price in acquisitions and the evaluation of the value of acquired
assets, the Company now requires that an independent specialized third party
advisor review, such as in the form of an independent valuation report and
related accounting expertise, be obtained in connection with any complex and
material acquisition to ensure that management's estimates and assumptions are
based on the best information available. Such an independent valuation was
required of the assets acquired in the TVX and Echo Bay transactions in
connection with the restatement of the financial statements.

        With respect to the other deficiencies described above, management has
taken various steps, including the establishment of an internal audit function
in 2004, retaining new accounting and auditing employees in both 2004 and 2005,
instituting a plan to update our accounting policies and procedures in 2005 and
beginning the process to upgrade our existing information systems in 2005.

        Other than as discussed above, there were no significant changes to our
system of internal control over financial reporting or in other areas during the
year ended December 31, 2004 or 2003 or since that time that could significantly
affect our internal control over financial reporting.

                                 AUDIT COMMITTEE

        Kinross has an audit committee, comprised of three individuals, John A.
Brough, chairman, John M.H. Huxley and Terence Reid. Each of the members of the
audit committee is independent as that term is defined in the listing standards
of the New York Stock Exchange. The board of directors has determined that Mr.
Brough is the audit committee financial expert. The Securities and Exchange
Commission has indicated that the designation of a person as an audit committee
financial expert does not make such person an "expert" for any purpose, impose
any duties, obligations or liabilities on such person

<PAGE>

that are greater than those imposed on members of the audit committee and board
of directors who do not carry this designation or affect the duties, obligations
or liability of any other member of the audit committee or board of directors.

                                 CODE OF ETHICS

        Kinross has a Code of Business Conduct and Ethics that applies to all
directors, officers and employees. The Code of Business Conduct and Ethics may
be viewed at the Company's website at WWW.KINROSS.COM under Corporate -
Governance. The Company has not granted any waivers under its Code of Business
Conduct and Ethics.

                     PRINCIPAL ACCOUNTANT FEES AND SERVICES

        The Company paid the following fees to Deloitte & Touche LLP during the
last two fiscal years:

<TABLE>
<CAPTION>
- ------------------------------ ------------------------------ ------------------------------
                                            2004                           2003
- ------------------------------ ------------------------------ ------------------------------
<S>                            <C>                            <C>
Audit Fees                     CDN $2,918,705                 CDN $1,150,000
- ------------------------------ ------------------------------ ------------------------------
Audit-Related Fees             CDN $1,410,605                 CDN $1,533,321
- ------------------------------ ------------------------------ ------------------------------
Tax Fees                       CDN $1,017,843                 CDN $592,541
- ------------------------------ ------------------------------ ------------------------------
All Other Fees                 CDN ---                        ---
- ------------------------------ ------------------------------ ------------------------------
</TABLE>

        Audit-related fees include fees related to the preparation of
prospectuses and registration statements and consultations regarding financial
accounting and reporting standards. Tax fees were for tax compliance and
advisory services. "All Other Fees" includes amounts for products and services
other than those set forth under the separate headings above.

        The audit committee is required to approve all services provided by the
Company's principal auditor. All audit services, audit related services, tax
services, and other services provided for the year ended December 31, 2004 were
pre-approved by the audit committee which concluded that the provision of such
services by Deloitte & Touche LLP was compatible with the maintenance of that
firm's independence in the conduct of its auditing functions.

                         OFF-BALANCE SHEET ARRANGEMENTS

        The off-balance sheet arrangements of the Company are disclosed in
Kinross' Management's Discussion and Analysis of Financial Condition and Results
of Operations - Risk Analysis -Disclosures About Market Risks and Note 9,
"Financial Instruments", and Note 24 "Commitments and Contingencies" to Kinross'
audited consolidated financial statements for the year ended December 31, 2004
filed as an exhibit to this report on 40-F and incorporated herein by this
reference.

                             CONTRACTUAL OBLIGATIONS

        The contractual obligations of the Company are disclosed in Kinross'
Management's Discussion and Analysis of Financial Condition and Results of
Operations - Liquidity and Capital Resources - Liquidity Outlook - Contractual
obligations and commitments," filed as an exhibit to this 40-F and incorporated
herein by this reference.

<PAGE>

                   SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS

        This report on 40-F contains "forward-looking statements."
Forward-looking statement include, but are not limited to, statements with
respect to the future price of gold and silver, the estimation of mineral
reserves and resources and other mineralized ore, the realization of mineral
reserve and resource estimates, the timing and amount of estimated future
production, costs of production, expected capital expenditures, costs and timing
of the development of new deposits, success of exploration activities,
permitting time lines, currency fluctuations, requirements for additional
capital, government regulation of mining operations, environmental risks,
unanticipated reclamation expenses, title disputes or claims and limitations on
insurance coverage. In certain cases, forward-looking statements can be
identified by the use of words such as "plans," "expects," or "does not expect,"
"is expected," "budget," "scheduled," "estimates," "forecasts," "intends," "
anticipates," or "does not anticipate," "or believes," or variations of such
words and phrases or statements that certain actions, events or results "may,"
"could," "would," "might," or "will be taken," "occur," or "be achieved."
Forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements of
Kinross to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements. In addition
to the factors Kinross currently believes to be material, which are identified
in the Annual Information Form under the caption "Risk Factors" filed as an
exhibit to this report on 40-F and incorporated herein by this reference, other
factors not currently viewed as material could cause actual results to differ
materially from those described in the forward-looking statements. In addition,
known or unknown risks could have a greater or different effect than currently
expected which could cause actions, events or results not to be accurate, as
actual results and future events could differ materially from those anticipated
in such statements. Accordingly, readers should not place undue reliance on
forward-looking statements which speak only as the date of this 40-F. Kinross
does not undertake any obligation to update or revise these forward-looking
statements.

                                   UNDERTAKING

        Registrant undertakes to make available, in person or by telephone,
representatives to respond to inquiries made by the Commission staff, and to
furnish promptly, when requested to do so by the Commission staff, information
relating to: the securities registered pursuant to Form 40-F; the securities in
relation to which the obligation to file an annual report on Form 40-F arises;
or transactions in said securities.

<PAGE>

                                   SIGNATURES

        Pursuant to the requirements of the Exchange Act, the Registrant
certifies that it meets all of the requirements for filing on Form 40-F and has
duly caused this annual report to be signed on its behalf by the undersigned,
thereto duly authorized.

                                             KINROSS GOLD CORPORATION


February 16, 2006                            By /S/ Lars-Eric Johansson
                                                -----------------------
                                                Lars-Eric Johansson
                                                Executive Vice President and
                                                Chief Financial Officer

<PAGE>

                                  EXHIBIT INDEX

 Exhibit                                Description
- ----------    ------------------------------------------------------------------

99.1          Annual Information Form for Kinross Gold Corporation dated
              February 10, 2006.

99.2          Kinross Gold Corporation Management's Discussion and Analysis,
              including the audited consolidated financial statements for the
              three years ended December 31, 2004

99.3          Consent of Deloitte & Touche LLP, independent registered
              accounting firm for Kinross Gold Corporation

99.4          Consent of Rod Cooper

99.5          Certification of the Principal Executive Officer pursuant to 18
              U.S.C. Section 1350 (Section 302 of the Sarbanes-Oxley Act of
              2002)

99.6          Certification of the Chief Financial Officer pursuant to 18 U.S.C.
              Section 1350 (Section 302 of the Sarbanes-Oxley Act of 2002)

99.7          Certification of the Principal Executive Officer pursuant to 18
              U.S.C. Section 1350 (Section 906 of the Sarbanes-Oxley Act of
              2002)

99.8          Certification of the Chief Financial Officer pursuant to 18 U.S.C.
              Section 1350 (Section 906 of the Sarbanes-Oxley Act of 2002)

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>tex99_1-8988.txt
<DESCRIPTION>EX-99.1
<TEXT>
<PAGE>


                            KINROSS GOLD CORPORATION




                             ANNUAL INFORMATION FORM


                      FOR THE YEAR ENDED DECEMBER 31, 2004




                             DATED FEBRUARY 10, 2006

<PAGE>

                                TABLE OF CONTENTS
                                                                            PAGE

CAUTIONARY STATEMENT...........................................................1
RISK FACTORS...................................................................1
CORPORATE STRUCTURE...........................................................10
GENERAL DEVELOPMENT OF THE BUSINESS...........................................11
DESCRIPTION OF THE BUSINESS...................................................15
   Employees..................................................................15
   Competitive Conditions.....................................................15
   Environmental Protection...................................................16
   Operations.................................................................16
   Gold Equivalent Production (Ounces)........................................17
   Marketing..................................................................18
   Mineral Reserves and Mineral Resources.....................................20
   Material Properties........................................................25
     Fort Knox Mine and Area, Alaska..........................................25
     The Porcupine Joint Venture..............................................32
     La Coipa Mine............................................................40
     Paracatu Mine............................................................45
     Refugio Mine.............................................................53
     Round Mountain...........................................................59
DIVIDEND POLICY...............................................................65
LEGAL PROCEEDINGS.............................................................65
DESCRIPTION OF CAPITAL STRUCTURE..............................................69
MARKET PRICE FOR KINROSS COMMON SHARES........................................71
DIRECTORS AND OFFICERS........................................................72
CEASE TRADE ORDERS, BANKRUPTCIES, PENALTIES OR SANCTIONS......................77
CONFLICT OF INTEREST..........................................................77
INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS....................78
TRANSFER AGENT AND REGISTRAR..................................................78
MATERIAL CONTRACTS............................................................78
INTERESTS OF EXPERTS..........................................................79
AUDIT COMMITTEE...............................................................79
ADDITIONAL INFORMATION........................................................80
GLOSSARY OF TECHNICAL TERMS...................................................81

<PAGE>

UNLESS  OTHERWISE  STATED,  ALL DOLLAR AMOUNTS IN THIS ANNUAL  INFORMATION  FORM
("ANNUAL INFORMATION FORM") ARE IN UNITED STATES DOLLARS.

- --------------------------------------------------------------------------------
                              CAUTIONARY STATEMENT
- --------------------------------------------------------------------------------

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

- --------------------------------------------------------------------------------
                                  RISK FACTORS
- --------------------------------------------------------------------------------

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

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

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

                                     - 1 -
<PAGE>

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

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

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

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

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

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

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

        Kinross is generally required to submit for government approval a
reclamation plan and to pay for the reclamation of its mine sites upon the
completion of mining activities. Kinross estimates the net present value of
future cash outflows for reclamation costs under CICA Handbook Section 3110 at
$131.7 million as at December 31, 2004 based on information available as of that
date. In addition, Kinross spent $17.9 million in 2004 and planned reclamation
spending of approximately $23.6 million in 2005 as part of its plans and to get
as many closure projects as possible to post-closure monitoring by the end of
2006. Any increases over the current estimates of these costs could have a
material adverse effect on Kinross.

                                     - 2 -
<PAGE>

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

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

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

        Bills proposing major changes to the mining laws of the United States
have been considered by the U.S. Congress. If these bills, which may include
royalty fees or net profit payments, are enacted in the future, they could have
a significant effect on the ownership, use, operation and profitability of
mining claims in the United States, including claims that Kinross owns or holds.
Any amendment to current laws and regulations governing the rights of
leaseholders or the payment of royalties, net profits interests or similar
amounts, or more stringent implementation thereof in the United States or other
countries where Kinross has operations, could have a material adverse impact on
Kinross' financial condition and results of operation.

THE BUSINESS OF KINROSS IS ADVERSELY AFFECTED BY THE LACK OF INFRASTRUCTURE NEAR
ITS MINESITES.

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

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

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

        Unless otherwise noted, proven and probable reserves at Kinross' mines
and development projects as of December 31, 2004 were calculated based upon a
gold price of $350 per ounce, and measured and indicated resources for Kinross
were calculated based upon a gold price of $400 per ounce. Prolonged declines in
the market price of gold may render reserves containing relatively lower grades
of gold mineralization uneconomic to exploit and could reduce materially
Kinross' reserves and resources. Should such reductions occur, material write
downs of Kinross' investment in mining properties or the discontinuation of
development or production might be required, and there could be material delays
in the development of new projects, increased net losses and reduced cash flow.
The estimates of mineral reserves and resources attributable to a specific
property are based on accepted engineering and evaluation principles. The
estimated amount of contained gold in proven and probable reserves does not
necessarily represent an estimate of a fair market value of the evaluated
properties.

                                     - 3 -
<PAGE>

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

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

        Mineral resources that are not mineral reserves do not have demonstrated
economic viability. Due to the uncertainty of measured, indicated or inferred
mineral resources, these mineral resources may never be upgraded to proven and
probable mineral reserves. Measured, indicated and inferred mineral resources
are not recognized by the U.S. Securities and Exchange Commission and U.S.
investors are cautioned not to assume that any part of mineral deposits in these
categories will ever be converted into reserves or recovered.

IF KINROSS DOES NOT DEVELOP ADDITIONAL MINERAL RESERVES, IT MAY NOT BE ABLE TO
SUSTAIN FUTURE OPERATIONS.

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

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

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

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

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

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

                                     - 4 -
<PAGE>

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

ZIMBABWE SUFFERS FROM SIGNIFICANT ECONOMIC INSTABILITY WHICH COULD ADVERSELY
AFFECT KINROSS' OPERATIONS IN THIS COUNTRY.

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

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

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

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

        The profitability of Kinross' operations are significantly affected by
changes in the market price of gold. Gold prices fluctuate on a daily basis and
are affected by numerous factors beyond the control of Kinross. The supply and
demand for gold, the level of interest rates, the rate of inflation, investment
decisions by large holders of gold, including governmental reserves, and changes
in exchange rates can all cause significant fluctuations in gold prices. Such
external economic factors are in turn influenced by changes in international
investment patterns and monetary systems and political developments. The price
of gold has fluctuated widely and future serious price declines could cause
continued commercial production to be impractical. Depending on the price of
gold, cash flow from mining operations may not be sufficient to cover costs of
production and capital expenditures. If, as a result of a decline in gold
prices, revenues from metal sales were to fall below cash operating costs,
production may be discontinued.

KINROSS HAS A HISTORY OF LOSSES, AND FUTURE PROFITABLE OPERATIONS CANNOT BE
ASSURED.

        Kinross had net losses attributable to common shareholders of $427.7
million and $63.1 million for 2003 and 2004, respectively. Kinross' ability to
operate profitably in the future will depend on the success of its principal
mines, the ability of Kinross to expend its mineral reserves, the price of gold
and the ability of Kinross to control costs. These can be no assurance Kinross
can obtain profitability or even generate sufficient cash flow to sustain its
operations and development and exploration activities at current levels.

                                     - 5 -
<PAGE>

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

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

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

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

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

KINROSS MAY REQUIRE ADDITIONAL CAPITAL THAT MAY NOT BE AVAILABLE.

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

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

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

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

                                     - 6 -
<PAGE>

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

        Currency fluctuations may affect the revenues which Kinross will realize
from its operations since gold is sold in the world market in United States
dollars. The costs of Kinross are incurred principally in Canadian dollars,
United States dollars, Russian rubles, Chilean pesos, Brazilian reals, and
Zimbabwean dollars. The appreciation of non-U.S. dollar currencies against the
U.S. dollar increases the cost of gold production in U.S. dollar terms. From
time to time, Kinross transacts currency hedging to reduce the risk associated
with currency fluctuations. Currency hedging involves risks and may require
margin activities. Sudden fluctuations in currencies could result in margin
calls that could have an adverse effect on Kinross' financial position. While
the Russian ruble, Chilean peso, Brazilian real, and the Zimbabwean dollar are
currently convertible into Canadian and United States dollars, they may not
always be convertible in the future.

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

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

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

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

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

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

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

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

        Kinross has historically reduced its exposure to gold price fluctuations
by engaging in hedging activities. In 2002, Kinross changed its hedging strategy
and discontinued its hedging activities for gold and as a result is fully
exposed to any future decline in the market price of gold. If Kinross were to
resume its hedging activities, it may be unable to achieve realized prices for
gold produced in excess of average market prices. Hedging may not adequately
protect against declines in the price of gold and may prevent Kinross from
benefiting fully from gold price increases. Hedging may require margin
activities. Sudden fluctuations in the price of gold could result in margin
calls that could have an adverse effect on the financial position of Kinross.

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

        Production at Kinross' mines is dependent upon the efforts of employees
of Kinross. Relations between Kinross and its employees may be impacted by
changes in labor relations which may be introduced by, among others, employee
groups, unions, and the relevant governmental authorities in whose jurisdictions
Kinross carries on business. Adverse changes in such legislation or in the
relationship between Kinross with its employees may have a material adverse
effect on Kinross' business, results of operations, and financial condition.

                                     - 7 -
<PAGE>

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

        Kinross conducts operations through foreign subsidiaries and joint
ventures, and a substantial part of its assets are held in such entities.
Accordingly, any limitation on the transfer of cash or other assets between the
parent corporation and such entities, or among such entities, could restrict
Kinross' ability to fund its operations efficiently. Any such limitations, or
the perception that such limitations may exist now or in the future, could have
a material adverse impact on Kinross' valuation and stock price. For example,
currently Kinross is subject to limitations on the transfer of cash or assets
for its operations in Zimbabwe.

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

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

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

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

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

ANY FUTURE RESTATEMENT OF KINROSS' FINANCIAL STATEMENTS MAY ADVERSELY AFFECT THE
TRADING PRICE OF ITS COMMON SHARES.

        Kinross has completed the restatement of its consolidated financial
statements and believes they are presented in accordance with the requirements
of generally accepted accounting principles. However, such restatements do not
prevent future changes or adjustments, including additional restatements. If
there were future restatements of the consolidated financial statements, such
restatements may adversely affect the trading price of Kinross' common shares.
See "General Development of Business - Restatements"

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

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

                                     - 8 -
<PAGE>

THE LOSS OF KEY EXECUTIVES COULD ADVERSELY AFFECT KINROSS.

        Kinross has a relatively small executive management team. In the event
that the services of a number of these executives were no longer available,
Kinross and its business could be adversely affected. Kinross does not carry
key-man life insurance with respect to its executives.

SHORTAGE OF SUPPLIES COULD ADVERSELY AFFECT KINROSS' ABILITY TO OPERATE.

        Kinross is dependent on various supplies and equipment to carry out its
mining operations. The shortage of such supplies, equipment and parts could have
a material adverse effect on the Company's ability to carry out its operations
and therefore limit or increase the cost of production.

KINROSS IS SUBJECT TO CERTAIN LEGAL PROCEEDINGS AND MAY BE SUBJECT TO ADDITIONAL
LITIGATION IN THE FUTURE.

        Kinross is a party to the legal proceedings described under the caption
"Legal Proceedings". If decided adversely to Kinross, these legal proceedings,
or others that could be brought against Kinross in the future which are not now
known, for example, litigation based on its business activities, environmental
laws, volatility in its stock price, failure of its disclosure obligations or as
a result of its financial restatement (see "General Development of the Business
- - Restatements"), could have a material adverse effect on Kinross' financial
condition or prospects. In July 2005, Kinross was notified by the enforcement
division of the SEC that Kinross would be requested to provide documentation in
connection with an informal inquiry focused on Kinross' accounting for the
business combination with TVX Gold Inc. ("TVX") and Echo Bay Mines Ltd. ("Echo
Bay"). No further request has been made by the SEC to date. However, a
regulatory investigation could result in significant costs and damages and
divert management's attention and resources.

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

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



                                     - 9 -
<PAGE>

- --------------------------------------------------------------------------------
                               CORPORATE STRUCTURE
- --------------------------------------------------------------------------------

        Kinross Gold Corporation was initially created in May 1993 by
amalgamation of CMP Resources Ltd. ("CMP Resources"), Plexus Resources
Corporation ("Plexus Resources"), and 1021105 Ontario Corp ("1021105"). In
December 2000, Kinross amalgamated with LT Acquisition Inc., in January 2005,
Kinross amalgamated with its wholly-owned subsidiary, TVX and in January 2006 it
amalgamated with its wholly-owned subsidiary, Echo Bay. Kinross is the
continuing entity resulting from these amalgamations. Kinross is governed by the
BUSINESS CORPORATIONS ACT (Ontario) and its' registered and principal offices
are located at Suite 5200, Scotia Plaza, 40 King Street West, Toronto, Ontario,
M5H 3Y2.

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

        A significant portion of Kinross' business is carried on through
subsidiaries. A chart showing the names of the significant subsidiaries of
Kinross and their respective jurisdictions of incorporation is set out below as
of January 1, 2006. All subsidiaries are 100% owned unless otherwise noted.
Unless otherwise indicated herein, the term "Kinross" includes, collectively,
all of the subsidiaries of Kinross.



           [Graphic depicting the organizational structure of Kinross
                             and its subsidiaries]




                                     - 10 -
<PAGE>

- --------------------------------------------------------------------------------
                       GENERAL DEVELOPMENT OF THE BUSINESS
- --------------------------------------------------------------------------------

OVERVIEW

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

        Kinross' strategy is to increase shareholder value through increases in
precious metal reserves, production and long-term cash flow and earnings per
share. Kinross' strategy also consists of optimizing the performance and,
therefore, the value of existing operations, investing in quality exploration
and development projects and acquiring new potentially accreditive properties
and projects. Kinross generated revenues of $666.8 million in 2004, $571.9
million in 2003 and $261.0 million in 2002.

        Kinross' operations and reserves are impacted by changes in metal
prices. Over the past three years, gold has averaged approximately $361 per
ounce and was $436 per ounce on the last trading day of 2004. Gold traded above
$375 per ounce in 2004 and above $400 per ounce in 2005. Kinross used a gold
price forecast of $350 per ounce at the end of 2004 and $325 at the end of 2003
to estimate reserves.

        Kinross' share of proven and probable reserves as at December 31, 2004,
was 19.4 million ounces of gold and 32.8 million ounces of silver. These
estimates have been calculated using industry standard methodology and the
appropriate cut-off grade assuming a gold price of $350 per ounce.

THREE YEAR HISTORY

        Kinross completed an equity offering in February 2002, pursuant to which
7.7 million Kinross common shares were issued for net proceeds of $18.5 million.
The majority of funds raised were used for a $16.00 per share cash tender offer
for the preferred shares of Kinam ("Kinam Preferred Shares"), a majority owned
subsidiary, that were held by third parties. 670,722 Kinam Preferred Shares
having a book value of $36.6 million were tendered and purchased by Kinross for
$10.7 million ($11.4 million including costs of the tender offer). The $25.2
million difference in value associated with this transaction was applied against
the carrying value of a portion of Kinam's property, plant and equipment.

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

        Also on June 10, 2002, TVX and a subsidiary of TVX entered into
agreements with a subsidiary of Newmont pursuant to which TVX acquired Newmont's
50% non-controlling interest in the TVX Newmont Americas joint venture ("TVX
Newmont J/V") for an aggregate purchase price of $180.0 million. This
acquisition was completed immediately prior to the combination with TVX and Echo
Bay on January 31, 2003.

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

                                     - 11 -
<PAGE>

        On December 3, 2002, Kinross entered into purchase agreements with four
of the five Russian minority shareholders holding 44.17% of the shares of Omolon
Gold Mining Company ("Omolon"). Omolon agreed to purchase these shares from the
four shareholders for $44.7 million. The acquisition increased Kinross'
ownership interest in Omolon to 98.1% and closed in February of 2003.

        On December 5, 2002, Kinross completed a public offering and issued 16.6
million Kinross common shares and warrants to purchase up to 8,333,333 common
shares for total proceeds of $97.7 million. The warrants can be exercised on or
before December 5, 2007, for Kinross common shares at an exercise price of
Cdn.$15.00 per share.

        On August 28, 2003, Kinross issued 23.0 million common shares from its
treasury for gross proceeds of $152.5 million. The bulk of the net proceeds from
the offering were used to redeem outstanding 5.5% convertible unsecured
subordinated debentures. The principal amount of the convertible debentures was
$144.8 million. The debentures were redeemed on September 29, 2003, which gave
rise to a net gain on redemption of $15.4 million. The financial impact of the
redemption is fully described in Note 12 to the consolidated financial
statements.

        During the fourth quarter of 2003, Kinross sold several of its equity
interests and portfolio investments which were considered non-strategic,
including investments in Minefinders Corporation Ltd., Pacific Rim Mining
Corporation, and Endeavour Mining Capital Corporation. Proceeds from the sale of
equity investments totaled $63.3 million. These transactions resulted in
after-tax gains amounting to $26.0 million which are included in the
consolidated statements of operations for the year as a component of the $29.5
million gain on disposal of assets.

        On November 20, 2003, Kinross announced that it had executed a
definitive acquisition agreement with Crown Resources Corporation ("Crown")
whereby Kinross will acquire Crown and its wholly-owned Buckhorn gold deposit
located in north central Washington State, approximately 67 kilometers by road
from Kinross' Kettle River gold milling facility. On December 16, 2003, Crown
reported total proven and probable reserves, at a gold price of $350 per ounce,
for the Buckhorn Mountain Project of 2.79 million tonnes grading 11.1 grams of
gold per tonne containing 991,300 ounces of gold.

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

        On June 1, 2005, Kinross announced that it had signed an amendment
agreement with Crown to extend the termination date of the definitive
acquisition agreement to March 31, 2006 and adjust the price that Kinross will
pay to acquire Crown.

        Under the terms of amended agreement, shareholders of Crown will receive
0.34 of a Kinross common share for each share of Crown common stock, an increase
of 0.0489 over the original exchange ratio of 0.2911. A valuation collar has
also been agreed upon in which the aggregate maximum value of Kinross common
shares to be issued to Crown shareholders is $110 million and the minimum value
is $77.5 million, both limits excluding shares held by Kinross.

        Kinross also agreed to purchase a $10.0 million convertible debenture
(the "Debenture") from Crown. The Debenture is convertible into 5.8 million
shares of Crown common stock. 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.

        Assuming the entire outstanding Crown warrants and options are
converted, a total of approximately 15.8 million common shares of Kinross will
be issued upon the completion of the transaction.

        In December 2004, Kinross replaced its existing $125 million credit
facility with a new three-year $200 million revolving credit facility. The
Company used $105.0 million of the new facility to satisfy a portion of the
$261.2 million cost to purchase the remaining 51% interest in the Paracatu mine.
The facility allowed for the limit

                                     - 12 -
<PAGE>

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.

        On December 31, 2004, the Company completed the purchase of a 51%
interest in Rio Paracatu Mineracao ("RPM"), the owner of the Morro do Ouro mine
(also known as Paracatu) in Brazil from Rio Tinto Plc. ("Rio Tinto"). The RPM
gold mine is located near Brasilia in the state of Minas Gerais, Brazil. It has
been in operation since 1987. As a result of this transaction the Company now
owns 100% of the property and is the operator. Kinross acquired its 49% interest
in the mine on January 31, 2003 when it merged with TVX. Consideration of $261
million was paid in cash on completion and is subject to a working capital
adjustment post completion. The Company financed the transaction with a
combination of cash and debt.

        On January 25, 2005, the Company informed employees and local government
officials that it would not proceed with the development of the Tsokol vein
located near the Kubaka mill. Omolon management is currently re-working their
mine plan based on this announcement. Should closure of the Kubaka operation
become the best alternative, this would take place only after completing the
mining and milling of the Birkachan open pit and Central Zone Kubaka underground
ore body, and the milling of the existing Kubaka stockpiles. This would provide
feed for the mill for approximately 12 months. Closure would take place over an
additional 12-month period. Development of the Birkachan deposit is still being
considered.

        On January 27, 2005, the Company and its joint venture partner High
River Gold Mines Ltd., announced that a decision has been made by the joint
venture to discontinue development at the New Britannia mine. Exploration
efforts were unable to define an extension of the ore body containing better
grade and thickness as was mined in mid-2004. New Britannia suspended mining and
milling operations in September 2004, and exploration of the potential extension
in December 2004. The mine was placed on care and maintenance.

        On March 23, 2005, the Company announced the appointment of Tye Burt as
President and Chief Executive Officer of the Company. Mr. Burt replaced Robert
Buchan who had announced his intention to step down in January 2005. See
"Directors and Officers - Tye W. Burt".

        On November 21, 2005, Kinross announced that as a result of its drilling
program initiated in January 2005 and further studies, it has increased
estimated proven and probable reserves at the Paracatu mine to approximately
13.3 million ounces as of November 1, 2005, based on a gold price of $400 per
ounce, an increase of 4.8 million ounces compared to the December 31, 2004
reported reserves.

        On November 30, 2005 Kinross announced that Deloitte & Touche LLP would
not stand for reappointment as auditors of the Company for the 2005 financial
term and that the board of directors appointed KPMG LLP to act as auditors for
the Company for the 2005 financial term.

        On December 29, 2005, Kinross entered into a definitive agreement
whereby it will sell its Aquarius gold property to St Andrew Goldfields Ltd. 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. The transaction is contingent on St Andrew posting satisfactory
financial assurance bonding relating to the Aquarius project and is expected to
close in the first half of 2006.

RESTATEMENTS

Restatement relating to Accounting of the TVX/Echo Bay Transaction

        On February 3, 2005, Kinross announced that following a lengthy review
of the manner in which it had accounted for goodwill in connection with the
business combination with TVX and Echo Bay, its financial statements and related
auditor's report for the year ended December 31, 2003 could no longer be relied
upon. In this connection, Kinross hired an independent firm of valuators to
provide evaluations of the acquired assets as of January 31, 2003, December 31,
2003 and December 31, 2004. As a result of the valuations and changed accounting
treatment, Kinross restated its 2003 audited financial statements and its 2003
and 2004 interim financial statements.

        The independent valuations resulted in an increase in the fair value of
the net assets acquired and a consequential reduction in goodwill as of the
acquisition date. The revised purchase price allocation resulted in

                                     - 13 -
<PAGE>

$736.7 million of goodwill, down from the $918.0 million initially recorded. In
addition, the goodwill was allocated to the reporting units acquired in the
transaction.

        The independent valuator also reviewed the impairment testing as at
December 31, 2003. As a result, Kinross has recognized for the 2003 fiscal year,
an impairment of long-lived assets of $15.2 million relating to property, plant
and equipment, $1.9 million relating to investments and $394.4 million relating
to goodwill for a total impairment of $411.5 million. This compares with an
impairment of $9.9 million to property, plant and equipment and investments and
no impairment to goodwill that had been originally recorded for the year ended
December 31, 2003. In addition to the impairment losses, depreciation, depletion
and amortization increased from $140.9 million to $172.7 million, the provision
for income tax decreased from $13.1 million to $1.5 million and net earnings
attributable to common shareholders of $19.7 million has been restated to a net
loss of $401.0 million. The restatement also includes the impact of the adoption
of CICA Handbook Section 3110 "Asset Retirement Obligations", which was adopted
by the Company effective January 1, 2004 and applied retroactively with a
restatement of 2003 and 2002 comparative figures. A more detailed description is
provided in the Note 3 to the audited financial statements for the year ended
December 31, 2004.

Restatement relating to Correction of Foreign Currency Impact on Income Tax
Liabilities.

        During the preparation of its interim financial statements for the year
2005, Kinross and its new auditors discovered an error affecting its financial
statements for the years ended December 31, 2003 and 2004 and the respective
interim periods. In the previously released financial statements, Kinross 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 of the future tax liabilities relating to the
purchase of certain assets acquired in the acquisition of TVX and Echo Bay in
January, 2003. As a result, Kinross restated the financial statements, and these
liabilities have been adjusted for changes in currency exchange rates between
the U.S. dollar and the currency of the country where the future tax liabilities
arose. The impact of the foreign currency exchange 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 net
impact of the foreign exchange loss and income and mining tax recovery on the
statements, previously filed in November 2005, increased the loss attributable
to common shareholders by $26.7 million for 2003 and $7.0 million for 2004. The
restated net loss attributable to common shareholders for 2003 and 2004 is
$427.7 million and $63.1 million, respectively. A more detailed description of
the restatement is provided in Note 2 to the audited financial statements for
the year ended December 31, 2004.

        The restatements described above resulted in Kinross being in default of
its continuous disclosure reporting obligations under applicable Canadian and
U.S. securities laws.

        On April 14, 2005, a management cease trade order was imposed on the
directors and officers of Kinross by the Ontario Securities Commission. A
similar order was subsequently issued by the Nova Scotia Securities Commission
against Mr. John Oliver who is a resident of Nova Scotia. See "Directors and
Officers" for further details.

        In July 2005, Kinross was notified by the enforcement division of the
SEC that Kinross could be requested to provide documentation in connection with
an informal inquiry focused on Kinross' accounting for the business combination
with TVX and Echo Bay and the restatement of its consolidated financial
statements. No further request has been made by the SEC to date.


                                     - 14 -
<PAGE>

- --------------------------------------------------------------------------------
                           DESCRIPTION OF THE BUSINESS
- --------------------------------------------------------------------------------

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

                                                                    Property
Property                       Location                             Ownership
- --------                       --------                             ---------
Fort Knox Mine (1)             Fairbanks, Alaska, United States     100% (2)
Porcupine Joint Venture (3)    Timmins, Ontario, Canada             49%
La Coipa (4)                   Chile                                50%
Paracatu (5)                   Brazil                               100%
Refugio                        Chile                                50%
Round Mountain(6)              Nevada, United States                50%

- ----------------------
(1)     The True North property is subject to various net smelter return
        royalties, ranging from 3.5% to 5%. The Ryan Lode project is subject to
        various net smelter return royalties ranging from 3% to 5% and annual
        rental payments of $150,000.
(2)     Kinross holds a 100% interest in the properties forming part of the Fort
        Knox mine except for the Gil property in which Kinross holds an 80%
        interest.
(3      The Porcupine Joint Venture was formed pursuant to an agreement with
        Placer CLA dated July 1, 2002. It owns and operates interests in two
        mining properties: the Hoyle Pond mine and the Dome mine. The Hoyle Pond
        mine is subject to two tonnage based royalties for which no expenses
        were accrued in 2003. A 2% net smelter royalty is payable on production
        from the Preston, Paymaster and Vedron properties.
(4)     No royalties are applicable on gold and silver produced but an annual
        preferred dividend of $1.8 million is payable.
(5)     The Paracatu mine is subject to a royalty 0.33% of net sales, a mining
        tax of 1% of net sales and a profits tax of 3% of net sales.

(6)     The Round Mountain mine is subject to a net smelter returns royalty
        ranging from 3.53% to 6.35%. Production is also subject to a gross
        revenue royalty of 3.0%

        In addition, Kinross holds a 98.1% interest in the Kubaka mine, situated
in Magadan Oblast, Russia, a 50% interest in the Crixas mine, situated in
Brazil, a 31.9% interest in the Musselwhite mine in Ontario, Canada, a 100%
interest in the Blanket mine, situated in Zimbabwe, Africa, a 100% interest in
the Kettle River mine in Washington, United States, a 100% interest in the Lupin
mine in Nunavut Territory, Canada, a 50% interest in the New Britannia mine in
Manitoba, Canada and other mining properties in various stages of exploration,
development, reclamation, and closure. The Company's principal product is gold
and it also produces silver.

EMPLOYEES

        At December 31, 2004, Kinross and its subsidiaries employed
approximately 6,331 persons. Kinross' employees in the United States and Canada
are predominately non-unionized. At the Porcupine Joint Venture a three-year
Collective Bargaining Agreement was ratified on November 1, 2005. Kinross
considers its employee relations to be good.

COMPETITIVE CONDITIONS

        The precious metal mineral exploration and mining business is a
competitive business. Kinross competes with numerous other companies and
individuals in the search for and the acquisition of attractive precious metal
mineral properties. The ability of Kinross to acquire precious metal mineral
properties in the future will depend not only on its ability to develop its
present properties, but also on its ability to select and acquire suitable
producing properties or prospects for precious metal development or mineral
exploration.

                                     - 15 -
<PAGE>

ENVIRONMENTAL PROTECTION

General

        Kinross' exploration activities and mining and processing operations are
subject to the federal, state, provincial, regional and local environmental laws
and regulations in the jurisdictions in which Kinross' facilities are located,
such as (in the United States) the Clean Air Act; the Clean Water Act; the
Comprehensive Environmental Response, Compensation and Liability Act; the
Emergency Planning and Community Right to Know Act; the Endangered Species Act;
the Federal Land Policy and Management Act; the National Environmental Policy
Act; the Resource Conservation and Recovery Act; and related state laws. Kinross
is subject to similar laws in other jurisdictions in which it operates. In all
jurisdictions in which Kinross operates, environmental licenses, permits and
other regulatory approvals are required in order to engage in exploration,
mining and processing, and mine closure activities. Regulatory approval of a
detailed plan of operations and a comprehensive environmental impact assessment
is required prior to initiating mining or processing activities or for any
substantive change to previously approved plans. In all jurisdictions in which
Kinross operates, specific statutory and regulatory requirements and standards
must be met throughout the life of the mining or processing operations in regard
to air quality, water quality, fisheries and wildlife protection, archaeological
and cultural resources, solid and hazardous waste management and disposal, the
management and transportation of hazardous chemicals, toxic substances, noise,
community right-to-know, land use, and reclamation. Kinross is currently in
compliance in all material respects with all applicable environmental laws and
regulations. Details and quantification of the Company's reclamation and
remediation obligations are set out in Note 11 to the audited consolidated
financial statements of the Company for the years ended December 31, 2004.

OPERATIONS

        Kinross' share of production in 2004 was derived from the mines in
Canada (22%), the United States (50%), South America (21%) and Russia (7%).




            [Graphic depicting the location of the mining operations
                           of Kinross on a world map]




                                     - 16 -
<PAGE>

GOLD EQUIVALENT PRODUCTION (OUNCES)

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

<TABLE>
<CAPTION>
                                                                        YEARS ENDED DECEMBER 31,
                                                                ---------------------------------------
                                                                    2004         2003          2002
                                                                    ----         ----          ----
<S>                                                               <C>          <C>            <C>
Attributable gold equivalent production - ounces.............     1,653,784    1,620,410      888,634

Gold sales - ounces (excluding equivalent accounted ounces)..     1,585,109    1,541,577      848,513
</TABLE>

Included in attributable gold equivalent production is silver production
converted into gold production using a ratio of the average spot market prices
of gold and silver for the three comparative years. The ratios were 61.46:1 in
2004, 74.79:1 in 2003, and 67.24:1 in 2002.





                                     - 17 -
<PAGE>

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

<TABLE>
<CAPTION>
                                                        YEARS ENDED DECEMBER 31,
                                               -----------------------------------------
                                                   2004          2003          2002
                                                   ----          ----          ----
<S>                                               <C>           <C>           <C>
         NORTH AMERICA:

         Fort Knox                                338,334       391,831       410,519

         Round Mountain (1)(5)                   (387,785)     (364,271)            -

         Porcupine Joint Venture (2)             (193,799)     (223,960)     (189,464)

         Musselwhite (1)(7)                       (76,640)      (64,978)            -

         New Britannia (1)(5)                     (23,652)      (31,627)            -

         Kettle River                              96,789             -             -

         Lupin (3)                                (66,577)      (56,008)            -

         SOUTH AMERICA:

         Refugio (5)                               (9,809)            -       (13,047)

         Paracatu (1)(6)                          (92,356)      (91,176)            -

         La Coipa (1)(5)                         (150,887)     (144,125)            -

         Crixas (1)(5)                            (93,540)      (86,698)            -

         OTHER OPERATIONS:

         Kubaka (4)                              (123,616)     (164,006)     (220,972)

         Other (8)(9)                                   -        (1,730)      (54,632)

           Total                                1,653,784     1,620,410       888,634
                                                =========     =========       =======
</TABLE>

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

(1)     2003 production data is for the eleven months from February to December.
(2)     2004 and 2003 production reflects Kinross' 49% ownership interest in the
        Porcupine Joint Venture. 2002 production reflects Kinross' 100%
        ownership interest in the Hoyle Pond mine to June 30, 2002, and the 49%
        interest in the Porcupine Joint Venture thereafter.
(3)     2004 production data is for the period March 1, 2004 to December 31,
        2004. 2003 production data is for period January 31, 2003 to August 2003
        when mining operations were suspended.
(4)     Represents Kinross' 54.7% ownership interest to February 28, 2003, and a
        98.1% interest thereafter.
(5)     Represents Kinross' 50% ownership interest.
(6)     Represents Kinross' 49% ownership interest. Kinross owns a 100% interest
        in Paracatu since December 31, 2004.
(7)     Represents Kinross' 31.9% ownership interest.
(8)     Includes proportionate share of Denton-Rawhide and Andacollo production,
        attributable to the ownership interest in Pacific Rim Mining Corp.
        (formerly Dayton Mining Corporation) through December 2003, when the
        ownership interest in Pacific Rim was sold.
(9)     Includes Blanket mine. Because of the economic and political conditions
        and the negative impact of inflationary pressures in Zimbabwe, the
        Blanket mine was written off in 2001. Kinross commenced cost accounting
        for this investment in 2002 and ceased reporting its production in 2003.

MARKETING

        Gold is a metal that is traded on world markets, with benchmark prices
generally based on the London market (London fix). Gold has two principal uses:
product fabrication and bullion investment. Fabricated gold has a wide variety
of end uses, including jewelry manufacture (the largest fabrication component),
electronics, dentistry, industrial and decorative uses, medals, medallions, and
official coins. Gold bullion is held primarily as a store of

                                     - 18 -
<PAGE>

value and a safeguard against the collapse of paper assets denominated in fiat
currencies. Kinross sells all of its refined gold to banks, bullion dealers, and
refiners. In 2004, sales to four customers totaled $190.2 million, $108.5
million, $98.5 million, and $88.4 million, respectively. In 2003, sales to three
customers totaled $139.9 million, $121.4 million and $96.2 million,
respectively. In 2002, sales to five customers totaled $52.1 million, $41.3
million, $35.7 million, $34.1 million, and $27.4 million, respectively. Due to
the size of the bullion market and the above ground inventory of bullion,
activities by Kinross will generally not influence gold prices. Kinross believes
that the loss of any of these customers would have no material adverse impact on
Kinross because of the active worldwide market for gold.

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

             YEAR          HIGH          LOW        AVERAGE
             ----          ----          ---        -------

             1998         $313.15      $273.40      $294.09

             1999         $325.50      $252.80      $278.57

             2000         $312.70      $263.80      $279.11

             2001         $293.25      $255.95      $271.04

             2002         $349.30      $277.75      $309.68

             2003         $416.25      $319.90      $363.32

             2004         $454.20      $375.00      $409.17

             2005         $536.50      $411.10      $444.45



                                     - 19 -
<PAGE>

MINERAL RESERVES AND MINERAL RESOURCES

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

<TABLE>
<CAPTION>
<S>                                                                           <C>
                                               MINERAL RESERVE AND RESOURCE STATEMENT
                                        ESTIMATED AT AN ASSUMED GOLD PRICE OF $350 PER OUNCE
                                        PROVEN AND PROBABLE MINERAL RESERVES (1,3,5,6,7,22)
                                       KINROSS GOLD CORPORATION'S SHARE AT DECEMBER 31, 2004

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

                                       Interest   Tonnes    Grade    Ounces   Tonnes   Grade    Ounces   Tonnes    Grade    Ounces

Property                      Location    (%)     (000s)    (gpt)    (000s)   (000s)   (gpt)    (000s)   (000s)    (gpt)    (000s)
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
                                                                GOLD

NORTH AMERICA
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
Fort Knox and area (12)        USA       100.0%   53,333     0.76     1,301   47,471     1.02    1,556  100,803     0.88     2,858
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
Round Mountain and area (13)   USA)       50.0%   45,179     0.57       824   30,129     0.67      652   75,309     0.61     1,475
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
Porcupine Joint Venture        Canada     49.0%   11,005     1.31       463   23,072     1.65    1,223   34,077     1.54     1,685
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
Aquarius (9)                   Canada    100.0%        -        -         -   15,017     2.16    1,042   15,017     2.16     1,042
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
Musselwhite (11)               Canada     31.9%    1,897     5.61       342    1,447     5.70      265    3,343     5.65       607
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
Lupin                          Canada    100.0%       33     8.47         9        -        -        -       33     8.47         9
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
New Britannia                  Canada     50.0%        -        -         -        -        -        -        -        -         -
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
Kettle River                   USA       100.0%      169     9.98        54        -        -        -      169     9.98        54
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
SUBTOTAL                                         111,615     0.83     2,993  117,136     1.26    4,738  228,751     1.05     7,731
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------

SOUTH AMERICA
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
Paracatu                       Brazil    100.0%  425,947     0.44     6,025  178,464     0.43    2,437  604,411     0.44     8,463
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
La Coipa (11,14,18, 19)        Chile      50.0%    9,159     1.25       369    4,089     1.04      137   13,248     1.19       506
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
Refugio                        Chile      50.0%   49,160     0.88     1,388   12,867     0.80      329   62,027     0.86     1,717
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
Crixas (10,17)                 Brazil     50.0%    1,386     6.13       273      683     7.22      159    2,069     6.49       432
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
SUBTOTAL                                         485,651     0.52     8,055  196,103     0.49    3,062  681,754     0.51    11,116
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------

ASIA
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
Kubaka and area (15,16)        Russia     98.1%      424     3.55        48      614    10.60      209    1,038     7.72       258
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
SUBTOTAL                                             424     3.55        48      614    10.60      209    1,038     7.72       258
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
TOTAL GOLD (EXC. BLANKET)                        597,691     0.58    11,096  313,853     0.79    8,009  911,544     0.65    19,104
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------

AFRICA
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
Blanket (21)                   Zimbabwe  100.0%      684     4.32        95    1,536     4.26      210    2,220     4.28       305
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
TOTAL GOLD (INC. BLANKET)                        598,375     0.58    11,191  315,389     0.81    8,219  913,764     0.66    19,410
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------

                                                               SILVER

SOUTH AMERICA
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
La Coipa (11,14,18,19)         Chile      50.0%    9,159     68.1    20,044    4,089     94.6   12,437   13,248     76.3    32,480
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
SUBTOTAL                                           9,159     68.1    20,044    4,089     94.6   12,437   13,248     76.3    32,480
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------

ASIA
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
Kubaka and area (15,16)        Russia     98.1%      424      9.0       123      614     12.4      245    1,038     11.0       368
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
SUBTOTAL                                             424      9.0       123      614     12.4      245    1,038     11.0       368
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
TOTAL SILVER                                       9,583     65.5    20,167    4,703     83.9   12,682   14,286     71.5    32,848
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------

        NOTE: TOTALS MAY NOT ADD, DUE TO ROUNDING.
</TABLE>

                                     - 20 -
<PAGE>

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

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

<TABLE>
<CAPTION>
<S>                                                                           <C>
                                               MINERAL RESERVE AND RESOURCE STATEMENT
                 MEASURED AND INDICATED MINERAL RESOURCES (EXCLUDES PROVEN AND PROBABLE RESERVES) (2,3,4,6,7,8,22)
                                            ESTIMATED AT A GOLD PRICE OF $400 PER OUNCE
                                       KINROSS GOLD CORPORATION'S SHARE AT DECEMBER 31, 2004

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

                                       Interest   Tonnes    Grade    Ounces   Tonnes   Grade    Ounces   Tonnes    Grade    Ounces

Property                      Location    (%)     (000s)    (gpt)    (000s)   (000s)   (gpt)    (000s)   (000s)    (gpt)    (000s)
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
                                                                GOLD

NORTH AMERICA
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
Fort Knox and area (12)        USA       100.0%   11,927    0.65       251    24,970    0.74      591     36,897    0.71       842
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
Round Mountain and area (13)   USA        50.0%   14,749    0.48       227    21,437    0.57      393     36,186    0.53       620
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
Porcupine Joint
  Venture (11,18)              Canada     49.0%    3,043    2.62       256    23,473    1.87    1,412     26,515    1.96     1,668
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
Aquarius(9)                    Canada    100.0%        -       -         -         -       -        -          -       -         -
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
Musselwhite (11,18)            Canada     31.9%      496    3.94        63       427    6.50       89        922    5.12       152
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
Lupin                          Canada    100.0%        -       -         -       446    9.33      134        446    9.33       134
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
New Britannia                  Canada     50.0%       40    4.77         6     1,066    5.14      176      1,106    5.12       182
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
Kettle River                   USA       100.0%        -       -         -         -       -        -          -       -         -
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
George-Goose Lake(9)           Canada    100.0%        -       -         -     2,842   11.78    1,076      2,842   11.78     1,076
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
SUBTOTAL                                          30,254    0.83       803    74,660    1.61    3,871    104,913    1.39     4,674
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------

SOUTH AMERICA
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
Paracatu                       Brazil    100.0%    1,645    0.30        16       647    0.31        6      2,292    0.30        22
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
La Coipa (11,14,18,19)         Chile      50.0%    9,077    0.91       266     5,033    1.09      176     14,110    0.97       442
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
Refugio                        Chile      50.0%   21,688    0.78       541    11,616    0.68      256     33,304    0.74       797
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
Crixas (10,17)                 Brazil     50.0%      324    7.10        74       193    5.80       36        517    6.62       110
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
Gurupi (9,20)                  Brazil    100.0%        -       -         -    53,283    1.11    1,907     53,283    1.11     1,907
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
SUBTOTAL                                          32,734    0.85       897    70,772    1.05    2,380    103,505    0.98     3,277
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------

ASIA
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
Kubaka and area (15,16)        Russia     98.1%       92    3.89        12         -       -        -         92    3.89        12
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
SUBTOTAL                                              92    3.89        12         -       -        -         92    3.89        12
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------

AUSTRALIA
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
Norseman (9)                   Australia 100.0%        -       -         -     1,482    2.55      122      1,482    2.55       122
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
SUBTOTAL                                               -       -         -     1,482    2.55      122      1,482    2.55       122
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
TOTAL GOLD (EXC. BLANKET)                         63,080    0.84     1,711   146,914    1.35    6,373    209,993    1.20     8,084
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------

AFRICA
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
Blanket (21)                   Zimbabwe  100.0%        -       -         -       724    4.35      101        724    4.35       101
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
SUBTOTAL                                               -       -         -       724    4.35      101        724    4.35       101
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
TOTAL GOLD (INC. BLANKET)                         63,080    0.84     1,711   147,638    1.36    6,474    210,717    1.21     8,186
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------

                                                               SILVER

SOUTH AMERICA
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
La Coipa (11,14,18,19)         Chile      50.0%    9,077    34.0     9,916     5,033    35.2    5,695     14,110    34.4    15,612
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
SUBTOTAL                                           9,077    34.0     9,916     5,033    35.2    5,695     14,110    34.4    15,612
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
ASIA
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
Kubaka and area (15,16)        Russia     98.1%       92     9.3        28         -       -        -         92     9.3        28
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
SUBTOTAL                                              92     9.3        28         -       -        -         92     9.3        28
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------
TOTAL SILVER                                       9,169    33.7     9,944     5,033    35.2    5,695     14,202    34.3    15,639
- ------------------------------------------------ --------------------------- -------------------------- ---------------------------

NOTE: TOTALS MAY NOT ADD, DUE TO ROUNDING.
</TABLE>

                                                              - 21 -
<PAGE>

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

(1)     Unless otherwise noted, the Company's reserves are estimated using
        appropriate cut-off grades derived from an assumed gold price of $US 350
        per oz; and a silver price of $US 5.50 per oz. Reserves are estimated
        using current and/or projected process recoveries, operating costs and
        mine plans that are unique to each property and include estimated
        allowances for dilution and mining recovery.

(2)     Unless otherwise noted, the Company's resources are estimated using
        appropriate cut-off grades derived at a gold price of $US 400 per oz and
        a silver price of $US 5.50 per oz.

(3)     The Company's reserves and resources as at December 31, 2004 are
        classified in accordance with the Canadian Institute of Mining
        Metallurgy and Petroleum's "CIM Standards on Mineral Resources and
        Reserves, Definition and Guidelines" as per Canadian Securities
        Administrator's National Instrument 43-101 ("the Instrument")
        requirements.

(4)     CAUTIONARY NOTE TO US INVESTORS CONCERNING ESTIMATES OF MEASURED,
        INDICATED AND INFERRED RESOURCES. US Investors are advised that use of
        the terms "measured resource", "indicated resource " and "inferred
        resource" are recognized and required by Canadian Securities
        regulations. These terms are not recognized by the U.S. Securities and
        Exchange Commission. U.S. INVESTORS ARE CAUTIONED NOT TO ASSUME THAT ALL
        OR ANY PART OF MINERAL DEPOSITS IN THESE CATEGORIES WILL EVER BE
        CONVERTED INTO RESERVES.

(5)     The mineral reserves presented herein comply with the reserve categories
        of Industry Guide 7 applied in the United States by the Securities and
        Exchange Commission.

(6)     Mineral resource and reserve estimates completed under the supervision
        of Mr. R. Cooper, P. Eng, an officer of Kinross, who is a qualified
        person as defined by Canada's National Instrument 43-101.

(7)     The Company's normal data verification procedures have been used in
        collecting, compiling, interpreting and processing the data used to
        estimate reserves and resources. Independent data verification has not
        been performed.

(8)     Resources, unlike reserves, do not have demonstrated economic viability.

(9)     Undeveloped property; development assumes successful permitting allowing
        mining operations to be conducted.

(10)    Operated by AngloGold Ltd.

(11)    Operated by Placer Dome Inc.

(12)    Includes mineral reserves and resources from the undeveloped Gil and
        Ryan Lode deposits, both are part of the Fort Knox and area. The Company
        holds a 100% interest in the properties forming the Fort Knox and area
        except for the Gil property in which the Company holds an 80% interest.

(13)    Includes mineral reserves and resources from the undeveloped Gold Hill
        deposit, exploitation of which is dependent on successful permitting.

(14)    Includes mineral reserves and resources from the undeveloped Puren Norte
        deposit, exploitation of which is dependent on successful permitting.

(15)    Includes mineral reserves and mineral resources from the Birkachan
        deposit. Open pit mining at Birkachan has been approved, underground
        mining remains to be permitted by Russian authorities.

(16)    Includes mineral reserves and resources from the undeveloped Tsokol
        deposit, exploitation of which is dependent on successful permitting.

(17)    Mineral reserves reported at a gold price of $375 per ounce, mineral
        resources reported at a gold price of $425 per ounce.

(18)    Mineral reserves reported at a gold price of $350 per ounce, mineral
        resources reported at a gold price of $425 per ounce.

(19)    Mineral reserves reported at a silver price of $5.00 per ounce, mineral
        resources reported at a silver price of $6.00 per ounce.

(20)    Feasibility Study currently underway.

(21)    Blanket Mine is not included in Kinross' Financial Disclosure
        Statements.

(22)    Mineral resource and reserve estimates completed using the following
        foreign exchange rates:

             $US to $Cdn 1.25
             $US to Rubles 29.00
             $US to Chilean Peso 575
             $US to Brazilian Reals ("R") 3.00


                                     - 22 -
<PAGE>

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

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

                              RECOVERY (%)  GRADE(S) (GPT)   (PER)U.S. $)     (U.S. $/TONNE)       (M)         (M)
- ---------------------------------------------------------------------------------------------------------------------
<S>                         <C>              <C>                <C>          <C>                   <C>        <C>
GOLD
- --------------------------  --------------  --------------  ---------------  -----------------  ---------  ----------
Fort Knox and area          79.0% to 96.0%   0.60 to 1.04              -       $5.64 to $9.66       30.5       61.0
- --------------------------  --------------  --------------  ---------------  -----------------  ---------  ----------
Round Mountain              19.0% to 85.4%   0.12 to 0.67              -       $0.62 to $3.62       15.2       30.5
- --------------------------  --------------  --------------  ---------------  -----------------  ---------  ----------
Porcupine Joint Venture     88.1% to 95.9%   0.52 to 7.74           1.43      $6.24 to $93.17        7.6       48.8
- --------------------------  --------------  --------------  ---------------  -----------------  ---------  ----------
Aquarius                            95.00%           0.50           1.41               $13.50       25.0       25.0
- --------------------------  --------------  --------------  ---------------  -----------------  ---------  ----------
Musselwhite                         95.75%           4.00           1.25               $43.23       50.0       50.0
- --------------------------  --------------  --------------  ---------------  -----------------  ---------  ----------
Lupin                               92.50%           9.92           1.25               $93.91        4.5       22.9
- --------------------------  --------------  --------------  ---------------  -----------------  ---------  ----------
New Britannia                       93.00%           3.33           1.25               $49.51       15.2       61.0
- --------------------------  --------------  --------------  ---------------  -----------------  ---------  ----------
Kettle River                        90.00%           6.35              -               $61.06       22.9       22.9
- --------------------------  --------------  --------------  ---------------  -----------------  ---------  ----------
Paracatu (Brasilia)                 79.25%           0.20           3.00                $2.49      100.0      150.0
- --------------------------  --------------  --------------  ---------------  -----------------  ---------  ----------
La Coipa                    69.9% to 85.2%   0.45 to 0.92         675.00        $4.95 - $5.19       25.0       50.0
- --------------------------  --------------  --------------  ---------------  -----------------  ---------  ----------
Refugio                          48 to 67%   0.38 to 0.56         575.00                $4.53       30.0       60.0
- --------------------------  --------------  --------------  ---------------  -----------------  ---------  ----------
Crixas                      92.9% to 96.1%   1.90 to 3.00           3.20      $20.58 - $32.35       25.0       50.0
- --------------------------  --------------  --------------  ---------------  -----------------  ---------  ----------
Kubaka and area             95.0% to 97.5%   2.84 to 9.07          29.00     $24.79 to $77.18        6.1       40.0
- --------------------------  --------------  --------------  ---------------  -----------------  ---------  ----------
Blanket                             91.00%           3.00      15,259.00               $30.02        7.5       50.0
- --------------------------  --------------  --------------  ---------------  -----------------  ---------  ----------

- --------------------------  --------------  --------------  ---------------  -----------------  ---------  ----------
SILVER
- --------------------------  --------------  --------------  ---------------  -----------------  ---------  ----------
La Coipa                    42.5% to 71.0%   28.0 to 58.4         675.00        $4.95 - $5.19       25.0       50.0
- --------------------------  --------------  --------------  ---------------  -----------------  ---------  ----------
</TABLE>


                                     - 23 -
<PAGE>

        Reserve reconciliation is shown in the following table:

<TABLE>
<CAPTION>
                             2003 RESERVES         PRODUCTION                         2004 RESERVES

                             @$U.S. 325/OZ          DEPLETION     RESERVE GROWTH      @$U.S. 350/OZ

MINING OPERATION           (OZS AU X 1,000)   (OZS AU X 1,000)  (OZS. AU X 1,000)   (OZS AU X 1,000)
- -----------------------------------------------------------------------------------------------------
<S>                                 <C>                <C>                 <C>               <C>
Fort Knox                            2,945               (374)               288              2,858

Kubaka                                 410                (24)              (128)               258

Refugio                              1,386                331                  -              1,717

Round Mountain                       1,850                112               (486)             1,475

Kettle River                           181                (19)              (108)                54

Lupin                                  155                (74)               (72)                 9

New Britannia                           32                (12)               (20)                 -

Porcupine Joint Venture              1,489                372               (176)             1,685

Musselwhite                            658                 40                (91)               607

La Coipa                               584                 34               (112)               506

Crixas                                 470                 58                (96)               432

Paracatu (Brasilia)                  2,613              6,098               (248)             8,463

Aquarius                             1,042                  -                  -              1,042

Blanket                                319                  9                (23)               305
                          ---------------------------------------------------------------------------
TOTAL                               14,131             (1,934)             7,213             19,410
                          ---------------------------------------------------------------------------
</TABLE>

NOTE: TOTALS MAY NOT ADD, DUE TO ROUNDING. RESERVE GROWTH AT PARACATU WAS DUE
MOSTLY TO THE ACQUISITION OF AN ADDITIONAL 51% INTEREST IN THE PROPERTY.

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

<TABLE>
<CAPTION>

- ---------------- ------------- -------------- --------------------------------------------
                                  KINROSS                    PROVEN RESERVES
                                              --------------------------------------------
                                 INTEREST        TONNES          GRADE          OUNCES

    PROPERTY      LOCATION          (%)          (000S)          (GPT)          (000S)
- ---------------- ------------- -------------- -------------- -------------- --------------
<S>                <C>             <C>           <C>              <C>             <C>
- ---------------- ------------- -------------- -------------- -------------- --------------
GOLD
- ---------------- ------------- -------------- -------------- -------------- --------------
Fort Knox          USA             100.00%       21,997           0.48            340
- ---------------- ------------- -------------- -------------- -------------- --------------
True North         USA             100.00%            -              -              -
- ---------------- ------------- -------------- -------------- -------------- --------------
Round Mountain     USA              50.00%       27,105           0.43            376
- ---------------- ------------- -------------- -------------- -------------- --------------
Porcupine Joint
  Venture          Canada           49.00%        7,279           0.93            219
- ---------------- ------------- -------------- -------------- -------------- --------------
Kubaka             Russia           98.10%          350           2.73             31
- ---------------- ------------- -------------- -------------- -------------- --------------
La Coipa           Chile            50.00%        2,763           0.72             64
- ---------------- ------------- -------------- -------------- -------------- --------------
Refugio            Chile            50.00%           79           1.11              3
- ---------------- ------------- -------------- -------------- -------------- --------------

- ---------------- ------------- -------------- -------------- -------------- --------------
SILVER
- ---------------- ------------- -------------- -------------- -------------- --------------
Kubaka             Russia           98.10%          350            8.9            100
- ---------------- ------------- -------------- -------------- -------------- --------------
La Coipa           Chile            50.00%        2,763           47.5          4,220
- ---------------- ------------- -------------- -------------- -------------- --------------
</TABLE>


                                     - 24 -
<PAGE>

                         MINERAL RESERVES AND RESOURCES
                                QUALIFIED PERSONS

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

<TABLE>
<CAPTION>
<S>                                                                           <C>
    ------------------------- ------------------- ---------------- --------------------
             Property          Qualified Person        Company         Qualification
    ------------------------- ------------------- ---------------- --------------------
    Fort Knox                  R.Cooper            Kinross          P.Eng
    Round Mountain             R.Cooper            Kinross          P.Eng
    Porcupine Joint Venture    R.Cooper            Kinross          P.Eng
    Paracatu                   R Cooper            Kinross          P.Eng
    La Coipa                   R.Cooper            Kinross          P.Eng
    Refugio                    R. Cooper           Kinross          P.Eng

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

RESERVES INCREASE AT PARACATU AS OF NOVEMBER 1, 2005

        In January 2005 Kinross initiated an exploration program at the Paracatu
mine. A revised resource and reserve estimate on November 1, 2005, based on
approximately half of the assay results from the program, resulted in an
increase in proven and probable reserves at a gold price of $400 per ounce and
an exchange rate of R2.65 = US$1.00 to 946,974,000 tonnes at a grade of 0.44
grams per tonne, containing an estimated 13,280,000 ounces of gold.

        Measured and indicated resources, exclusive of reserves, estimated at a
gold price of $450 per ounce and an exchange rate of R2.65 = US$1.00, increased
to 121,906,000 tonnes at a grade of 0.43 grams per tonne, containing an
estimated 1,677,000 ounces of gold.

        In addition to measured and indicated resources, inferred resources
estimated at a gold price of $450 per ounce and an exchange rate of R2.65 =
US$1.00, totalled 121,981,000 tonnes at a grade of 0.43 grams gold per tonne.

MATERIAL PROPERTIES

FORT KNOX MINE AND AREA, ALASKA

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

        Detailed financial production and operational information for the Fort
Knox mine is available in Kinross' management's discussion and analysis for the
year ended December 31, 2004 (the "MD&A").

PROPERTY DESCRIPTION AND LOCATION

FORT KNOX OPEN PIT

        The Fort Knox open pit mine, mill and mineral claims cover approximately
20,463 hectares located 42 kilometers northeast of the City of Fairbanks,
Alaska. Kinross owns 1,168 State of Alaska mining claims covering an area of
approximately 19,962 hectares, an additional 501 hectares of mineral rights
comprised of an Upland Mineral Lease issued by the State of Alaska, a Millsite
Lease, and one unpatented federal lode mining claim. The Upland Mineral Lease
expires in 2014 and may be renewed for a period not to exceed 55 years. Mineral
reserves at the Fort Knox mine are situated on 505 hectares of land that are
covered by a State of Alaska Millsite Lease that expires in 2014, and may be
renewed for a period not to exceed 55 years.

                                     - 25 -
<PAGE>

        The State of Alaska Millsite Lease carries a 3% production royalty,
based on net income and recovery of the initial capital investment. Mineral
production from State mining claims is subject to a Mine License Tax, following
a three-year grace period after production commences. The license tax ranges
from 3% to 7% of taxable income. There has been no production from State claims
situated outside the boundaries of the Millsite Lease at the Fort Knox mine. The
unpatented federal lode claim is owned by Kinross and is not currently subject
to any royalty provisions. There was no royalty paid in 2003 but Kinross paid a
royalty of $0.14 million in 2004.

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

TRUE NORTH OPEN PIT

        The True North open pit mine mineral claims cover approximately 3,804
hectares, located 43 kilometers northeast of the City of Fairbanks, Alaska.
Kinross owns 104 State of Alaska mining claims, covering 1,619 hectares which
are subject to a State production royalty tax of 3%. Mineral reserves are
situated on two groups of State claims that Kinross has leased from private
individuals. Mineral production to date has been from one of the leased claim
blocks. Mineral leases have been executed with third parties for an additional
138 State mining claims that cover approximately 2,185 hectares. Leased claims
are subject to net smelter return royalties ranging from 3.5% to 5%. Kinross
paid royalties of $0.37 million in 2004 and $1.0 million in 2003 on True North
Production.

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

RYAN LODE PROJECT

        The Ryan Lode project mineral claims cover approximately 500 hectares
located 10 kilometers west of the City of Fairbanks, Alaska. The claim block
consists of 50 State of Alaska mining claims, ten patented federal mining claims
and five unpatented federal mining claims, which are either leased from third
parties or held by Kinross. All production from the State of Alaska mining
claims is subject to the State of Alaska Mine License Tax following a three-year
tax grace period after production commences. The State of Alaska Mine License
tax is graduated from 3% to 7% of taxable income. In addition to the State of
Alaska Mine License Tax, the leased claims are subject to net smelter royalties
of 5%, and annual rental payments of $0.15 million. The annual rental payments
are not deductible when computing the net smelter return royalties. Kinross paid
$0.15 million of annual rental payments in each of 2004 and 2003.

GIL PROPERTY

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

ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY

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

        Access to the Fort Knox mine from Fairbanks, Alaska is by 34 kilometers
of paved highway and eight kilometers of unpaved road. The True North mine is
located 18 kilometers west of the Fort Knox property and is accessible by an
unpaved road. The Ryan Lode project is located 65 kilometers from the Fort Knox
property and is accessible by 54 kilometers of paved road and 11 kilometers of
unpaved roads. The area has a sub-arctic climate,

                                     - 26 -
<PAGE>

with long cold winters and short summers. Winter low temperatures drop to the
range of -40 to-48 Celsius (-40 to -55 degrees Fahrenheit), while in the summer,
highs may occasionally exceed 32 degrees Celsius (90 degrees Fahrenheit). The
annual rainfall in Fairbanks is approximately 30 centimeters.

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

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

HISTORY

        An Italian prospector named Felix Pedro discovered gold in the Fairbanks
mining district in 1902. Between 1902 and 1993 more than 8.0 million ounces of
predominately placer gold were mined in the district. In 1984 a geologist
discovered visible gold in granitic hosted quartz veins on the Fort Knox
property. Between 1987 and 1991, a number of companies conducted extensive
exploration work on the Fort Knox, True North and Gil properties. In 1991, Kinam
(now a subsidiary of Kinross) entered into a joint venture agreement with Teryl
to explore the Gil property. In 1992, Kinam acquired ownership of the Fort Knox
property. Construction of the Fort Knox mine and mill operations began in 1995
and were completed in 1997. Commercial production at Fort Knox was achieved on
March 1, 1997. Construction of the mine was completed at a capital cost of
approximately $373 million, which included approximately $28 million of
capitalized interest. After acquiring ownership of the True North property in
1999, Kinross completed pre-production capital expenditures, primarily
permitting and the building of a haulage road to the Fort Knox mill. Commercial
production at True North was achieved on April 1, 2001. Pre-production capital
expenditures for True North were approximately $29.6 million.

GEOLOGY AND MINERALIZATION

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

        The Fairbanks district is situated in the northwestern part of a
geologic formation called the Yukon - Tanana Terrane (YTT). The YTT consists of
a thick sequence of Precambrian to upper Paleozoic metamorphic rocks. The
dominant rock types in the district are gray to brown, fine-grained micaceous
schist and micaceous quartzite known as the Fairbanks Schist. The Cleary
Sequence, a varied assemblage of metavolcanic rocks, is interlayered with the
Fairbanks Schist. Higher grade metamorphic rocks of the Chatanika Terrane
outcrop in the northern part of the district. Granodiorite to granite igneous
bodies intrude YTT rocks.

        The mineral deposits are generally situated in a northeast trending,
structurally complex zone characterized by a series of folds, shear zones, high
angle faults, and occasional low angle faults. Northeast striking high angle
faults influence the location of gold deposits.

        The Fort Knox gold deposit is hosted by a granitic body that intruded
the Fairbanks Schist. The surface exposure of the intrusive body is
approximately 1,100 meters in the east-west direction and 600 meters
north-south.

        Gold occurs in and along the margins of pegmatite veins, quartz
stockwork veins and veinlets, quartz-veined shear zones, and fractures within
the granite. The stockwork veins strike predominantly east and dip randomly.
Stockwork vein density decreases with depth. Shear zones generally strike
northwest and dip moderately to the southwest.

        Gold distribution exhibits good continuity in the shear zones but is
less predictable in the stockwork zones. Host rock grain size and intrusive
phase contacts appear to influence location of shear zones. Gold particles
within shear zones are relatively uniformly distributed and are generally less
than 100 microns in size. Gold particle size and distribution are much more
erratic in the stockwork vein zones. The sulfide content of the deposit is very
low.

                                     - 27 -
<PAGE>

        The True North gold deposit is located in the Chatanika Terrane. Gold is
hosted in mafic to felsic schists and is frequently accompanied by carbon and
carbonate alteration in sheared or otherwise structurally prepared zones. The
gold is very fine grained, and is closely associated with pyrite, arsenopyrite,
and stibnite in the unoxidized zones. It occurs in quartz veins, and in altered
and brecciated rocks. There appears to be a direct relationship between veining
and gold content, as weakly veined rocks generally carry lower gold values.

EXPLORATION

        Gold exploration techniques utilized at the Fort Knox and True North
projects include: reconnaissance and detailed geologic mapping to determine the
distribution of rock types and structures; soil and rock chip sampling to
determine the presence and surface distribution of gold and associated trace
elements; trenching of soil anomalies to create exposures of mineralized bedrock
for detailed mapping and sampling; and drilling to confirm the geologic controls
on mineralization and to determine the distribution of gold in three dimensions.

        Two types of drilling methods have been used, diamond core and reverse
circulation ("RC"). Drilling and drill hole sampling is completed by independent
drilling contractors under the close supervision of Kinross personnel.
Independent commercial laboratories perform gold assays and geochemical
analyses. Historically, Kinross has utilized the services of two firms - ALS
Chemex Laboratories and Bondar-Clegg (now owned by the ALS Chemex group). Check
assay work during 2003 was switched to American Assay Laboratories, Inc. after
Bondar-Clegg was acquired by the ALS Chemex group.

        Kinross' regional exploration within the Fairbanks district totaled $0.6
million during 2004 and approximately the same in 2005.

DRILLING, SAMPLE PREPARATION AND ANALYSIS

        Core and RC drilling are routinely utilized to explore for and define
mineral deposits in the Fairbanks mining district. Core drilling produces
continuous cylindrical samples of rock by means of an annular shaped, diamond
impregnated bit rotated by a bore hole drilling machine. Core drilling, also
referred to as diamond drilling, is commonly used to collect continuous, intact
rock samples for detailed geologic logging and sampling, for geotechnical and
rock strength tests, metallurgical tests, or because alternative drilling
methods may not provide adequate or appropriate geological materials.

        RC is a method of rotary or percussion drilling that utilizes dual wall
drill pipe. The drilling medium (air, water, foam drilling muds, and additives)
is circulated to the drill bit face down through the outside annulus from the
surface. The drilling medium then carries rock fragments produced by the drill
bit to the surface through the center of the drill rods. This method reduces
down hole contamination by isolating the drilling medium and rock cuttings from
the hole wall. RC drilling is a generally accepted method that is commonly used
in mineral exploration and development drilling programs throughout the world.

        Comprehensive drilling programs have been carried out at the Fort Knox
deposit. The Fort Knox deposit has been defined by 664 drill holes (247 core
holes and 417 RC holes totaling 422,517 feet), which have provided 84,503
nominal 1.52-meter long samples.

        Core samples and RC drill cuttings are collected from each drill hole
and are geologically logged. RC rotary drill cuttings are collected at one and a
half meter intervals by a geologist or helper at each drill site. Each core
interval and RC rotary cutting sample is submitted to an independent assay
laboratory for geochemical analysis, and the subsequent geochemical data is
entered, together with information about the host rock, into the project
database. Core samples are regularly photographed and then logged and sampled in
one and a half meter intervals. Data is entered on the logs in a digital format.
Special emphasis is placed on fault and vein orientations, as well as alteration
and oxidation. Drill core is split or sawn in half with one half retained for
later use and the remainder of each interval is submitted for assay.

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

                                     - 28 -
<PAGE>

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

        A standard pulp sample of known grade is also submitted to the
laboratory. The sample frequency is twice per core hole, and every 30 meters for
RC holes. These standards are prepared both in-house and by outside laboratories
over the different exploration seasons, and they represent different ranges of
gold grades.

        At the True North deposit samples with fire assays greater than 0.3
grams per tonne are resubmitted to the laboratory for a cyanide soluble assay.
The purpose of this procedure is to estimate mill recovery rates.

        The nature of the mineralization and host rock at the Fort Knox deposit
requires that particular care be given to the collection of drill hole samples,
especially for RC holes, that penetrate the water table within the deposit.
Kinross employs, as a standard operating procedure, an analysis program for
determining if a particular RC drill sample is representative of the rock within
the drill hole. This program includes weighing the samples to determine if the
sample is under weight (indicating loss of material in the sampled interval).
The presence of unusually high sample weights is often an important indicator of
sample contamination in a drill hole. All assay data from mineralized intervals
are analyzed by two computer programs (developed by MRDI, an independent mining
consulting firm) to determine if there is a predictable repetition (cyclicity)
to high grade intervals, or (decay) of assays immediately adjacent to and below
high grade intervals, possibly indicating contamination of certain assay values.
Any holes suspected of down hole contamination on the basis of these three
criteria are compared to adjacent holes on cross-sections and a decision is made
to reject or include the data for mineral resource estimations.

MINERAL RESERVE AND RESOURCE ESTIMATES

        The following table sets forth the estimated proven and probable
reserves for the Fort Knox mine and area as at December 31, 2004, and 2003:

<TABLE>
<CAPTION>
                    2004 (AT A GOLD PRICE OF                 2003 (AT A GOLD PRICE OF

                      U.S. $350 PER OUNCE)                     U.S. $325 PER OUNCE)
              -------------------------------------    -------------------------------------
                             AVERAGE      GOLD                       AVERAGE      GOLD

                 TONNES       GRADE      CONTENT         TONNES       GRADE      CONTENT
                 ------       -----      -------         ------       -----      -------

                (000'S)       (GPT)     (000'S OZ)      (000'S)       (GPT)     (000'S OZ)

<S>              <C>             <C>         <C>          <C>             <C>         <C>
Proven (1)        53,333         0.76        1,301         54,913         0.83        1,464

Probable          47,471         1.02        1,556         48,026         0.96        1,481
              -----------  -----------  -----------    -----------  -----------  -----------

Total            100,803         0.88        2,858        102,939         0.89        2,945
              ===========  ===========  ===========    ===========  ===========  ===========
</TABLE>

NOTE:  TOTALS MAY NOT ADD, DUE TO ROUNDING.

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

(1)     Includes 21,997,000 tonnes of stockpiled material at December 31, 2004,
        with an average grade of 0.48 gpt or 340,000 ounces of proven reserves.

In addition to estimated proven and probable reserves, as at December 31, 2004,
the Fort Knox mine and area has an estimated 36.9 million tonnes of measured and
indicated resources at an average grade of 0.71 grams of gold per tonne at a
gold price of U.S. $400 per ounce. UNITED STATES INVESTORS ARE ADVISED THAT THE
TERMS "MEASURED RESOURCES" AND "INDICATED RESOURCES" ARE RECOGNIZED BY CANADIAN
REGULATIONS BUT NOT BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION.
UNITED STATES INVESTORS ARE CAUTIONED NOT TO ASSUME THAT

                                     - 29 -
<PAGE>

ALL OR ANY PART OF MINERAL DEPOSITS IN THESE CATEGORIES WILL EVER BE CONVERTED
INTO PROVEN AND PROBABLE RESERVES.

MINING AND MILLING OPERATIONS

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

        The Fort Knox mill has a daily capacity of between 32,658 to 45,359
tonnes. Mill feed is first crushed to minus 20 centimeters in the primary
crusher located near the Fort Knox pit and conveyed 800 meters to a coarse-ore
stockpile located near the mill. The crushed material is conveyed to a
semi-autogenous (SAG) mill, which operates in closed circuit with two ball mills
and a bank of cyclones for sizing. A portion of the cyclone underflow is
screened and then directed to a gravity recovery circuit.

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

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

        Kinross estimates the net present value of future cash outflows for site
restoration costs at Fort Knox and True North under CICA Handbook Section 3110,
which is effective for years beginning January 1, 2004, at $16.2 million.
Kinross has posted $14.7 million of letters of credit to various regulatory
agencies in connection with its closure obligation at Fort Knox and True North.

FORT KNOX OPEN PIT

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

        In 1996 a 1.2 million tonne slope failure developed in the central south
wall above the granite-schist contact. The slide has been stabilized. Ground
water was believed to be a contributing factor to the failure, and a dewatering
program is planned before mining this zone.

        Stripping of Phase-6 continued in 2005. Before sustained mill feed rates
from Phase-6 can be reached in mid 2006 on the 1460 bench, 50 million tonnes of
waste rock will be mined, at an average rate of 54,400 tonnes per day. Six
additional haul trucks and a loader have been added to the mining fleet in order
to accomplish the stripping.

        Typically, upper Phase-6 benches average 1,400 meters in length, with a
mining face width of between 45 and 150 meters. Haul road access to the Phase
will be from the northeastern end. Subdividing the Phase would reduce the
stripping load, but due to the bench geometry and access limitations, this has
not been considered.

TRUE NORTH OPEN PIT

        Mining at True North was suspended during the first quarter of 2004 in
order to use the mining equipment to complete the tailing dam lift at Fort Knox
rather than rely on more expensive third party contractors.

                                     - 30 -
<PAGE>

LIFE OF MINE, AND CAPITAL EXPENDITURES

        The life of mine plan prepared by Kinross does not incorporate mining at
True North. Mining will be primarily derived from the Fort Knox deposit until
2011 when the feed will originate predominantly from the low grade stockpile
material.

        Capital expenditures at the Fort Knox operations in 2004 were $58.7
million compared to $26.5 million during 2003. The majority of the expenditures
were directed towards the Phase 5 capital development at the Fort Knox pit with
a portion attributed to Phase 6 development. Capital expenditures for 2005 were
approximately $45.0 million and were mainly attributed to the Phase 6 capital
development at the Fort Knox pit.



              [Graphic depicting the location and boundaries of the
                        Fort Knox Mine on a local map.]




                                     - 31 -
<PAGE>


THE PORCUPINE JOINT VENTURE

GENERAL

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

        Detailed financial, production and operational information for the
Porcupine Joint Venture is available in the MD&A.

THE ASSET EXCHANGE AGREEMENT

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

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

THE PORCUPINE JOINT VENTURE AGREEMENT

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

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

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

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

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

                                     - 32 -
<PAGE>

PORCUPINE JOINT VENTURE OPERATIONS

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

PROPERTY DESCRIPTION AND LOCATION

HOYLE POND UNDERGROUND MINE AND BELL CREEK MILL

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

        There are two royalties on the Hoyle Pond underground mine land package.
One payment is based on a $0.10 per ton royalty on ore from most areas of the
1060 zone, and one covers much of the area containing the original Hoyle Pond
mine workings which is also tonnage based, but is only currently paying out an
annual minimum payment as mining in this portion of the mine is limited. Royalty
payments were approximately Cdn.$0.2 million in 2004 and 2003.

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

DOME MINE AND MILL

        The Dome mine and mill are located within the city limits of Timmins,
Ontario, on an area that covers over 5,004 hectares of staked and patented
mining claims held or under option, including the Preston property that lies to
the south and east, immediately adjacent to the Dome property and the Paymaster
property that lies to the west of the Dome open pit. The Dome underground mine
is currently on care and maintenance and open pit mining was completed in the
second half of 2005. The Pamour pit is currently the only operating open pit
mine at the Porcupine Joint Venture.

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

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

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

PAMOUR AND NIGHTHAWK LAKE MINES

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

        The Pamour open pit development was finalized in 2005.

                                     - 33 -
<PAGE>

ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY

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

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

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

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

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

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

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

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

HISTORY

        Land was first staked in the vicinity of the present day Pamour mine in
1910. Limited production was achieved from 1911 to 1914. The property remained
idle from 1914 to 1923. Between 1923 and 1935 several mining syndicates carried
out exploration work. In 1935 and 1936, the Pamour No. 3 shaft was sunk and a
650 tonnes per day mill was constructed. In 1938, the mill capacity was
increased to 1,300 tonnes per day by installing new equipment. During the
1950's, mill throughput averaged 1,500 tonnes per day. In 1972, the mill was
expanded to treat 2,275 tonnes per day as production from the nearby Aunor mine
was processed at the Pamour mill. Open pit mining at the Pamour mine began in
1976 and continued until 1999. Open pit mining resumed in 2004 and ore started
to be delivered to the Dome mill by the second quarter of 2005.

        There has been no gold production at the Pamour mine since Kinross
acquired it in 1999.

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

        The Dome deposit was discovered in 1909. Operations commenced in 1910,
producing 214 ounces of gold. Mining has been continuous at Dome since 1910. In
1984, the mill capacity was increased from 2,000 to

                                     - 34 -
<PAGE>

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

        From its beginning in 1909 to December 31, 2004, the Dome mine has
produced 15,512,247 ounces of gold, making it the second largest gold producer
of the Timmins camp.

GEOLOGY AND MINERALIZATION

REGIONAL

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

HOYLE POND

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

        The Hoyle Pond Main Zone includes a series of generally northeast
striking, linked quartz vein zones (at least 11 veins of economic significance)
folded on a small scale with moderate west trending and northeast plunging fold
axis. The 1060 Zone consists of at least five main vein structures (B1, B2, and
B3 Zones, A Zone and Porphyry Zone) with orientations ranging from north to
northeast with generally subvertical dips.

PAMOUR MINE

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

DOME MINE

        The Dome mine lies on the south limb of the Porcupine syncline in an
area where the Archean Metavolcanics are overlain by the metasedimentary rocks.
Gold mineralization is found in a number of different rock types and in
association with a number of different structural settings. Mineralization in
the district is commonly associated with the northeasterly plunge of the
Porcupine syncline. At the mine site, the local sequence of north dipping
metavolcanics and metasedimentary rocks have been folded to form a northeasterly
plunging structure, referred to as "Greenstone Nose." Sediments consisting of
conglomerates, slates and greywackes are draped around this structure and form
the "Sedimentary Trough" on the south side.

        Immediately south of the "Sedimentary Trough" lies an east-west
striking, highly strained zone in which magnesium rich, carbonatized rock
occurs. This highly altered zone corresponds to the trace of the ductile Dome
Fault interpreted to represent a branch off the main Destor-Porcupine Fault. To
the west, the Dome Fault Zone

                                     - 35 -
<PAGE>

passes between two major porphyritic intrusive bodies--the Paymaster and the
Preston Porphyries. To the east, lenses of porphyry, similar compositionally to
the main porphyry bodies, occur within the Dome Fault Zone. To the south of the
Dome Fault Zone are the "Southern Greenstones," a south-dipping sequence of
basalts consisting of massive and pillowed flows.

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

EXPLORATION

        Kinross' share of regional exploration within the Timmins camp totaled
$3.2 million during 2004 and approximately $3.5 million in 2005.

DRILLING, SAMPLE PREPARATION AND ANALYSIS

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

        Surface and underground diamond core drilling operations were conducted
during 2004. For resource estimation purposes, drilling spacing ranges from a
low of 8.0 meters to a high of 50.0 meters. Typically, drill holes are sampled
honoring geological contacts while maintaining a minimum 1.5 meter sample
length. Typically the core is not split or sawn prior to assay unless the hole
is an exploration hole targeting new mineralization.

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

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

        Prior to the completion of the Porcupine Joint Venture, Kinross'
analytical work was carried out at the Bell Creek lab with some exploration
samples sent to an independent lab for analysis.

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


                                     - 36 -
<PAGE>

MINERAL RESERVE AND RESOURCE ESTIMATES

        The following table sets forth the estimated proven and probable
reserves for Kinross' 49% interest in the Porcupine Joint Venture as at December
31, 2004, and 2003:

<TABLE>
<CAPTION>
                    2004 (AT A GOLD PRICE OF                 2003 (AT A GOLD PRICE OF

                      U.S. $350 PER OUNCE)                     U.S. $325 PER OUNCE)
              -------------------------------------    -------------------------------------
                             AVERAGE      GOLD                       AVERAGE      GOLD

                 TONNES       GRADE      CONTENT         TONNES       GRADE      CONTENT
                 ------       -----      -------         ------       -----      -------

                (000'S)       (GPT)     (000'S OZ)      (000'S)       (GPT)     (000'S OZ)

<S>              <C>             <C>         <C>          <C>             <C>         <C>
Proven (1)        11,005         1.31          463          9,129         1.39          409

Probable          23,072         1.65        1,223         18,033         1.86        1,080
              -----------  -----------  -----------    -----------  -----------  -----------

Total             34,077         1.54        1,685         27,162         1.70        1,489
              ===========  ===========  ===========    ===========  ===========  ===========
</TABLE>

NOTE: TOTALS MAY NOT ADD, DUE TO ROUNDING.

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

(1)     Includes 7,279,000 tonnes of stockpiled material at December 31, 2004,
        with an average grade of 0.94 gpt or 219,000 ounces of proven reserves.

        In addition to proven and probable reserves, as at December 31, 2004,
Kinross' share at the Porcupine Joint Venture has an estimated 26.5 million
tonnes of measured and indicated resources at an average grade of 1.96 grams of
gold per tonne at an assumed gold price of U.S. $425 per ounce. UNITED STATES
INVESTORS ARE ADVISED THAT THE TERMS "MEASURED RESOURCES" AND "INDICATED
RESOURCES" ARE RECOGNIZED BY CANADIAN REGULATIONS BUT NOT BY THE UNITED STATES
SECURITIES AND EXCHANGE COMMISSION. UNITED STATES INVESTORS ARE CAUTIONED NOT TO
ASSUME THAT ALL OR ANY PART OF MINERAL DEPOSITS IN THESE CATEGORIES WILL EVER BE
CONVERTED INTO PROVEN AND PROBABLE RESERVES.

MINING AND MILLING OPERATIONS

        The Hoyle Pond operations consist of an underground mine serviced by two
declines and one shaft serving production levels on 40m vertical spacings. The
Hoyle Pond shaft provides access to the Hoyle Pond and 7 Vein Zones. The 1060
ramp provides access to the 1060 Zone and is currently being extended to provide
access to lower levels on the 1060 Zone. Total production (ore and waste) is
transported to the loading pocket by means of an ore/waste pass system and
hoisted to surface in 6.5 tonne skips. The surface infrastructure consists of
administration buildings, maintenance, compressed air, paste fill plant, and
hoisting facilities. An internal winze construction was completed in 2005.

        The mineralized zones at Hoyle Pond are narrow high-grade veins, dipping
from 30 to 90 degrees. Underground mining methods used are cut and fill,
shrinkage, panel and long-hole methods.

        Mining of the Hoyle Pond crown pillar will be prioritized in the mining
schedule if Placer Dome can successfully negotiate an agreement with
Falconbridge. Mining of the crown pillar will require isolating the adjacent
Falconbridge tailings management area, berms to separate the pit from the Hoyle
Pond complex, relocation of the Hoyle Pond mine water settling ponds, relocation
of the tailings management area utility and access road, and installation of
underground bulkheads to isolate the Hoyle Pond underground workings from the
pit.

        The Dome underground mine had its final year of full production in 2003
and was placed on care and maintenance in May 2004 after 94 years of operation
that began in 1910. Attempts to extend the mine life are being evaluated with
on-going exploration of areas within and peripheral to the mine.

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

                                     - 37 -
<PAGE>

        Reserve estimates for the open pit include allowances for the presence
of mined-out underground workings. Open pit mining costs reflect the specialized
drilling, blasting and backfilling that is required to ensure that open pit
mining can proceed safely through these underground workings. Overburden
encountered in the upper portions of the open pit is stockpiled for use in
reclamation. Rock dumps are contoured and re-vegetated on an ongoing basis as
part of normal open pit operations. Open pit mineral reserves were depleted in
2005. Stockpiled ore is expected to sustain mill operations for several years
after the completion of mining at the Dome open pit. Opportunities to reactivate
the pit to recover additional reserves are being evaluated.

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

        All ore mined by the Porcupine Joint Venture is milled at the Dome mill.
Currently, the Dome mine and the Hoyle Pond mine provide feed to the mill. The
mill was expanded in 2004 to accommodate planned production from the Pamour mine
in mid 2005.

        Kinross' share of the net present value of future cash outflows for site
restoration costs at the Porcupine Joint Venture under CICA Handbook Section
3110, which is effective for fiscal years beginning January 1, 2004, are
estimated to be $13.6 million at December 31, 2004. Kinross has posted letters
of credit totaling $11.7 million for site restoration obligations with the
provincial government in connection with its share of closure obligations.

LIFE OF MINE, AND CAPITAL EXPENDITURES

        Currently estimated proven and probable reserves for the PJV are
sufficient for eight and a half years of production. There is significant
potential for additional reserves and resources in the current property position
controlled by the joint venture.

        Kinross' share of capital expenditures at the Porcupine Joint Venture
operations in 2004 were $24.5 million, compared to $8.3 million during 2003. The
majority of the increase in capital expenditures in 2004 was due to the
advancement of the Pamour project. Kinross' share of capital expenditures in
2005 were approximately $24 million. The majority of the capital was attributed
to the Pamour pit development.


                                     - 38 -
<PAGE>

PORCUPINE JOINT VENTURE PROPERTY POSITION







            [Graphic depicting the boundaries of the Timmins General
              Property Position in which Kinross holds an interest
                     through the Porcupine Joint Venture.]









                                     - 39 -
<PAGE>

LA COIPA MINE

GENERAL

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

        Detailed financial, production and operational information for the La
Coipa mine is available in the MD&A.

PROPERTY DESCRIPTION AND LOCATION

        The La Coipa mine is located in the Atacama Region of northern Chile,
approximately 1,000 kilometers north of Santiago and 140 kilometers northwest of
the community of Copiapo, Chile. The mine is operated by a Chilean contractual
company, Compania Minera Mantos de Oro ("MDO"), a joint venture between a
wholly-owned subsidiary of Placer Dome (50%) and Kinross (50%). The overall
operation consists of five deposits known as Ladera-Farellon, Coipa Norte,
Brecha Norte, Can-Can and Puren. Coipa Norte and Brecha Norte are currently
being mined by open pit methods, and exploitation at Puren began in 2005
followed by Can-Can in 2007. The Puren deposit has been approved for development
by the partners at La Coipa, Chile. Puren is owned 65% by Mantos de Oro (MDO), a
50:50 joint venture with Placer Dome and Kinross Gold, and 35% by Codelco of
Chile, MDO is actively exploring in the district with an approved exploration
budget which was $2.5 million for 2005.

        The La Coipa mine consists of approximately 7,500 hectares of mineral
claims, of which the principal ones are Indagua, Marta, Escondida, Candelaria,
Eduardo, and Chimberos. The MDO area of influence changes from time to time as
agreed by the project partners. MDO currently has a 65% equity stake in the
Puren area to the east of the mine, has an option to acquire a 100% stake in the
Esperanza property to the north of La Coipa, and Kinross holds a 50% interest in
the CMCLC (Cominor) ground (7,294 hectares) surrounding La Coipa. MDO has
obtained a series of permits that allow exploration and mining activities to
proceed in the La Coipa area. No other permits need to be obtained based on
existing and recently planned operations. MDO's land position as at the end of
2004 including exploitation concessions and exploration permits, but excluding
Kinross' interest in the Cominor property, covers 23,542 hectares.

        The exploration permits are valid for a two-year period from the date
they are declared in force and can be renewed once for another two-year period.
Thereafter the size of the exploration permit area must be reduced by half. MDO
can elect to apply for mining concessions in areas where exploration concessions
are held. The exploitation or mining concessions can be held indefinitely as
long as the annual fees are paid to keep the permits in good standing. The
exploitation permits covering the La Coipa area give MDO the right to extract
the ore and to sell the final products into the open market.

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

ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY

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

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

                                     - 40 -
<PAGE>

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

HISTORY

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

        La Coipa open pit mine and its 15,000 tonne per day mill began operation
in October 1991. A new crushing system was installed in October 1999 increasing
throughput to 17,000 tonnes per day. The Ladera-Farellon and Farellon Bajo ore
bodies were mined in four pit stages between 1991 and 2000. The Coipa Norte ore
body will be mined out in five stages between 1995 and 2008; it started after
mining of Stage 2 in Farellon Bajo was completed in 1994. Ore from the Chimberos
silver ore body (located 40 km by road from the processing plant) was processed
from mid-1998 to mid-1999. In the third quarter of 1999, production from La
Coipa recommenced, mainly from the Coipa Norte ore body. Mining of the Brecha
Norte ore body started in stage one in 2003 and mining will be completed in
2006.

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

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

GEOLOGY AND MINERALIZATION

        The La Coipa mine is located in the northern Chilean volcanic belt known
as the Maricunga belt. It contains several well-known base metals and precious
metals deposits such as Cerro Casale, Refugio, Marte and El Hueso.

        La Coipa and surrounding deposits form part of a precious metal
epithermal system. Structural controls on mineralization are dominant at La
Coipa, but lithological controls are also present. The La Coipa deposits are
mainly contained within two basic rock formations - Triassic sedimentary rocks
that form the basement and overlying Tertiary volcanic rocks. Mineralization at
Coipa Norte and Brecha Norte, are both hosted in volcanics and sediments. Silver
mineralization occurs mainly in volcanics but gold is preferentially hosted in
sedimentary rocks.

        The 17,000 tonnes per day processing plant is located near
Ladera-Farellon because this ore body comprised the majority of the original
mineral reserve. The Coipa Norte deposit is located about five kilometers north
of Ladera-Farellon and the Brecha Norte deposit is located northeast of the
Coipa Norte deposit. The Puren deposit is located eight kilometers northwest
from Ladera-Farellon, and was recently discovered by the MDO exploration team.
The Chimberos deposit is approximately 25 kilometers northeast of the processing
plant.

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

                                     - 41 -
<PAGE>

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

EXPLORATION

        Exploration work in the La Coipa district started in the late 1800s and
has been ongoing since, although the property ownership has changed a number of
times. Modern exploration techniques have been implemented starting in the late
1970s to early 1980s. They included geological mapping, geochemistry, channel
sampling, drilling and 800 meters of underground development. Numerous soil
geochemical anomalies and historic gold silver prospects exist within the
vicinity of the La Coipa ore bodies. These include the Las Colorada and Indagua
anomalies on the MDO property, and the Maritza, Pompeya and Puren West anomalies
on the surrounding CMCLC ground.

        Kinross' share of exploration expenditures totaled $0.5 million during
2004. Kinross' share of exploration spending for 2005 was approximately $1.1
million. During 2005 the Esperanza, Carachapampa and CMCLC properties were
drilled to prepare an evaluation of Teterita, a prospect drilled in 2004-2005.

DRILLING, SAMPLE PREPARATION AND ANALYSIS

        Various drilling methods and sampling protocols have been used at La
Coipa. Diamond drill holes completed during the exploration phase were
systematically sampled in 2 meter intervals. Half the core was sent for assaying
and the other half stored in a warehouse near the camp. RC holes for both
exploration and in-pit drilling are sampled in 2 meter long "runs." All drill
chips are also stored in the same location as the core.

        Since 1984, a total of 127,785 meters of drilling has been completed in
the La Coipa mining area. Most of the exploration drilling was completed with RC
holes. All exploration holes are surveyed. The holes have also been down-hole
surveyed at about 20 meter intervals. Most of the exploration holes are inclined
holes.

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

The laboratory department uses a well-established set of quality assurance and
quality control protocols to monitor its own performance. The mine laboratory
regularly inserts standards. Duplicate analyses are done from time to time at
independent labs, including pulp duplicates of selected samples. The mine lab
carefully monitors all aspects of sample preparation and assaying for
exploration activities, the blast holes, the plant and the refinery. They
include numerous control checks when the drill or blast hole samples are
received for preparation and analysis. Most analyses are performed at the mine
laboratory, with some exploration samples sent to an outside laboratory
depending on the required turnaround time.


                                     - 42 -
<PAGE>

MINERAL RESERVES AND RESOURCE ESTIMATES

        The following table sets forth the estimated proven and probable
reserves for the La Coipa mine as at December 31, 2004, and 2003, and represents
Kinross' 50% interest:

<TABLE>
<CAPTION>

                         GOLD     SILVER         GOLD       SILVER                  GOLD      SILVER        GOLD        SILVER
             TONNES     GRADE      GRADE       CONTENT      CONTENT      TONNES     GRADE      GRADE       CONTENT      CONTENT
             ------     -----      -----       -------      -------      ------     -----      -----       -------      -------
             (000'S)    (GPT)      (GPT)      (000'S OZ)   (000'S OZ)    (000'S)     (GPT)     (GPT)      (000'S OZ)   (000'S OZ)
<S>          <C>            <C>        <C>           <C>       <C>        <C>           <C>       <C>            <C>       <C>
Proven (1)    9,159         1.25       68.1          369       20,044    (11,358)       1.20      69.5           440       25,384

Probable      4,089         1.04       94.6          137       12,437      4,327        1.04      89.5           145       12,454

            --------  -----------  ---------  -----------  -----------   --------  -----------  ---------  -----------  -----------
Total        13,248         1.19       76.3          506       32,480     15,685        1.16      75.0           584       37,837
            ========  ===========  =========  ===========  ===========   ========  ===========  =========  ===========  ===========
</TABLE>

NOTE:  TOTALS MAY NOT ADD, DUE TO ROUNDING.

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

(1)     Includes 2,763,000 tonnes stockpiled at December 31, 2004, with an
        average grade of 0.72 gpt or 64,000 ounces of proven gold reserves and
        2,763,000 tonnes stockpiled with an average grade of 47.5 gpt or
        4,220,000 ounces of proven silver reserves.

        In addition to proven and probable reserves, as at December 31, 2004,
Kinross' share at the La Coipa mine has an estimated 14.1 million tonnes of
measured and indicated resources at an average grade of 0.97 grams of gold per
tonne and 34.4 grams of silver per tonne at a gold price of U.S. $425 per ounce
and a silver price of U.S. $6.00 per ounce. UNITED STATES INVESTORS ARE ADVISED
THAT THE TERMS "MEASURED RESOURCES" AND "INDICATED RESOURCES" ARE RECOGNIZED BY
CANADIAN REGULATIONS BUT NOT BY THE UNITED STATES SECURITIES AND EXCHANGE
COMMISSION. UNITED STATES INVESTORS ARE CAUTIONED NOT TO ASSUME THAT ALL OR ANY
PART OF MINERAL DEPOSITS IN THESE CATEGORIES WILL EVER BE CONVERTED INTO PROVEN
AND PROBABLE RESERVES.

MINING AND PROCESSING

        The La Coipa mine currently operates two open pits: Coipa Norte, and
Brecha Norte. The Puren and Can Can deposits are scheduled to be mined later in
the mine life. Conventional open pit mining methods and equipment are used to
mine all ore and waste. Benches are laid out at 10 meters intervals, allowing
for the existence of berms every two benches. The overall wall slopes vary from
45 degrees to 52 degrees. Mining is carried out with one hydraulic shovel,
front-end loaders, diesel rotary drills, and 154-tonne trucks.

        Ore is crushed, then ground in a circuit incorporating a semi-autogenous
mill with a pebble crusher and two ball mills with a throughput of 17,000 tonnes
per day. The ground ore is leached, then filtered and washed to separate out the
tailings, and the solution is passed through a Merrill-Crowe plant. The
precipitate is then sent to the refinery.

        Water and power supplies are critical infrastructure aspects of the La
Coipa mine. Water requirements for the plant are 100 liters per second and are
obtained from underground springs which feed the Salar de Maricunga, a saltwater
lake 38 kilometers from the mine site. The water is pumped via a pipeline from
the springs to the plant site. The national power grid provides all the power
necessary for the plant from a tie-in approximately 88 kilometers from the mine.

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

        The La Coipa mine received an ISO 14001 certification in July 2002 and
there are comprehensive procedures in place in the event of a safety or
environmental incident. The most significant environmental issue at the mine is
mercury contamination of the Quebrada La Coipa Aquifer. At the end of 1995,
mercury and cyanide from tailings seepage were detected in control wells. Based
upon estimates by the operator, Placer Dome, as a remedial measure, MDO
installed a fence of wells to intercept and divert uncontaminated water around
the tailings

                                     - 43 -
<PAGE>

area to a re-infiltration gallery downstream of the tailings. Other wells were
also installed to collect contaminated groundwater and pump it to the process
plant for recycling. These measures did not entirely contain the plume at the
source, and therefore, in 2000, a water treatment plant was constructed at the
leading edge of the plume. At the treatment plan, groundwater is intercepted and
passed through resin ion exchange columns at the treatment plant where mercury
is removed. To date, the system has contained the contaminant plume completely
within the mine property, and prevented the advance of contaminants in excess of
drinking water standards to areas downstream of the mine.

        It is not known how long groundwater management will be required, but it
is expected that the treatment plant will continue to operate after mine
closure. To more accurately evaluate long-term treatment requirements, drilling
and characterization of the source were initiated in 2005. Based on this work,
MDO is evaluating options for management of the plume. Once these options are
fully evaluated, the estimate of future site restoration costs will be reviewed.

        Based upon estimates by operator Placer Dome, Kinross' share of the net
present value of future cash outflows for site restoration costs at La Coipa
under CICA Handbook Section 3110, which is effective for fiscal years beginning
January 1, 2004, are estimated at $5.5 million at December 31, 2004. This
includes costs to demolish and remove plant site buildings, secure the pit area
and prevent a safety hazard to the public, and operate the water treatment
facility for up to 20 years. Because of the lack of vegetation in the area no
major re-vegetation or re-sloping activities are currently proposed. Small-scale
experimentation with growing plants in the arid climate is currently underway,
and further field-testing is planned prior to closure. There is no requirement
to post financial assurance to secure site restoration costs in Chile at
present.


                                     - 44 -
<PAGE>

LIFE OF MINE, AND CAPITAL EXPENDITURES

        The proven and probable reserves are sufficient for six years of
production. The mine is scheduled to cease production in 2010 if additional
reserves are not found; however, Kinross believes there is significant potential
for additional reserves and resources near the present mine site.

        Kinross' share of capital expenditures at the La Coipa mine in 2004 was
$1.0 million compared to $0.5 million during 2003. Kinross spent approximately
$4.8 million for its share of capital expenditures in 2005. The majority of the
capital was related to deferred development.




           [Graphic depicting the location of the mining interests of
                       Kinross at the LaCoipa operations.]



PARACATU MINE

GENERAL

        The Paracatu mine site includes an open cut mine, process plant,
tailings impoundment area and related surface infrastructure with a throughput
rate of 18 million tones per annum (Mtpa). Paracatu (known locally as "Morro do
Ouro") is operated by Rio Paracatu Mineracao S.A. ("RPM"), which in 2003 and
2004 was 49% owned by Kinross and 51% owned by a subsidiary of Rio Tinto Plc.
("Rio Tinto"). Kinross acquired its interest in the Paracatu mine in its
combination with TVX in January 2003. The mine was operated by Rio Tinto until
the end of 2004. On December 31, 2004 Kinross announced that it had completed
the purchase of Rio Tinto's 51% interest. Kinross currently owns 100% of the
property and is the operator.

        Detailed financial, production and operational information for the
Paracatu mine is available in the MD&A.

                                     - 45 -
<PAGE>

PROPERTY DESCRIPTION AND LOCATION

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

        Historically mining at Paracatu did not require blasting of the ore. Ore
was ripped, pushed and loaded into haul trucks for transport to the crusher. In
2004, due to increasing ore hardness in certain areas of the mine, RPM began
blasting the harder ore in advance of ripping. Currently powder factors are very
low. The open pit benching operation measures approximately four kilometers by
two kilometers, and it is located on a gently sloping hillside. The elevation of
the open pit and industrial plant area ranges from approximately 720 to 820
meters.

        In Brazil, mining licenses (claims) are issued by the Departamento
Nacional da Producao Mineral (DNPM). Once certain obligations have been
satisfied, DNPM issues a mining license that is renewable annually, and has no
set expiry date. RPM currently holds title to two mining claims (mining leases)
totaling 1,258 hectares. The mine and most of the surface infrastructure, with
the exception of the tailings impoundment area, lie within the two mining
licenses. The remaining infrastructure is built on lands controlled by RPM under
exploration concessions. RPM holds title to 18 exploration concessions in the
immediate mine area. Exploration permits are valid for 3 years and can be
extended indefinitely pending DNPM approval. Unlike the mining leases,
exploration permits are not legally surveyed. Their physical limits are staked
in the field and all corners are physically confirmed in the field by DNPM
employees. On December 31, 2004, RPM, through exploration permits and mining
leases, controlled 8,731 hectares of land. As of November 1, 2005, RPM had
increased its land position to 12,783 hectares in the Paracatu area. RPM has
applications before DNPM to convert four of the exploration concessions to
mining lease status.

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

        RPM must pay to the DNMP a royalty equivalent to 1% of net sales.
Another 0.5% has to be paid to the holders of surface rights in the mine area
not already owned by RPM.

ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY

        Access to the site is provided by paved federal highways or by charter
aircraft that can land at a small paved airstrip on the outskirts of Paracatu.
The mine is the largest employer in Paracatu, directly employing 750 workers in
what is predominantly an agricultural town (dairy and beef cattle and soy bean
crops) located in Brazil's tropical savannah. Average annual rainfall varies
between 850 and 1800 mm, the average being 1300 mm, with the majority realized
during the rainy season between October and March. Temperatures range from
15(degree) to 35(degree) Celsius.

        The mine receives power from the Brazilian national power grid. Some
power supply outages have been experienced during the rainy season due to water
getting into high voltage equipment, but these have not had a significant impact
on production. The mine has a small emergency power capability, used for
critical process equipment that cannot be suddenly stopped such as thickeners
and CIL tanks

        The mine is dependent on rainfall as the primary source of process
water. During the rainy season, the mine channels surface runoff water to
temporary storage ponds from where it is pumped to the beneficiation plant.
Similarly, surface runoff and rain water is stored in the tailings impoundment,
which constitutes the main water reservoir for the concentrator. The objective
is to capture and store as much water as possible from the rainy season to
ensure adequate water supply during the dry season. The mine is permitted to
draw make up water from three local rivers that also provide water for
agricultural purposes.

HISTORY

        Gold mining has been associated with the Paracatu area since 1722 with
the discovery of placer gold in the creeks and rivers of the Paracatu region.
Alluvial mining peaked in the mid -1800's and until the 1980's was largely
restricted to garimpeiro (artisanal) miners. In 1984, Rio Tinto Zinc (Rio Tinto)
explored the property using modern

                                     - 46 -
<PAGE>

exploration methods and by 1987, the RPM joint venture was formed between RTZ
and Autram Mineracao e Participacoes (later part of TVX Gold Inc group of
companies) constructed a mine and processing facility for an initial capital
cost of $65 million. Production commenced in 1987 and the mine has operated
continuously since then. As of December 31, 2004, the mine since inception had
produced 2.985 million ounces of gold from 237 million tonnes of ore.

        In 2003, TVX's 49% share in RPM was acquired by Kinross Gold Corporation
(Kinross) as part of the merger between Kinross, TVX and Echo Bay Mines Ltd
(EB). In November 2004, Kinross and Rio Tinto agreed in principle to Kinross'
purchase of Rio Tinto's 51% interest in RPM. Completion of this purchase on
December 31, 2004 resulted in Kinross having a 100% interest in RPM and the
Paracatu mine.

EXPLORATION

        Rio Tinto was the first company to apply modern exploration methods at
Paracatu. The initial production decision was based on a mineral reserve
estimate based on 44 drill holes and 458 surface pits (25 meters maximum depth).
The deposit was historically drilled off on nominal 100 x 100 meter drill
spacing. The exploration history at Paracatu has evolved in lock step with the
mine development. As mining advanced and the initial capital investment was
recovered, the decision was made to evaluate a deeper horizon ("B1 horizon") and
exploration drilling was focused on defining the deposit through drilling
accordingly.

        As more knowledge was gained through mining of the B1 horizon, the
potential of a deeper horizon ("B2 horizon") became increasingly important. As a
result of the staged recognition of the mineral reserve potential at Paracatu,
several drill holes did not test the entire thickness of the B2 horizon.

        After acquiring a 100% interest in RPM, Kinross reviewed the engineering
support prepared by RPM in support of a further mill expansion. At the same
time, Kinross evaluated the exploration potential at Paracatu and identified two
priority target areas:

        o       Deepening of holes in the northeast portion of the pit where the
                full extent of the B2 horizon had not previously been defined
                and

        o       Drilling to the west of Rico Creek where the B2 horizon has been
                identified with similar characteristics as in the pit area but
                had been tested with a very limited number of drill holes.

        In the first quarter of 2005, Kinross approved a phased exploration
drill campaign at Paracatu to upgrade inferred resources west of Rico Creek to a
measured and indicated classification. A theoretical $400 pit shell was used to
guide the first phase ("Phase I") of the drilling program. A total of 30,000
meters of drilling was planned in Phase I. Subsequent phases would be evaluated
based on the Phase I results. The Phase I program was largely complete prior to
the November 2005 resource model update however analytical results for 65 of the
holes were pending at the time of the update.

        In the third quarter of 2005, after reviewing results from Phase I,
Kinross planned a second phase ("Phase II") program to explore the potential to
increase reserves beneath the existing pit and to define the lateral limits of
mineralization external to the $400 pit shell used to constrain Phase I. An
additional 20,000 meters of drilling was planned for Phase II.

        The drilling for Phase II was completed on December 3, 2005. Phase II
added 113 diamond drill holes to the Paracatu database. Phase I and II totaled
267 holes for 48,660 meters. Total exploration costs for Phase I and II were
approximately US$ 5.2 million. The outstanding analytical results from Phase I
as well as the additional analytical results from Phase II will be used to
update the resource model for Kinross' 2005 annual disclosure.

GEOLOGY AND MINERALIZATION

        The mineralization is hosted by a thick sequence of phyllites belonging
to the basal part of the Upper Proterozoic Paracatu Formation and known locally
as the Morro do Ouro Sequence. The sequence outcrops in a northerly trend in the
eastern Brasilia Fold Belt, which, in turn, forms the western edge of the San
Francisco Craton.

                                     - 47 -
<PAGE>

The Brasilia Fold Belt predominantly consists of clastic sediments, which have
undergone lower greenschist grade metamorphism along with significant tectonic
deformation.

        The phyllites at Paracatu lie within a broader series of regional
phyllites. The Paracatu phyllites exhibit extensive deformation and feature well
developed quartz boudins and associated sulphide mineralization. Sericite is
common, likely as a result of extensive metamorphic alteration of the host
rocks. Sulphide mineralization is dominantly arsenopyrite and pyrite with
pyrrhotite and lesser amounts of chalcopyrite, sphalerite and galena.

        The Paracatu mineralization is subdivided into 4 horizons defined by the
degree of oxidation and surface weathering and the associated sulphide
mineralization. These units are, from surface, the C, T, B1 and B2 horizons.
Mining to date has exhausted the C and T horizons. The remaining mineral
reserves are exclusively hosted in the B1 and B2 horizons.

        Gold is closely associated with arsenopyrite and pyrite and occurs
predominantly as fine grained free gold along the arsenopyrite and pyrite grain
boundaries or as inclusions in the individual arsenopyrite and pyrite grains.
The majority of grains are ultrafine (less than 20 microns) but the few coarse
grains that occur are responsible for the highest percentage of the contained
gold in the ore.

        The mineralization appears to be truncated to the north by a major
normal fault trending east-northeast. The displacement along this fault is not
currently understood but the fault is used as a hard boundary during mineral
resource estimation. The current interpretation is that the fault has displaced
the mineralization upwards and natural processes have eroded away any
mineralization in this area.

DRILLING, SAMPLE PREPARATION AND ANALYSIS

        The dominant sample collection method used to delineate the Paracatu
resource and reserve model is diamond drilling. Prior to the 2005 drilling
program, a total of 696 drill holes totalling 28,317 meters supported the then
resource model and reserve estimate. The nominal drill spacing was 100 x 100
meters. Approximately 82 % of the drill holes are large diameter (six inch)
drill holes. The remaining holes are either H or N diameter drill holes. The
majority of the drill holes are diamond drill holes. A total of 67 RC holes are
included in the database. Results from the RC holes indicate that results were
25-30% lower when compared to coincident diamond drill hole results. The
database at Paracatu also includes 458 test pits (5,070 meters) which were
largely restricted to the C and T horizons that have largely been mined out.
Where RC holes have been twinned by diamond drill holes, the RC results have
been excluded from the resource and reserve estimation process. Only the RC
holes that have not been twinned are included in the estimation process.

        In the first quarter of 2005, Kinross committed to a phased exploration
program (154 drill holes) at Paracatu to delineate measured and indicated
resources west of Rico Creek. In the third quarter of 2005, Kinross approved an
additional program (50 to 75 holes), targeting the potential mineralization
below the current mine pit and including additional exploration holes targeting
the lateral extent of the deposit beyond the conceptual $400 pit shell used to
constrain the initial drilling west of Rico Creek.

        The resource model as of November 1, 2005 incorporates results from 89
drill holes completed in 2005. Analytical results for the remainder of the
planned 154 hole program were pending at the time of the estimate. A total of
785 drill holes totalling 42,489 meters now support the resource and reserve
estimate as of November 1, 2005.

        The nominal drill spacing northeast of Rico Creek is 100 x 100 meters.
An Optimum Drill Spacing Study commissioned by Kinross established that a 200 x
200 meter five spot pattern (a 200 x 200 m grid plus one hole in the middle)
would satisfactorily define indicated mineral resources. This pattern results in
a nominal 140 meter hole spacing and represents a departure from historical RPM
practices.

        Core recovery from the diamond drill programs is reported to be
excellent, averaging greater than 95%. RPM employs a systematic sampling
approach where the drilling (and test pitting) is sampled employing a standard
1.0 meter sample length from the collar to the end of the hole.

                                     - 48 -
<PAGE>

        All drill core is logged geologically and geotechnically, recording
litho-structural and physical data and recording it in detailed logging sheets.
The core is also photographed and a permanent record is maintained in the onsite
filing system. All samples are marked and collected by geologists or technicians
employed by RPM.

        Historical sample preparation reduced each one meter core sample to 95%
passing 1.44mm. Crushed samples were homogenized and split with approximately 7
kg stored as coarse reject. Approximately 200 grams of the remaining sample were
split off for ICP analysis and 1.35 kg of sample was split out for Bond Work
Index analysis. The remaining sample (4.5kg) was dried and further reduced to
95% passing 65 mesh. This sample was homogenized and split with 4.2 kg stores as
pulp reject and the remaining 300 g was fully analyzed using standard fire assay
with AA finish in a series of six, individual 50 grams aliquots. Results from
the six individual aliquots were weight averaged together to determine the final
grade for each sample.

        Kinross completed several studies at the start of the 2005 exploration
program. In April 2005, an audit of the RPM mine lab was undertaken to assess
lab equipment and procedures. In May 2005, Kinross commissioned Agoratek
International (Agoratek) to review sample preparation and analysis procedures
with a specific mandate to assess the historical practice of assaying six
individual 50 grams aliquots per sample and averaging the results. Agoratek,
concluded that three 50 grams analyses would be sufficient for determining the
grade of any given sample.

        Based on the lab audit and the Agoratek study, Kinross' standardized
sample preparation and analytical procedure for the remainder of the 2005
exploration program was as follows:

        Samples (typically 8.0 kg) are crushed to 95% passing 2.0 mm and
homogenized at the RPM sample preparation lab. Approximately 6 kg of sample is
stored as coarse reject; the remaining 2 kg of sample is split out and
pulverized to 90% passing 150 mesh. This sample is homogenized and three 50
grams aliquots are selected for fire assaying with an AA finish. The remaining
pulverized sample is maintained as a sample pulp reject. Sample analyses were
performed at three separate analytical labs during the exploration program.

        Quality control and quality assurance programs were limited during the
earlier exploration programs at Paracatu. The dominant quality control procedure
involved the use of inter-laboratory check assays comparing results from RPM's
analytical lab to Lakefield Research in Canada. Additional check assay work was
carried out at the Anglo Gold laboratories in Brazil (Crixas and Morro Velho).

        For the 2005 exploration program, three laboratories provided analytical
services: RPM's lab, Lakefield and ALS Chemex. All three laboratories have ISO
certification.

        For the 2005 exploration program, all procedures have been under direct
control of RPM and Kinross staff. A quality assurance and quality control
program was implemented for the three labs used during the 2005 exploration
program. The program consists of inserted certified standards and blanks in the
sample streams. All three labs also reported using round robin checks. The labs
were visited on an infrequent and unannounced basis by RPM representatives. No
major sample preparation discrepancies were noted.

                                     - 49 -
<PAGE>

MINERAL RESERVE AND RESOURCE ESTIMATES

        The following table sets forth the estimated proven and probable
reserves for the Paracatu mine as at December 31, 2004, and 2003, and represents
Kinross' 100% and 49% interest respectively:

<TABLE>
<CAPTION>
                    2004 (AT A GOLD PRICE OF                 2003 (AT A GOLD PRICE OF
                      U.S. $350 PER OUNCE)                     U.S. $325 PER OUNCE)
              -------------------------------------    -------------------------------------
                             AVERAGE      GOLD                       AVERAGE      GOLD

                 TONNES       GRADE      CONTENT         TONNES       GRADE      CONTENT
                 ------       -----      -------         ------       -----      -------

               (MILLIONS)     (GPT)    (000'S OZ)      (MILLIONS)     (GPT)    (000'S OZ)

<S>              <C>             <C>         <C>          <C>             <C>         <C>
Proven             425.9         0.44        6,025          164.0         0.42        2,225

Probable           178.5         0.43        2,437           31.8         0.38          388
              -----------  -----------  -----------    -----------  -----------  -----------

Total              604.4         0.44        8,463          195.8         0.42        2,613
              ===========  ===========  ===========    ===========  ===========  ===========
</TABLE>

NOTE: TOTALS MAY NOT ADD, DUE TO ROUNDING.

        In addition to proven and probable reserves, as at December 31, 2004,
the Paracatu mine has an estimated 2.3 million tonnes of measured and indicated
resources at an average grade of 0.30 grams of gold per tonne at an assumed gold
price of $400 per ounce. UNITED STATES INVESTORS ARE ADVISED THAT THE TERMS
"MEASURED RESOURCES" AND "INDICATED RESOURCES" ARE RECOGNIZED BY CANADIAN
REGULATIONS BUT NOT BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION.
UNITED STATES INVESTORS ARE CAUTIONED NOT TO ASSUME THAT ALL OR ANY PART OF
MINERAL DEPOSITS IN THESE CATEGORIES WILL EVER BE CONVERTED INTO PROVEN AND
PROBABLE RESERVES.

        As a result of new exploration data and engineering studies completed by
Kinross in 2005, in November 2005, Kinross disclosed a material increase in
reserves and resources at Paracatu. The table below sets forth the proven and
probable reserves for the Paracatu mine as of November 1, 2005 at a gold price
of $400 per ounce and an exchange rate of 2.65R per $1.00:

                                        AVERAGE           GOLD
                        TONNES           GRADE          CONTENT
                        ------           -----          -------
                      (MILLIONS)         (GPT)         (000'S OZ)

        Proven             807.3             0.44          11,212
        Probable           139.6             0.46           2,068
                     -----------      -----------     -----------
        Total              946.9             0.44          13,280
                     ===========      ===========     ===========

        In addition to proven and probable reserves, as at November 1, 2005,
Kinross has estimated 121.9 million tonnes of measured and indicated resources
at an average grade of 0.43 grams per tonne at an assumed gold price of $450 per
ounce based on the same exchange rate of R2.65 per $1.00. The resource and
reserve estimates as of November 1, 2005 assume modification of the existing
plant according to an expansion project ("Expansion Project III"), which calls
for the installation of an in pit crushing and conveying system ("IPCC"), 38
foot diameter semi-autogenous grinding ("SAG") mill, two 24 x 40 foot ball mills
operating in closed circuit with cyclones, a new flotation plant and upgrade of
the existing hydrometallurgical plant. UNITED STATES INVESTORS ARE ADVISED THAT
THE TERMS "MEASURED RESOURCES" AND "INDICATED RESOURCES" ARE RECOGNIZED BY
CANADIAN REGULATIONS BUT NOT BY THE UNITED STATES SECURITIES AND EXCHANGE
COMMISSION. UNITED STATES INVESTORS ARE CAUTIONED NOT TO ASSUME THAT ALL OR ANY
PART OF MINERAL DEPOSITS IN THESE CATEGORIES WILL EVER BE CONVERTED INTO PROVEN
AND PROBABLE RESERVES.

                                     - 50 -
<PAGE>

MINING AND MILLING OPERATIONS

        Historically mining at Paracatu has not required blasting of the ore.
Ore was ripped using CAT D10 dozers, pushed to CAT 992 front-end loaders and
loaded to CAT 777 haul trucks for transport to the crusher. In 2004, due to
increasing ore hardness in certain areas of the mine, RPM began blasting the
harder ore in advance of ripping. Currently powder factors are very low.
Weathering has led to the development of an oxidized mantle over the sulphide
mineralization with thickness varying from 20 to 40 meters. The mine is situated
on a gently sloping hillside and historically there has been no waste stripping
requirements. Waste stripping will be required as mining advances down dip.

        The mill and mine operate 24 hours per day, 7 days per week. The nominal
plant throughput is 1.5 million tonnes per month or 18 million tonnes per year,
considering the present ore hardness. An ore stockpile of approximately 10 days
production is maintained near the processing plant. Its main purpose is to
ensure uninterrupted mill feed in the rainy season when some delays may be
experienced in the pit during extreme rainfall. During the dry season the
stockpile can be used if the pit becomes too dusty. RPM is committed to
controlling dust levels on site and in the city.

        Ore is crushed and ground prior to introduction into a flotation
circuit. The concentrate is treated by gravimetric methods first and the coarser
gold is recovered. The concentrate reject from the gravimetric plant is then
treated by a conventional cyanidation and carbon-in-leach circuit developed by
Rio Tinto. The processing plant, subjected to several upgrades over the mine
life, currently processes 18 million tonnes per year ("Mtpa").

        Plant throughput has been expanded two times with expansion upgrades in
1997 and 1999. RPM recognized that further plant improvements were necessary in
order to maintain current production levels in the face of increasing ore
hardness. Exploration drilling successfully traced the Paracatu deposit to depth
but sampling indicated that ore hardness increases proportionately with
increasing depth from surface.

        A feasibility study completed in 2004 considered expanding the current
18 Mtpa process facility to 30 Mtpa with the addition of an IPCC system, 38 foot
diameter SAG mill and expansion of the existing gravity circuit.

        As the feasibility study was nearing completion, Kinross and RPM staff
were reviewing conceptual models quantifying the potential resource and reserve
increase related to exploration activity west of Rico Creek. Preliminary models
suggested there was an opportunity to considerably increase the resource and
reserve base. This led to the decision to re-evaluate Expansion Project III in
light of potential reserve increase resulting from successful exploration
programs west of Rico Creek.

        A plant capacity scoping study was initiated with the intent of
isolating the preferred throughput rate for Expansion Plan III. Key assumptions
from the feasibility study were maintained. The plant capacity scoping study
recommended that Expansion Project III be increased to a 50 Mtpa throughput
rate. The expansion would take place in two stages. The first stage would see
construction and commissioning of a separate mill stream anchored by the same
SAG mill considered in the feasibility study. This line would have a capacity of
32 Mtpa. Once commissioned, phase two would commence with the shut down,
refurbishment and modification of the existing 18 Mtpa plant.

        Initially, the SAG mill will operate in open circuit followed by one 24
x 40 ft ball mill that will operate in closed circuit with cyclones, processing
32 Mtpa of mixed B1 and B2 ores. A second 24 x 40 ft ball mill will be installed
and started up when the 18 Mtpa plant refurbishment is brought on line. The
second ball mill will maintain plant throughput at 32Mtpa when treating the
increasingly harder B2 ore. Expansion Project III requires that the existing
18Mtpa mill to be brought back on line to treat the softer B1 ore, thus a total
throughput capacity of 50 Mtpa will be attained.

        The additional throughput increase will require additional flotation
capacity and upgrading of the existing hydrometallurgical plant. The phased
approach to construction minimizes production disruption, addresses concerns
regarding power and water supplies and reduces total capital costs for the
project.

        As at December 31, 2004, the net present value of future cash outflows
for site restoration costs for Paracatu under CICA Handbook Section 3110, which
is effective for fiscal years beginning January 1, 2004, was $10.5 million.

                                     - 51 -
<PAGE>

        Currently in Brazil there are no laws requiring the posting of a
reclamation bond or other financial assurance. There is a plan to mine oxide ore
only during the last year of production. This will provide a cover for the main
tailings pond, which will then be drained. The closure plan involves placing a
1-meter thickness of cover materials on the final pit floor, the top 0.8 of a
meter being soil material.

LIFE OF MINE, AND CAPITAL EXPENDITURES

        The Paracatu mine currently has a nominal capacity of about 18 million
tonnes per year with variations depending on the hardness of the ore, as it
affects grinding throughput. In general, ore hardness is expected to increase
over the remaining mine life as the pit is deepened and hence throughput will
diminish over time.

        Based on pilot plant test results and the plant capacity scoping study
RPM has recommended construction of Expansion Project III. In the fourth quarter
of 2005, basic engineering for Expansion Project III was awarded to SNC Lavalin
Engineers and Constructors Ltd. and Miner Consult Engenhania. The life of mine
capital cost is currently estimated at $700 million, including expansion to 50
Mtpa. If the Expansion Project III is realized, the life of mine for Paracatu
will extend to the year 2034, with a life of mine annual production of 370,000
ounces of gold.

        Kinross' share of capital expenditures at the Paracatu mine in 2004 was
$5.8 million compared to $5.2 million during 2003. In 2005 Kinross spent
approximately $21 million attributed predominantly to the expansion and mine
equipment




               [Graphic depicting The Paracata Mine surface plan.]





                                     - 52 -

<PAGE>

REFUGIO MINE

        The Refugio heap leach mine is owned and operated by Compania Minera
Maricunga, a Chilean company that is equally owned by Kinross, as the operator,
and Bema Gold Corporation ("Bema"). Kinross acquired its 50% interest through a
merger agreement with Amax Gold Inc. (Amax) in 1998.

PROPERTY DESCRIPTION AND LOCATION

        The Refugio Property is located in the Maricunga District of the III
Region of Chile. The property is located 120 km due east of the city of Copiapo
at elevations between 4,200 and 4,500 meters above mean sea level.

        All surface and mineral claims, surface rights and water rights are
maintained in good standing. Mining claims total 8,380 hectares while the
exploration properties held by CMM include 5,900 hectares. Chilean attorneys
monitor claim status on behalf of CMM annually. In addition to the mineral claim
rights, CMM also holds title to surface rights at Refugio, providing the land
required for the leach pads, waste dumps, camp and other facilities. Water
extraction rights, totaling 258 liters per second have been secured by CMM.

ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY

        Access to the property is via 156 km of two-lane dirt road connecting
with the paved highway C-35 approximately 10 km south of Copiapo. The first 96
km of the dirt road are an international, public highway. Approximately 60 km
from the Refugio site, the road branches to the southeast to Argentina and the
northeast to the mine site. The final 60 km is a private road. The Refugio
Project is located in steep, mountainous terrain with slopes up to 35%. The site
is largely devoid of vegetation with the exception of the spring-fed marshes
found along the valley floors. The climate is arid with an average annual
precipitation of 87mm, most of which is realized as snowfall during the winter
months (March through August). Generally, very little precipitation occurs
during the summer months (September through February). Local wildlife is sparse.

        The town of Copiapo is the primary staging and support area for the
mine. Chile features a strong mining culture with well established support
centers in both Santiago and Antafagasto. Both centers are within reasonable
distance of the project. Most of the major equipment supply and support will
originate from these two major centers. Manpower is attracted from throughout
Chile with the majority of the employees residing in Copiapo or La Serena.

        Most of the existing infrastructure required little to no modifications
or improvements other than general clean up and repair. The leaching and ADR
facilities are in good repair as are the power generation, maintenance shops,
office facilities and camp Significant upgrades designed to increase production
throughput were planned for the in-pit crushing and conveying and
secondary/tertiary crushing and screening infrastructure in order to meet
planned production throughput.

HISTORY

        David Thomson and Mario Hernandez discovered gold mineralization at
Refugio in 1984. Hernandez, Thomson, and three other partners acquired the
existing claims at Refugio for Compania Minera Refugio (CMR). CMR completed
geologic mapping and geochemical sampling, identifying anomalous gold values in
three areas: 1) Cerro Verde, 2) Cerro Pancho, and 3) Guanaco. In 1985, Anglo
American Chile Limitada (Anglo) optioned the property from CMR. Anglo explored
the property for three years, returning the claims to CMR in 1988.

        In 1989, CMR signed a letter of intent to explore the Refugio property
with Bema Gold Corporation (Bema). Bema commenced exploration fieldwork in
October 1989 and, from 1989 to 1991, completed 51,765 meters of drilling at
Verde with an additional 5,088 meters at Pancho. Bema also commissioned Mineral
Resources Development Inc (MRDI) to complete a feasibility study on the project,
which indicated positive project economics. In January 1993, Bema exercised its
option rights, obtaining a 50% interest in the Refugio properties. At the same
time, CMR sold its remaining 50% interest to Amax Gold Inc. (Amax). Amax
(operator) and Bema formed Compania Minera Maricunga (CMM), a 50/50 joint
venture to develop and operate the Refugio project. From 1993 through 1997, CMM
continued developing the project, beginning commercial production in 1996. In
1998, Kinross acquired Amax's 50% interest through a merger agreement.


                                     - 53 -
<PAGE>

        The mine operated from 1996 to 2001, producing more than 920,000 ounces
of gold from 46.0 million tonnes of ore. The mine was placed on care and
maintenance in 2001, a result of a downturn in gold prices. In September 2002,
in response to rising gold prices, CMM approved an exploration program designed
to increase the reserve base of the Refugio Project to a level sufficient to
support resumption of active mining. An exploration program was developed to
evaluate the reserve potential at depth at the Verde deposits and the inferred
resource at the nearby Pancho deposit, located approximately 2.0 km northwest of
the Verde pit. The exploration program ran from September 2002 to June 2003.
During this period, a total of 262 drill holes (51,478 meters) of drilling were
completed. The drilling focused on increasing the confidence level of the known
mineralization below the current Verde pits as well as increasing the confidence
level in the mineralization at the nearby Pancho deposit.

        The reserves resulting from the exploration program are based on a
detailed engineering study examining the economics of the project. The reserves
were used to complete a life-of-mine production schedule that in turn served as
the basis for a financial analysis which indicated project economics at gold
prices in excess of $325 per ounce. A decision was then made to reopen the mine.

GEOLOGY AND MINERALIZATION

        The Verde and Pancho gold deposits at Refugio occur in the Maricunga
Gold Belt of the high Andes in northern Chile. Since 1980, a total of 40 million
ounces of gold have been defined in the belt.

        Gold mineralization at Refugio is hosted in the Refugio
volcanic-intrusive complex of Early Miocene age. These rocks are largely of
intermediate composition. The Refugio volcanic-intrusive complex is exposed over
an area of 12 square kilometers and consists of andesitic to dacitic domes,
flows, and breccias that are intruded by subvolcanic porphyries and breccias.

        Most of the structural trends affecting the Verde and Pancho deposits
are related to fracture systems rather than fault zones. One of the main
structural features influencing the Pancho deposit is Falla Guatita fault zone.
Field mapping suggests that there may be significant vertical displacement on
this structure. Another major fault affecting the Pancho deposit is the Falla
Moreno. This structure trends roughly east west and forms an approximate
northern boundary for the mineralization at Pancho.

        Gold mineralization at Refugio has been interpreted to be porphyry style
gold systems. The porphyries occur within a sequence of intermediate tuffs,
porphyries and breccias that are the host rocks to the gold mineralization. The
most favourable ore hosts at Verde are the Verde breccia and dacite porphyry
units. Mineralization at Pancho is concentrated within a sub-horizontal volcanic
breccia unit. Underlying the volcanic breccia is a large, laterally extensive,
diorite porphyry, which outcrops half way down the Pancho west slope. This
porphyry underlies the entire Pancho area.

        Gold mineralization at Verde is interpreted to be the result of the
fracturing and concentration of fluids in the carapace of an intrusive plug or
stock. Gold is closely associated with quartz, magnetite, calcite, and garnet
stockworks. Gold mineralization at Pancho is characterized as porphyry hosted
stockwork and sheeted veins. The veins are subvertical and have a strong,
preferred north-westerly strike. The northwest structural control is evident not
only at outcrop scale but is also reflected in the northwest alignment of
intrusives and the three centers of mineralization in the district, Verde,
Pancho and Guanaco.

EXPLORATION

        Exploration of the Verde and Pancho deposits has been ongoing since
1984. A total of 667 holes (103,392 meters) of diamond and RC drilling has been
completed on the Verde deposit with an additional 147 holes (30,240 meters)
completed at Pancho. The drilling has resulted in a drill spacing of
approximately 50 x 50 meters at Verde and 75 x 75 meters at Pancho. Much of the
2002 - 2003 drilling was diamond drill core, allowing geologists an opportunity
to clearly delineate geological and alteration features affecting gold
mineralization and recovery.

        In 2004, CMM drilled 8 condemnation holes around the property. Results
outlined one area of mineralisation with potentially economic grades.


                                     - 54 -
<PAGE>

DRILLING, SAMPLE PREPARATION AND ANALYSIS

        Historically, most of the drilling at Refugio consisted of RC drilling.
The destructive nature of this drill method made identification of lithology,
structure and alteration difficult. The 2002 - 2003 drilling consisted primarily
of diamond drill core, providing site geologists with an opportunity to refine
the geology model of the deposit.

        The mine survey crews established the collar location and marked it in
the field. The survey crew later verified alignment and inclination when the
drill hole was in progress. Downhole inclinometry was completed at the end of
each hole. Gyroscopic azimuth and inclination readings were taken every 10
meters down the hole to within ten meters of hole bottom and every 50 meters
back up the hole as a double check. All field surveys were tied into the
established mine grid. Guillermo Contreras and Sons Limitada (Santiago),
licensed Chilean surveyors completed a survey audit that verified an approximate
10% of the drill collars using a differential GPS survey system. No significant
errors were noted.

        CMM provided all of the technical support for the sampling, geologic
logging, and drill supervision. Rig geologists and samplers were responsible for
the quality/accuracy of each sample. Geologists and samplers typically had up to
15 years experience sampling. All logging utilized standardized logging forms
and a geological legend developed for the Verde and Pancho deposits. The legend
has evolved from historic observation and is consistent with both the regional
and local geology.

        The 2003 drill program adopted a 2.0 meter standard sample length for
all samples. All sample preparation, including core splitting (sawing) was
performed and supervised by ALS Chemex personnel. ALS Chemex established,
equipped and staffed a portable sample preparation facility at the Refugio mine
for the duration of the program. After splitting, one half of the core was
placed in sample trays along with the sample tag. The other half of the core was
fitted back into the core box and returned to CMM for placement in permanent
storage. The prepared samples were received at the ALS Chemex's facility in La
Serena (the primary analytical lab for the duration of the program) where
analyses for gold, silver and copper and cyanide soluble gold and copper
analyses were performed.

        An independent engineer completed operational audits of the La Serena
lab for the 2002-2003 program. The operational audits were performed measuring
compliance with analytical best practices as well as to NI 43-101 requirements
with respect to quality control and quality assurance. The independent engineer
did not note any significant problems with this facility, concluding that ALS
Chemex's lab and procedures met the highest industry standards. ALS Chemex also
inserted their own blanks, standards and duplicate samples for each sample batch
as part of the labs own internal quality management program.

        MINERAL RESERVES AND RESOURCE ESTIMATES

        The following table sets forth the estimated proven and probable
reserves for the Refugio mine as at December 31, 2004, and 2003, and represents
Kinross' 50% interest:

<TABLE>
<CAPTION>

                 2004 (AT A GOLD PRICE OF                 2003 (AT A GOLD PRICE OF
                   U.S. $350 PER OUNCE)                     U.S. $325 PER OUNCE)
           -------------------------------------------------------------------------------
                         AVERAGE       GOLD                        AVERAGE       GOLD
              TONNES      GRADE       CONTENT           TONNES      GRADE       CONTENT
           -------------------------------------     -------------------------------------
            (MILLIONS)    (GPT)     (000'S OZ)        (MILLIONS)    (GPT)     (000'S OZ)
<S>              <C>       <C>         <C>                 <C>       <C>         <C>
Proven           49.2      0.88        1,388               39.7      0.89        1,138
Probable         12.9      0.80          329                9.8      0.78          248
           -------------------------------------     -------------------------------------
Total            62.0      0.86        1,717               49.6      0.87        1,386
           =====================================     =====================================
</TABLE>

NOTE:  TOTALS MAY NOT ADD, DUE TO ROUNDING.

- -----------------------
(1)     Includes 79,000 tonnes stockpiled at December 31, 2004, with an average
        grade of 1.11 gpt or 3,000 ounces of proven gold reserves.

                                     - 55 -
<PAGE>

        In addition to proven and probable reserves, as at December 31, 2004,
Kinross' share at the Refugio mine has an estimated 33.3 million tonnes of
measured and indicated resources at an average grade of 0.74 grams of gold per
tonne at an assumed gold price of $400 per ounce. UNITED STATES INVESTORS ARE
ADVISED THAT THE TERMS "MEASURED RESOURCES" AND "INDICATED RESOURCES" ARE
RECOGNIZED BY CANADIAN REGULATIONS BUT NOT BY THE UNITED STATES SECURITIES AND
EXCHANGE COMMISSION. UNITED STATES INVESTORS ARE CAUTIONED NOT TO ASSUME THAT
ALL OR ANY PART OF MINERAL DEPOSITS IN THESE CATEGORIES WILL EVER BE CONVERTED
INTO PROVEN AND PROBABLE RESERVES.

MINING AND PROCESSING

        A production rate of 14 million tonnes per year (40,000 tonnes per day)
in the Verde pits and 10.5 million tonnes per year (30,000 tonnes per day) in
the Pancho pit is planned. The mine is scheduled to operate two 12-hour shifts
per day for 355 days annually allowing for inclement weather interruptions. The
capital investment includes the purchase of a new mining fleet including front
end loaders, haul trucks, bulldozers, rotary drills and support equipment. Final
pit design for Verde and Pancho assumed 10 meter bench heights, bench face
angles of 65(Degree) to 70(Degree), berm widths of 8 to 11 meters, berm interval
of 20 meters, inter-ramp angles of 38(Degree) to 52.5(Degree) and haul road
gradient at 10% with a 25 meter road width.

        The Refugio Project gold recovery process consists of a single line
primary crushing, fines crushing (secondary and tertiary), heap leach and
adsorption, desorption and regeneration ("ADR") plant operation. The process is
designed to treat 40,000 tonnes per day of dry Refugio ore using primary
crushing followed by a secondary and tertiary crushing plant. The planned
crushing plant product is approximately 80% passing 8 mm -10 mm. A pad type heap
leach and an ADR plant will be used for gold recovery.

        A comprehensive program of metallurgical testing incorporating bottle
roll tests and column leach tests of samples obtained from drilling was
established to determine gold recovery and reagent consumption data for the
remaining Verde resources and the Pancho resource. Based on the recovery
estimates by ore type, process recovery over the mine life averaged 67.7% of
contained gold in the plant feed. Life of mine annual gold production is
expected to range from 220,000 to 230,000 ounces on a 100% basis.

        No significant environmental permitting issues have been identified.
Most of the proposed plant improvements represent little to no change to the
existing footprint. The increased reserves will result in the need to permit
additional leach pad capacity but this is not considered to be a risk,
especially as the existing permitted space is sufficient for the majority of the
remaining reserves.

        A reclamation plan for the current mine disturbance was approved in
2002, based on the commitments made in the original environmental impact
assessment for the site (1994). The plan addressed physical activities, such as
earthworks, but did not address chemical closure of the heap. A closure plan for
chemical stabilization of the heap has been prepared and will be submitted to
the regulatory authorities in the form of a declaration of environmental impact,
following submittal of the declaration of environmental impact for site
operational modifications.

        Kinross' share of the net present value of future cash outflows for site
restoration costs at Refugio under CICA Handbook Section 3110, which is
effective for fiscal years beginning January 1, 2004, are estimated at $2.4
million at December 31, 2004. There is no requirement to post financial
assurance to secure site restoration costs in Chile at present.

SUMMARY OF PRODUCTION AND FINANCIAL DATA

        The Refugio mine had been placed on care and maintenance in May 2001 due
to low gold prices and has produced declining amounts of gold from residual
leaching of existing heaps since that time, hence there is no significant
production and financial data to report for the last three financial years
ending December 31, 2004.


                                     - 56 -
<PAGE>

LIFE OF MINE, AND CAPITAL EXPENDITURES

        It is proposed to mine the Verde deposit first at an ore processing rate
of 14 million tonnes annually ("Mt/a") (40,000 tonnes per day), followed by the
Pancho deposit at 10.5 Mt/a (30,000 tonnes per day). Some concurrent mining is
anticipated during the transition period between the two deposits. Based on
these processing rates and the reserves presented above, the mine life is
approximately 10 years.

        CMM estimates a project capital expenditure of $134 million to complete
the upgrade of the existing operation. The capital expenditure will repair,
refurbish and replace existing equipment with the objective of increasing the
daily production throughput to 40,000 tonnes per day for Verde ores, decreasing
to 35,000 tonnes per day when the plant begins processing Pancho ores. Kinross'
share of capital expenditures at the Refugio mine in 2004 was $43.4 million.
Kinross spent approximately $31 million for its share of capital expenditures in
2005.


                                     - 57 -
<PAGE>













         [Graphic depicting the regional location of the Refugio Mine.]













                                     - 58 -
<PAGE>

ROUND MOUNTAIN

        Kinross owns an undivided 50% interest in and operates the Round
Mountain gold mine. An affiliate of Barrick Gold Corporation owns the remaining
undivided 50% interest in the joint venture common operation known as the Smoky
Valley Common Operation. Kinross acquired its interest in the Round Mountain in
its combination with Echo Bay in January 2003. Kinross and Barrick have first
refusal rights over each other's interest in the property.

        Detailed financial, production and operational information for the Round
Mountain mine is available in the MD&A.

PROPERTY DESCRIPTION AND LOCATION

        The Round Mountain gold mine is an open-pit mining operation located 96
kilometers (60 miles) north of Tonopah in Nye County, Nevada, U.S.A. The
property position consists of contiguous patented and unpatented mining claims
covering approximately 16,506 hectares (40,787 acres). Kinross has received
patents to convert mineable land to patented status. Patented claims cover all
of the current reserves for the project.

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

        Mine production is subject to a net smelter return royalty ranging from
3.53% at gold prices of $320 per ounce or less to 6.35% at gold prices of $440
per ounce or more. During 2004 this royalty averaged 5.6%. Its production is
also subject to a gross revenue royalty of 3.0%, reduced to 1.5% after $75.0
million has been paid. For the period from the date that the royalty commenced
through December 31, 2004, cumulative royalties of $42.1 million have been paid.

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

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

ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY

        The mine site is accessed by State Highway 376, a paved two-lane paved
highway that connects U.S. Highway 6 in Tonopah to the south and U.S. Highway 50
to the north. The mine is located approximately 400 kilometers (250 miles) from
the major metropolitan areas of Las Vegas and Reno, Nevada. The mine is
supported by the local communities of Hadley and Carvers, which provide most of
the housing for mine personnel. Sierra Pacific Power Co. provides electrical
power to the mine. There are sufficient surface and water rights to support all
current and forecasted mining at the site.

        The mine area straddles the transition between the floor of the Big
Smoky Valley and the adjacent Toquima Range. Mine site elevations vary between
1,800 to 2,100 meters (5,800 to 6,800 feet) above sea level. Elevations in the
Big Smoky Valley and Toquima Range vary from 1,800 meters (5,800 feet) in the
valley floor to 3,640 meters (11,941 feet) at the summit of Mount Jefferson.

        The oblong open-pit mine is over 1.6 kilometers (one mile) in length at
its longest dimension and currently more than 366 meters (1,200 feet) from the
highest working level to the bottom of the pit.

        The Round Mountain mine lies within an arid, high desert setting.
Average annual precipitation in the Big Smoky Valley is approximately 127 to 178
millimeters (5-7 inches) with most of that total falling during the winter
months. Snow is common at the valley floor, but rarely remains on the ground for
more than a few days. Local


                                     - 59 -
<PAGE>

rainfall can be extreme and flash flood events are not uncommon in the region.
Temperature range can be extreme, with average daily fluctuations exceeding 22
degrees Celsius (40 degrees Fahrenheit). Winter temperatures are typically -12
to -7 degrees Celsius (10 to 20 degrees Fahrenheit) at night and 0 to 10 degrees
Celsius (30 to 50 degrees Fahrenheit) during the day. Rarely (typically less
than 10 days per year), winter low temperatures can fall below -18 degrees
Celsius (0 degrees Fahrenheit). Summer temperatures vary from 4 to 12 degrees
Celsius (40 to 55 degrees Fahrenheit) at night to 32 to 40 degrees Celsius (90
to 105 degrees Fahrenheit) during the day.

HISTORY

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

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

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

GEOLOGY AND MINERALIZATION

        The Round Mountain mine is located along the western flank of the
southern Toquima Range within the Great Basin sub-province of the Basin and
Range province of western North America. The Basin and Range physiographic
province is characterized by generally north-south trending block faulted
mountain ranges, separated by alluvium-filled valleys.

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

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

        Gold mineralization at Round Mountain occurs as electrum in association
with quartz, adularia, pyrite and iron oxides. Shear zone fractures, veins and
disseminations within the more permeable units host the mineralization. Primary
sulfide mineralization consists of electrum associated with or internal to
pyrite grains. In oxidized zones, gold occurs as electrum associated with iron
oxides, or as disseminations along fractures.


                                     - 60 -
<PAGE>

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

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

EXPLORATION

        Kinross' share of exploration expenditures totaled $0.8 million during
2004. Kinross' share of the exploration for 2005 was approximately $2.4 million.

DRILLING, SAMPLE PREPARATION AND ANALYSIS

        The current drill database for the open pit reserve contains a total of
4,459 drill hole records, of which 4,177 are RC drill holes and 282 were drilled
using diamond core methods. A separate database is maintained for dump drilling
which contains an additional 1,396 drill hole records.

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

        All holes are sampled on 1.5 meter (5 foot) intervals and a "chipboard"
constructed for each drill hole with sample from each interval glued to a board
representing the complete hole.

        Sample data for the reserve model is derived primarily from
conventional, RC rotary and HQ size core drilling. Holes are initially drilled
on 61 meter (200 foot) centers defining deposit limits. In-fill drilling is
completed on centers of 42.6 meters (140 foot) or less to develop reportable
reserves used in mine planning.

        RC drill cuttings are passed through a wet rotary splitter to collect a
4.5 to 6.8 kilogram (10 to 15 pound) sample for each1.5 meter (5 foot) interval.
A sampling technique which uses flocculent to settle drill cuttings has been
employed to capture very fine-grained material and assure sample integrity. This
technique captures nearly 100% of the rock material generated during the
drilling process. Core samples are split with a rock saw in five-foot intervals,
with half the sample assayed, and the other half stored for reference.

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

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

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


                                     - 61 -
<PAGE>

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

MINERAL RESERVE AND RESOURCE ESTIMATES

        The following table sets forth the estimated proven and probable
reserves for the Round Mountain mine as at December 31, 2004, and 2003,
reflecting Kinross' 50% interest:

<TABLE>
<CAPTION>
                 2004 (AT A GOLD PRICE OF                 2003 (AT A GOLD PRICE OF
                   U.S. $350 PER OUNCE)                     U.S. $325 PER OUNCE)
           -------------------------------------------------------------------------------
                         AVERAGE       GOLD                        AVERAGE       GOLD
              TONNES      GRADE       CONTENT           TONNES      GRADE       CONTENT
           -------------------------------------     -------------------------------------
            (MILLIONS)    (GPT)     (000'S OZ)        (MILLIONS)    (GPT)     (000'S OZ)
<S>              <C>       <C>         <C>                 <C>       <C>         <C>
Proven (1)       45.2      0.57          824               59.7      0.57        1,099
Probable         30.1      0.67          652               35.4      0.66          751
           -------------------------------------     -------------------------------------
Total            75.3      0.61        1,475               95.1      0.61        1,850
           =====================================     =====================================
</TABLE>

NOTE:  TOTALS MAY NOT ADD, DUE TO ROUNDING.

- -----------------------
(1)     Includes 27,105,000 tonnes stockpiled at December 31, 2004, with an
        average grade of 0.43 gpt or 376,000 ounces of proven gold reserves.

        In addition to the estimated proven and probable reserves, as at
December 31, 2004, Kinross' share at the Round Mountain mine has an estimated
36.2 million tonnes of measured and indicated resources at an average grade of
0.53 grams of gold per tonne at a gold price of U.S. $400 per ounce. UNITED
STATES INVESTORS ARE ADVISED THAT THE TERMS "MEASURED RESOURCES" AND "INDICATED
RESOURCES" ARE RECOGNIZED BY CANADIAN REGULATIONS BUT NOT BY THE UNITED STATES
SECURITIES AND EXCHANGE COMMISSION. UNITED STATES INVESTORS ARE CAUTIONED NOT TO
ASSUME THAT ALL OR ANY PART OF MINERAL DEPOSITS IN THESE CATEGORIES WILL EVER BE
CONVERTED INTO PROVEN AND PROBABLE RESERVES.

MINING AND MILLING OPERATIONS

        The Round Mountain mine currently operates a conventional open pit that
is approximately 2,500 meters (8,200 feet) long in the north-west, south-east
direction and 1,500 meters (5,000 feet) wide (north-east to south-west). The
mining is conducted on 10.7 meter (35 foot) benches by electric shovels and
front end loaders paired with 136, 172 and 218 tonne (150, 190 and 240 ton) haul
trucks.

        Blasthole patterns are drilled on centers that range from 4.8 to 9.1
meters (16 to 30 feet). Blasthole samples are collected and assayed and provide
the control for ore segregation. Based upon these assays, blasted pit ore is
determined to be run-of-mine dedicated pad ore, crushed reusable pad ore, or
waste. Sulfide material greater than or equal to0.620 grams per tonne (0.018
ounces per ton) of gold is shipped directly to the mill or mill stockpile.
Run-of-mine ore is delivered the dedicated pad. Re-usuable pad ore is crushed
and placed on reusable leach pads and waste is delivered directly to the waste
dumps. Placer material encountered during normal stripping operations is sent to
the dedicated pad. High grade coarse gold bearing ore is handled in one of three
ways: 1) leached on the re-useable pad and offloaded to the mill; 2) sent
directly to the gravity plant with tails reporting to the mill; or 3) sent
directly to the mill or mill stockpile. Gold particle size and distribution of
high-grade ore determines the processing method.

        The Round Mountain operation uses conventional open-pit mining methods
and recovers gold using four independent processing operations. These include
crushed ore leaching (reusable pad), run-of-mine ore leaching (dedicated pad),
milling and the gravity concentration circuit. Most of the ore is heap leached,
with higher grade


                                     - 62 -
<PAGE>

oxidized ores crushed and placed on the reusable pad. Lower grade ore, ore
removed from the reusable leach pad and stockpiled ore that was previously
leached are placed on the dedicated pad.

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

        The site Plan of Operations and Comprehensive Reclamation Plans filed
with the United States Department of the Interior, BLM and Nevada Division of
Environmental Protection (NDEP) have been approved for all current operational
facilities. Annual updates of the Reclamation Plan are prepared to adjust for
cost inflation and to take credit for concurrent reclamation activities and
submitted to the above listed agencies. The current reclamation cost estimate,
approved in February 2004 by the BLM, USFS and NDEP totals $32.9 million. The
net present value of these future cash outflows computed in accordance with CICA
Handbook Section 3110, which is effective for fiscal years beginning January 1,
2004, was $26.0 million at December 31, 2004. Tentative plans for permanent
closure activities have been approved by the NDEP and BLM. Each participant in
the Common Operation is responsible for its own estimate of reclamation costs in
its own accounts. Kinross has posted letters of credit totaling $13.5 million in
support of its share of site restoration costs as of December 31, 2004.

LIFE OF MINE, AND CAPITAL EXPENDITURES

        Mining at Round Mountain is expected to be completed in 2008 (assuming
no additions to reserves), with completion of stockpile processing in 2010. The
joint venture partners continue to support an aggressive exploration program in
the vicinity of the mine in order to add reserves and extend the mine life.

        Kinross' share of capital expenditures at the Round Mountain mine in
2004 was $8.8 million compared to $5.7 million during 2003. The increase was due
to the construction of an additional phase of the West Dedicated leach pad.
Kinross' share of capital expenditures for 2005 was approximately $5.9 million.


                                     - 63 -
<PAGE>












   [Graphic depicting the boundaries of the Round Mountain mining operation.]














                                     - 64 -
<PAGE>

- --------------------------------------------------------------------------------
                                 DIVIDEND POLICY
- --------------------------------------------------------------------------------

        No dividends on the Kinross common shares have been paid by Kinross to
date. For the foreseeable future, it is anticipated that Kinross will use
earnings, if any, to finance its growth and that dividends will not be paid to
shareholders, other than dividends payable to the holder of the Kinross
preferred shares in accordance with their terms. Pursuant to Kinross' syndicated
credit facility, Kinross is required to obtain consent from the lenders prior to
declaring any common share dividend. Under the terms of its outstanding
preferred shares, the payment of common share dividend would require the
approval of the holders of the preferred shares under certain circumstances (see
"Description of Capital Structure").

- --------------------------------------------------------------------------------
                                LEGAL PROCEEDINGS
- --------------------------------------------------------------------------------

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 common 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

                                     - 65 -
<PAGE>

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.

THE HELLENIC GOLD PROPERTIES LITIGATION

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

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

        As a result of the settlement agreement the Company executed with the
Greek Government with respect to TVX Hellas S.A., the Alpha group had commenced
further litigation due to an alleged breach of the October 14, 1998 judgment in
the action noted above between the Alpha Group and TVX relating to the Hellenic
Gold mines. By Amended Statement of Claim, served September 13, 2004, the Alpha
Group had added Kinross as a defendant and expanded the claim to include a claim
for damages for breach of trust and breach of fiduciary duty and a claim for
damages in respect of the alleged refusal to accept the exercise of the Alpha
Group's alleged right of first refusal. The Alpha Group was seeking damages of
$50 million based on these claims. On November 4, 2005, the Company settled all
litigation with the Alpha Group for $8 million.

        As a result of Kinross' decisions to return the Hellenic properties to
the Greek Government, place TVX Hellas S.A. in bankruptcy and settle with the
Alpha Group, 1235866 has threatened further litigation against Kinross for
breach of trust and breach of the 1999 agreement. To date, no pleadings have
been exchanged with respect to the threatened litigation. Kinross believes it
has a good defence to this threatened litigation.

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


                                     - 66 -
<PAGE>

mine was sold in January 2003. The first trial was conducted in the Eighth
Judicial District Court ("District Court") of Nevada April 1997, with Summa
claiming more than $13 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 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 filed a 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, the "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.) Howard Hughes' motion to stay the Venue appeal remains
pending.


                                     - 67 -
<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 December 31,
2004 the Company had the following disputes.

        RUSSIA

        In July, 2003, the Company received notice that local taxation
        authorities in Russia were seeking a reassessment of the tax paid
        relating to the Kubaka mine by Omolon, the Company's 98.1% owned Russian
        Joint Stock Company in the amount of $8.5 million, which included
        penalties and interest. The notice challenged certain deductions taken
        by the Company and tax concessions relating to tax returns filed by the
        Company in prior years. In the years following, the Company and the
        Russian authorities have challenged the assessed tax position to various
        levels of court.

        In March 2005, the Supreme Arbitration Court of the Russian Federation
        rejected the Company's Appeal. The Company has accrued the total tax
        liabilities in relation to the dispute in a charge to income in its 2004
        financial statements.

        CHILE

        On September 27, 2001, the Company's 100% owned Chilean mining company,
        Compania Minera Kinam Guanaco ("CMKG") received a tax reassessment from
        the Chilean IRS. The reassessment, in the amount of $6.7 million,
        disallows certain deductions utilized by a third party. The third party
        has indemnified the Company for up to $13.5 million in relation to this
        reassessment. After the Company's unsuccessful appeal to the Chilean Tax
        Court, in February 2005, the Company reached a resolution with the
        Chilean IRS. The Company was fully indemnified by the third party.

        BRAZIL

        Mineracao Serra Grande S.A. ("MSG"), the Company's 50% joint venture
        with AngloGold Ashanti, which owns the Crixas mine received a tax
        reassessment in November 2003 from the Brazilian IRS. The reassessment
        disallowed the claiming of certain sales tax credits and assessed
        interest and penalties of which the Company's 50% share totals $10.2
        million. The Company and its joint venture partner believe that this
        reassessment will be resolved without any material adverse affect on its
        financial position, results of operations or cash flows.

        In September 2005, 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 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.

REGULATORY INVESTIGATIONS

        In July 2005, Kinross was notified by the enforcement division of the
SEC that Kinross would be requested to provide documentation in connection with
an informal inquiry focused on Kinross' accounting of the business combination
with TVX and Echo Bay. No further request has been made by the SEC to date.

        The U.S. Department of Justice has notified Echo Bay that it is
investigating whether or not payments were made to organizations in the
Philippines in violation of U.S. Laws in connection with its mining operations
in the


                                     - 68 -
<PAGE>

Philippines in the 1990's. Former officers of Echo Bay (which has been
amalgamated to Kinross) have provided testimonies with respect to this
investigation.

- --------------------------------------------------------------------------------
                        DESCRIPTION OF CAPITAL STRUCTURE
- --------------------------------------------------------------------------------

KINROSS PREFERRED SHARES

        A total of 311,933 shares of Kinross preferred shares were outstanding
as of January 31, 2006. A summary of the terms of the Kinross preferred shares
is set forth below.

DIVIDENDS

        Holders of Kinross preferred shares are entitled to receive fixed
cumulative preferential cash dividends as and when declared by the board of
directors of Kinross at an annual rate of Cdn. $0.80 per share payable in equal
quarterly installments on the first day of January, April, July, and October in
each year.

CONVERSION

        Holders of Kinross preferred shares are entitled at any time to convert
all or any part of the Kinross preferred shares into Kinross common shares on
the basis of 2.7518 Kinross common shares for each Kinross preferred share so
converted, subject to usual anti-dilution adjustments.

REDEMPTION; PUT RIGHT

        Kinross may at any time redeem all or any part of the Kinross preferred
shares at a price of Cdn. $10 per share, together with an amount equal to all
dividends accrued and unpaid thereon, whether or not declared, to and including
the date of redemption (collectively the "Redemption Price"). The holders of
Kinross preferred shares are entitled to require Kinross to redeem all or any
part of their Kinross preferred shares at any time at a price equal to the
Redemption Price.

OTHER PAYMENTS

        So long as any Kinross preferred shares are outstanding, Kinross is not
permitted, without the approval of the holders of the Kinross preferred shares,
to declare or pay dividends on, or redeem, purchase for cancellation or
otherwise retire shares of Kinross ranking junior to the Kinross preferred
shares unless all dividends on the Kinross preferred shares have been paid and,
after giving effect to such payment, Kinross would still be in a legal position
to redeem all of the Kinross preferred shares then outstanding prior to any
payment being made to any security ranking junior to the Kinross preferred
shares.

VOTING RIGHTS

        The holders of Kinross preferred shares are not entitled (except as
required by law) to receive notice of or to attend or vote at any meeting of
shareholders of Kinross.

LIQUIDATION PREFERENCE

        In the event of the liquidation, dissolution, or winding-up of Kinross,
holders of Kinross preferred shares will have preference over holders of Kinross
common shares and will be entitled to receive an amount equal to the Redemption
Price for each Kinross preferred share held by them.

KINAM CONVERTIBLE PREFERRED SHARES

        The convertible preferred shares of Kinam Gold Inc. comprise 1,835,777
shares of $3.75 Series B convertible preferred stock. A summary of the terms and
provisions of the Kinam preferred shares is set forth


                                     - 69 -
<PAGE>

below. A subsidiary of Kinross, Kinross Gold U.S.A., Inc., holds 1,630,822 of
the issued and outstanding Kinam preferred shares, representing approximately
88.8% of the outstanding number of such shares.

DIVIDENDS

        Annual cumulative dividends of $3.75 per Kinam preferred share are
payable quarterly on each February 15, May 15, August 15, and November 15, as
and if declared by Kinam's board of directors. Due to low gold prices and
reduced cash flow from Kinam operations, dividend payments on these shares were
suspended in August 2000 and continue to remain suspended.

CONVERSION

        The Kinam preferred shares are convertible into Kinross common shares at
a conversion price of $30.92 per share (equivalent to a conversion rate of
1.6171 Kinross common shares for each preferred share), subject to adjustment in
certain events.

REDEMPTION

        The Kinam preferred shares are redeemable at the option of Kinross at
any time on or after August 15, 1997, in whole or in part, for cash initially at
a redemption price of $52.625 per share declining rateably annually to $50.00
per share on or after August 15, 2004, plus accrued and unpaid dividends.

VOTING RIGHTS

        The holders of Kinam preferred shares are not entitled to receive notice
of or to attend or vote at any meeting of shareholders of Kinross. The holders
of Kinam preferred shares are entitled to one vote per share at meetings of the
shareholders of Kinam Gold Inc.

WARRANTS

        As a result of the unit offering of Kinross, which closed on December 5,
2002, 25,000,000 common share purchase warrants of Kinross are outstanding.

        Each three common share purchase warrants are exercisable on or before
5:00 p.m. (eastern standard time) on December 5, 2007, for one Kinross common
share at an exercise price of Cdn. $15.00. The exercise price and the number of
Kinross common shares issuable upon exercise are both subject to adjustment as
provided for in the indenture governing the warrants. The warrants will expire
and become null and void after 5:00 p.m. (eastern standard time) on December 2,
2007.

KINROSS COMMON SHARES

        Kinross has an unlimited number of common shares authorized and
345,463,893 common shares issued and outstanding as of January 31, 2006. There
are no limitations contained in the articles or bylaws of Kinross on the ability
of a person who is not a Canadian resident to hold Kinross common shares or
exercise the voting rights associated with Kinross common shares. A summary of
the rights of the Kinross common shares is set forth below.

DIVIDENDS

        Holders of Kinross common shares are entitled to receive dividends when,
as and if declared by the board of directors of Kinross out of funds legally
available therefor, provided that if any Kinross preferred shares or any other
preferred shares are at the time outstanding, the payment of dividends on common
shares or other distributions (including repurchases of common shares by
Kinross) will be subject to the declaration and payment of all cumulative
dividends on outstanding Kinross preferred shares and any other preferred shares
which are then outstanding. The OBCA provides that a corporation may not declare
or pay a dividend if there are reasonable grounds for believing that the
corporation is, or would after the payment of the dividend, be unable to pay its
liabilities as they fall due or the realizable value of its assets would thereby
be less than the aggregate of its liabilities and stated capital of all classes
of shares of its capital.


                                     - 70 -
<PAGE>

LIQUIDATION

        In the event of the dissolution, liquidation, or winding up of Kinross,
holders of Kinross common shares are entitled to share rateably in any assets
remaining after the satisfaction in full of the prior rights of creditors,
including holders of Kinross' indebtedness, and the payment of the aggregate
liquidation preference of the Kinross preferred shares, and any other preferred
shares then outstanding.

VOTING

        Holders of Kinross common shares are entitled to one vote for each share
on all matters voted on by shareholders, including the election of directors.

- --------------------------------------------------------------------------------
                     MARKET PRICE FOR KINROSS COMMON SHARES
- --------------------------------------------------------------------------------

        In Canada, the Kinross common shares trade on the TSX under the symbol
"K." The Kinross common shares trade on the NYSE under the symbol "KGC." The
Kinross common shares began trading on the NYSE on February 3, 2003. The
following table sets forth, for the periods indicated, the high and low sales
prices of the Kinross common shares on the TSX and the NYSE and the trading
volume.

<TABLE>
<CAPTION>
                                        Kinross Common Shares on the TSX(1)    Kinross Common Shares on the NYSE(1)(2)
                                    -------------------------------------------------------------------------------------

                                                                    Trading                                    Trading
                                         High           Low         Volume          High            Low        Volume
                                    -------------------------------------------------------------------------------------
                                    (CDN Dollars)  (CDN Dollars)               (U.S. Dollars)  (U.S. Dollars)
<S>                                      <C>           <C>         <C>              <C>            <C>        <C>
Fiscal Year Ending December 31, 2004
         January                         10.99         9.03        57,385,900       8.56           6.86       55,859,200
         February                        10.10         8.91        42,183,000       7.65           6.64       39,688,700
         March                            9.77         8.54        48,792,800       7.42           6.40       44,224,100
         April                            9.85         7.40        51,171,000       7.53           5.40       41,450,800
         May                              8.50         6.66        49,651,100       6.22           4.79       30,003,600
         June                             8.50         7.16        38,125,400       6.23           5.21       21,074,800
         July                             8.10         6.77        29,195,200       6.14           5.06       19,353,400
         August                           8.09         6.67        54,869,700       6.91           5.03       24,343,000
         September                        8.66         7.37        35,481,600       6.87           5.70       26,094,600
         October                          9.35         8.07        47,910,100       7.62           6.33       39,653,400
         November                        10.05         8.32        70,015,600       8.41           6.76       46,110,700
         December                         9.51         8.23        41,606,140       8.04           6.75       31,392,900

Fiscal Year Ending December 31, 2005
         January                          8.72         7.98        28,677,900       7.14           6.52       20,517,400
         February                         8.40         7.53        47,852,800       6.80           6.09       27,502,100
         March                            8.87         7.12        45,673,700       7.33           5.87       28,040,700
         April                            7.57         6.32        48,778,600       6.20           5.08       19,344,400
         May                              7.02         6.17        29,615,200       5.61           4.61       19,890,800
         June                             7.56         6.53        40,859,600       6.17           5.23       20,328,500
         July                             7.79         6.76        33,172,900       6.45           5.52       16,904,600
         August                           8.15         6.80        33,420,700       6.83           5.59       23,316,700
         September                        9.39         7.63        87,511,696       8.05           6.45       33,908,900
         October                          9.05         7.63        49,481,300       7.80           6.49       28,512,200
         November                         9.50         7.92        73,365,600       8.10           6.67       33,397,600
         December                        11.00         8.82        70,925,400       9.42           7.61       39,945,900
</TABLE>

- -------------------------
(1)     All amounts presented have been restated to reflect a three for one
        share consolidation which was completed on January 31, 2003.
(2)     From August 1, 2001 until February 3, 2003, the Kinross common shares
        were listed on the American Stock Exchange under the symbol "KGC." Prior
        to August 1, 2001, the Kinross common shares were listed on the NYSE.

        As of January 31, 2006, there were 4,599 holders of record of Kinross
common shares (including holders who are nominees for an undetermined number of
beneficial owners).


                                     - 71 -
<PAGE>

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

DIRECTORS

        Set forth below is information regarding the directors of Kinross as of
the date of this Annual Information Form.

<TABLE>
<CAPTION>
                NAME AND PLACE              PRINCIPAL
                 OF RESIDENCE              OCCUPATION          DIRECTOR SINCE          CURRENT
                                                                                    COMMITTEES(1)
         -------------------------------------------------------------------------------------------
<S>                                    <C>                  <C>                        <C>
         John A. Brough                President, Torwest     January 19, 1994         A, C, N
         Vero Beach, Florida           Inc. (real estate
         United States                 development
                                       company)

         Tye W. Burt                   President and          March 23, 2005            None
         Toronto, Ontario              Chief Executive
         Canada                        Officer of Kinross

         Scott A. Caldwell             Executive Vice-        March 3, 2003             None
         Reno, Nevada                  President and Chief
         United States                 Operating Officer
                                       of Kinross

         John K. Carrington            Retired Mining         October 26, 2005          None
         Thornhill, Ontario            Executive
         Canada

         Richard S. Hallisey           President of           December 5, 2003          CG,E
         Toronto, Ontario              Sullivan Holdings
         Canada                        Limited

         John M. H. Huxley             Principal,             May 31, 1993             A, C, N
         Toronto, Ontario              Algonquin
         Canada                        Management Inc.
                                       (management
                                       company)

         John A. Keyes                 Retired Mining         March 3, 2003               E
         The Woodlands, Texas          Executive
         United States

         Catherine McLeod-Seltzer      President and          October 26, 2005          None
         Vancouver, British Columbia   Director, Pacific
         Canada                        Rim Mining Corp.

         George A. Michals             President, Baymont     January 31, 2003            CG
         Orangeville, Ontario          Capital Resources
         Canada                        Inc. (investment
                                       holding company)

         John E. Oliver                Senior                 March 7, 1995            , CG, N
         Halifax, Nova Scotia          Vice-President,
         Canada                        Atlantic Region,
                                       Bank  of Nova
                                       Scotia (financial
                                       institution)

         Terence C.W. Reid             Retired Executive      January 5, 2005            A, E
         Toronto, Ontario
         Canada
</TABLE>

- -------------------------
(1)     Committees: A-Audit, C-Compensation, CG-Corporate Governance,
        E-Environmental, Health & Safety, N-Nominating.


                                     - 72 -
<PAGE>

        Each of the directors has held the principal occupation set forth
opposite his or her name, or other executive offices with the same firm or its
affiliates, for the past five years, with the exception of Messrs. Tye W. Burt,
John K. Carrington, Richard S. Hallisey, John A. Keyes and Terence C.W. Reid.

        Prior to March 23, 2005, Mr. Burt was Vice Chairman and Executive
Director, Corporate Development of Barrick Gold Corporation since February 2004.
Prior to that he was Executive Director, Corporate Development of Barrick since
December 2002. From April 2000 to December 2002, he was a Principal of Harris
Partners Limited (investment banking) and President of Cartesian Capital Corp.
(investment banking).

        Prior to January 2005, Mr. Carrington was Vice-Chairman and a director
and prior to February 2004, he was Chief Operating Officer of Barrick Gold
Corporation.

        Prior to December 2001, Mr. Hallisey was Vice-Chairman, National Bank
Limited and, prior to January 1999, he was Vice-Chairman, First Marathon
Securities Limited. Mr. Keyes, prior to January 2001, was President and Chief
Operating Officer of Battle Mountain Gold Company and prior thereto was Senior
Vice-President of Battle Mountain Gold Company. Mr. Terence C.W. Reid was
president of Laketon Investment Management between 2001 and 2003.

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

JOHN A. BROUGH

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

TYE W. BURT

        Mr. Burt was appointed President and Chief Executive Officer of Kinross
in March, 2005. Prior to that Mr. Burt held the position of Vice Chairman and
Executive Director of Corporate Development of Barrick Gold Corporation. From
December 2002 to February 2004, he was Executive Director of Corporate
Development of Barrick Gold Corporation. From May 2002 - December 2002 he was
Principal, Harris Partners Limited (investment banking) (but consulting on a
full time basis to Barrick Gold). From May 2000 - May 2002, Mr. Burt was
President, Cartesian Capital Corp. Mr. Burt is also a director and the Vice
Chairman of the Audit Committee of the Ontario Financing Authority and a
director of NRX Global Corporation. Mr. Burt is a member of the Law Society of
Upper Canada and is a graduate of Osgoode Law School and holds a Bachelor of
Arts degree from the University of Guelph.

SCOTT A. CALDWELL

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

JOHN K. CARRINGTON

        Mr. Carrington was Vice-Chairman and a director of Barrick Gold
Corporation from 1999 through 2004. Prior to that Mr. Carrington was Chief
Operating Officer of Barrick from 1996 until February 2004. He has also occupied
the functions of President and Executive Vice President, Operations of Barrick
in 1997 and 1995 respectively. Prior to that Mr. Carrington occupied
officerships in other mining companies, including Noranda Minerals Inc.,
Brunswick Mining & Smelting Inc. and Minnova Inc. Mr. Carrington holds a
Bachelor of Applied Science (Mining Engineering) and a Master of Engineering
(Mining). He is a manager of the Association of Professional Engineers of
Ontario.


                                     - 73 -
<PAGE>

RICHARD S. HALLISEY

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

JOHN M. H. HUXLEY

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

JOHN A. KEYES

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

CATHERINE MCLEOD-SELTZER

        Ms. McLeod-Seltzer has been President and a director of Pacific Rim
Mining Corp. since 1997. From 1994 to 1996, she was President, Chief Executive
Officer and a director of Arequipa Resources Ltd., a publicly traded company
which she co-founded in 1992. From 1985 to 1993, she was employed by Yorkton
Securities Inc. as an institutional trader and broker, and also as Operations
Manager in Santiago, Chile (1991-92). She has a Bachelor in Business
Administration. She holds directorships in other publicly traded companies
including Silver Standard Resources Inc., Bear Creek Mining Corporation, Miramar
Mining Corp., Stornoway Diamond Corporation and Peru Copper Inc.

GEORGE F. MICHALS

        Mr. Michals is President of Baymont Capital Resources Inc., an
investment holding company. Mr. Michals has served in the past on the boards of
a number of public and private companies. Prior to January 2003, Mr. Michals was
also Chairman of the board of TVX and from 1987 to 1990, he held the position of
Executive Vice-President and Chief Financial Officer of Canadian Pacific
Limited. He holds a Bachelor of Commerce degree and is a Chartered Accountant.

JOHN E. OLIVER

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

TERENCE C.W. REID

        Mr. Reid retired as Vice-Chairman of CIBC Wood Gundy in 1997 after a
career there spanning thirty-one (31) years during which he provided investment
banking services to many of Canada's leading corporations. He subsequently acted
as a consultant in the electricity industry and helped develop an internet
start-up business. Between 2001 and 2003 he was president of Laketon Investment
Management, a leading Canadian investment asset manager. Mr. Reid has served on
a number of investment industry committees and was Chairman of the Montreal
Stock Exchange. He holds a diploma in law from the University of Witwatersrand,
Johannesburg and an MBA from the University of Toronto.


                                     - 74 -
<PAGE>

OFFICERS

        The following table sets forth the names of each of the officers of
Kinross and all offices of Kinross held by each of them as of the date of the
Annual Information Form.

<TABLE>
<CAPTION>

NAME                                   OFFICE HELD
- ----                                   -----------
<S>                                    <C>
HUGH A. AGRO                           Sr. Vice President, Corporate Development
Toronto, Ontario, Canada

RICK A. BAKER                          Sr. Vice President, Environmental, Health & Safety
Sparks, Nevada, United States

TYE W. BURT                            President and Chief Executive Officer
Toronto, Ontario, Canada

SCOTT A. CALDWELL                      Executive Vice President and Chief Operating Officer
Reno, Nevada, United States

MANOEL CERQUEIRA                       Vice President, Brazil
Rio de Janeiro, Brazil

RODNEY A. COOPER                       Vice President, Technical Services
Oakville, Ontario, Canada

J. MICHAEL DOYLE                       Sr. Vice President, Operations
Sparks, Nevada, United States

STEPHANIE HOLTFORSTER                  Sr. Vice President, Human Resources
Mississauga, Ontario, Canada

CHRISTOPHER T. HILL                    Sr. Vice President, Corporate Communication
Toronto, Ontario, Canada

JOHN W. IVANY                          Executive Vice President
Toronto, Ontario, Canada

LARS-ERIC JOHANSSON                    Executive Vice President and Chief Financial Officer
Oakville, Ontario, Canada

JOHN E. OLIVER                         Independent Chairman
Halifax, Nova Scotia, Canada

SHELLEY M. RILEY                       Vice President, Administration and Corporate Secretary
Toronto, Ontario, Canada

RONALD W. STEWART                      Sr. Vice President, Exploration
Oakville, Ontario, Canada
</TABLE>


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

        HUGH A. AGRO was appointed Sr. Vice President, Corporate Development on
August 5, 2005. Prior to that he was Vice President, Corporate Development from
April 2005 to August 2005. Prior to that Mr. Agro held the position of
Vice-President, Corporate Development for Placer Dome Canada from May 2004 to
April 2005. Prior to that Mr. Agro was a Principal of Senator Capital Partners
from April, 2001 to April, 2004. From August 1997 to


                                     - 75 -
<PAGE>

April, 2001, Mr. Agro held the positions of Vice President, Investment Banking,
Global Metals & Mining Group and Associate, Investment Banking respectively with
Deutsche Bank Securities Ltd.

        RICK A. BAKER was appointed Sr. Vice President, Environmental, Health &
Safety on March 1, 2005. Prior to that Mr. Baker held the positions of Vice
President, Operations from October, 2003 to February, 2005 and Vice President
and General Manager, Reclamation Operations from March to September, 2003 of
Kinross Gold U.S.A., Inc. a 100% wholly-owned subsidiary of Kinross. Prior to
that he held the positions of General Manager, from August, 2001 to February,
2002 and Operations Manager from April, 2000 to July 2001 with Fairbanks Gold
Mining, Inc. a 100% wholly-owned subsidiary of Kinross. From July 1997 to March
2000, Mr. Baker was General Manager, McCoy/Cove Operation, Echo Bay Minerals
Company.

        MANOEL CERQUEIRA was appointed Vice President, Brazil in January 2006.
Prior to that, since being hired as Finance Manger of TVX Normandy Americas
(Canada) Inc. and TVX Normandy Americas (Cayman) Inc. in September 1999, he has
held positions as board member and officer of joint venture operators, Mineracao
Serra Grande S.A. (Crixas mine) and Rio Paracatu Mineracao, S.A. (Paracatu
mine). He also held the position of Vice President Finance of various
Kinross/TVX subsidiaries, TVX Nornandy Americas (Canada) Inc., TVX Normandy
Americas (Cayman) Inc., Kinross Americas (Canada) Inc. and Kinross Americas
(Cayman) Inc.

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

        J. MICHAEL DOYLE was appointed Sr. Vice President, Operations in June,
2004. Prior to that, Mr. Doyle was Vice President, Operations of Kinross Gold
U.S.A., Inc. from March, 2003 to May, 2004, a 100% wholly-owned subsidiary of
Kinross. From January 2003 to March 2003, Mr. Doyle was Vice President and
General Manager, Round Mountain Gold Corporation, a 100% wholly-owned subsidiary
of Kinross. From 2000 to 2003, Mr. Doyle was General Manager, Round Mountain
Gold Corporation and prior to that he held the position of Operations Manager,
Round Mountain Gold Corporation.

        STEPHANIE HOLTFORSTER was appointed Sr. Vice President, Human Resources
in September 2005. Prior to that Ms. Holtforster was Vice President of Human
Resources at the Globe & Mail. From 1998 to April 2002, she occupied positions
of Director of Six Sigma programs and as a Regional Director of Human Resources
Canada for Starwood Hotels & Resorts. Prior to that she was Director of Human
Resources - Canada for Westin Hotels and Resorts from 1996 to 1998 and Director
of Human Resources at the Westin Harbour Castle.

        CHRISTOPHER T. HILL has been Sr. Vice President, Corporate Communication
since August 2005 and prior to that he was Vice President, Investor Relations
since May 2004. Mr. Hill was Vice President, Treasurer from May 1998 to March
2004.

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

        LARS-ERIC JOHANSSON has been Executive Vice President of Kinross since
June, 2004. Prior to that Mr. Johansson was Special Advisor on project financing
to Falconbridge Limited's (a subsidiary of Noranda Inc.) Koniambo nickel project
in New Caledonia from November 2003 to June, 2004. Mr. Johansson was Executive
Vice President and Chief Financial Officer of Noranda Inc. from May 2002 to
November 2003. He was Senior Vice President and Chief Financial Officer for
Falconbridge from September 1989 to May 2002; and a director of Aber Diamond
Corporation and Tiberon Minerals Ltd.

        SHELLEY M. RILEY has been the Corporate Secretary of Kinross since June
1993 and was appointed Vice President, Administration and Corporate Secretary in
September, 2005.

        RONALD W. STEWART has been the Sr. Vice President, Exploration of
Kinross since August 2005 and prior to that he was Vice President, Exploration
since March 2002. Prior to that date he was Director of Investor Relations for
Placer Dome from January 2000 to March 2002, Manager Mine Exploration for Placer
Dome from February 1998 to January 2000 and Country Exploration Manager,
Indonesia for Placer Dome from March 1996 to February 1998.


                                     - 76 -
<PAGE>

        As at February 7, 2006, the directors and executive officers of Kinross,
as a group owned, directly or indirectly, or exercised control or direction over
215,675 common shares of Kinross, representing less than one percent of the
total number of common shares outstanding before giving effect to the exercise
of options or other convertible securities held by such directors and executive
officers. The statement as to the number of common shares beneficially owned
directly or indirectly or over which control or direction is exercised by the
directors and executive officers of Kinross as a group is based upon information
provided by the directors and executive officers.

- --------------------------------------------------------------------------------
            CEASE TRADE ORDERS, BANKRUPTCIES, PENALTIES OR SANCTIONS
- --------------------------------------------------------------------------------

        No director or executive officer of Kinross or a shareholder holding a
sufficient number of securities to affect materially the control of Kinross is,
or within the ten years prior to the date hereof has been, a director or
executive officer of any company (including Kinross) that, while that person was
acting in that capacity, (i) was the subject of a cease trade or similar order
or an order that denied the relevant company access to any exemption under
securities legislation, for a period of more than 30 consecutive days; (ii) was
subject to an event that resulted, after the director or executive officer
ceased to be a director or executive officer, in the company being the subject
of a cease trade or similar order or an order that denied the relevant company
access to any exemption under securities legislation for a period of more than
30 consecutive days; or (iii) within a year of that person ceasing to act in
that capacity, became bankrupt, made a proposal under any legislation relating
to bankruptcy or insolvency or was subject to or instituted any proceedings,
arrangement or compromise with creditors or had a receiver, receiver manager or
trustee appointed to hold its assets, except as follows:

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

        On April 14, 2005, the Ontario Securities Commission issued a definitive
        management cease trade order which superseded a temporary management
        cease trade order dated April 1, 2005 against all the directors and
        officers of the Company in connection with the Company's failure to file
        its audited financial statements for the year ended December 31, 2004. A
        similar order was issued by the Nova Scotia Securities Commission
        against Mr. John Oliver dated July 6, 2005. These management cease trade
        orders are still in effect as of the date of this Annual Information
        Form.

        No director or executive officer of Kinross or a shareholder holding a
sufficient number of securities of Kinross to affect materially the control of
Kinross has, within the ten years prior to the date hereof, become bankrupt,
made a proposal under any legislation relating to bankruptcy or insolvency, or
become subject to or instituted any proceedings, arrangement or compromise with
creditors, or had a receiver, receiver manager or trustee appointed to hold the
assets of the director, officer or shareholder.

- --------------------------------------------------------------------------------
                              CONFLICT OF INTEREST
- --------------------------------------------------------------------------------

        To the best of Kinross' knowledge, and other than as disclosed in this
annual information form and in the notes to Kinross' financial statements, there
are no known existing or potential conflicts of interest between Kinross and any
director or officer of Kinross, except as disclosed below that certain of the
directors and officers serve as directors and officers of other public companies
and therefore it is possible that a conflict may arise between their duties as a
director or officer of Kinross and their duties as a director or officer of such
other companies.


                                     - 77 -
<PAGE>

        The directors and officers of Kinross are aware of the existence of laws
governing accountability of directors and officers for corporate opportunity and
requiring disclosures by directors of conflicts of interest and Kinross will
rely upon such laws in respect of any directors' and officers' conflicts of
interest or in respect of any breaches of duty by any of its directors or
officers. All such conflicts will be disclosed by such directors or officers in
accordance with the BUSINESS CORPORATIONS ACT (Ontario) and they will govern
themselves in respect thereof to the best of their ability in accordance with
the obligations imposed upon them by law.

        During 2004, the Company entered into a shareholders agreement providing
for the organization of Kinross Forrest Ltd. ("KF Ltd.") and the issuance of 35%
of the shares of KF Ltd. to the Company, 25% to a company controlled by Art
Ditto, then a director and officer of the Company, and 40% to an unrelated third
party. Mr. Ditto paid the Company his share of the expenses incurred in the
amount of $0.3 million. As at December 31, 2004, this investment was valued at
$0.1 million on the Company's balance sheet.

        KF Ltd. is a corporation incorporated under the laws of the Territory of
the British Virgin Islands and is a party to a joint venture with La Generale
des Carrieres et des Mines, a Congolese state-owned mining enterprise. The joint
venture was formed for the purpose of exploiting the Kamoto Copper Mine located
in the Democratic Republic of Congo.

        On September 2, 2005, the Company agreed to sell 23.33% of the shares of
KF Ltd. to Balloch Resources Ltd., (now Katanga Mining Limited, "Katanga"")
retaining 11.67% of the shares for Cdn.$5.45 million. At the time of entering
into the agreement, Art Ditto, who is a former director and officer of the
Company, owned a 17.4% interest in the outstanding common shares of Katanga and
Mr. Ditto was appointed as the President and Chief Executive Officer of Katanga.

        John E. Oliver is Senior Vice President, Atlantic Region, of the Bank of
Nova Scotia. The Bank of Nova Scotia is a co-lead of the lending syndicate for
Kinross' credit facility. The Bank of Nova Scotia's commitment to the credit
facility is approximately $60 million. Mr. Oliver's duties do not include
responsibilities in the commercial lending department responsible for management
and decisions with respect to the Kinross credit facility. The board of Kinross
does not consider this relationship to present a conflict of interest with Mr.
Oliver's responsibilities as a board member or in any way as reasonably
affecting his independence.

- --------------------------------------------------------------------------------
           INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS
- --------------------------------------------------------------------------------

        Other than as described elsewhere in this annual information form, since
January 1, 2002, no director, executive officer or 10% shareholder of Kinross or
any associate or affiliate of any such person or company, has or had any
material interest, direct or indirect, in any transaction that has materially
affected or will materially affect the Company or any of its subsidiaries.

- --------------------------------------------------------------------------------
                          TRANSFER AGENT AND REGISTRAR
- --------------------------------------------------------------------------------

        The transfer agent and registrar for the Common Shares is Computershare
Trust Company of Canada at its principal office at 100 University Avenue,
Toronto, Ontario, Canada M5J 2Y1, telephone 1-800-663-9097.

- --------------------------------------------------------------------------------
                               MATERIAL CONTRACTS
- --------------------------------------------------------------------------------

        The only material contracts entered into by the Company within the
financial year ended December 31, 2004 or before such time that are still in
effect, other than in the ordinary course of business, are as follows:


                                     - 78 -
<PAGE>

        Share sale agreement dated December 9, 2004 among Rio Tinto Brazilian
Holdings Limited, Rio Tinto Brazilian Investments Limited, Rio Tinto European
Holdings Limited, TVX Participacoes Ltda, Cayman Participacoes Inc. and Kinross
regarding the purchase of the remaining 51% interest of Rio Tino Plc. in the
Paracatu mine by Kinross.

        Acquisition and agreement and plan of merger agreement between Kinross,
Crown Merger Corporation and Crown dated November 20, 2003 (as subsequently
amended) providing for the acquisition by Kinross of all the outstanding common
shares of Crown.

        Amended and restated credit facility dated April 8, 2005 between Kinross
and a syndicate of lenders co-lead by the Bank of Nova Scotia and Societe
Generale.

- --------------------------------------------------------------------------------
                              INTERESTS OF EXPERTS
- --------------------------------------------------------------------------------

        The Company's independent auditors for fiscal 2004, Deloitte & Touche
LLP, have audited the consolidated financial statements of Kinross for the year
ended December 31, 2004.

        Rodney Cooper is the qualified person who supervised the preparation of
the Company's mineral reserve and mineral resource estimates as at December 31,
2004 (and as of November 1, 2005 for Paracatu). Mr. Cooper is an officer of the
Company.

        Mr. Rodney Cooper beneficially owns, directly or indirectly, less than
1% of any class of shares of the Company's outstanding shares.

- --------------------------------------------------------------------------------
                                 AUDIT COMMITTEE
- --------------------------------------------------------------------------------

        The Audit Committee's charter sets out its responsibilities and duties,
qualifications for membership and reporting to the Company's board of directors.
A copy of the charter is attached hereto as Schedule "A".

        As of the date of this Annual Information Form, the members of the
Company's Audit Committee are John Brough (Chairman), John Huxley and Terence
Reid. Each of Messrs. Brough, Huxley and Reid are independent and financially
literate within the meaning of Multilateral Instrument 52-110 AUDIT COMMITTEES
("MI 52-110"). In addition to being independent directors as described above,
all members of the Company's Audit Committee must meet an additional
"independence" test under MI 52-110 in that their directors' fees are the only
compensation they, or their firms, receive from the Company and that they are
not affiliated with the Company.

RELEVANT EDUCATION AND EXPERIENCE

        Set out below is a description of the education and experience of each
audit committee member that is relevant to the performance of his
responsibilities as an audit committee member.

        John A. Brough          -       Mr. Brough has a Bachelor of Arts degree
                                        from the University of Toronto, is a
                                        Chartered Accountant and is currently
                                        Chairman of the Audit Committee and a
                                        director of PBB Global Logistics Income
                                        Fund and Silver Wheaton Corp.

        John M.H. Huxley        -       Mr. Huxley has a Bachelor of Laws
                                        degree, and has been a principal of
                                        Algonquin Management Inc., the Manager
                                        of Algonquin Power Income Fund, since
                                        1997. Prior to that Mr. Huxley was
                                        President of Algonquin Power
                                        Corporation.


                                     - 79 -
<PAGE>

        Terence C.W. Reid       -       Mr. Reid holds a diploma in law from the
                                        University of Witwatersrand,
                                        Johannesburg and an MBA from the
                                        University of Toronto. Mr. Reid retired
                                        as Vice-Chairman of CIBC Wood Gundy in
                                        1997 after a career there spanning
                                        thirty-one (31) years during which he
                                        provided investment banking services to
                                        many of Canada's leading corporations.
                                        Between 2001 and 2003 he was president
                                        of Laketon Investment Management, a
                                        leading Canadian investment asset
                                        manager. Mr. Reid has served on a number
                                        of investment industry committees and
                                        was Chairman of the Montreal Stock
                                        Exchange.

PRE-APPROVAL POLICIES AND PROCEDURES

        The Audit Committee's charter sets out responsibilities regarding the
provision of non-audit services by the Company's external auditors. This policy
encourages consideration of whether the provision of services other than audit
services is compatible with maintaining the auditor's independence and requires
Audit Committee pre-approval of permitted audit and audit-related services.

EXTERNAL AUDITOR SERVICE FEES

AUDIT FEES

        The aggregate audit fees billed by the Company's external auditors for
the financial year ended December 31, 2004 were Cdn.$2,918,705 (December 31,
2003 - Cdn.$1,150,000).

AUDIT-RELATED FEES

        The aggregate audit-related fees billed by the Company's external
auditors for the financial year ended December 31, 2004 were Cdn.$1,410,605
(December 31, 2003 - Cdn.$1,533,321) relating to work on the registration
statement for the Crown acquisition and the SEC review in connection therewith.

TAX FEES

        The aggregate tax fees in respect of tax compliance, tax advice and tax
planning billed by the Company's external auditors for the financial year ended
December 31, 2004 were Cdn.$1,017,843 (December 31, 2003 - Cdn.$592,541).

ALL OTHER FEES

        There were no non-audit fees billed by the Company's external auditors
for the financial years ended December 31, 2003 and 2004.

- --------------------------------------------------------------------------------
                             ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------

        Additional information relating to the Company can be found on SEDAR at
WWW.SEDAR.COM. Additional information, including directors' and officers'
remuneration and indebtedness, principal holders of the Company's securities and
securities authorized for issuance under equity compensation plans is contained
in the management information circular of the Company filed for its most recent
annual meeting of shareholders. Additional financial information is provided in
the Company's audited consolidated financial statements and management's
discussion and analysis for the financial year ended December 31, 2004.


                                     - 80 -
<PAGE>

- --------------------------------------------------------------------------------
                           GLOSSARY OF TECHNICAL TERMS
- --------------------------------------------------------------------------------

AA FINISH

        A method used to complete fire assaying where the bead produced by this
assay technique is dissolved in strong acids. The gold in the acid solution is
determined by a machine called an atomic adsorption spectrometer. This method is
used to accurately quantify small amounts of gold and other metals.

ADULARIA

        A variety of orthoclase, a mineral part of the feldspar group. A common
mineral of granitic rocks.

ALLUVIAL

        Referring to material, which has been placed by the action of surface
water.

ALLUVIUM

        A general term for all detrital deposits resulting from the flow of
present waterways, thus including the sediments laid down in streambeds, flood
plain, lakes, fan at the foot of mountain slopes, and estuaries.

ALMANDINE

        An isometric mineral, 8[Fe32+Al2Si3O12]; pyralspilite subgroup of the
garnet group, with Fe replaced by Mg, Mn, and Ca; in red to brownish-black
dodecahedral and trapezohedral crystals, or massive; Mohs hardness, 7-1/2;
occurs in medium-grade metamorphic rock and felsic igneous rocks; used as a
gemstone and an abrasive.

ANKERITE

        A trigonal mineral, Ca(Fe,Mg,Mn)(CO3)2; dolomite group; forms series
with dolomite and with kutnohorite; associated with iron ores; commonly forms
thin veins in some coal seams.

ANTIFORM

        A fold that is convex upward or had such an attitude at some stage of
development.

ARCHEAN ABITIBI

        The Abitibi-Grenville Transect focuses on the Late Archean Abitibi
greenstone belt, which is part of the southern Superior Province, the central
core of the North American craton, and on the Mesoproterozoic Grenville orogen
which extends from southern Sweden to southern Mexico, but is exposed
principally as the southeastern Canadian shield. The Abitibi subprovince is the
largest, and perhaps the best studied, of the Archean greenstone terranes of the
world and is host to a major proportion of Canada's mineral resources.

ARGILLITE

        A compact rock, derived either from mudstone (claystone or siltstone),
or shale, that has undergone a somewhat higher degree of induration than
mudstone or shale but is less clearly laminated and without its fissility, and
that lacks the cleavage distinctive of slate.

ARSENOPYRITE

        The most common arsenic mineral and principal ore of arsenic; occurs in
many sulfide ore deposits, particularly those containing lead, silver and gold.

ASSAY

        To determine the value of various elements within an ore sample,
streambed sample, or valuable metal sample.

B2 HORIZON

        A local geological term identifying a particular formation of rock.


                                     - 81 -
<PAGE>

BALL MILL

        A steel cylinder filled with steel balls into which crushed ore is fed.
The ball mill is rotated, causing the balls to cascade and grind the ore.

BASALT

        An extrusive volcanic rock composed primarily of plagioclase, pyroxene
and some olivine.

BASEMENT ROCKS

        A name commonly applied to metamorphic or igneous rocks underlying the
sedimentary sequence.

BELT

        A series of mineral deposits occurring in close proximity to each other
often with a common origin.

BIOTITE

        A common rock-forming mineral in crystalline rocks, either as an
original crystal in igneous rocks or as a metamorphic product in gneisses and
schists; a detrital constituent of sedimentary rocks.

BLOCK FAULTED

        A type of normal faulting in which the crust is divided into structural
or fault blocks of different elevations and orientations. It is the process by
which block mountains are formed.

BOUDINS

        Series of sausage-shaped segments occurring in a boudinage structure.
Boudinage occurs when bed sets are divided by cross-fractures into pillowlike
segments. The cross-fractures are not sharp, but rather rounded, and may be
compared with the necks that develop in ductile metal pieces under tension. The
overall resulting appearance is that of a string of linked sausages when
observed in section.

BRECCIA

        A coarse-grained clastic rock, composed of angular broken rock fragments
held together by a mineral cement or in a fine-grained matrix; it differs from
conglomerate in that the fragments have sharp edges and unworn corners.

CALDERA

        A large, basin-shaped volcanic depression, more or less circular, the
diameter of which is many times greater than that of the included vent or vents,
no matter what the steepness of the walls or the form of the floor may be.

CALOMEL

        A tetragonal mineral, 2[Hg2Cl2]; a secondary alteration of
mercury-bearing minerals; horn quicksilver; mercurial horn ore.

CARBON-IN-LEACH

        A process step wherein granular activated carbon particles much larger
than the ground ore particles are introduced into the ore pulp. Cyanide leaching
and precious metals adsorption onto the activated carbon occur simultaneously.
The loaded activated carbon is mechanically screened to separate it from the
barren ore pulp and processed to remove the precious metals and prepare it for
reuse.

CARBON-IN-PULP

        A process step wherein granular activated particles much larger than the
ground ore particles are introduced into the ore pulp after primary leaching in
cyanide. Precious metals adsorption occurs onto the activated carbon from the
pregnant cyanide solution.

CARE AND MAINTENANCE

        The status of a mining operation when mining has been suspended but
reclamation and closure of the property has not been commenced. The mill and
associated equipment is being cared for and maintained until operations
re-commence.


                                     - 82 -
<PAGE>

CATHODE

        A rectangular plate of metal, produced by electrolytic refining, which
is melted into commercial shapes such as wire-bars, billets, ingots, etc.

CERARGYRITE

        A former name for chlorargyrite, which is an isometric mineral, 4[AgCl];
sectile; forms waxy white, yellow, or pearl-gray incrustations, darkening to
violet on exposure to light; a supergene mineral occurring in silver veins; an
important source of silver.

CHALCOPYRITE

        A copper mineral composed of copper, iron and sulphur. This mineral is
very similar to marcasite in its characteristics; it tarnishes easily; going
from bronze or brassy yellow to yellowish or grayish brown, has a dark streak,
and are lighter in weight and harder than gold.

CHERT

        A compact, glass-like siliceous rock composed of silica of various types
(opaline or chalcedonic).

CHIP SAMPLE

        A method of sampling of rock exposure whereby a regular series of small
chips of rock is broken off along a line across the face.

CHLORITE

        1. The mineral group chamosite, clinochlore, cookeite, gonyerite,
nimite, orthochamosite, pennantite, and sudoite. 2. Chlorites are associated
with and resemble micas (the tabular crystals of chlorites cleave into small,
thin flakes or scales that are flexible, but not elastic like those of micas);
they may also be considered as clay minerals when very fine grained. Chlorites
are widely distributed, esp. in low-grade metamorphic rocks, or as alteration
products of ferromagnesian minerals.

CIRCUIT

        A processing facility for removing valuable minerals from the ore so
that it can be processed and sold.

CLAY

        An extremely fine-grained natural earthy material composed primarily of
hydrous aluminum silicates. It may be a mixture of clay minerals and small
amounts of nonclay materials or it may be predominantly one clay mineral. The
type is determined by the predominant clay mineral. Clay is plastic when
sufficiently pulverized and wetted, rigid when dry, and vitreous when fired to a
sufficiently high temperature.

CONGLOMERATE

        Rounded, water-worn fragments of rock or pebbles, cemented together by
another mineral substance.

CORE

        The long cylindrical piece of rock, about an inch in diameter, brought
to surface by diamond drilling.

CUPEL

        1. A small bone-ash cup used in gold or silver assaying with lead. 2.
The hearth of a small furnace used in refining metals.

CUT-OFF GRADE

        The lowest grade of mineral resources considered economic; used in the
calculation of reserves in a given deposit.

CYANIDATION

        A method of extracting exposed gold or silver grains from crushed or
ground ore by dissolving the contained gold and silver in a weak cyanide
solution. May be carried out in tanks inside a mill or in heaps of ore out of
doors.

CYCLONE UNDERFLOW

        A coarser sized fraction, which leaves via apex aperture of
hydrocyclone.


                                     - 83 -
<PAGE>

DEDICATED PAD

        An area of topography where gold ore will be placed in order to be
leached. The ore will remain permanently upon this pad upon the completion of
the gold extraction.

DEVONIAN

        The fourth period, in order of decreasing age, of the periods making up
the Paleozoic era. It followed the Silurian period and was succeeded by the
Mississippian period. Also, the system of strata deposited at that time.
Sometimes called the Age of Fishes.

DILUTION

        The effect of waste or low-grade ore being included unavoidably in the
mine ore, lowering the recovered grade.

DOLOMITE

        A carbonate sedimentary rock consisting of more than 50% to 90% mineral
dolomite, depending upon classifier, or having a Ca:Mg ratio in the range 1.5 to
1.7, or having an MgO equivalent of 19.5% to 21.6%, or having a
magnesium-carbonate equivalent of 41.0% to 45.4%. Dolomite beds are associated
and interbedded with limestone, commonly representing postdepositional
replacement of limestone.

DORE

        Unrefined gold and silver bullion bars, which will be further, refined
to almost pure metal.

ELECTROWINNING

        Recovery of a metal from a solution by means of electro-chemical
processes.

EPITHERMAL

        Said of a hydrothermal mineral deposit formed within about 1 kilometer
of the Earth's surface and in the temperature range of 50 to 200 degrees C,
occurring mainly as veins. Also, said of that depositional environment.

FACIES

        A term of wide application, referring to such aspects of rock units as
rock type, mode of origin, composition, fossil content, or environment of
deposition.

FAULT

        A fracture in the earth's crust accompanied by a displacement of one
side of the fracture with respect to the other and in a direction parallel to
the fracture.

FELDSPAR

        1. Constituting 60% of the Earth's crust, feldspar occurs in all rock
types and decomposes to form much of the clay in soil, including kaolinite. 2.
The mineral group albite, andesine, anorthite, anorthoclase, banalsite,
buddingtonite, bytownite, celsian, hyalophane, labradorite, microcline,
oligoclase, orthoclase, paracelsian, plagioclase, reedmergnerite, sanidine, and
slawsonite.

FELSIC

        A mnemonic adjective derived from (fe) for feldspar, (l) for lenad or
feldspathoid, and (s) for silica, and applied to light-colored rocks containing
an abundance of one or all of these constituents. Also applied to the minerals
themselves, the chief felsic minerals being quartz, feldspar, feldspathoid, and
muscovite.

FLOCCULENT

        A chemical used to promote the formation of denser slurries.

FLOTATION

        A separation process in which valuable mineral particles are induced to
become attached to bubbles and float, which the non-valuable minerals sink.

FOLD

        Any bending or wrinkling of rock strata.


                                     - 84 -
<PAGE>

FORMATION

        Unit of sedimentary rock of characteristic composition or genesis.

GALENA

        A lead mineral, which occurs with sphalerite in hydrothermal veins, also
in sedimentary rocks as replacement deposits; an important source of lead and
silver.

GARNET

        The silicate minerals almandine, andradite, calderite, goldmanite,
grossular, hibshite, katoite, kimzeyite, knorringite, majorite, pyrope,
schlorlomite, spessartine, and uvarovite.

GEYSERITES

        A type of rock associated with natural hot springs.

GLACIAL TILL

        Dominantly unsorted and unstratified drift, generally unconsolidated,
deposited directly by and underneath a glacier without subsequent reworking by
meltwater, and consisting of a heterogeneous mixture of clay, silt, sand,
gravel, and boulders ranging widely in size and shape; ice-laid drift.

GLACIOLACUSTRINE

        Pertaining to, derived from, or deposited in glacial lakes; especially
said of the deposits and landforms composed of suspended material brought by
meltwater streams flowing into lakes bordering the glacier, such as deltas, kame
deltas, and varved sediments.

GOLD

        A yellow malleable ductile high density metallic element resistant to
chemical reaction, often occurring naturally in quartz veins and gravel, and
precious as a monetary medium, in jewellery, etc. Symbol - Au.

GOLD EQUIVALENT PRODUCTION

        Gold equivalent production represents gold production plus silver
production computed into gold ounces using a market price ratios.

GRADE

        The amount of valuable metal in each tonne or ore, expressed as grams
per tonne for precious metals.

        CUT-OFF GRADE - is the minimum metal grade at which a tonne of rock can
        be processed on an economic basis.

        RECOVERED GRADE - is actual metal grade realized by the metallurgical
        process and treatment or ore, based on actual experience or laboratory
        testing.

GRAVIMETRIC FINISH

        A method used to complete fire assaying where the bead produced by this
assay technique is weighed upon an extremely sensitive weigh scale.

GRAVITY RECOVERY CIRCUIT

        Equipment used within a plant to recover gold from the ore using the
difference in specific gravity between the gold and the host rock. Typically
used are shaking tables, spirals, etc.

GREENSCHIST

        A metamorphosed basic igneous rock, which owes its color and schistosity
to abundant chlorite.

GREENSCHIST FACIES

        Metamorphic rocks produced under low temperature conditions.


                                     - 85 -
<PAGE>

GREENSTONE

        An old field term applied to altered basic igneous rocks which owe their
color to the presence of chlorite, hornblende, and epidote.

HALIDE

        A fluoride, chloride, bromide, or iodide.

HALOS

        A differentiated (lower) grade zone surrounding a central zone of higher
grade.

HANGINGWALL

        The mass of rock located above a fault plane, vein, lode, or bed of ore.

HEAP LEACHING

        A process whereby gold is extracted by "heaping" broken ore on sloping
impermeable pads and repeatedly spraying the heaps with a weak cyanide solution
which dissolves the gold content. The gold-laden solution is collected for gold
recovery.

HEDGING

        Taking a buy or sell position in a futures market opposite to a position
held in the cash market to minimize the risk of financial loss from an adverse
price change.

HIGH-GRADE

        Rich ore. As a verb, it refers to selective mining of the best ore in a
deposit.

HIGH RATE THICKENER

        A type of equipment used to perform solid liquid separation. Slurry (a
mixture of rock and water) is fed into this unit with a clear solution produced
in one stream and a moist solid produced in the second stream.

HQ

        A diamond drill core measuring 2.500 inches in diameter (6.35 cm).

INTRUSIVE

        Rock which while molten, penetrated into or between other rocks but
solidified before reaching the surface.

INTRACALDERA OLIGOCENE ASH-FLOW TUFFS

        A geological term referring to a rock formation comprising ash-flow
tuffs existing inside a caldera. A caldera is a crater formed from by the
collapse of the central part of a volcano. This particular formation dates back
to the Oligocene epoch.

KAOLINITE

        A monoclinic mineral, 2[Al2Si2O5(OH)4]; kaolinite-serpentine group;
kaolinite structure consists of a sheet of tetrahedrally bonded silica and a
sheet of octahedrally bonded alumina with little tolerance for cation exchange
or expansive hydration; polymorphous with dickite, halloysite, and nacrite;
soft; white; formed by hydrothermal alteration or weathering of
aluminosilicates, esp. feldspars and feldspathoids; formerly called kaolin.

LEACH

        A method of extracting gold from ore by a chemical solution usually
containing cyanide.

LENSE

        Pyrite, round or oval in plan and lenticular in section, ranging up to 2
to 3 feet (0.6 to 0.9 meters) in thickness and several hundred feet in the
greatest lateral dimension, that is found in coalbeds.

LENTICULAR

        Resembling in shape the cross section of a lens. The term may be
applied, e.g., to a body of rock, a sedimentary structure, or a mineral habit.


                                     - 86 -
<PAGE>

LODE

        Vein of metal ore.

LOW-GRADE

        A term applied to ores relatively poor in the metal they are mined for;
lean ore.

MAFIC

        Igneous rocks composed mostly of dark, iron- and magnesium-rich
minerals.

METAMORPHISM

        The process by which the form or structure of rocks is changed by heat
and pressure.

MICA

        1. A group of phyllosilicate minerals having the general composition,
X2Y4-6Z8O20(OH,F) where X=(Ba,Ca,Cs,H3O,K,Na,NH4), Y=(Al,Cr,Fe,Li,Mg,Mn,V,Zn),
and Z=(Al,Be,Fe,Si); may be monoclinic, pseudohexagonal or pseudo-orthorhombic;
soft; perfect basal (micaceous) cleavage yielding tough, elastic flakes and
sheets; colorless, white, yellow, green, brown, or black; excellent electrical
and thermal insulators (isinglass); common rock-forming minerals in igneous,
metamorphic, and sedimentary rocks. 2. The mineral group anandite, annite,
biotite, bityite, celadonite, chernykhite, clintonite, ephesite, ferri-annite,
glauconite, hendricksite, kinoshitalite, lepidolite, margarite, masutomilite,
montdorite, muscovite, nanpingite, norrishite, paragonite, phlogopite,
polylithionite, preiswerkite, roscoelite, siderophyllite, sodium phlogopite,
taeniolite, tobelite, wonesite, and zinnwaldite.

MICACEOUS

        Consisting of or containing mica; e.g., a micaceous sediment.

MILL

        A plant where ore is ground fine and undergoes physical or chemical
treatment to extract the valuable metals.

MINERAL CLAIM

        A mineral claim usually authorizes the holder to prospect and mine for
minerals and to carry out works in connection with prospecting and mining.

MINERAL RESERVES

        The economically mineable part of a measured or indicated mineral
resource demonstrated by at least a preliminary feasibility study. This study
must include adequate information on mining, processing metallurgical, economic
and other relevant factors that demonstrate, at the time of reporting, that
economic extraction can be justified. An mineral reserve includes diluting
materials and allowances for losses that may occur when the material is mined.

        PROVEN MINERAL RESERVE: The economically mineable part of a measured
        mineral resource demonstrated by at least a preliminary feasibility
        study. This study must include adequate information on mining,
        processing, metallurgical, economic, and other relevant factors that
        demonstrate, at the time of reporting, that economic extraction is
        justified.

        PROBABLE MINERAL RESERVE: The economically mineable part of an
        Indicated, and in some circumstances a measured mineral resource
        demonstrated by at least a preliminary feasibility study. This study
        must include adequate information on mining, processing, metallurgical,
        economic, and other relevant factors that demonstrate, at the time of
        reporting, that economic extraction can be justified.

MINERAL RESOURCE

        A concentration or occurrence of natural, solid, inorganic or fossilized
organic material in or on the earth's crust in such form and quantity and of
such a grade or quality that it has reasonable prospects for economic
extraction. The location, quantity, grade, geological characteristics and
continuity of a mineral resource are known, estimated or interpreted from
specific geological evidence and knowledge.


                                     - 87 -
<PAGE>

        MEASURED MINERAL RESOURCES: A measured mineral resource is that part of
        a mineral resource for which quantity, grade or quality, densities,
        shape, physical characteristics are so well established that they can be
        estimated with confidence sufficient to allow the appropriate
        application of technical and economic parameters, to support production
        planning and evaluation of the economic viability of the deposit. The
        estimate is based on detailed and reliable exploration, sampling and
        testing information gathered through appropriate techniques from
        locations such as outcrops, trenches, pits, workings and drill holes
        that are spaced closely enough to confirm both geological and grade
        continuity.

        INDICATED MINERAL RESOURCES: An indicated mineral resource is that part
        of a mineral resource for which quantity, grade or quality, densities,
        shape and physical characteristics, can be estimated with a level of
        confidence sufficient to allow the appropriate application of technical
        and economic parameters, to support mine planning and evaluation of the
        economic viability of the deposit. The estimate is based on detailed and
        reliable exploration and test information gathered through appropriate
        techniques from location such as outcrops, trenches, pits, workings and
        drill holes that are spaced closely enough for geological and grade
        continuity to be reasonably assumed.

        INFERRED MINERAL RESOURCE: The part of a mineral resource for which
        quantity and grade or quality can be estimated on the basis of
        geological evidence and limited sampling and reasonably assumed, but not
        verified, geological and grade continuity. The estimate is based on
        limited information and sampling gathered through appropriate techniques
        from locations such as outcrops, trenches, pits, workings and drill
        holes. Due to the uncertainty which may attach to inferred mineral
        resources, it cannot be assumed that all or any part of an inferred
        mineral resource will be upgraded to an indicated or measured mineral
        resource as result of continued exploration.

MINERALIZATION

        The process or processes by which a mineral or minerals are introduced
into a rock, resulting in a valuable or potentially valuable deposit. It is a
general term, incorporating various types; e.g., fissure filling, impregnation,
and replacement.

MISSISSIPPIAN

        Belonging to the geologic time, system of rocks or sedimentary deposits
of the fifth period of the Paleozoic Era, characterized by the submergence of
extensive land areas under shallow seas.

MUCK SAMPLE

        A representative piece of ore that is taken from a muck pile and then
assayed to determine the grade of the pile.

MUSCOVITE

        A monoclinic mineral, Kal2(Si3Al)O10(OH,F)2; mica group;
pseudohexagonal; perfect basal cleavage; forms large, transparent, strong,
electrically and thermally insulating, stable sheets; a common rock-forming
mineral in silicic plutonic rocks, mica schists, gneisses, and commercially in
pegmatites; also a hydrothermal and weathering product of feldspar and in
detrital sediments. Also spelled muscovite.

NET SMELTER RETURN

        A type of royalty payment where the royalty owner receives a fixed
percentage of the revenues of a property or operation.

OPEN PIT

        A mine that is entirely on surface. Also referred to as open-cut or
open-cast mine.

OLIGOCENE

        An epoch of the early Tertiary Period, after the Eocene and before the
Miocene; also, the corresponding worldwide series of rocks. It is considered to
be a period when the Tertiary is designated as an era.

OXIDATION

        A reaction where a material is reacted with an oxidizer such as pure
oxygen or air in order to alter the state of the material.


                                     - 88 -
<PAGE>

PALEOZOIC

        The era of geologic time that includes the Cambrian, Ordovician,
Silurian, Devonian, Mississippian, Pennsylvanian and Permian periods and is
characterized by the appearance of marine invertebrates, primitive fishes, land
plants and primitive reptiles.

PEGMATITES

        Igneous rocks of coarse grain found usually as dikes associated with
large masses of plutonic rock.

PHASES

        Stages in time and/or composition in forming the rock.

PHYLLITE

        1. A metamorphic rock, intermediate in grade between slate and mica
schist. Minute crystals of sericite and chlorite impart a silky sheen to the
surfaces of cleavage (or schistosity). Phyllites commonly exhibit corrugated
cleavage surfaces. 2. A general term for minerals with a layered crystal
structure. 3. A general term used by some French authors for the scaly minerals,
such as micas, chlorites, clays, and vermiculites.

PLACER

        A place where gold is obtained by the washing of materials: rocks,
boulders, sand, clay, etc. containing gold or other valuable minerals by the
elements. These are deposits of valuable minerals, in Kinross' case, native
gold, are found in the form of dust, flakes, grains, and nuggets. In the United
States mining law, mineral deposits, not veins in place, are treated as placers
as far as locating, holding, and patenting are concerned. The term "placer"
applies to ancient (Tertiary) gravel as well as to recent deposits, and to
underground (drift mines) as well as surface deposits.

PORPHYRY

        An igneous rock in which relatively large crystals, called phenocrysts,
are set in a fine-granted groundmass.

PQ

        A diamond drill core measuring 2.344 inches in diameter (5.954 cm).

PREMIUM

        An amount specified as such by the parties to a hedging agreement, which
amount is the purchase price of the bullion option and is payable by the buyer
to the seller on the premium payment date for value on such date.

PULP METALLIC

        A type of assay method, which is used to handle the coarse gold
component of a sample to allow for its accurate determination.

PYRITE

        A yellow iron sulphide mineral, normally of little value. It is
sometimes referred to as "fool's gold."

PYROCLASTIC

        Produced by explosive or aerial ejection of ash, fragments, and glassy
material from a volcanic vent. Applied to the rocks and rock layers as well as
to the textures so formed.

QUALIFIED PERSON

        An individual who: (a) is an engineer or geoscientist with at least five
years of experience in mineral exploration, mine development or operation, or
mineral project assessment, or any combination of these; (b) has experience
relevant to the subject matter of the mineral project; and (c) is a member in
good standing of a professional association as defined by NI 43-101.

QUARTZ

        Common rock-forming mineral consisting of silicon and oxygen.

QUARTZITE

        1. A granoblastic metamorphic rock consisting mainly of quartz and
formed by recrystallization of sandstone or chert by either regional or thermal
metamorphism; metaquartzite. 2. A very hard but unmetamorphosed sandstone,


                                     - 89 -
<PAGE>

consisting chiefly of quartz grains that are so completely cemented with
secondary silica that the rock breaks across or through the grains rather than
around them; an orthoquartzite. 3. Stone composed of silica grains so firmly
cemented by silica that fracture occurs through the grains rather than around
them. 4. As used in a general sense by drillers, a very hard, dense sandstone.
5. A granulose metamorphic rock consisting essentially of quartz. 6. Sandstone
cemented by silica that has grown in optical continuity around each fragment.

RECLAMATION

        The restoration of a site after mining or exploration activity is
completed.

RECOVERY

        A term used in process metallurgy to indicate the proportion of valuable
material obtained in the processing of an ore. It is generally stated as a
percentage of valuable metal in the ore that is recovered compared to the total
valuable metal present in the ore.

RUN-OF-MINE

        Said of ore in its natural, unprocessed state; pertaining to ore just as
it is mined.

REUSABLE PAD ORE

        Ore which is processed on a reusable pad. The reusable pad is an area
where heap leaching takes place on ore material temporarily placed onto it. Upon
completion of leaching, the ore is removed from the pad and sent to disposal.
New material is then applied.

SAMPLE

        A small portion of rock or a mineral deposit, taken so that the metal
content can be determined by assaying.

SANIDINE

        A monoclinic mineral, (K,Na)AlSi3O8; feldspar group; forms a series with
albite; prismatic cleavage; colorless; forms phenocrysts in felsic volcanic
rocks.

SCHIST

        A foliated metamorphic rock the grains of which have a roughly parallel
arrangement; generally developed by shearing.

SEDIMENTARY ROCKS

        Secondary rocks formed from material derived from other rocks and laid
down under water. Examples are limestone, shale and sandstone.

SEMI-AUTOGENOUS (SAG) MILL

        A steel cylinder with steel balls into which run-of-mine material is
fed. The ore is ground in the action of large lumps of rock and steel balls.

SERICITE

        A white, fine-grained potassium mica occurring in small scales as an
alteration product of various aluminosilicate minerals, having a silky luster,
and found in various metamorphic rocks (especially in schists and phyllites) or
in the wall rocks, fault gouge, and vein fillings of many ore deposits. It is
commonly muscovite or very close to muscovite in composition, but may also
include paragonite and illite.

SHEAR ZONE

        A geological term to describe a geological area in which shearing has
occurred on a large scale.

SILICA

        The chemically resistant dioxide of silicon, SiO2; occurs naturally as
five crystalline polymorphs: trigonal and hexagonal quartz, orthorhombic and
hexagonal tridymite, tetragonal and isometric cristobalite, monoclinic coesite,
and tetragonal stishovite. Also occurs as cryptocrystalline chalcedony, hydrated
opal, the glass lechatelierite, skeletal material in diatoms and other living
organisms, and fossil skeletal material in diatomite and other siliceous
accumulations. Also occurs with other chemical elements in silicate minerals.


                                     - 90 -
<PAGE>

SILT

        Material passing the No. 200 U.S. standard sieve that is nonplastic or
very slightly plastic and that exhibits little or no strength when air-dried.
Material composes of fine rock components.

SKIP

        1. A guided steel hoppit, usually rectangular, with a capacity up to 50
st (45.4 t), which is used in vertical or inclined shafts for hoisting coal or
minerals. It can also be adapted for personnel riding. 2. A large hoisting
bucket, constructed of boiler plate that slides between guides in a shaft, the
bail usually connecting at or near the bottom of the bucket so that it may be
automatically dumped at the surface. 3. An open iron vehicle or car on four
wheels, running on rails and used esp. on inclines or in inclined shafts. 4. A
truck used in a mine. 5. A small car that conveys the charge to the top of a
blast furnace.

SLURRY

        Fine rock particles are suspended in a stream of water.

SPHALERITE

        A zinc mineral, which is composed of zinc and sulphur. It has a specific
gravity of 3.9 to 4.1.

STIBNITE

        A mineral composed of antimony and sulphur often associated with other
sulphides.

STOCK

        A magma that has intruded into preexisting rock in a columnar shape
typically a kilometer or more in diameter.

STOCKPILE

        Broken ore heaped on surface, pending treatment or shipment.

STOCKWORK

        A mineral deposit consisting of a three-dimensional network of planar to
irregular veinlets closely enough spaced that the whole mass can be mined.

SYMPATHETIC FAULTING

        A minor fault that has the same orientation as the major fault or some
such structure with which it is associated.

SYNCLINE

        A fold in rocks in which the strata dip inward from both sides toward
the axis.

TAILINGS

        The material that remains after all metals considered economic have been
removed from ore during milling.

TENNANTITE

        An isometric mineral, (Cu,Fe)12As4S13; tetrahedrite group; forms a
series with tetrahedrite; may contain zinc, silver, or cobalt replacing copper;
in veins; an important source of copper.

TERRANE

        Area of land of a particular character, E.G., mountainous, swampy.

TETRAHEDRITE

        1. An isometric mineral, (Cu,Fe)12Sb4S13, having copper replaced by
zinc, lead, mercury, cobalt, nickel, or silver; forms a series with tennantite
and freibergite; metallic; crystallizes tetrahedra; occurs in hydrothermal veins
and contact metamorphic deposits; a source of copper and other metals. 2. The
mineral group freibergite, giraudite, goldfieldite, hakite, tennantite, and
tetrahedrite.

TOURMALINE

        1. Any member of the trigonal mineral group,
XY3Z6(BO3)3Si6O18(OH,F)4where X is Na partially replaced by Ca, K, Mg, or a
vacancy, Y is Mg, Fe2+, Li, or Al, and Z is Al and Fe3+; forms prisms of three,
six, or nine sides; commonly vertically striated; varicolored; an accessory in
granite pegmatites, felsic igneous rocks, and


                                     - 91 -
<PAGE>

metamorphic rocks. Transparent and flawless crystals may be cut for gems. 2. The
mineral group buergerite, dravite, elbaite, ferridravite, liddicoatite, schorl,
and uvite.

TRIASSIC

        Belonging to the geolic time, system of rocks or sedimentary deposits of
the first period of the Mesozoic Era, characterized by the diversification of
land life, the rise of dinosaurs and the appearance of the earliest mammals.

TUFF

        Rock composed of fine volcanic ash.

ULTRAMAFIC

        Also called ultrabasic. Characterizes rocks containing less than 45%
silica; containing virtually no quartz or feldspar. They are essentially
composed of iron and magnesium-rich minerals, metallic oxides and sulfides, and
native metals.

UNCONFORMITY

        A surface between successive strata representing a missing interval in
the geologic record of time, and produced either by an interruption in
deposition or by the erosion of depositionally continuous strata followed by
renewed deposition.

VEIN

        A fissure, fault or crack in a rock filled by minerals that have
traveled upwards from some deep source.

VOLCANICS

        A general collective term for extrusive igneous and pyroclastic material
and rocks.

VUG

        A small cavity in a rock, usually lined with crystals of a different
mineral composition than the enclosing rock.

ZONE

        An area of distinct mineralization.


                                     - 92 -
<PAGE>

                                  SCHEDULE "A"

                            KINROSS GOLD CORPORATION
                                   ("KINROSS")

                                 CHARTER OF THE
                                 AUDIT COMMITTEE

I.      PURPOSE

        The Audit Committee shall provide assistance to the Board of Directors
        in fulfilling its financial reporting and control responsibilities to
        the shareholders of Kinross and the investment community. The Audit
        Committee's primary duties and responsibilities are to:

        o       Oversee (i) the integrity of Kinross' financial statements; (ii)
                Kinross' compliance with legal and regulatory requirements
                regarding financial disclosure; (iii) the independent auditors'
                qualifications and independence; and (iv) the performance of
                Kinross' internal audit function.

        o       Serve as an independent and objective party to monitor Kinross'
                financial reporting processes and internal control systems.

        o       Review and appraise the audit activities of Kinross' independent
                auditors and the internal auditing functions.

        o       Annually evaluate the performance of the Audit Committee in
                light of the requirements of its Charter.

        o       Provide open lines of communication among the independent
                auditors, financial and senior management, and the Board of
                Directors for financial reporting and control matters. The Audit
                Committee will meet, periodically, with management, with the
                members of the internal audit function and with the independent
                auditors.

II.     COMPOSITION

        The Audit Committee shall be comprised of at least three directors. Each
        Committee member shall be an "independent director" in accordance with
        applicable legal requirements, including currently the requirements of
        Multilateral Instrument 52-110 and the Corporate Governance Rules of the
        New York Stock Exchange ("NYSE Rules"), which are reproduced in Schedule
        "I" attached hereto.

        All members shall, to the satisfaction of the Board of Directors, be
        "financially literate", and at least one member shall have accounting or
        related financial management expertise to qualify as a "financial
        expert" in accordance with applicable legal requirements, including
        currently the requirements of Multilateral Instrument 52-110, the rules
        adopted by the United States Securities and Exchange Commission and the
        NYSE Rules reproduced in Schedule "I" attached hereto.

        As the rules set out in Schedule "I" may be revised, updated or replaced
        from time to time, the Audit Committee shall ensure that such schedule
        is up-dated accordingly when required.

        No director may serve as a member of the Committee if such director
        serves on the audit committee of more than two other public companies
        unless the Board of Directors determines that such simultaneous service
        would not impair the ability of such director to effectively serve on
        the Audit Committee, and this determination is disclosed in the annual
        management information circular.


                                     - i -
<PAGE>

        The Committee members will be elected annually at the first meeting of
        the Board of Directors following the annual general meeting of
        shareholders.

III.    RESPONSIBILITIES AND POWERS

        Responsibilities and powers of the Audit Committee include:

        o       Annual review and revision of this Charter as necessary with the
                approval of the Board of Directors.

        o       Subject to the powers of the Board of Directors and the
                shareholders under Kinross' articles, by-laws and under the
                Business Corporations Act (Ontario), the Audit Committee is
                responsible for the selection, appointment, oversight,
                evaluation, compensation, retention and, if necessary, the
                replacement of the independent auditors who prepare or issue an
                auditors' report or perform other audit, review or attest
                services for Kinross.

        o       Approving the appropriate audit engagement fees and the funding
                for payment of the independent auditors' compensation and any
                advisors retained by the Audit Committee.

        o       Ensuring that the auditors report directly to the Audit
                Committee and are made accountable to the Board and the Audit
                Committee, as representatives of the shareholders to whom the
                auditors are ultimately responsible.

        o       Confirming the independence of the auditors, which will require
                receipt from the auditors of a formal written statement
                delineating all relationships between the auditors and Kinross
                and any other factors that might affect the independence of the
                auditors and reviewing and discussing with the auditors any
                significant relationships and other factors identified in the
                statement. Reporting to the Board of Directors its conclusions
                on the independence of the auditors and the basis for these
                conclusions.

        o       Ensuring that the independent auditors are prohibited from
                providing the following non-audit services and determining which
                other non-audit services the independent auditors are prohibited
                from providing:

                o       bookkeeping or other services related to the accounting
                        records or financial statements of Kinross;

                o       financial information systems design and implementation;

                o       appraisal or valuation services, fairness opinions, or
                        contribution-in-kind reports;

                o       actuarial services;

                o       internal audit outsourcing services;

                o       management functions or human resources;

                o       broker or dealer, investment adviser or investment
                        banking services;

                o       legal services and expert services unrelated to the
                        audit; and

                o       any other services which the Public Company Accounting
                        Oversight Board determines to be impermissible.


                                     - ii -
<PAGE>

        o       Approving any permissible non-audit engagements of the
                independent auditors in accordance with applicable laws.

        o       Obtaining from the independent auditors in connection with any
                audit a timely report relating to the Kinross' annual audited
                financial statements describing all critical accounting policies
                and practices used, all alternative treatments within generally
                accepted accounting principles for policies and practices
                related to material items that have been discussed with
                management, ramifications of the use of such alternative
                disclosures and treatments, and the treatment preferred by the
                independent auditors, and any material written communications
                between the independent auditors and management, such as any
                "management" letter or schedule of unadjusted differences.

        o       Meeting with the auditors and financial management of Kinross to
                review the scope of the proposed audit for the current year, and
                the audit procedures to be used.

        o       Reviewing with management and the independent auditors:

                -       Kinross' annual and interim financial statements and
                        related footnotes, management's discussion and analysis,
                        earnings releases and the annual information form, for
                        the purpose of recommending approval by the Board of
                        Directors prior to being released or filed with
                        regulators, and ensuring that:

                        o       management has reviewed the financial statements
                                with the audit committee, including significant
                                judgments affecting the financial statements

                        o       the members of the Committee have discussed
                                among themselves, without management or the
                                independent auditors present, the information
                                disclosed to the Committee

                        o       the Committee has received the assurance of both
                                financial management and the independent
                                auditors that Kinross' financial statements are
                                fairly presented in conformity with Canadian
                                GAAP in all material respects

                -       Any significant changes required in the independent
                        auditors' audit plan and any serious issues with
                        management regarding the audit.

                -       Other matters related to the conduct of the audit that
                        are to be communicated to the Committee under generally
                        accepted auditing standards.

                With respect to the internal auditing department,

                (i)     to review the appointment and replacement of the
                        director of the internal auditing department; and

                (ii)    to advise the director of the internal auditing
                        department that he or she is expected to provide to the
                        Audit Committee copies of significant reports to
                        management prepared by the internal auditing department
                        and management's responses thereto;

                With respect to accounting principles and policies, financial
                reporting and internal audit control over financial reporting,

                (i)     to advise management, the internal auditing department
                        and the independent auditors that they are expected to
                        provide to the Audit Committee a timely analysis of
                        significant issues and practices relating to accounting
                        principles and policies, financial reporting and
                        internal control over financial reporting;


                                     - iii -
<PAGE>

                (ii)    to consider any reports or communications (and
                        management's and/or the internal audit department's
                        responses thereto) submitted to the Audit Committee by
                        the independent auditors required by or referred to in
                        SAS 61 (as codified by AU Section 380), as it may be
                        modified or supplemented or other professional
                        standards, including reports and communications related
                        to:

                o       deficiencies, including significant deficiencies or
                        material weaknesses, in internal control identified
                        during the audit or other matters relating to internal
                        control over financial reporting;

                o       consideration of fraud in a financial statement audit;

                o       detection of illegal acts;

                o       the independent auditors' responsibility under generally
                        accepted auditing standards;

                o       any restriction on audit scope;

                o       significant accounting policies;

                o       significant issues discussed with the national office
                        respecting auditing or accounting issues presented by
                        the engagement;

                o       management judgments and accounting estimates;

                o       any accounting adjustments arising from the audit that
                        were noted or proposed by the auditors but were passed
                        (as immaterial or otherwise);

                o       the responsibility of the independent auditors for other
                        information in documents containing audited financial
                        statements;

                o       disagreements with management;

                o       consultation by management with other accountants;

                o       major issues discussed with management prior to
                        retention of the independent auditors;

                o       difficulties encountered with management in performing
                        the audit;

                o       the independent auditors' judgments about the quality of
                        the entity's accounting principles;

                o       reviews of interim financial information conducted by
                        the independent auditors; and

                o       the responsibilities, budget and staffing of the
                        Company's internal audit function.

        o       Satisfying itself that adequate procedures are in place for the
                review of Kinross' public disclosure of financial information
                extracted or derived from Kinross' financial statements, other
                than the public disclosure described in the preceding paragraph,
                and assessing the adequacy of such procedures periodically.

        o       Reviewing with the independent auditors and management the
                adequacy and effectiveness of the financial and accounting
                controls of Kinross.


                                     - iv -
<PAGE>

        o       Establishing procedures: (i) for receiving, handling and
                retaining of complaints received by Kinross regarding
                accounting, internal controls, or auditing matters, and (ii) for
                employees to submit confidential anonymous concerns regarding
                questionable accounting or auditing matters.

        o       Monitoring compliance with Kinross' Code of Business Conduct &
                Ethics. Reviewing with the independent auditors any audit
                problems or difficulties and management's response and resolving
                disagreements between management and the auditors.

        o       Making inquires of management and the independent auditors to
                identify significant business, political, financial and control
                risks and exposures and assess the steps management has taken to
                minimize such risk to Kinross.

        o       Assessing the overall process for identifying principal
                business, political, financial and control risks and providing
                its views on the effectiveness of this process to the Board.

        o       Ensuring that the disclosure of the process followed by the
                Board of Directors and its committees, in the oversight of
                Kinross' management of principal business risks, is complete and
                fairly presented.

        o       Reviewing of confirmation of compliance with Kinross' policies
                on internal controls, conflicts of interests, ethics, foreign
                corrupt practice, etc.

        o       Discussing any earnings press releases, as well as financial
                information and earnings guidance provided to analysts and
                rating agencies.

        o       At least annually obtaining and reviewing a report prepared by
                the independent auditors describing (i) the auditors' internal
                quality-control procedures; (ii) any material issues raised by
                the most recent internal quality-control review, or peer review,
                of the auditors, or by any inquiry or investigation by
                governmental or professional authorities, within the preceding
                five years, respecting one or more independent audits carried
                out by the auditors, and any steps taken to deal with any such
                issues; and (iii) (to assess the auditors' independence) all
                relationships between the independent auditors and Kinross,
                including each non-audit service provided to the Company and at
                least the matters set forth in Independent Standards Board No.1.

        o       Setting clear hiring policies for partners, employees or former
                partners and former employees of the independent auditors.

        o       Engaging and compensating (for which Kinross will provide
                appropriate funding) independent counsel and other advisors if
                the Committee determines such advisors are necessary to assist
                the Committee in carrying out its duties.

        o       Reporting annually to the shareholders in Kinross' Management
                Information Circular prepared for the annual and general meeting
                of shareholders on the carrying out of its responsibilities
                under this charter and on other matters as required by
                applicable securities regulatory authorities.

IV.     MEETINGS AND OTHER MATTERS

        The Audit Committee will meet regularly at times necessary to perform
        the duties described above in a timely manner, but not less than four
        times a year. Meetings may be held at any time deemed appropriate by the
        Committee.


                                      - v -
<PAGE>

        The Audit Committee will meet periodically with representatives of the
        independent auditors, appropriate members of management and personnel
        responsible for the internal audit function, all either individually or
        collectively as may be required by the Committee.

        The independent auditors will have direct access to the Committee at
        their own initiative.

        The Chairman of the Committee will report periodically the Committee's
        findings and recommendations to the Board of Directors.

        The Audit Committee shall have the resources and authority appropriate
        to discharge its duties and responsibilities, including the authority to
        select, retain, terminate, and approve the fees and other retention
        terms of special or independent counsel, accountants or other experts
        and advisors, as it deems necessary or appropriate, without seeking
        approval of the Board or management.

        Kinross shall provide for appropriate funding, as determined by the
        Audit Committee, in its capacity as a committee of the Board, for
        payment of:

        1.      Compensation to the independent auditors and any other public
        accounting firm engaged for the purpose of preparing or issuing an audit
        report or performing other audit, review or attestation services for the
        Company;

        2.      Compensation of any advisers employed by the Audit Committee;
        and

        3.      Ordinary administrative expenses of the Audit Committee that are
        necessary or appropriate in carrying out its duties.


                                     - vi -
<PAGE>

                                  SCHEDULE "I"

INDEPENDENCE REQUIREMENT OF MULTILATERAL INSTRUMENT 52-110

A member of the Audit Committee shall be considered "independent", in accordance
with Multilateral Instrument 52-110 - Audit Committees ("MI 52-110"), subject to
the additional requirements or exceptions provided in MI 52-110, if that member
has no direct or indirect relationship with the Company, which could reasonably
interfere with the exercise of the member's independent judgment. The following
persons are considered to have a material relationship with the Company and, as
such, can not be a member of the Audit Committee:

(a)     an individual who is, or has been within the last three years, an
        employee or executive officer of the Company;

(b)     an individual whose immediate family member is, or has been within the
        last three years, an executive officer of the Company;

(c)     an individual who:

        (i)     is a partner of a firm that is the Company's internal or
                external auditor;

        (ii)    is an employee of that firm; or

        (iii)   was within the last three years a partner or employee of that
                firm and personally worked on the Company's audit within that
                time;

(d)     an individual whose spouse, minor child or stepchild, or child or
        stepchild who shares a home with the individual:

        (i)     is a partner of a firm that is the Company's internal or
                external auditor;

        (ii)    is an employee of that firm and participates in its audit,
                assurance or tax compliance (but not tax planning) practice, or

        (iii)   was within the last three years a partner or employee of that
                firm and personally worked on the Company's audit within that
                time;

(e)     an individual who, or whose immediate family member, is or has been
        within the last three years, an executive officer of an entity if any of
        the Company's current executive officers serves or served at the same
        time on the entity's compensation committee; and

(f)     an individual who received, or whose immediate family member who is
        employed as an executive officer of the Company received, more than
        $75,000 in direct compensation from the Company during any 12 month
        period within the last three years, other than as remuneration for
        acting in his or her capacity as a member of the Board of Directors or
        any Board committee, or the receipt of fixed amounts of compensation
        under a retirement plan (including deferred compensation) for prior
        service for the Company if the compensation is not contingent in any way
        on continued service.



In addition to the independence criteria discussed above, any individual who:

(a)     has a relationship with the Company pursuant to which the individual may
        accept, directly or indirectly, any consulting, advisory or other
        compensatory fee from the Company or any subsidiary entity of the
        Company, other than as remuneration for acting in his or her capacity as
        a member of the board of directors or any board committee; or as a
        part-time chair or vice-chair of the board or any board or committee, or


                                       I-1
<PAGE>

(b)     is an affiliated entity of the Company or any of its subsidiary
        entities,

        is deemed to have a material relationship with the Company, and
        therefore, is deemed not to be independent.

The indirect acceptance by an individual of any consulting, advisory or other
fee includes acceptance of a fee by:

(a)     an individual's spouse, minor child or stepchild, or a child or
        stepchild who shares the individual's home; or

(b)     an entity in which such individual is a partner, member, an officer such
        as a managing director occupying a comparable position or executive
        officer, or occupies a similar position (except limited partners,
        non-managing members and those occupying similar positions who, in each
        case, have no active role in providing services to the entity) and which
        provides accounting, consulting, legal, investment banking or financial
        advisory services to the Company or any subsidiary entity of the
        Company.

Independence Requirement of NYSE Rules

A director shall be considered "independent" in accordance with NYSE Rules if
that director has no material relationship with the Company that may interfere
with the exercise of his/her independence from management and the Company.

In addition:

(a)     A director who is an employee, or whose immediate family member is an
        executive officer, of the Company is not independent until three years
        after the end of such employment relationships.

(b)     A director who receives, or whose immediate family member receives, more
        than $100,000 per year in direct compensation from the Company, other
        than director or committee fees and pension or other forms of deferred
        compensation for prior service (provided such compensation is not
        contingent in any way on continued service), is not independent until
        three years after he or she ceases to receive more than $100,000 per
        year in such compensation.

(c)     A director who is affiliated with or employed by, or whose immediate
        family member is affiliated with or employed in a professional capacity
        by, a present or former internal or external auditor of the Company is
        not "independent" until three years after the end of the affiliation or
        the employment or auditing relationship.

(d)     A director who is employed, or whose immediate family member is
        employed, as an executive officer of another company where any of the
        Company's present executives serve on that company's compensation
        committee is not "independent" until three years after the end of such
        service or the employment relationship.

(e)     A director who is an executive officer or an employee, or whose
        immediate family member is an executive officer, of a company that makes
        payments to, or receives payments from, the Company for property or
        services in an amount which, in any single fiscal year, exceeds the
        greater of $1 million, or 2% of such other company's consolidated gross
        revenues, is not "independent" until three years after falling below
        such threshold.

A member of the Audit Committee must also satisfy the independence requirements
of Rule 10A-3(b)(1) adopted under the Securities Exchange Act of 1934 as set out
below:

        In order to be considered to be independent, a member of an audit
        committee of a listed issuer that is not an investment company may not,
        other than in his or her capacity as a member of the audit committee,
        the board of directors, or any other board committee:


                                       I-2
<PAGE>

        (a)     Accept directly or indirectly any consulting, advisory, or other
                compensatory fee from the issuer or any subsidiary thereof,
                provided that, unless the rules of the national securities
                exchange or national securities association provide otherwise,
                compensatory fees do not include the receipt of fixed amounts of
                compensation under a retirement plan (including deferred
                compensation) for prior service with the listed issuer (provided
                that such compensation is not contingent in any way on continued
                service); or

        (b)     Be an affiliated person of the issuer or any subsidiary thereof.

An "affiliated person" means a person who directly or indirectly controls
Kinross, or a director, executive officer, partner, member, principal or
designee of an entity that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with,
Kinross.

FINANCIAL LITERACY UNDER MULTILATERAL INSTRUMENT 52-110

"Financially literate", in accordance with MI 52-110, means that the director
has the ability to read and understand a set of financial statements that
present a breadth and level of complexity of accounting issues that are
generally comparable to the breadth and complexity of the issues that can
reasonably be expected to be raised by the Company's financial statements.

FINANCIAL EXPERT UNDER SEC RULES

An audit committee financial expert is defined as a person who has the following
attributes:

(a)     an understanding of generally accepted accounting principles and
        financial statements;

(b)     the ability to assess the general application of such principles in
        connection with the accounting for estimates, accruals and reserves;

(c)     experience preparing, auditing, analyzing or evaluating financial
        statements that present a breadth and level of complexity of accounting
        issues which are generally comparable to the breadth and complexity of
        issues that can reasonably be expected to be raised by the registrant's
        financial statements, or experience actively supervising one or more
        persons engaged in such activities;

(d)     an understanding of internal controls and procedures for financial
        reporting; and

(e)     an understanding of audit committee functions.

An individual will be required to possess all of the attributes listed in the
above definition to qualify as an audit committee financial expert and must have
acquired such attributes through one or more of the following means:

(a)     education and experience as a principal financial officer, principal
        accounting officer, controller, public accountant or auditor, or
        experience in one or more positions that involve the performance of
        similar function;

(b)     experience actively supervising a principal financial officer, principal
        accounting officer, controller, public accountant, auditor or person
        performing similar functions;

(c)     experience overseeing or assessing the performance of companies or
        public accountants with respect to the preparation, auditing or
        evaluation of financial statements; or

(d)     other relevant experience.


                                       I-3
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>tex99_2-8988.txt
<DESCRIPTION>EX-99.2
<TEXT>
<PAGE>

                                                                   Exhibit 99.10


RESTATED MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2004



1.  OVERVIEW.............................................................2

2.  IMPACT OF KEY ECONOMIC TRENDS........................................4

3.  2005 OUTLOOK.........................................................8

4.  STRATEGY.............................................................8

5.  DEVELOPMENTS.........................................................9

6.  CONSOLIDATED FINANCIAL RESULTS......................................13

7.  LIQUIDITY AND CAPITAL RESOURCES.....................................27

8.  QUARTERLY INFORMATION...............................................32

9.  ACCOUNTING POLICIES.................................................32

10. RECENT PRONOUNCEMENTS AND ACCOUNTING CHANGES........................37

11. RISK ANALYSIS.......................................................38

<PAGE>

RESTATED  MANAGEMENT'S  DISCUSSION  AND ANALYSIS FOR THE YEAR ENDED DECEMBER 31,
2004

This  restated  management's  discussion  and analysis  ("MD&A")  relates to the
financial  condition  and  results of  operations  of Kinross  Gold  Corporation
together with its wholly owned  subsidiaries as of November 18, 2005, except for
the  restatement  for the correction  related to the foreign  currency impact on
future tax  liabilities,  which is as of February 8, 2006. This MD&A is intended
to supplement and complement  Kinross' restated audited  consolidated  financial
statements for the year ended  December 31, 2004 and the notes thereto.  Readers
are cautioned that the MD&A contains forward-looking  statements and that actual
events  may vary from  management's  expectations.  Readers  are  encouraged  to
consult the Kinross Gold Corporation restated consolidated  financial statements
and corresponding  notes to the financial  statements which are available on the
Company's  website  WWW.KINROSS.COM  and  on  WWW.SEDAR.COM.   The  consolidated
financial  statements  and MD&A are  presented  in U.S.  dollars  and have  been
prepared in accordance with Canadian  generally accepted  accounting  principles
("CDN GAAP").  Reconciliation  to United States  generally  accepted  accounting
principles is provided in Note 22 to the 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 year ended  December 31,
2004, as well as our outlook.

As discussed  herein,  this MD&A gives effect to the  restatements  as described
below in "Developments: Restatement of Financial Statements" and in "Restatement
1 - Correction of foreign  currency impact on future tax  liabilities" in Note 2
and in "Restatement 2 - Goodwill and asset retirement  obligations" in Note 3 of
the accompanying consolidated financial statements.  Disclosure in the 2003 Form
40-F would in large part repeat the  disclosure  contained in the Company's 2004
Annual Report on Form 40-F. Accordingly,  the Company does not plan to amend the
2003 Form  40-F.  Kinross  believes  that all  information  needed  for  current
investor understanding is included in the 2004 Annual Report on Form 40-F.

This  section  contains  forward-looking   statements  and  should  be  read  in
conjunction  with the risk  factors  described  in "Risk  Analysis".  In certain
instances,  references are made to relevant notes in the consolidated  financial
statements for additional information.

1.  OVERVIEW

Kinross  Gold  Corporation  is 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 Zimbabwe(1). 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 its gold  mining
activities.

The operating cash flow and profitability of the Company are affected by various
factors,  including the amount of gold and silver  produced and sold, the market
prices of gold and silver,  operating  costs,  interest  rates,  regulatory  and
environmental  compliance,  general  and  administrative  costs and the level of
exploration  and other  discretionary  costs.  Due to the  global  nature of the
Company's operations, exposure also arises from fluctuations in foreign currency
exchange  rates,  and varying levels of taxation.  While Kinross seeks to manage
the level of risk  associated with its business,  many of the factors  affecting
these  risks are beyond the  Company's  control.  Unless  otherwise  noted,  all
amounts contained herein are presented in U.S. dollars.

SEGMENT PROFILE

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


- --------------
(1)     In light of the  economic  and  political  conditions  and the  negative
        impact of  inflationary  pressures  in  Zimbabwe,  the Blanket  mine was
        written  down in 2001  and  Kinross  discontinued  consolidation  of the
        results of this operation in 2002.


                                       2
<PAGE>
<TABLE>
<CAPTION>
============================================================================================================
                                                                                  OWNERSHIP PERCENTAGE
                                                                           ---------------------------------
                                                                               2004      2003 (a)       2002
- ------------------------------------------------------------------------------------------------------------
<S>                                                 <C>                        <C>         <C>          <C>
OPERATING SEGMENTS                                  LOCATION
  Fort Knox                                            U.S.A.                  100%        100%         100%
  Paracatu (b)                                         Brazil                  100%         49%           0%
  Round Mountain                                       U.S.A.                   50%         50%           0%
  Porcupine Joint Venture                              Canada                   49%         49%          49%
  La Coipa                                             Chile                    50%         50%           0%
  Crixas                                               Brazil                   50%         50%           0%
  Musselwhite                                          Canada                   32%         32%           0%
  Kubaka (c)                                           Russia                   98%         98%          55%
  Other operations (d)                                Various               Various     Various      Various
CORPORATE AND OTHER
- ------------------------------------------------------------------------------------------------------------
</TABLE>

(a)     The results of  operations  for 2003  include  only 11 months  (February
        through  December)  of  operating  and  financial  results for the mines
        acquired in the TVX/Echo Bay transaction.
(b)     The acquisition of Paracatu was completed on December 31, 2004 (see Note
        6 to the consolidated  financial  statements for the year ended December
        31,  2004).   Therefore,   the  Company's  49%  proportionate  share  of
        Paracatu`s  operating  results  have been  included  for the year  ended
        December 31, 2004.
(c)     Results for 2003  included the Company's  portion of Kubaka's  financial
        results (54.7% until February 28, 2003, and 100% thereafter).
(d)     Other operations include Kettle River, Refugio, Lupin and New Britannia.
        Results for 2003 included the Company's  portion of financial results of
        Lupin and Kettle River at 100% and New  Britannia at 50% since  February
        1, 2003.

COMPARABILITY OF PERIODS

On January 31, 2003, the Company  combined its operations with those of TVX Gold
Inc.  ("TVX") and Echo Bay Mines Ltd.  ("Echo Bay").  This  transaction is fully
described  in Note 6 of the  consolidated  financial  statements.  As a  result,
comparative numbers for 2003 include only the results of 11 months of operations
for the mines  acquired in this  combination.  This  transaction  had a material
impact on the Company's operations and its balance sheet.

CONSOLIDATED FINANCIAL AND OPERATING HIGHLIGHTS

<TABLE>
<CAPTION>
=================================================================================================================================
                                                           YEARS ENDED DECEMBER 31,                     CHANGE (c)
- ---------------------------------------------------------------------------------------------------------------------------------
(DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)     2004            2003 (a)           2002            04 vs  03      03 vs  02
- ---------------------------------------------------------------------------------------------------------------------------------
<S>                                              <C>               <C>                  <C>              <C>            <C>
Gold equivalent ounces - produced                1,653,784         1,620,410            888,634             2%             82%
Gold equivalent ounces - sold (b)                1,654,617         1,600,246            852,358             3%             88%
Gold ounces - sold                               1,585,109         1,541,577            848,513             3%             82%
Revenue                                         $    666.8        $    571.9         $    261.0            17%            119%
Impairment of goodwill                          $     12.4        $    394.4         $       --           (97%)            nm
Net loss                                        $    (63.1)       $   (437.7)        $    (22.8)           86%          (1820%)
Net loss attributable to common shares          $    (63.1)       $   (427.7)        $    (30.1)           85%          (1321%)
Basic and diluted loss per share                $    (0.18)       $    (1.39)        $    (0.25)           87%           (456%)
Cash flow from operating activities             $    161.2        $     89.5         $     56.7            80%             58%
Total assets                                    $  1,834.2        $  1,794.5         $    599.6             2%            199%
Long-term financial liabilities                 $    360.6        $    274.2         $    105.6            32%            160%
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)     2003 figures  associated with TVX and Echo Bay properties include the 11
        months from February to December only.
(b)     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  year.  The  ratios  were   2004-61.46:1,   2003-74.79:1   and
        2002-67.24:1.
(c)     "nm" refers to not meaningful.


                                       3
<PAGE>

CONSOLIDATED FINANCIAL PERFORMANCE

Increased  production  and sales,  and higher  average  gold prices  resulted in
increased revenues in 2004 from 2003.  Revenues also increased in 2003 from 2002
due to increased gold production and higher average gold prices. Equivalent gold
ounces sold increased from 852,358 ounces in 2002 to 1,600,246 ounces in 2003 to
1,654,617  ounces in 2004.  The increase  from 2002 to 2003 was primarily due to
the  merger  of the  Company  with TVX and Echo Bay on  January  31,  2003.  The
increase  from 2003 to 2004 was  primarily  due to the  inclusion of the TVX and
Echo Bay  properties  for the full 12  months  in 2004.  The  Company's  average
realized gold price  increased  from $306 per ounce in 2002 to $357 per ounce in
2003 and $404 per ounce in 2004,  positively  impacting  earnings  and cash flow
from operations. This higher average realized gold price was partially offset by
higher operating  costs.  Since 2002,  Kinross has experienced  increases in the
costs of fuel,  power,  labour and other  production  costs.  In  addition,  the
appreciation  of foreign  currencies  against the U.S. dollar has also increased
the Company's operating costs at those mines not located in the United States.

In 2004,  Kinross  had a loss of $63.1  million  ($0.18 per share) and cash flow
from operating  activities of $161.2 million.  The Company's  financial  results
were negatively  affected by total  impairment  charges of $59.9 million,  which
included a goodwill  impairment charge of $12.4 million, an impairment charge to
property,  plant and  equipment  of $46.1  million and an  impairment  charge to
investments of $1.4 million.

At December 31, 2004, Kinross' cash and cash equivalents had decreased by $197.9
million from the previous year-end to $47.9 million. In addition, total debt had
increased during the year by $92.8 million to $122.9 million.  The change during
the year in the Company's financial position resulted from:

        o       The use of $261.2  million in cash to acquire the  remaining 51%
                of the Paracatu mine in Brazil;
        o       Capital expenditures of $169.5 million;
        o       A net cash investment of $11.8 million in long-term investments;
        o       Repurchase of common shares for $11.8 million;
        o       Partially  offset  by cash  flow from  operating  activities  of
                $161.2 million and net proceeds from debt of $91.3 million.

RESERVES

At December 31, 2004,  Kinross had proven and probable  reserves of 19.4 million
ounces of gold, an increase of 37% over the previous year-end despite  depletion
through  mining 1.9 million  contained  gold ounces during the year. The reserve
additions of 7.2 million ounces  consisted of 2.9 million ounces from successful
exploration  efforts  and the impact of a higher gold price  assumption  used in
2004 and 4.3 million ounces gained through the December 31, 2004  acquisition of
the  remaining  51% of the Paracatu  Mine.  Reserves at December 31, 2004,  were
estimated using a gold price of $350 per ounce,  compared with $325 per ounce at
December 31, 2003.(2)

2.  IMPACT OF KEY ECONOMIC TRENDS

PRICE OF GOLD

The price of gold is the largest single factor in determining  profitability and
cash flow from operations. Accordingly, the financial performance of the Company
has been,  and is expected to  continue  to be,  closely  linked to the price of
gold.  Historically,  the  price of gold  has been  subject  to  volatile  price
movements over short periods of time and affected by numerous  macroeconomic and
industry  factors  that are  beyond  the  Company's  control.  Some of the major
influences on the gold price are currency


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

                                       4
<PAGE>

exchange rate fluctuations and the relative strength of the U.S. dollar,  supply
and demand of gold,  and  macroeconomic  factors  such as the level of  interest
rates and inflation expectations.

CURRENCY FLUCTUATIONS

Recent currency  exchange rate  fluctuations have been dominated by the weakness
in the U.S.  dollar relative to other  currencies.  This has created a situation
where  the  price  of  gold  (which  is  denominated  in U.S.  dollars)  has not
strengthened  in local  currencies  to the same  degree as the price of gold has
strengthened  in U.S.  dollars.  The following  chart  illustrates  the relative
performance of gold in various currencies.(3)

          [RELATIVE PERFORMANCE - GOLD IN CURRENCIES CHART APPEARS HERE AND
                    THE THE PLOT POINTS ARE PROVIDED BELOW]

<TABLE>
<CAPTION>
           Brazilian Real   U.S. Dollar     Indian Rupee    Canadian Dollar    European Euro      Australian Dollar    South African
                                                                                                                          Rand
- ------------------------------------------------------------------------------------------------------------------------------------
<S>               <C>             <C>             <C>                <C>                <C>                  <C>         <C>
  1/6/2002           1               1               1                  1                  1                    1           1
 1/13/2002        1.06            1.03            1.03               1.03               1.03                 1.03        0.96
 1/20/2002        1.03            1.02            1.02               1.03               1.03                 1.03        0.96
 1/27/2002        1.04               1               1               1.01               1.04                 1.01        0.94
  2/3/2002        1.06            1.03            1.03               1.02               1.07                 1.05        0.99
 2/10/2002        1.15            1.09             1.1               1.09               1.12                 1.11        1.03
 2/17/2002        1.11            1.07            1.08               1.06               1.09                 1.07        1.01
 2/24/2002        1.09            1.05            1.06               1.05               1.07                 1.07        0.99
  3/3/2002        1.07            1.07            1.08               1.07               1.11                 1.07           1
 3/10/2002        1.05            1.04            1.05               1.03               1.06                 1.03           1
 3/17/2002        1.05            1.04            1.05               1.03               1.05                 1.03        1.02
 3/24/2002        1.08            1.07            1.08               1.06               1.09                 1.05        1.01
 3/31/2002        1.08            1.09             1.1               1.09               1.11                 1.06        1.02
  4/7/2002        1.05            1.08            1.09               1.07                1.1                 1.06        0.98
 4/14/2002        1.07            1.08             1.1               1.08                1.1                 1.05           1
 4/21/2002        1.08            1.08             1.1               1.07               1.09                 1.04           1
 4/28/2002        1.14            1.12            1.13               1.09               1.11                 1.07        0.98
  5/5/2002        1.15            1.12            1.14                1.1               1.09                 1.08        0.97
 5/12/2002        1.18            1.12            1.13               1.09               1.09                 1.07        0.94
 5/19/2002        1.18            1.11            1.13               1.08               1.08                 1.05        0.92
 5/26/2002        1.24            1.15            1.17                1.1               1.12                 1.07        0.95
  6/2/2002        1.26            1.17            1.19               1.13               1.12                 1.07        0.95
  6/9/2002        1.31            1.16            1.18               1.12                1.1                 1.06        0.95
 6/16/2002        1.33            1.15            1.16               1.11               1.08                 1.06        0.99
 6/23/2002        1.41            1.16            1.18               1.11               1.07                 1.05        0.99
 6/30/2002        1.36            1.13            1.14               1.07               1.02                 1.04        0.96
  7/7/2002        1.38            1.12            1.13               1.07               1.03                 1.04        0.93
 7/14/2002        1.37            1.13            1.15               1.09               1.02                 1.05        0.93
 7/21/2002        1.43            1.16            1.17               1.12               1.03                 1.09        0.96
 7/28/2002        1.40            1.09             1.1               1.08               0.99                 1.06        0.92
  8/4/2002        1.42             1.1            1.11                1.1                  1                 1.06        0.93
 8/11/2002        1.46            1.13            1.14               1.11               1.04                  1.1        0.98
 8/18/2002        1.51            1.13            1.13                1.1               1.02                 1.07        0.98
 8/25/2002        1.47             1.1            1.11               1.07               1.01                 1.05        0.99
  9/1/2002        1.45            1.12            1.13                1.1               1.02                 1.06        0.98
  9/8/2002        1.55            1.15            1.16               1.12               1.05                 1.09           1
 9/15/2002        1.54            1.14            1.14               1.13               1.05                 1.07        0.99
 9/22/2002        1.68            1.16            1.16               1.14               1.05                  1.1        1.01
 9/29/2002        1.90            1.15            1.15               1.14               1.05                  1.1           1
 10/6/2002        1.79            1.16            1.16               1.15               1.06                  1.1           1
10/13/2002        1.85            1.14            1.14               1.13               1.03                 1.08        0.98
10/20/2002        1.86            1.12            1.13               1.11               1.03                 1.06        0.96
10/27/2002        1.80            1.13            1.13               1.11               1.03                 1.05        0.94
 11/3/2002        1.77            1.15            1.15               1.12               1.03                 1.07        0.95
11/10/2002        1.75            1.15            1.15               1.13               1.02                 1.06        0.93
11/17/2002        1.82            1.15            1.15               1.14               1.02                 1.06        0.91
11/24/2002        1.75            1.15            1.15               1.14               1.03                 1.06         0.9
 12/1/2002        1.79            1.14            1.15               1.12               1.03                 1.06        0.87
 12/8/2002        1.88            1.17            1.17               1.15               1.04                 1.08        0.89
12/15/2002        1.91            1.19            1.19               1.17               1.04                  1.1        0.86
12/22/2002        1.83            1.22            1.21               1.19               1.06                 1.13         0.9
12/29/2002        1.90            1.25            1.24               1.23               1.07                 1.16        0.91
  1/5/2003        1.86            1.26            1.25               1.23               1.08                 1.15        0.88
 1/12/2003        1.80            1.27            1.26               1.23               1.08                 1.13        0.89
 1/19/2003        1.85            1.28            1.27               1.23               1.07                 1.12        0.93
 1/26/2003        2.05            1.32            1.31               1.26               1.09                 1.16        0.95
  2/2/2003        1.98            1.32            1.31               1.26                1.1                 1.17        0.93
  2/9/2003        2.04            1.33            1.31               1.26                1.1                 1.17        0.92
 2/16/2003        1.97            1.26            1.25                1.2               1.04                  1.1        0.87
 2/23/2003        1.96            1.26            1.24               1.19               1.05                  1.1        0.84
  3/2/2003        1.92            1.25            1.24               1.17               1.04                 1.07        0.84
  3/9/2003        1.88            1.26            1.24               1.16               1.02                 1.07        0.82
 3/16/2003        1.78            1.21            1.19               1.11                  1                 1.05        0.82
 3/23/2003        1.71            1.17            1.15                1.1               0.99                 1.03         0.8
 3/30/2003        1.71            1.19            1.17                1.1               0.99                 1.03        0.78
  4/6/2003        1.61            1.17            1.15               1.08               0.97                 1.01        0.77
 4/13/2003        1.61            1.18            1.15               1.07               0.98                 1.01        0.76
 4/20/2003        1.53            1.17            1.15               1.07               0.96                 0.99        0.74
 4/27/2003        1.54            1.19            1.17               1.08               0.97                 1.01        0.71
  5/4/2003        1.56            1.22             1.2               1.09               0.97                 1.01        0.76
 5/11/2003        1.54            1.25            1.22               1.09               0.97                 1.01        0.75
 5/18/2003        1.60            1.27            1.24               1.09               0.98                 1.01        0.81
 5/25/2003        1.65            1.32            1.28               1.14                  1                 1.04        0.86
  6/1/2003        1.67            1.31            1.28               1.12               0.99                 1.04        0.88
  6/8/2003        1.61             1.3            1.27               1.11                  1                 1.03        0.87
 6/15/2003        1.56            1.28            1.24               1.07               0.96                    1        0.83
 6/22/2003        1.59            1.28            1.23               1.09               0.99                    1        0.83
 6/29/2003        1.53            1.24            1.19               1.05               0.97                 0.96        0.77
  7/6/2003        1.53            1.26            1.21               1.06               0.98                 0.97        0.78
 7/13/2003        1.53            1.24            1.18               1.07               0.98                 0.98        0.77
 7/20/2003        1.54            1.24            1.19                1.1               0.99                    1        0.79
 7/27/2003        1.61             1.3            1.24               1.13               1.01                 1.02         0.8
  8/3/2003        1.62            1.25            1.19               1.09               0.99                    1        0.77
 8/10/2003        1.64            1.28            1.22               1.12               1.01                 1.02        0.78
 8/17/2003        1.67             1.3            1.24               1.13               1.04                 1.03        0.79
 8/24/2003        1.67             1.3            1.24               1.14               1.07                 1.04         0.8
 8/31/2003        1.72            1.35            1.28               1.17                1.1                 1.08        0.82
  9/7/2003        1.69            1.35            1.29               1.16               1.09                 1.09        0.84
 9/14/2003        1.67            1.34            1.28               1.15               1.07                 1.05        0.82
 9/21/2003        1.70            1.37             1.3               1.16               1.08                 1.06        0.83
 9/28/2003        1.72            1.37            1.29               1.16               1.07                 1.05        0.81
 10/5/2003        1.64            1.33            1.25               1.12               1.02                 1.02        0.76
10/12/2003        1.63            1.34            1.26               1.11               1.02                 1.01        0.77
10/19/2003        1.64            1.33            1.25                1.1               1.02                    1        0.79
10/26/2003        1.71            1.39            1.31               1.14               1.06                 1.04         0.8
 11/2/2003        1.70            1.38             1.3               1.14               1.06                 1.01        0.78
 11/9/2003        1.68            1.37            1.29               1.14               1.07                 1.01        0.79
11/16/2003        1.80            1.43            1.34               1.16               1.08                 1.03        0.79
11/23/2003        1.78            1.42            1.35               1.16               1.07                 1.02        0.76
11/30/2003        1.80            1.43            1.35               1.16               1.06                 1.02        0.75
 12/7/2003        1.83            1.46            1.38               1.19               1.07                 1.03        0.75
12/14/2003        1.85            1.47            1.39               1.21               1.07                 1.03        0.77
12/21/2003        1.84            1.47            1.38               1.23               1.06                 1.04        0.84
12/28/2003        1.84            1.48            1.39               1.21               1.06                 1.04        0.82
  1/4/2004        1.84            1.49            1.41                1.2               1.06                 1.02         0.8
 1/11/2004        1.86            1.53            1.44               1.22               1.07                 1.02        0.84
 1/18/2004        1.77            1.46            1.37               1.19               1.05                 0.99        0.87
 1/25/2004        1.78            1.46            1.38                1.2               1.04                 0.99        0.87
  2/1/2004        1.82            1.44            1.35                1.2               1.04                 0.98        0.84
  2/8/2004        1.82            1.45            1.36                1.2               1.02                 0.98        0.83
 2/15/2004        1.83            1.47            1.38               1.21               1.03                 0.97         0.8
 2/22/2004        1.82            1.43            1.34                1.2               1.02                 0.97        0.79
 2/29/2004        1.76            1.41            1.33               1.18               1.01                 0.95        0.77
  3/7/2004        1.76            1.43            1.35               1.19               1.04                 0.98        0.78
 3/14/2004        1.76            1.42            1.33               1.19               1.04                 1.01        0.79
 3/21/2004        1.84            1.47            1.38               1.23               1.08                 1.04        0.81
 3/28/2004        1.91            1.51            1.39               1.25               1.12                 1.05        0.82
  4/4/2004        1.88            1.51            1.37               1.25               1.11                 1.04         0.8
 4/11/2004        1.86             1.5            1.36               1.25               1.11                 1.02        0.78
 4/18/2004        1.79            1.43             1.3               1.21               1.07                    1        0.76
 4/25/2004        1.77            1.42            1.29               1.21               1.07                    1        0.79
  5/2/2004        1.75            1.39            1.28               1.19               1.04                    1         0.8
  5/9/2004        1.79            1.36            1.26               1.18               1.03                 1.01        0.79
 5/16/2004        1.78            1.35            1.27               1.17               1.01                 1.01        0.75
 5/23/2004        1.89            1.38            1.29               1.19               1.03                 1.03        0.77
 5/30/2004        1.87            1.41            1.33               1.21               1.03                 1.03        0.76
  6/6/2004        1.88             1.4            1.31               1.19               1.02                 1.05        0.75
 6/13/2004        1.86            1.38            1.29               1.18               1.03                 1.04        0.74
 6/20/2004        1.91            1.42            1.34               1.21               1.04                 1.07        0.75
 6/27/2004        1.93            1.44            1.37               1.22               1.06                 1.07        0.75
  7/4/2004        1.86            1.43            1.35               1.18               1.04                 1.04        0.72
 7/11/2004        1.91            1.46            1.38               1.21               1.05                 1.05        0.74
 7/18/2004        1.88            1.46            1.38                1.2               1.05                 1.04        0.72
 7/25/2004        1.84             1.4            1.34               1.16               1.03                 1.03        0.72
  8/1/2004        1.83             1.4            1.35               1.17               1.04                 1.04        0.73
  8/8/2004        1.86            1.43            1.37               1.18               1.04                 1.04        0.72
 8/15/2004        1.85            1.43            1.37               1.17               1.03                 1.04        0.76
 8/22/2004        1.88            1.48            1.42                1.2               1.07                 1.06         0.8
 8/29/2004        1.83            1.45            1.39               1.19               1.08                 1.07        0.81
  9/5/2004        1.81            1.44            1.38               1.17               1.07                 1.08        0.79
 9/12/2004        1.79            1.44            1.38               1.17               1.05                 1.08        0.78
 9/19/2004        1.79            1.46            1.38               1.18               1.07                 1.08        0.79
 9/26/2004        1.81            1.47             1.4               1.17               1.07                 1.07        0.78
 10/3/2004        1.83             1.5            1.43               1.19               1.09                 1.08         0.8
10/10/2004        1.82             1.5            1.43               1.18               1.08                 1.06        0.81
10/17/2004        1.84             1.5            1.42               1.18               1.08                 1.07         0.8
10/24/2004        1.87            1.52            1.44               1.17               1.07                 1.06        0.77
10/31/2004        1.88            1.54            1.44               1.17               1.07                 1.07        0.78
 11/7/2004        1.85            1.53            1.42               1.14               1.05                 1.04        0.77
11/14/2004        1.88            1.57            1.47               1.17               1.08                 1.06        0.79
11/21/2004        1.90            1.59            1.49               1.19               1.09                 1.06        0.79
11/28/2004        1.91            1.63            1.52                1.2                1.1                 1.07        0.78
 12/5/2004        1.90            1.63            1.49               1.22               1.09                 1.09        0.77
12/12/2004        1.85            1.56            1.44                1.2               1.05                 1.08        0.75
12/19/2004        1.83            1.57            1.43               1.21               1.06                 1.07        0.75
12/26/2004        1.83            1.59            1.44               1.23               1.05                 1.07        0.74
  1/2/2005        1.79            1.57            1.41               1.18               1.04                 1.04        0.73
  1/9/2005        1.75             1.5            1.36               1.16               1.03                 1.03        0.76
 1/16/2005        1.75            1.51            1.37               1.16               1.03                 1.04        0.76
 1/23/2005        1.77            1.53            1.39               1.17               1.05                 1.04        0.75
 1/30/2005        1.74            1.53            1.38               1.19               1.05                 1.03        0.75
  2/6/2005        1.66            1.49            1.34               1.17               1.04                 1.01        0.76
 2/13/2005        1.68            1.51            1.37               1.17               1.05                    1        0.76
 2/20/2005        1.69            1.53            1.39               1.18               1.05                 1.01        0.75
 2/27/2005        1.74            1.55            1.41               1.21               1.05                 1.03        0.74
  3/6/2005        1.77            1.56            1.41                1.2               1.05                 1.02        0.75
 3/13/2005        1.86             1.6            1.44               1.21               1.06                 1.05        0.77
 3/20/2005        1.84            1.58            1.42               1.19               1.06                 1.03        0.79
 3/27/2005        1.79            1.53            1.38               1.17               1.05                 1.03        0.78
  4/3/2005        1.75            1.54            1.39               1.17               1.07                 1.04        0.79
 4/10/2005        1.69            1.52            1.38               1.17               1.05                 1.03        0.77
 4/17/2005        1.70            1.52            1.37               1.18               1.05                 1.03        0.78
 4/24/2005        1.69            1.55             1.4                1.2               1.06                 1.03        0.77
  5/1/2005        1.70            1.56            1.41               1.23               1.09                 1.04        0.79
  5/8/2005        1.61            1.53            1.38               1.19               1.07                 1.03        0.76
 5/15/2005        1.60            1.51            1.36                1.2               1.07                 1.03        0.79
 5/22/2005        1.57             1.5            1.35               1.19               1.07                 1.03        0.81
 5/29/2005        1.54            1.51            1.36               1.19               1.08                 1.03        0.82
  6/5/2005        1.58            1.52            1.37               1.18               1.11                 1.04        0.86
 6/12/2005        1.62            1.53            1.38                1.2               1.13                 1.04        0.86
 6/19/2005        1.59            1.57            1.41               1.21               1.15                 1.05        0.86
 6/26/2005        1.62            1.59            1.43               1.23               1.17                 1.07        0.88
  7/3/2005        1.55            1.54            1.39                1.2               1.15                 1.06        0.87
 7/10/2005        1.54            1.52            1.37               1.16               1.13                 1.06        0.86
 7/17/2005        1.51            1.51            1.36               1.15               1.12                 1.05        0.83
 7/24/2005        1.57            1.53            1.38               1.17               1.14                 1.04        0.84
 7/31/2005        1.57            1.54            1.39               1.18               1.14                 1.06        0.84
  8/7/2005        1.56            1.57            1.42                1.2               1.14                 1.07        0.84
 8/14/2005        1.63             1.6            1.44                1.2               1.15                 1.08        0.84
 8/21/2005        1.65            1.57            1.42               1.19               1.15                 1.09        0.85
 8/28/2005        1.62            1.57            1.42               1.18               1.14                 1.08        0.84
  9/4/2005        1.59            1.59            1.45               1.19               1.14                 1.08        0.83
 9/11/2005        1.59             1.6            1.46               1.18               1.16                 1.08        0.83
 9/18/2005        1.62             1.6            1.45               1.18               1.17                 1.08        0.84
</TABLE>

Kinross receives its revenues through the sale of gold in U.S. dollars. However,
for the  Company's  foreign  operations,  a portion of the  operating  costs and
capital expenditures are denominated in the local currency.  Kinross' operations
outside of the U.S.  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.  The U.S.  dollar
depreciated  significantly  against the Canadian dollar,  the Brazilian real and
the Chilean peso in 2003 and 2004, as it did against most major  currencies.  In
2005, the U.S. dollar has continued to weaken and the Company expects this trend
to continue.  As part of its strategy to manage this risk,  the Company has used
economic currency hedges for certain exposures to the Canadian dollar.

GOLD SUPPLY AND DEMAND FUNDAMENTALS(4)

                          [GOLD SUPPLY FUNDAMENTALS CHART APPEARS HERE AND THE
                                    PLOT POINTS ARE PROVIDED BELOW]

<TABLE>
<CAPTION>
                          1993   1994   1995  1996  1997  1998   1999   2000   2001   2002  2003  2004
                          ----   ----   ----  ----  ----  ----   ----   ----   ----   ----  ----  ----
<S>                       <C>    <C>    <C>   <C>   <C>   <C>    <C>    <C>    <C>    <C>   <C>   <C>
Mine production           2291   2285   2291  2374  2492  2543   2574   2591   2622   2587  2593  2464
Official sector sales      468    130    167   279   626   363    477    479    529    556   617   478
Old gold scrap             577    621    631   644   626  1099    608    609    708    835   944   828
Net producer hedging       142    105    475   142   504    97    506      0      0      0     0     0
</TABLE>

- ---------------
(3)     Source: Reuters
(4)     Source: Gfms 2005 Gold Survey


                                       5
<PAGE>

Gold from mine production is the largest  component of gold supply,  followed by
recycled gold, and central bank sales of gold. Mine supply declined  slightly in
2004, as did central bank sales. The renewal of the Washington agreement,  which
limits participating central banks to sales of 600 tonnes per year, is viewed as
positive for the gold price.

                         [GOLD DEMAND CHART APPEARS HERE
                    AND THE PLOT POINTS ARE PROVIDED BELOW]

<TABLE>
<CAPTION>
Demand
                                1993   1994   1995   1996   1997   1998   1999   2000   2001   2002   2003   2004
                              ------------------------------------------------------------------------------------
<S>                            <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
   Fabrication/Jewelry         3,050  3,095  3,313  3,341  3,873  3,748  3,745  3,791  3,521  3,175  3,040  3,163
   Bar hoarding                  182    249    343    200    350    163    266    230    248    252    183    246
   Net producer hedging                                                            15    151    423    279    442
   Implied net investment        246                                191    154                  128    652
                              ------------------------------------------------------------------------------------
Total Demand                   3,478  3,344  3,656  3,541  4,223  4,102  4,165  4,036  3,920  3,978  4,154  3,851
                              ------------------------------------------------------------------------------------
</TABLE>

Fabrication  and  jewelry  sales are the largest  component  of demand for gold.
Fabrication  demand in 2004  increased  year over year for the first  time since
2000. Net producer hedging also increased demand for gold in 2004 as gold mining
companies  worked to reduce  the size of their  gold  price  hedging  positions.
Overall,  2004 saw less supply of gold and greater demand for gold, which helped
to support the gold price during the year.

One of the few  mechanisms  available to the Company to affect the price of gold
it receives is to sell gold forward with a gold price hedging(5) program.  Under
these arrangements,  the Company agrees to deliver gold in the future at a price
fixed at the time of entering  into the contract.  A forward hedge  protects the
Company  against  future  declines  in the gold  price for the  ounces  that are
hedged,  but  prevents  the  Company  from  benefiting  from  future  gold price
increases  with  respect  to those  ounces.  Until the  second  quarter of 2004,
Kinross  maintained  an  active  gold  price  hedge  program  for  some  of  its
production.  At the present time Kinross is not actively  engaged in hedging its
exposure to fluctuations in the gold price.  The following chart shows the range
of prices for gold in each year,  the average price of gold,  and the price that
Kinross was able to realize.


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


                                       6
<PAGE>

               [Average and Realized Gold Price Chart appears here
                     and the plot points are provided below]

                    high        low         average      realized
                    ----        ---         -------      --------

         1997       367.8         283          331         344
         1998       314.6       273.4       294.09         309
         1999      326.25       252.8       278.57         300
         2000       316.6       263.8       279.11         298
         2001      293.25      255.95       271.04         296
         2002       349.3      277.75       309.68         306
         2003      416.25       319.9       363.32         357
         2004       454.2         375       409.17         401

U.S. dollar gold prices have increased  substantially in the past three years as
the U.S. dollar has weakened against many of the major currencies in the world.

Kinross' gold price hedging  program enabled it to realize gold prices in excess
of average market prices in the period 1997-2001. Between 2002 and 2004, Kinross
has realized  prices that have been lower than the average market price for gold
as  the  ounces   necessary  to  satisfy  the  remaining  gold  hedge  contracts
(agreements  to sell at  historical,  lower  prices)  were  delivered  into  and
recognized in revenue.

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,  especially  open pit mining.  Energy prices in the form of
both fuel and  electricity  can have a significant  impact on  operations.  Fuel
(primarily,  diesel and  propane),  as a percentage  of operating  cost,  varies
amongst the Company's mines; however, all operations experienced high fuel costs
during 2004,  largely  attributable  to a  continuing  rise in crude oil prices.
Electricity  prices in recent years have also increased as a result of increased
demand and higher natural gas prices.

                  [WTI Crude Oil Price History Chart appears here
                    and the plot points are provided below]

    Q/CLc1, Last Trade,           High                Low          Close
       HiLoCl Bar             (Last Trade)        (Last Trade) (Last Trade)
       ----------             ------------        ------------ ------------

        1/31/1999                 12.8                11.95       12.75
         2/7/1999                 12.9                 11.7        11.8
        2/14/1999                12.07                11.54       11.88
        2/21/1999                12.19                11.26       11.76
        2/28/1999                 12.8                 11.7       12.27
         3/7/1999                 13.5                12.18        13.3
        3/14/1999                15.11                13.36       14.49
        3/21/1999                15.55                14.23       15.24
        3/28/1999                 16.2                14.95       16.17
         4/4/1999                17.05                15.93       16.64
        4/11/1999                17.03                15.61       16.57
        4/18/1999                17.46                16.12       17.33
        4/25/1999                18.22                17.29       17.94
         5/2/1999                18.83                17.45       18.66
         5/9/1999                19.05                17.85       18.22
        5/16/1999                 18.6                17.33       18.04
        5/23/1999                   18                16.63       17.03
        5/30/1999                17.55                 16.8       16.84
         6/6/1999                17.38                16.21       17.32
        6/13/1999                18.45                17.28       18.43
        6/20/1999                18.75                17.86       17.99
        6/27/1999                18.63                17.45       18.39
         7/4/1999                 19.7                18.18       19.69
        7/11/1999                20.25                19.43       19.94
        7/18/1999                 20.7                19.58       20.62
        7/25/1999                 20.7                19.15       20.63
         8/1/1999                21.12                20.09       20.53
         8/8/1999                20.92                 20.1       20.88
        8/15/1999                21.93                20.76       21.67
        8/22/1999                21.95                21.16       21.65
        8/29/1999                 22.1                 20.4       21.27
         9/5/1999                22.29                 21.2          22
        9/12/1999                 23.6                21.96       23.55
        9/19/1999                24.85                23.37       24.72
        9/26/1999                24.99                 23.9       24.76
        10/3/1999                25.12                24.18       24.54
       10/10/1999                24.54                20.71        20.9
       10/17/1999                23.16                20.55       22.82
       10/24/1999                23.52                 21.8       23.45
       10/31/1999                23.86                21.55       21.75
        11/7/1999                 23.5                21.77          23
       11/14/1999                24.98                22.73       24.91
       11/21/1999                   27                 24.9       26.56
       11/28/1999                27.15                26.14       26.87
        12/5/1999                26.55                 24.1       25.81
       12/12/1999                26.76                 24.6       25.23
       12/19/1999                   27                 24.9       26.74
       12/26/1999                26.74                25.12       25.87
         1/2/2000                27.02                 25.3        25.6
         1/9/2000                25.69                24.15       24.22
        1/16/2000                 28.1                24.02       28.02
        1/23/2000                29.95                 27.7        28.2
        1/30/2000                28.77                26.95       27.22
         2/6/2000                28.87                 26.7       28.82
        2/13/2000                29.94                27.71       29.44
        2/20/2000                30.45                29.05       29.51
        2/27/2000                30.83                28.72       30.35
         3/5/2000                32.15                29.82       31.51
        3/12/2000                34.37                30.55       31.76
        3/19/2000                32.25                30.13       30.91
        3/26/2000                30.71                 27.2       28.02
         4/2/2000                28.02                26.05        26.9
         4/9/2000                27.12                24.85       25.04
        4/16/2000                25.96                 23.7       25.57
        4/23/2000                 27.5                   25       25.88
        4/30/2000                26.18                 24.6       25.74
         5/7/2000                 27.4                25.52       27.29
        5/14/2000                   30                27.05       29.62
        5/21/2000                30.48                29.07       29.89
        5/28/2000                30.82                28.35          30
         6/4/2000                30.77                28.87       30.35
        6/11/2000                30.75                 28.9        30.2
        6/18/2000                 33.3                30.27       32.33
        6/25/2000                 33.4                30.25       32.25
         7/2/2000                32.95                31.06        32.5
         7/9/2000                 31.4                29.48       30.28
        7/16/2000                 31.6                29.18        31.4
        7/23/2000                32.35                28.51       28.56
        7/30/2000                28.69                27.74       28.18
         8/6/2000                   30                27.26       29.96
        8/13/2000                31.85                28.66       31.02
        8/20/2000                32.75                30.64       31.99
        8/27/2000                   33                 31.1       32.03
         9/3/2000                 33.7                31.83       33.38
        9/10/2000                35.46                 33.4       33.63
        9/17/2000                   36                 32.7       35.92
        9/24/2000                 37.8                 32.5       32.68
        10/1/2000                32.23                 30.2       30.84
        10/8/2000                32.33                30.19       30.86
       10/15/2000                   37                30.86       34.99
       10/22/2000                 34.8                 32.4       33.75
       10/29/2000                34.08                32.62       32.74
        11/5/2000                33.74                 32.1       32.71
       11/12/2000                34.13                 32.1       34.02
       11/19/2000                 35.7                33.92       35.45
       11/26/2000                35.84                34.67        35.4
        12/3/2000                35.69                 31.9       32.02
       12/10/2000                32.75                27.85       28.44
       12/17/2000                30.04                27.51       28.87
       12/24/2000                29.85                25.58       26.18
       12/31/2000                   27                25.62        26.8
         1/7/2001                28.78                26.65       27.95
        1/14/2001                30.15                26.92       30.05
        1/21/2001                 32.4                29.02       32.19
        1/28/2001                 32.7                28.65       29.77
         2/4/2001                31.27                28.27       31.19
        2/11/2001                31.87                30.06       31.03
        2/18/2001                 31.1                28.55       29.16
        2/25/2001                29.57                28.31       29.04
         3/4/2001                29.18                27.16       27.84
        3/11/2001                29.15                27.91       28.01
        3/18/2001                28.24                26.12       26.74
        3/25/2001                27.45                 25.7        27.3
         4/1/2001                28.04                25.75       26.29
         4/8/2001                27.78                25.49       27.06
        4/15/2001                28.84                27.01       28.25
        4/22/2001                29.04                 26.8       27.28
        4/29/2001                28.65                26.75       28.27
         5/6/2001                29.05                27.37       28.36
        5/13/2001                28.85                27.05       28.55
        5/20/2001                29.99                28.08       29.91
        5/27/2001                 30.2                 28.1       28.38
         6/3/2001                29.05                27.55       27.93
        6/10/2001                28.39                27.25       28.33
        6/17/2001                29.63                 28.4       28.51
        6/24/2001                28.54                25.85       26.83
         7/1/2001                27.49                 25.1       26.25
         7/8/2001                28.29                25.38       28.21
        7/15/2001                28.26                25.94       26.59
        7/22/2001                26.58                24.54       25.59
        7/29/2001                27.15                25.86       27.02
         8/5/2001                27.92                26.31       27.62
        8/12/2001                28.42                27.38       28.05
        8/19/2001                28.27                26.55       26.68
        8/26/2001                 28.1                26.28        26.9
         9/2/2001                 27.6                26.44        27.2
         9/9/2001                28.15                26.76       28.03
        9/16/2001                29.98                27.53       29.53
        9/23/2001                29.25                 25.8       25.97
        9/30/2001                 25.9                 20.3       23.43
        10/7/2001                23.53                21.72       22.39
       10/14/2001                23.98                21.95        22.5
       10/21/2001                22.76                21.05       21.83
       10/28/2001                 22.6                21.41       22.03
        11/4/2001                22.55                19.69       20.18
       11/11/2001                22.41                19.56       22.22
       11/18/2001                22.62                17.15       18.03
       11/25/2001                19.56                 16.7       19.15
        12/2/2001                 19.8                18.35       19.44
        12/9/2001                20.78                17.92       19.04
       12/16/2001                19.25                 17.8       19.23
       12/23/2001                20.18                18.79       19.28
       12/30/2001                 21.5                19.64       20.41
         1/6/2002                 21.7                19.66       21.62
        1/13/2002                   22                 19.6       19.68
        1/20/2002                19.77                17.85          18
        1/27/2002                20.17                   18       19.99
         2/3/2002                20.55                18.56       20.38
        2/10/2002                20.36                19.27       20.26
        2/17/2002                21.75                19.96        21.5
        2/24/2002                 21.3                20.15       21.07
         3/3/2002                 22.8                20.37        22.4
        3/10/2002                23.95                23.15       23.84
        3/17/2002                24.75                23.65       24.51
        3/24/2002                25.85                24.11       25.35
        3/31/2002                26.38                 24.7       26.31
         4/7/2002                28.35                25.05       26.21
        4/14/2002                27.23                23.31       23.47
        4/21/2002                26.65                 23.6       26.38
        4/28/2002                 27.2                25.78       27.11
         5/5/2002                27.64                25.55       26.62
        5/12/2002                28.27                25.62       27.99
        5/19/2002                29.54                 27.1       28.18
        5/26/2002                28.54                25.45       25.88
         6/2/2002                25.83                 24.4       25.31
         6/9/2002                25.47                 24.2       24.75
        6/16/2002                26.03                 23.8       25.94
        6/23/2002                 26.5                 25.1       25.82
        6/30/2002                27.05                 25.7       26.86
         7/7/2002                27.15                26.38        26.8
        7/14/2002                 27.5                25.73       27.48
        7/21/2002                 28.1                 26.9       27.83
        7/28/2002                27.75                25.95       26.54
         8/4/2002                27.67                   26       26.84
        8/11/2002                27.38                26.25       26.86
        8/18/2002                29.45                26.48       29.33
        8/25/2002                30.32                28.34       28.63
         9/1/2002                29.65                28.15       28.98
         9/8/2002                30.19                27.62       29.61
        9/15/2002                 30.2                28.64       29.81
        9/22/2002                   30                28.24       29.61
        9/29/2002                31.39                   30       30.54
        10/6/2002                31.18                29.35       29.62
       10/13/2002                 30.1                28.52       29.37
       10/20/2002                 30.2                29.05        29.6
       10/27/2002                 29.5                 26.9       27.05
        11/3/2002                27.56                26.53       27.13
       11/10/2002                 27.4                25.16       25.78
       11/17/2002                 26.5                24.82       25.51
       11/24/2002                27.25                25.52       26.76
        12/1/2002                27.12                26.04       26.89
        12/8/2002                27.71                26.57       26.93
       12/15/2002                28.65                26.75       28.44
       12/22/2002                31.25                28.61        30.3
       12/29/2002                32.76                30.41       32.72
         1/5/2003                33.65                30.05       33.08
        1/12/2003                33.33                29.75       31.68
        1/19/2003                   34                31.13       33.91
        1/26/2003                 35.2                 31.9       33.28
         2/2/2003                33.95                32.25       33.51
         2/9/2003                35.25                32.55       35.12
        2/16/2003                36.85                 34.3        36.8
        2/23/2003                37.55                 34.7       35.58
         3/2/2003                39.99                35.47        36.6
         3/9/2003                37.84                35.36       37.78
        3/16/2003                 38.2                33.85       35.38
        3/23/2003                36.95                 26.3       26.91
        3/30/2003                31.05                27.21       30.16
         4/6/2003                31.32                27.66       28.62
        4/13/2003                28.95                27.02       28.14
        4/20/2003                30.65                27.57       30.55
        4/27/2003                31.25                25.61       26.26
         5/4/2003                 26.6                25.04       25.67
        5/11/2003                27.95                25.46       27.72
        5/18/2003                29.48                27.22       29.14
        5/25/2003                 29.6                 28.3       29.16
         6/1/2003                29.65                28.27       29.56
         6/8/2003                 31.3                29.49       31.28
        6/15/2003                 32.5                29.85       30.65
        6/22/2003                31.35                 29.7       30.82
        6/29/2003                30.05                28.53       29.27
         7/6/2003                30.98                 29.1       30.42
        7/13/2003                31.75                29.52       31.28
        7/20/2003                32.05                30.65       31.96
        7/27/2003                 32.1                29.17       30.17
         8/3/2003                32.38                 29.6       32.31
        8/10/2003                32.85                31.45       32.18
        8/17/2003                32.35                 30.1       31.05
        8/24/2003                 32.4                30.36       31.84
        8/31/2003                 32.3                 31.1       31.57
         9/7/2003                 31.4                28.51       28.88
        9/14/2003                29.52                27.85       28.27
        9/21/2003                28.45                26.65       27.03
        9/28/2003                 28.7                26.75       28.16
        10/5/2003                30.44                28.24        30.4
       10/12/2003                 32.6                29.45       31.97
       10/19/2003                32.49                 29.9       30.68
       10/26/2003                 30.8                 29.4       30.16
        11/2/2003                30.32                28.26       29.11
        11/9/2003                31.14                28.47       30.85
       11/16/2003                 32.5                30.63       32.37
       11/23/2003                33.55                31.38       31.61
       11/30/2003                31.47                 29.3       30.41
        12/7/2003                31.65                29.66       30.73
       12/14/2003                 33.2                30.63       33.04
       12/21/2003                33.93                31.74       33.02
       12/28/2003                   33                31.25       32.86
         1/4/2004                 33.2                 32.1       32.52
        1/11/2004                 34.7                32.27       34.31
        1/18/2004                35.41                33.27       35.07
        1/25/2004                36.37                33.75       34.94
         2/1/2004                34.98                32.41       33.05
         2/8/2004                35.19                 32.2       32.48
        2/15/2004                34.65                32.25       34.56
        2/22/2004                 36.1                34.25        35.6
        2/29/2004                36.23                34.03       36.16
         3/7/2004                37.45                35.41       37.26
        3/14/2004                37.51                 35.3       36.19
        3/21/2004                 38.5                35.85       38.08
        3/28/2004                38.09                34.75       35.73
         4/4/2004                36.77                 33.3       34.39
        4/11/2004                 37.3                33.93       37.14
        4/18/2004                37.95                36.25       37.69
        4/25/2004                 38.3                35.35        36.4
         5/2/2004                38.18                36.55        37.3
         5/9/2004                   40                37.25       39.98
        5/16/2004                41.56                38.28       41.42
        5/23/2004                41.85                39.65       39.85
        5/30/2004                41.83                   39       39.88
         6/6/2004                42.45                38.15       38.44
        6/13/2004                39.14                36.45       38.42
        6/20/2004                38.83                 36.9       38.68
        6/27/2004                39.05                 37.1       37.45
         7/4/2004                 39.1                35.52       38.37
        7/11/2004                40.45                38.75        39.9
        7/18/2004                 41.8                38.98        41.1
        7/25/2004                 42.3                40.25       41.67
         8/1/2004                43.85                41.05       43.71
         8/8/2004                44.77                42.62       43.94
        8/15/2004                46.65                 43.3        46.6
        8/22/2004                 49.4                45.63        47.6
        8/29/2004                47.22                 42.5        43.1
         9/5/2004                45.37                 41.3       43.93
        9/12/2004                45.09                 42.4       42.83
        9/19/2004                 45.8                42.75       45.62
        9/26/2004                   49                 45.3        48.9
        10/3/2004                50.47                 48.4       50.15
       10/10/2004                 53.4                49.44       53.39
       10/17/2004                   55                51.49       54.88
       10/24/2004                 55.5                52.59       55.15
       10/31/2004                55.67                50.47       51.78
        11/7/2004                 52.5                 48.3       49.55
       11/14/2004                 49.6                46.96       47.42
       11/21/2004                48.95                45.25        48.8
       11/28/2004                50.25                 47.8       49.32
        12/5/2004                 50.4                42.05       42.46
       12/12/2004                 43.6                40.25       40.57
       12/19/2004                46.35                40.25        46.1
       12/26/2004                 46.2                43.65       44.05
         1/2/2005                43.87                   41       43.45
         1/9/2005                 46.1                41.25       45.15
        1/16/2005                48.65                44.95        48.4
        1/23/2005                 49.5                 46.4       48.65
        1/30/2005                49.75                 46.8       47.15
         2/6/2005                48.25                45.75       46.52
        2/13/2005                47.48                 44.6       47.05
        2/20/2005                48.65                 46.6       48.35
        2/27/2005                52.05                48.35        51.6
         3/6/2005                 55.2                50.65       53.65
        3/13/2005                55.65                 52.5       54.55
        3/20/2005                 57.6                53.52        56.3

Other  consumables,  such as steel,  concrete and tires,  have also increased in
price recently. Worldwide demand for steel grew significantly in 2004, which had
a large impact on pricing  levels.  One of the goals of the  Company's  focus on
continuous improvement is to seek to mitigate the impact of higher


                                       7
<PAGE>

consumable  prices by extending the life of capital assets and the efficient use
of materials and supplies in general.

With the  recent  strengthening  of the gold price and other  commodity  prices,
exploration,  development and operating  activities have grown  substantially in
the  mining  and  resource  industries,  leading to  increased  competition  for
qualified personnel and associated labour cost pressures.

3. 2005 OUTLOOK

Kinross  expects to produce  approximately  1.6 million  ounces of gold in 2005,
similar  to 2004  production.  Operating  costs  are  expected  to  increase  by
approximately  10% compared to 2004,  reflecting  higher  energy and other input
costs, which have risen in the past year. In addition, the expected weakening of
the U.S.  dollar  relative to the local  currencies of the  countries  where the
Company currently  operates will have a negative impact on operating costs. 2005
is  expected to be the final year of  production  for the Kubaka mine in Russia.
Production  increases  at  Refugio  in Chile and an  increase  in our  ownership
interest at Paracatu in Brazil will offset lower production at other operations.
Efforts  to  extend  the  mine  life  at all of the  Company's  operations  will
continue.

Exploration  expense is expected to be approximately  $22 million in 2005, along
with capitalized  exploration of approximately $7 million for total expenditures
of  $29  million,  which  is  consistent  with  2004  levels.  As  a  result  of
acquisitions,  a  higher  gold  price  and the  Company's  exploration  program,
Kinross' proven and probable reserves have increased from 13.2 million ounces in
2002 to 19.4 million ounces in 2004.  Reserve  calculations at December 31, 2004
were estimated  using a gold price of $350 per ounce,  up from $325 per ounce at
December 31, 2003 and $300 per ounce at December 31, 2002.

Capital  expenditures  are  expected to be $172 million in 2005,  spread  across
several projects that are underway.

        o       At the Fort Knox mine in  Alaska,  Kinross is  capitalizing  the
                cost of accessing phase five and phase six ore zones;
        o       At  Paracatu  in Brazil,  a plant  expansion  is being  studied.
                Exploration results are being tabulated; and
        o       At the  Refugio  mine in Chile,  approximately  $30  million  of
                capital will be spent in 2005 to complete the final portion of a
                rebuild of the crushing circuit.

4. STRATEGY

Kinross' strategy is to increase shareholder value through increases in precious
metal  reserves,  production  and  long-term  cash flow and  earnings per share.
Kinross'  strategy  consists of optimizing the performance and,  therefore,  the
value of existing  operations,  investing in quality exploration and development
projects and acquiring new potentially  accretive  properties and projects.  The
strategic plan of Kinross focuses on several initiatives,  which are intended to
guide Kinross'  management toward improving key performance  drivers.  These key
performance drivers include the production of precious metals at the lowest cost
possible,  and the  continued  replacement  and  increase in reserves for future
growth.

The key elements in Kinross' strategic plan are:

        o       Enhance the value of existing  operations  through  exploration,
                the  optimization  of  mining  plans  and a focus on  continuous
                improvement in operating practices;
        o       Improve the  Company's  existing  portfolio  of  properties  and
                projects   through   exploration,    acquisitions   and,   where
                appropriate, the disposal of assets; and


                                       8
<PAGE>

        o       Build  on  Kinross'   foundation  of  human  resources   talent,
                operating  excellence,  environmental  stewardship and community
                responsibility  to position  the  Company for future  growth and
                increases in shareholder value.

A focus in 2005 is to continue to expand the precious metals reserve base of
Kinross through exploration, optimization of producing assets and accretive
acquisitions.

5. DEVELOPMENTS

RESTATEMENT OF FINANCIAL STATEMENTS

CORRECTION OF FOREIGN CURRENCY IMPACT ON FUTURE TAX LIABILITIES

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

<TABLE>
<CAPTION>

CONSOLIDATED BALANCE SHEETS
- --------------------------------------------------------------------------------------------------
                                                            AS
                                                        PREVIOUSLY                       AS
                                                       REPORTED (a)     CHANGE        RESTATED
- --------------------------------------------------------------------------------------------------
<S>                                                      <C>           <C>            <C>
YEAR ENDED 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)
- --------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31, 2003
LIABILITIES
  Future income and mining taxes                         $  126.6      $   25.9       $  152.5
COMMON SHAREHOLDERS' EQUITY
  Accumulated deficit                                    $ (429.1)     $  (26.7)      $ (455.8)
  Cumulative translation adjustment                      $   (2.0)     $    0.8       $   (1.2)
- --------------------------------------------------------------------------------------------------
(a)     As  previously  disclosed in the 2004  financial  statements  filed with
        regulators in November 2005.


CONSOLIDATED STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------------------------
                                                            AS
                                                        PREVIOUSLY                       AS
                                                       REPORTED (a)     CHANGE        RESTATED
- --------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31, 2004
Operating loss                                           $  (67.9)     $      -       $  (67.9)
  Other income (expense) - net                           $    3.7      $   (9.9)      $   (6.2)
Loss before taxes and other items                        $  (64.2)     $   (9.9)      $  (74.1)
Income and mining taxes recovery                         $    8.6      $    2.9       $   11.5
Non-controlling interest                                 $    0.3      $      -       $    0.3
Share in loss of investee companies                      $      -      $      -       $      -
Dividends on convertible preferred shares of subsidiary  $   (0.8)     $      -       $   (0.8)
Net loss                                                 $  (56.1)     $   (7.0)      $  (63.1)
Net loss attributable to common shareholders             $  (56.1)     $   (7.0)      $  (63.1)
Loss per share
  Basic and diluted                                      $  (0.16)     $  (0.02)      $  (0.18)
- --------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31, 2003
Operating loss                                           $ (419.6)     $      -       $ (419.6)
  Other income (expense) - net                           $   11.1      $  (24.1)      $  (13.0)
Loss before taxes and other items                        $ (408.5)     $  (24.1)      $ (432.6)
Income and mining taxes expense                          $   (1.5)     $   (2.6)      $   (4.1)
Non-controlling interest                                 $   (0.2)     $      -       $   (0.2)
Share in loss of investee companies                      $      -      $      -       $      -
Dividends on convertible preferred shares of subsidiary  $   (0.8)     $      -       $   (0.8)
Net loss                                                 $ (411.0)     $  (26.7)      $ (437.7)
Net loss attributable to common shareholders             $ (401.0)     $  (26.7)      $ (427.7)
Loss per share
  Basic and diluted                                      $  (1.30)     $  (0.09)      $  (1.39)
- --------------------------------------------------------------------------------------------------
(a)     As  previously  disclosed in the 2004  financial  statements  filed with
        regulators in November 2005.
</TABLE>

ACCOUNTING FOR AQUISITION OF TVX AND ECHO BAY

Following comments from, and discussions with, regulatory  authorities,  Kinross
has restated its consolidated  financial  statements for the year ended December
31, 2003, as described in Note 3 to the financial statements.  Changes were made
to the purchase price allocation,  allocation of goodwill to reporting units and
subsequent  impairment testing of the assets and liabilities acquired in the TVX
and Echo Bay transaction.  An independent firm was engaged to provide,  with the
support of other advisors, a valuation of the significant assets and liabilities
acquired as part of the transaction.  The independent  valuation  resulted in an
increase  in the  fair  value of the net  assets  acquired  and a  consequential
reduction in the goodwill as of the acquisition date. The revised purchase price
allocation resulted in $736.7 million of goodwill,  down from the $918.0 million
initially recorded.  In addition,  the goodwill was allocated to reporting units
acquired in the transaction.

The independent valuator also reviewed the impairment testing as at December 31,
2003.  As a  result,  Kinross  has  recognized  for the  2003  fiscal  year,  an
impairment to long-lived assets of $15.2 million relating to property, plant and
equipment,  $1.9 million  relating to investments and $394.4 million relating to
goodwill  for a total  impairment  of  $411.5  million.  This  compares  with an
impairment of $9.9 million to property,  plant and equipment and investments and
no impairment to goodwill that had been  originally  recorded for the year ended
December 31, 2003. In addition to the impairment losses, depreciation, depletion
and amortization  increased from $140.9 million to $172.7 million, the provision
for income tax  decreased  from $13.1  million to $1.5  million and net earnings
attributable to common  shareholders of $19.7 million had been restated to a net
loss of $401.0 million.  More detailed information on the change to the purchase
price  allocation  and subsequent  impairment  test is provided in Note 2 to the
consolidated  financial statements.  The following is a summary of financial and
operating  information  for the year ended December 31, 2003,  highlighting  the
impact of the  restatement  (the  restatement  also  includes  the impact of the
adoption of CICA Handbook Section 3110 "Asset Retirement Obligations", which was
adopted  by the  Company  January  1,  2004  and  applied  retroactively  with a
restatement of 2003 and 2002 comparative  figures,  and includes the restatement
related  to  the  correction  of the  foreign  currency  impact  on  future  tax
liabilities as outlined in Note 2):


                                       9
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31, 2003                                    AS PREVIOUSLY
(IN US$ MILLIONS)                                                   REPORTED        ADJUSTMENT        AS RESTATED
- -------------------------------------------------------------------------------------------------------------------
<S>                                                              <C>                  <C>             <C>
Revenue                                                          $     571.9             --           $     571.9
Depreciaton, depletion and amortization                          $    (140.9)           (31.8)        $    (172.7)
Impairment charges
   Goodwill                                                      $      --             (394.4)        $    (394.4)
   Property, plant and equipment                                 $      (8.0)            (7.2)        $     (15.2)
   Investment                                                    $      (1.9)            --           $      (1.9)
Net earnings (loss) attributable to common shareholders          $      19.7           (420.7)        $    (401.0)
Basic and diluted earnings (loss) per share                      $      0.06            (1.36)        $     (1.30)

Cash and cash equivalents                                        $     245.8             --           $     245.8
Property, plant and equipment                                    $     782.7            227.7         $   1,010.4
Goodwill                                                         $     918.0           (575.7)        $     342.3
Total assets                                                     $   2,142.5           (348.0)        $   1,794.5
Total shareholders' equity                                       $   1,814.7           (432.3)        $   1,382.4
- -------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)     As previously  disclosed in the original 2003 financial statements filed
        with regulators in March 2004.


                                       10
<PAGE>

ACQUISITION  OF THE  REMAINING  51% INTEREST IN THE PARACATU MINE FROM RIO TINTO
PLC.

On December 31, 2004, the Company completed the purchase of the remaining 51% of
Rio Paracatu Mineracao ("RPM"),  the owner of the Morro do Ouro mine (also known
as Paracatu) in Brazil from Rio Tinto Plc.  ("Rio Tinto") for $261.2  million in
cash,  subject to a working capital  adjustment  following the completion of the
transaction.  The Paracatu  mine is located near  Brasilia in the state of Minas
Gerais,  Brazil.  It has been in  operation  since  1987.  As a  result  of this
transaction,  the Company  owns 100% of the  property  and is now the  operator.
Kinross  acquired  its initial 49% interest in the mine on January 31, 2003 when
it merged with TVX. The Company  financed the transaction  with a combination of
existing cash balances and debt.

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  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 2, the Company plans to engage
in further  discussions  with Crown to  determine  the future  process  for this
transaction.

CHANGE IN CEO

On  March  23,  2005,  the  Company  announced  the  appointment  of Tye Burt as
President and Chief Executive  Officer.  Mr. Burt replaced Robert Buchan who had
announced his intention to step down in January of 2005. Mr. Burt joined Kinross
following his most recent  position as  Vice-Chairman  and  Executive  Director,
Corporate  Development with Barrick Gold Corporation.  Prior to that he spent 16
years in corporate  finance in the positions of Chairman of Deutsche Bank Canada
and  Global  Head of Metals and Mining for  Deutsche  Bank,  Head of  Investment
Banking in Vancouver  and Co-head of the Mining Group at Nesbitt Burns and spent
many years at Burns Fry  Limited in Mergers &  Acquisitions  and Equity  Capital
Markets.

DISCONTINUATION OF OPERATIONS AND DEVELOPMENT

o       KUBAKA MINE - On January 25, 2005,  the Company  informed  employees and
        local   government   officials  that  it  would  not  proceed  with  the
        development  of the Tsokol vein  located  near the Kubaka  mill.  Tsokol
        represented  roughly  158,000  ounces of  probable  reserves in Kinross'
        December 31, 2004 reserve report. Management is currently re-working the
        mine plan based on this decision. Should closure of the Kubaka operation
        become the best alternative, this would take place only after completing
        the mining and milling of the Birkachan open pit and Central Zone Kubaka
        underground ore body, and the milling of the existing Kubaka stockpiles.
        This  would  provide  feed  for the mill for  approximately  12  months.
        Closure would take place over an additional 12-month period. Development
        of the Birkachan  deposit is still being  considered and the Company has
        continued to evaluate other  exploration  licenses within the region. An
        impairment  charge of $25.1  million was recorded at the Kubaka mine for
        the year ended December 31, 2004.

o       NEW  BRITANNIA  MINE - On January  27,  2005,  the Company and its joint
        venture partner High River Gold Mines Ltd. announced that a decision has
        been made by the joint  venture to  discontinue  development  at the New
        Britannia mine.  Exploration  efforts were unable to define an extension
        of the ore body containing  better grade and thickness than was mined in
        mid-2004.  Mining  of the ore body  extension  was to begin in the third
        quarter of 2005. New Britannia  suspended mining and milling  operations
        in September 2004, but was drilling the ore body extension with the hope
        of  further  extending  the  mine  life.  However,  these  efforts  were
        unsuccessful and in January 2005 it was announced that the mine


                                       11
<PAGE>

        would be placed on care and  maintenance.  An impairment  charge of $1.3
        million  was  recorded  at the New  Britannia  mine for the  year  ended
        December 31, 2004.

o       LUPIN MINE - In 2003, the Company suspended operations at the Lupin mine
        due to poor  economic  performance.  The  mine  was  placed  on care and
        maintenance  while a review of alternatives  was undertaken.  The review
        concluded  that the  development  of a mine plan to  extract  previously
        developed remnant ore was appropriate. Accordingly, the mine recommenced
        production in March 2004 and  continued  through to February 2005 and is
        currently  in  reclamation.  An  impairment  charge of $7.9  million was
        recorded at the Lupin mine for the year ended December 31, 2004.

NEW CREDIT FACILITY

In December 2004,  Kinross  replaced its existing $125 million  credit  facility
with a new three-year $200 million  revolving credit facility.  The Company used
$105.0  million of the new  facility to satisfy a portion of the $261.2  million
cost to purchase the remaining 51% interest in the Paracatu  mine.  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.

CONSOLIDATION AND DECONSOLIDATION OF COMMON SHARES

Kinross has grown largely through mergers and acquisitions.  As a result of this
activity, the Company ended up with over 45% of its shareholders with fewer than
100 shares, many with less than 10 shares. In the past, the Company has provided
programs  where  shareholders  with small  positions  could  tender  them to the
Company with no commission  payable.  However these  programs did not reduce the
number of small shareholders significantly.  In order to reduce the large number
of  shareholders  with fewer than 100 shares,  on November 26, 2004, the Company
held a special  meeting of its  shareholders at which they approved an amendment
to the  Company's  articles  to effect a  consolidation  (reverse  split) of its
common shares on a 100:1 basis, followed by an immediate deconsolidation (split)
of such shares on a 1:100 basis.  The effective date for the  consolidation  was
December  5, 2004,  with the  deconsolidation  December  6,  2004.  Shareholders
holding  less than 100  pre-consolidation  shares  received  a cash  payment  of
CDN$9.71 or U.S.$8.19 per share (equal to the weighted average trading price per
share on the Toronto Stock  Exchange for the five trading days prior to November
26,   2004),   less   withholding   tax.   Shareholders   holding  100  or  more
pre-consolidation  shares were not affected by this action except for the change
in  CUSIP  number  on the  stock.  As a  result  of  this  transaction,  Kinross
repurchased 1,608,844 of its common shares for $11.8 million.

GOLD HEDGE PROGRAM

During the second quarter of 2004, the Company closed out the remaining position
in its  gold  hedge  program  at a cost of  $9.6  million,  increasing  Kinross'
exposure to the spot price of gold. Due to the adoption of Accounting  Guideline
13, "Hedging Relationships",  the fair value of the forward contracts at January
1, 2004 was deferred on the balance sheet to be recognized in earnings  based on
the original  maturity dates of the contracts.  As a result,  a deferred loss of
$4.7 million  relating to these contracts  remains deferred on the balance sheet
as of December 31, 2004, to be recognized into earnings in 2005.

REPAYMENT OF INDUSTRIAL REVENUE BONDS

During the first half of 2004, the Company fully repaid the  Industrial  Revenue
Bonds of $25.0 million  owing to the Alaska  Industrial  Development  and Export
Authority. These bonds were scheduled for repayment in May 2009. Kinross elected
to repay the bonds early as part of its overall debt retirement program.


                                       12
<PAGE>

6. CONSOLIDATED FINANCIAL RESULTS

FINANCIAL AND OPERATING HIGHLIGHTS

<TABLE>
<CAPTION>
===================================================================================================================
                                                         YEARS ENDED DECEMBER 31,                    CHANGE
- -------------------------------------------------------------------------------------------------------------------
(IN US$ MILLIONS, EXCEPT OUNCES                         2004       2003 (a)      2002       '04 vs '03   '03 vs '02
AND PER SHARE AMOUNTS)
- -------------------------------------------------------------------------------------------------------------------
<S>                                                  <C>          <C>            <C>               <C>         <C>
Gold equivalent ounces - sold (b)                    1,654,617    1,600,246      852,358           3%          88%
Gold ounces - sold                                   1,585,109    1,541,577      848,513           3%          82%
Silver ounces - sold                                 4,271,980    4,387,829      258,519          (3%)       1597%
Average realized gold price ($/ounce)               $      404   $      357     $    306          13%          17%
Gold sales - revenue                                $    649.8   $    563.4     $  254.5          15%         121%
Gain (loss) on metal derivative contracts (d)             (9.3)       (13.5)         5.1          31%           nm
Silver sales revenue                                      26.3         22.0          1.4          20%        1471%
                                                    ----------   ----------     --------    ---------    ---------
Total revenue                                       $    666.8   $    571.9     $  261.0          17%         119%
Operating loss                                      $    (67.9)  $   (419.6)    $  (19.1)         84%       (2097%)
Net loss                                            $    (63.1)  $   (437.7)    $  (22.8)         86%       (1820%)
Net loss attributable to common shares              $    (63.1)  $   (427.7)    $  (30.1)         85%       (1321%)
Basic and diluted loss per share                    $    (0.18)  $    (1.39)    $  (0.25)         87%        (456%)
- -------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)     2003 results  include TVX and Echo Bay properties for the 11 months from
        February to December only.
(b)     All produced and sold ounces refer to Kinross' proportionate share. 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 year. The ratios were 2004-61.46:1, 2003-74.79:1 and 2002-67.24:1.
(c)     "nm" refers to not meaningful.
(d)     Gains or losses on gold or silver  options,  spot deferred  contracts or
        fixed forward  contracts used as a hedge against falling gold prices are
        recorded as revenue from metal sales.

2004 VS. 2003

o       Gold equivalent  ounces sold in 2004 increased 3% when compared to 2003.
        However,  2003 includes only 11 months of revenue and production related
        to the mines acquired in the TVX/Echo Bay transaction. As a result, when
        viewed on an annualized  full year basis,  gold  equivalent  ounces sold
        decreased year-over-year.  The increase in total revenues for 2004, when
        compared to 2003, is primarily the result of 13% higher average realized
        gold  prices  for 2004.  The  change in  equivalent  ounces  sold,  on a
        annualized full year basis, is primarily due to the following:

        o       Fort Knox ounces sold declined by  approximately  5% as a result
                of deferring production from the True North deposit in the first
                half of 2004.
        o       Ounces sold at the Porcupine joint venture decreased by 15% as a
                result of the closure of the Dome  underground  operation in May
                2004.
        o       Production  at  Musselwhite  was  higher due to an  increase  in
                processed ore as a result of improved equipment utilization.
        o       A  production  decline  at  Kubaka  of over 20%  related  to the
                completion  of  mining  at the  Kubaka  pit and the delay in the
                completion of the all weather road from  Birkachan to the Kubaka
                mill.
        o       Ounces sold at Other operations declined due to lower production
                at Lupin and New Britannia. Production at New Britannia declined
                approximately  20% due to the  suspension  of  operations in the
                third quarter of 2004.

o       Net loss  attributable  to common shares for 2004 was $63.1 million,  or
        $0.18 per share,  compared to a net loss  attributable  to common shares
        for 2003 of $427.7 million,  or $1.39 per share. The losses for 2004 and
        2003 primarily  resulted from total impairment  charges of $59.9 million
        and $411.5 million,  respectively.  Excluding these impairment  charges,
        results for 2004 would have


                                       13
<PAGE>

        been a net loss attributable to common shares of $5.6 million,  compared
        to a net loss attributable to common shares of $17.2 million in 2003.

2003 VS. 2002

o       The Company's  share of gold  equivalent  sales for 2003 was higher than
        2002 primarily  because 2003 includes 11 months of gold sales related to
        the assets acquired in the TVX/Echo Bay transaction.

o       Revenue  for 2003  increased  119%,  as  compared  to  2002,  due to the
        TVX/Echo Bay acquisition and higher realized gold prices,  which were up
        17% in 2003.

o       The  operations  which  continued  from  2002  reflected  the  following
        changes:

        o       Ounces sold at Fort Knox  declined  approximately  13% resulting
                from the  processing  of lower  grade  ore and a lower  recovery
                rate.
        o       Proportionate   ounces  sold  at  the  Porcupine  joint  venture
                increased  by 19%. On July 1, 2002,  the Company  formed a joint
                venture  with Placer Dome,  combining  the two  companies'  gold
                mining operations in the Porcupine district in Timmins, Ontario.
        o       Ounces sold at Kubaka  declined by 26%  reflecting the cessation
                of mining  activities  at the Kubaka pit and the  processing  of
                lower grade stockpiles.

o       The Refugio mine did not have any material production during 2003.

o       Net loss  attributable to common shares for 2003 was $427.7 million,  or
        $1.39 per share,  compared to a net loss  attributable  to common shares
        for 2002 of $30.1 million, or $0.25 per share. The net loss for 2003 was
        the result of impairment charges totaling $411.5 million, which included
        an impairment  charge of $394.4  million on the goodwill  resulting from
        the TVX/Echo Bay transaction.

o       The net earnings  attributable  to common  shares for 2003 and 2002 were
        restated to reflect the adoption of the Canadian  Institute of Chartered
        Accountants   ("CICA")   Handbook   Section   3110   "Asset   retirement
        obligations"  ("Section 3110"). This restatement  decreased the net loss
        for 2003 by $3.1 million and the net loss for 2002 by $8.1 million.

2005

        Kinross  expects to produce  approximately  1.6 million gold  equivalent
        ounces in 2005, similar to 2004 production.  Attributable  production at
        Paracatu is expected to increase by over 90% with the acquisition of the
        remaining 51% interest in Paracatu.  With the recommissioning of Refugio
        in 2005,  production at this mine is expected to be approximately 40,000
        ounces.  The  increase  from  Paracatu and Refugio will be offset by the
        shutdown of operations at New Britannia and Lupin. 2005 is also expected
        to be the final year of production  for the Kubaka mine in Russia,  with
        closure expected to take place largely during 2006.

SEGMENT EARNINGS (LOSS)

<TABLE>
<CAPTION>
- ----------------------------------------------------------------- ------------------------------------------
                                                                       2004 VS 2003          2003 VS 2002
(IN US$ MILLIONS)                  2004       2003 (a)    2002      Change $   Change %   Change $   Change %
- ----------------------------------------------------------------- ------------------------------------------
<S>                              <C>        <C>         <C>        <C>           <C>    <C>         <C>
OPERATING SEGMENTS
  Fort Knox                      $  16.6    $   7.0     $ (24.0)   $   9.6       137%   $   31.0         nm
  Paracatu (b)                       2.9      (96.8)         --       99.7         nm      (96.8)        --
  Round Mountain                    25.8      (81.6)         --      107.4         nm      (81.6)        --
  Porcupine Joint Venture            5.7        1.5         4.7        4.2       280%       (3.2)      (68%)
  La Coipa                           0.9      (70.8)         --       71.7         nm      (70.8)        --
  Crixas                            12.8      (33.8)         --       46.6         nm      (33.8)        --
  Musselwhite                       (3.8)     (60.9)         --       57.1        94%      (60.9)        --
  Kubaka (c)                       (18.1)      12.0        19.4      (30.1)        nm       (7.4)      (38%)
  Other operations (d)             (36.3)     (50.2)       (0.3)      13.9        28%      (49.9)        nm
CORPORATE & OTHER                  (74.4)     (46.0)      (18.9)     (28.4)      (62%)     (27.1)     (143%)
- ----------------------------------------------------------------- ------------------------------------------
TOTAL                            $ (67.9)  $ (419.6)    $ (19.1)   $ 351.7        84%   $ (400.5)    (2097%)
================================================================= ==========================================
</TABLE>


                                       14
<PAGE>

(a)     Segment earnings (loss) for 2003 include only 11 months of operating and
        financial   results  for  the  mines   acquired  in  the   TVX/Echo  Bay
        transaction.
(b)     The acquisition of Paracatu was completed on December 31, 2004 (see Note
        6 to the consolidated  financial  statements for the year ended December
        31,  2004).   Therefore,   the  Company's  49%  proportionate  share  of
        Paracatu`s  operating  results  have been  included  for the year  ended
        December 31, 2004.
(c)     Segment  earnings  (loss) for 2003  included  the  Company's  portion of
        Kubaka's  financial  results  (54.7% until  February 28, 2003,  and 100%
        thereafter).
(d)     Other operations include Kettle River, Refugio, Lupin and New Britannia.
        Segment  earnings  (loss) for 2003  included  the  Company's  portion of
        financial results of Lupin and Kettle River at 100% and New Britannia at
        50% since February 1, 2003.

RESULTS OF OPERATIONS

FORT KNOX (100% OWNERSHIP AND OPERATOR) - USA

<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
                                                                              2004 VS 2003          2003 VS 2002
                                            2004       2003       2002      Change    Change %   Change    Change %
- -------------------------------------------------------------------------------------------------------------------
<S>          <C>                           <C>        <C>        <C>        <C>          <C>       <C>         <C>
OPERATING STATISTICS
Tonnes ore mined (000's)                   10,927     12,739     13,700     (1,812)      (14%)     (961)       (7%)
Tonnes processed (000's)                   13,239     13,685     13,843       (446)       (3%)     (158)       (1%)
Grade (grams/tonne)                          0.94       1.07       1.09      (0.13)      (12%)    (0.02)       (2%)
Recovery (%)                                 84.2       83.1       84.4        1.1         1%      (1.3)       (2%)
Gold equivalent ounces
    Produced                              338,334    391,831    410,519    (53,497)      (14%)  (18,688)       (5%)
    Sold                                  351,738    370,152    423,510    (18,414)       (5%)  (53,358)      (13%)

FINANCIAL DATA (in US$ millions)
Revenues                                 $  143.9   $  136.3   $  131.6   $    7.6         6%  $    4.7         4%
Cost of sales                                89.2       90.3       99.0       (1.1)       (1%)     (8.7)       (9%)
Accretion                                     1.3        0.6        0.5        0.7       117%       0.1        20%
Depreciation, depletion and amortization     35.9       36.0       54.9       (0.1)       (0%)    (18.9)      (34%)
- -------------------------------------------------------------------------------------------------------------------
                                             17.5        9.4      (22.8)       8.1        86%      32.2         nm
Exploration                                   0.6        2.4        1.2       (1.8)      (75%)      1.2       100%
Other                                         0.3         --         --        0.3         nm        --         0%
- -------------------------------------------------------------------------------------------------------------------
Segment earnings (loss)                  $   16.6   $    7.0   $  (24.0)  $    9.6       137%  $   31.0         nm
- -------------------------------------------------------------------------------------------------------------------
</TABLE>

The  Company  acquired  the Fort  Knox open pit mine,  located  near  Fairbanks,
Alaska, in 1998. The Fort Knox operation  consists of the Fort Knox open pit and
the True North open pit located  approximately  15 kilometres  northwest of Fort
Knox.

2004 VS. 2003

Gold equivalent  ounces produced  declined by 14% as a result of the decision to
defer  production from the higher grade True North deposit until the second half
of 2004,  which  resulted in lower ore grade and fewer tonnes of ore  processed.
The  decrease  in ore  milled in 2004 was also the result of harder ore from the
Fort  Knox pit  being  processed  through  the mill for the  first  six  months,
compared with the blended ore from True North and Fort Knox for the full year in
2003.  Revenue  increased by 6% due to the higher realized gold prices,  despite
fewer ounces being sold.  The slight  decrease in operating  costs  reflects the
suspension  of  mining  at True  North  for the  latter  half of 2004.  This was
partially  offset by higher reagent costs and higher labour costs,  as increased
manpower was required to operate larger capacity mining equipment that was added
to the fleet.  Depreciation  expense  remained largely  unchanged  despite fewer
ounces  being  sold.  This  was due to  capital  expenditures  in 2004  and 2003
increasing the assets subject to depreciation,  partially offset by an increased
reserve  base.  Production  for 2005 is  forecast  to be similar  to 2004,  with
improved recovery rates largely expected to offset lower grades.

2003 VS. 2002

In 2003,  revenue increased by 4% due to an increase in the realized gold price.
Gold equivalent  ounces produced declined by 5% largely due to the processing of
lower grade True North ore and lower recovery rates.


                                       15
<PAGE>

Recovery rates were lower as the True North ore was slightly more refractory due
to the presence of sulphides. Both the lower processing grade and recovery rates
adversely  impacted costs.  Depreciation  expense decreased by 34%, largely as a
result of fewer ounces being sold, along with an increase in the reserves at the
Fort Knox pit, which had lower depreciation, on a per ounce basis, than the True
North pit.

PARACATU (100% OWNERSHIP AND OPERATOR) - BRAZIL

<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
                                                                      2004 VS 2003
                                          2004 (a)     2003 (b)     Change     Change %
- ----------------------------------------------------------------------------------------
<S>          <C>                            <C>          <C>             <C>         <C>
OPERATING STATISTICS
Tonnes ore mined (000's) (c)                17,281       17,263          18          0%
Tonnes processed (000's) (c)                17,342       16,891         451          3%
Grade (grams/tonne)                           0.40         0.40          --          0%
Recovery (%)                                 76.8%        76.8%          --          0%
Gold equivalent ounces
    Produced                                92,356       91,176       1,180          1%
    Sold                                    93,279       88,561       4,718          5%

FINANCIAL DATA (in US$ millions)
Revenues                                    $ 38.2       $ 32.0       $ 6.2         19%
Cost of sales                                 20.6         18.0         2.6         14%
Accretion                                      0.5          0.5          --          0%
Depreciation, depletion and amortization       9.5          9.8        (0.3)        (3%)
- ----------------------------------------------------------------------------------------
                                               7.6          3.7         3.9        105%
Impairment charge (d)                          2.1         99.4       (97.3)       (98%)
Other                                          2.6          1.1         1.5        136%
- ----------------------------------------------------------------------------------------
Segment earnings (loss)                      $ 2.9      $ (96.8)     $ 99.7          nm
- ----------------------------------------------------------------------------------------
</TABLE>

(a)     2004 results reflect 49% ownership.  The Company  acquired the remaining
        51% and became the mine operator on December 31, 2004.
(b)     2003 results are for the 11 months from February through December only.
(c)     Tonnes mined/processed represent 100% of mine production.
(d)     Prior to the restatement,  the Company had recorded an impairment charge
        in 2004 of $143.0 million against the goodwill allocated to Paracatu.

The Company  acquired a 49%  ownership  interest in the Paracatu  open pit mine,
located in the State of Minas Gerais,  in the  acquisition of TVX on January 31,
2003. On December 31, 2004, the Company  completed the purchase of the remaining
51% of Paracatu from Rio Tinto.

2004 VS. 2003

Gold  equivalent  production was slightly higher despite 12 months of production
versus 11 months in the previous year. On a full year basis,  the production was
actually lower, which resulted primarily from lower tonnes processed.  Grade and
recovery rates were similar in both periods.  Revenue  increased by 19% due to a
5% increase in ounces sold and higher  realized  gold prices.  Higher costs were
the result of higher power  prices,  increased  contracted  service  costs and a
strengthening of the Brazilian real against the U.S. dollar of approximately 5%.
As a result of  additional  reserve  ounces,  depreciation  expense was 3% lower
year-over-year, despite an increase in the number of ounces sold.

In  February  2005,  Kinross'  Board of  Directors  approved  funding  for basic
engineering for a semi-autogenous grinding ("SAG") mill expansion project and to
commit  to the  purchase  of the SAG  mill.  The mill  will be  expanded  over a
four-year  period from its current capacity of 18 million tonnes per year. After
basic engineering is completed in early 2006, a final capital cost estimate will
form the basis for a final  funding  decision by the Board of Directors in 2006.
Exploration drilling is continuing onsite.


                                       16
<PAGE>

ROUND MOUNTAIN (50% OWNERSHIP AND OPERATOR) - USA

<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
                                                                         2004 VS 2003
                                             2004       2003 (a)     Change      Change %
- -----------------------------------------------------------------------------------------
<S>          <C>                             <C>         <C>         <C>            <C>
OPERATING STATISTICS
Tonnes ore mined (000's) (b)                 35,820      39,824      (4,004)        (10%)
Tonnes processed (000's) (b)                 67,065      52,636      14,429          27%
Grade (grams/tonne)                            0.65        0.65          --           0%
Recovery (%)                                  66.0%       66.0%          --           0%
Gold equivalent ounces
    Produced                                387,785     364,271      23,514           6%
    Sold                                    375,421     363,273      12,148           3%

FINANCIAL DATA (in US$ millions)
Revenues                                   $  154.1    $  131.9     $  22.2          17%
Cost of sales                                  82.3        74.9         7.4          10%
Accretion                                       1.9         1.6         0.3          19%
Depreciation, depletion and amortization       43.3        45.0        (1.7)         (4%)
- -----------------------------------------------------------------------------------------
                                               26.6        10.4        16.2         156%
Exploration                                     0.8         2.1        (1.3)        (62%)
Impairment charge                                --        89.9       (89.9)       (100%)
- -----------------------------------------------------------------------------------------
Segment earnings (loss)                    $   25.8    $  (81.6)    $ 107.4           nm
- -----------------------------------------------------------------------------------------
</TABLE>

(a)     2003 results are for the 11 months from February through December only.
(b)     Tonnes mined/processed represent 100% of mine production.

The Company acquired its ownership interest in the Round Mountain open pit mine,
located in Nye County,  Nevada,  in the  acquisition  of Echo Bay on January 31,
2003.

2004 VS. 2003

Revenue  increased by 17% due to higher  realized gold prices and an increase in
the gold  equivalent  ounces  produced and sold.  The increase in production and
operating costs in 2004 was due to the inclusion of only 11 months of operations
in 2003. Production and costs were also affected by the failure of an electrical
transformer  in the  second  half of 2003.  As a result,  the focus  shifted  to
accelerating  ore  placement  on the leach  pads,  to help  offset  milling  and
crushing limitations due to power constraints. Depreciation expense was 4% lower
year-over-year,  despite an increase in the number of ounces sold as a result of
additional  reserve  ounces.  Production  in 2005 is expected to be lower due to
lower  forecasted  grades and recovery  rates.  Pre-stripping  for a new layback
program  began in 2005 in order to expand the Round  Mountain open pit. Ore from
this layback is expected to benefit  production  in late 2006.  In addition,  an
underground  exploration  program  has begun to  evaluate  a known  target  with
preliminary results expected in 2006.


                                       17
<PAGE>

PORCUPINE (49% INTEREST; PLACER DOME 51% AND OPERATOR) - CANADA

<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
                                                                            2004 VS 2003          2003 VS 2002
                                          2004       2003     2002 (a)    Change    Change %    Change    Change %
- --------------------------------------------------------------------------------------------------------------------
<S>          <C>                           <C>        <C>        <C>        <C>          <C>       <C>          <C>
OPERATING STATISTICS
Tonnes ore mined (000's) (b)               13,752     19,062     10,822     (5,310)      (28%)     8,240        76%
Tonnes processed (000's) (b)                3,995      4,705      2,391       (710)      (15%)     2,314        97%
Grade (grams/tonne)                          3.35       3.73       5.02      (0.38)      (10%)     (1.29)      (26%)
Recovery (%)                                91.8%      92.4%      90.6%        (1%)       (1%)      1.8%         2%
Gold equivalent ounces
    Produced                              193,799    223,960    189,464    (30,161)      (13%)    34,496        18%
    Sold                                  191,296    225,001    188,733    (33,705)      (15%)    36,268        19%

FINANCIAL DATA (in US$ millions)
Revenues                                 $   78.8   $   83.0   $   58.3   $   (4.2)       (5%)   $  24.7        42%
Cost of sales                                44.4       48.9       36.2       (4.5)       (9%)      12.7        35%
Accretion                                     2.3        2.3       (2.4)        --         0%        4.7         nm
Depreciation, depletion and amortization     22.7       24.9       16.7       (2.2)       (9%)       8.2        49%
- --------------------------------------------------------------------------------------------------------------------
                                              9.4        6.9        7.8        2.5        36%       (0.9)      (12%)
Exploration                                   3.2        2.5        2.3        0.7        28%        0.2         9%
Other                                         0.5        2.9        0.8       (2.4)      (83%)       2.1       263%
- --------------------------------------------------------------------------------------------------------------------
Segment earnings                         $    5.7   $    1.5   $    4.7   $    4.2       280%    $  (3.2)      (68%)
- --------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)     2002  results  reflect  100% of Hoyle Pond from January to July 2002 and
        49% of the joint venture thereafter.
(b)     Tonnes mined/processed represent 100% of mine production.

On July 1, 2002,  the Company  formed the Porcupine  joint venture with a wholly
owned subsidiary of Placer Dome Inc. ("Placer Dome"). The formation of the joint
venture  combined the two  companies'  gold mining  operations  in the Porcupine
district of Timmins, Ontario. The ownership of this unincorporated joint venture
is 51% Placer Dome and 49% Kinross.  The joint  venture  operates  pursuant to a
contractual  agreement  and both parties  receive  their share of gold output in
kind. Capital,  exploration and operating costs are funded in proportion to each
party's  ownership  interest.  Upon creation of the joint  venture,  Placer Dome
contributed  the Dome mine and mill and the Company  contributed  the Hoyle Pond
and Pamour mines and the Bell Creek mill along with  exploration  properties  in
the Porcupine district.

2004 VS. 2003

Revenue was down in 2004 due to fewer ounces being produced and sold,  which was
partially  offset by higher gold prices.  Production  in 2004,  as compared with
2003, was lower due to lower grade and fewer tonnes processed resulting from the
planned closure of the Dome  underground in late May 2004.  Mining  continued at
the Dome and Hoyle open pits.  Costs,  on a per ounce basis,  were higher due to
lower  production,  rising  operating  costs  and a  stronger  Canadian  dollar.
Depreciation  expense was down by 9%,  largely due to the decrease in the number
of ounces sold year-over-year.

Production  for 2005 is expected to be similar to 2004.  The closure of the Dome
open pit in late 2005 is expected to be offset by the commencement of production
from the Pamour open pit.

2003 VS. 2002

Production  increased in 2003 as a result of the  production  from the Dome mine
following the formation of the Porcupine joint venture.  Comparative  production
and cost information for the first half of 2002 represents the Company's results
from only the Hoyle Pond mine.


                                       18
<PAGE>

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

<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
                                                                         2004 VS 2003
                                              2004      2003 (a)     Change      Change %
- -----------------------------------------------------------------------------------------
<S>          <C>                              <C>         <C>          <C>          <C>
OPERATING STATISTICS
Tonnes ore mined (000's) (b)                  3,769       4,257        (488)        (11%)
Tonnes processed (000's) (b)                  6,562       5,928         634          11%
Grade (grams/tonne)
           - Gold                              1.10        1.20       (0.10)         (8%)
           - Silver                           60.83       65.00       (4.17)         (6%)
Recovery (%)
           - Gold                             81.2%       83.5%       (2.3%)         (3%)
           - Silver                           57.5%      60.70%       (3.2%)         (5%)
Gold equivalent ounces
    Produced                                150,887     144,125       6,762           5%
    Sold                                    149,785     138,733      11,052           8%

Silver ounces produced                    3,692,575   3,793,568    (100,993)         (3%)

FINANCIAL DATA (in US$ millions)
Revenues                                 $     59.0  $     51.5   $     7.5          15%
Cost of sales                                  39.7        34.4         5.3          15%
Accretion                                       0.4         0.3         0.1          33%
Depreciation, depletion and amortization       16.8        17.9        (1.1)         (6%)
- -----------------------------------------------------------------------------------------
                                                2.1        (1.1)        3.2           nm
Exploration                                     0.5         0.9        (0.4)        (44%)
Impairment charge                                --        68.8       (68.8)       (100%)
Other                                           0.7          --         0.7           nm
- -----------------------------------------------------------------------------------------
Segment earnings (loss)                  $      0.9  $    (70.8)  $    71.7           nm
- -----------------------------------------------------------------------------------------
</TABLE>

(a)     2003 results are for the 11 months from February through December only.
(b)     Tonnes mined/processed represent 100% of mine production.

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

2004 VS. 2003

As  budgeted,  tonnes  mined  during  the year  were  lower  than 2003 due to an
increase in the stripping  required.  Gold  equivalent  production was higher in
2004 due to the  inclusion of only 11 months of  production  in 2003.  On a full
year basis, production was 4% lower due to lower grade and recovery rates, while
tonnes processed were similar.  Revenue increased as a result of higher realized
gold  prices and more  ounces  sold.  Depreciation  expense  was lower,  despite
increased production as a result of an increased reserve base.

Production,  on a gold  equivalent  basis,  is  expected to be lower in 2005 and
costs are expected to be higher due to pit wall remediation costs and the mining
of lower grade ore.


                                       19
<PAGE>

CRIXAS (50% OWNERSHIP; ANGLOGOLD ASHANTI 50% AND OPERATOR) - BRAZIL

<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
                                                                      2004 VS 2003
                                           2004      2003 (a)     Change      Change %
- -----------------------------------------------------------------------------------------
<S>          <C>                                <C>         <C>          <C>          <C>
OPERATING STATISTICS
Tonnes ore mined (000's) (b)                    746         684          62           9%
Tonnes processed (000's) (b)                    746         684          62           9%
Grade (grams/tonne)                            8.18        8.24       (0.06)         (1%)
Recovery - Gold (%)                           95.4%       95.7%       (0.3%)         (0%)
Gold equivalent ounces
    Produced                                 93,540      86,698       6,842           8%
    Sold                                     93,265      87,665       5,600           6%

FINANCIAL DATA (in US$ millions)
Revenues                                     $ 38.2      $ 31.9       $ 6.3          20%
Cost of sales                                  12.2        10.3         1.9          18%
Accretion                                       0.1         0.1          --           0%
Depreciation, depletion and amortization       12.8        12.3         0.5           4%
- -----------------------------------------------------------------------------------------
                                               13.1         9.2         3.9          42%
Exploration                                     0.3         0.5        (0.2)        (40%)
Impairment charge                                --        42.5       (42.5)       (100%)
- -----------------------------------------------------------------------------------------
Segment earnings (loss)                      $ 12.8     $ (33.8)     $ 46.6           nm
- -----------------------------------------------------------------------------------------
</TABLE>

(a)     2003 results are for the 11 months from February through December only.
(b)     Tonnes mined/processed represent 100% of mine production.

The Company  acquired its  ownership  interest in the Crixas  underground  mine,
located in the State of Goais, in the acquisition of TVX on January 31, 2003.

2004 VS. 2003

Revenue was 20% due to higher  realized  gold prices and  increased  production.
Gold  equivalent  production  was higher in 2004 due to the inclusion of only 11
months of  production  in 2003.  On a full year basis,  production  was slightly
lower.  While grade and recovery rates were similar,  operating  costs increased
due to higher labour and power costs and an approximate 5%  appreciation  of the
Brazilian real against the U.S.  dollar.  Depreciation  expense  increase by 4%,
largely due to the 6% increase in the number of ounces sold.  Production in 2005
is expected to be lower than 2004, due to lower forecasted ore grades.


                                       20
<PAGE>

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

<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
                                                                       2004 VS 2003
                                            2004      2003 (a)     Change      Change %
- ------------------------------------------------------------------------------------------
<S>          <C>                               <C>         <C>         <C>            <C>
OPERATING STATISTICS
Tonnes ore mined (000's) (b)                   2,340       1,229       1,111          90%
Tonnes processed (000's) (b)                   1,459       1,229         230          19%
Grade (grams/tonne)                             5.30        5.40       (0.10)         (2%)
Recovery (%)                                   95.8%       95.5%        0.3%           0%
Gold equivalent ounces
    Produced                                  76,640      64,978      11,662          18%
    Sold                                      78,430      61,333      17,097          28%

FINANCIAL DATA (in US$ millions)
Revenues                                     $  32.1     $  22.5     $   9.6          43%
Cost of sales                                   21.1        15.9         5.2          33%
Accretion                                        0.1         0.1          --           0%
Depreciation, depletion and amortization        12.5        11.2         1.3          12%
- ------------------------------------------------------------------------------------------
                                                (1.6)       (4.7)        3.1         (66%)
Exploration                                      2.0         2.1        (0.1)         (5%)
Impairment charge                                 --        53.9       (53.9)       (100%)
Other                                            0.2         0.2          --           0%
- ------------------------------------------------------------------------------------------
Segment loss                                 $  (3.8)    $ (60.9)    $  57.1          94%
- ------------------------------------------------------------------------------------------
</TABLE>

(a)     2003 results are for the 11 months from February through December only.
(b)     Tonnes mined/processed represent 100% of mine production.

The Company acquired its ownership interest in the Musselwhite underground mine,
located in northwestern  Ontario,  Canada,  in the acquisition of TVX on January
31, 2003.

2004 VS. 2003

Gold equivalent production increased by 18% in 2004 due to the inclusion of only
11 months in 2003, but also due to more ore being processed  (increased by 19%),
as a result of improved  equipment  utilization.  With the increased  production
along with higher realized gold prices, revenue increased year-over-year by 43%.
Operating  costs  were up 33% during  the year as a result of  increased  mining
activity  along with  increased  labour  and  consumable  costs,  and a stronger
Canadian  dollar.  Despite a 28% increase in ounces sold,  depreciation  expense
increased only 12% due to additions to the mine's reserve base.

During 2005,  grade,  recovery rate and production are expected to be similar to
2004.  However,  costs are expected to continue to increase largely because of a
strengthening Canadian dollar.


                                       21
<PAGE>

KUBAKA (98.1% OWNERSHIP AND OPERATOR) - RUSSIA

<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
                                                                            2004 VS 2003          2003 VS 2002
                                          2004     2003 (a)     2002      Change    Change %    Change    Change %
- --------------------------------------------------------------------------------------------------------------------
<S>                                      <C>         <C>        <C>       <C>           <C>      <C>           <C>
OPERATING STATISTICS
Tonnes ore mined (000's) (b)                  178         62         62        116       187%         --         0%
Tonnes processed (000's) (b)                  778        883        850       (105)      (12%)        33         4%
Grade (grams/tonne)                          5.07       6.42      14.93      (1.35)      (21%)     (8.51)      (57%)
Recovery (%)                                97.2%      97.1%      97.5%       0.1%         0%      (0.4%)       (0%)
Gold equivalent ounces
    Produced                              123,616    164,006    220,972    (40,390)      (25%)   (56,966)      (26%)
    Sold                                  130,180    164,486    222,513    (34,306)      (21%)   (58,027)      (26%)

FINANCIAL DATA (in US$ millions)
Revenues                                 $   53.6   $   60.7   $   69.2   $   (7.1)      (12%)  $   (8.5)      (12%)
Cost of sales                                36.4       29.9       28.2        6.5        22%        1.7         6%
Accretion                                     0.4        0.1        0.2        0.3       300%       (0.1)      (50%)
Depreciation, depletion and amortization      6.9       16.7       20.1       (9.8)      (59%)      (3.4)      (17%)
- --------------------------------------------------------------------------------------------------------------------
                                              9.9       14.0       20.7       (4.1)      (29%)      (6.7)      (32%)
Exploration                                   0.4        1.3        1.3       (0.9)      (69%)        --         0%
Impairment charge                            25.1         --         --       25.1         nm         --         nm
Other                                         2.5        0.7         --        1.8       257%        0.7         nm
- --------------------------------------------------------------------------------------------------------------------
Segment earnings (loss)                  $  (18.1)  $   12.0   $   19.4   $  (30.1)        nm   $   (7.4)      (38%)
- --------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)     54.7% ownership interest to February 28, 2003, 98.1% thereafter.
(b)     Tonnes mined/processed represent 100% of mine production.

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%. Consideration for this further interest
was $44.7 million.

2004 VS. 2003

Gold equivalent production in 2004 of 123,616 ounces was 25% lower than 2003 due
to the processing of lower grade stockpiles and an 8-week scheduled  shutdown of
the mill.  The shutdown was to allow for more  efficient  operations of the mill
and to eliminate  overtime-related  labour costs associated with vacations.  The
cost  increase,  despite lower  production,  reflects lower grade and additional
costs to transport  the ore from the Birkachan  property to the mill;  partially
offset by reduced  selling  costs and property  taxes.  As a result of the lower
production  in 2004,  revenue  was down by 12%.  The lower gold  production  was
partially offset by higher realized gold prices.  Depreciation  expense was also
lower,  due to lower  production and a change to the mix of  underground  versus
open pit ore being processed. An impairment charge of $25.1 million was recorded
in the fourth  quarter of 2004  following  the  decision not to proceed with the
development of the Tsokol vein located near the Kubaka mill.

2003 VS. 2002

Kinross'  share of gold  equivalent  production  was down from 220,972 ounces in
2002 to 164,006  ounces in 2003 despite the increased  ownership.  The reduction
was due to the processing of lower grade  stockpiles  following the cessation of
mining  activities  at the  Kubaka  pit  and  lower  than  expected  underground
production.  The lower grade and  production  adversely  impacted costs on a per
ounce basis.  The lower gold  production in 2003,  compared with 2002, lead to a
12% drop in revenue.  The lower gold  production was partially  offset by higher
realized  gold  prices.  The  lower  gold  production  also  resulted  in  lower
depreciation expense.

Mining at the Birkachan property ceased in July 2005;  however,  production from
stockpiles is expected to continue to the end of the year for a total of 128,900
gold equivalent  ounces.  While there is no specific  development  plans for the
Kubaka mine,  there are still areas of interest that management will continue to
evaluate. Closure of the mine is expected to take place largely during 2006.


                                       22
<PAGE>

OTHER OPERATING SEGMENTS

KETTLE RIVER (100% OWNERSHIP AND OPERATOR) - USA

Kinross  acquired  Kettle  River,  located  in the state of  Washington,  in the
acquisition of Echo Bay on January 31, 2003. At the time of acquisition the mine
was shutdown.  The Company recommenced operations in December 2003. During 2004,
gold equivalent  production was 96,789 ounces versus a budget of 100,000 ounces.
Production  was lower than  budget due to lower than  expected  grades and fewer
tonnes of ore processed, partially offset by better than planned recovery rates.
Operating  costs were higher than expected due to increased  fuel and consumable
costs.  A toll milling  agreement  between the Company and Crown has allowed the
permitting to proceed at the Buckhorn deposit. Permitting should be completed in
2006.

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 is
capable  of  producing  approximately  115,000  to 130,000  ounces  annually  to
Kinross' account.

NEW BRITANNIA (50% OWNERSHIP AND OPERATOR) - CANADA

The Company  acquired its 50%  interest in the New  Britannia  mine,  located in
northern  Manitoba,  Canada,  in the acquisition of TVX on January 31, 2003. All
development  activities  were  suspended in the first  quarter of 2004. In early
2005, after exploration efforts were unable to define extensions to the ore body
that could be mined profitably,  the decision was made to place the mine on care
and  maintenance.  As a result of the  suspension of  development  activities in
2004, production dropped to 23,652 gold equivalent ounces,  compared with 31,627
ounces in 2003.

LUPIN (100% OWNERSHIP AND OPERATOR) - CANADA

The Company's Lupin mine, an underground mine located in Nunavut territory,  was
acquired in the acquisition of Echo Bay on January 31, 2003. In August 2003, the
Company  announced  the  suspension  of  operations  at Lupin due to lower  than
expected gold production and higher costs. The plant and equipment was placed on
care and maintenance  pending a review of alternatives for the mine. This review
concluded that the  development of a mine plan to extract  previously  developed
remnant ore was appropriate.  Accordingly,  the mine  recommenced  production in
March 2004 and produced 66,577 gold equivalent  ounces during the balance of the
year, an increase of 19% over 2003.

EXPLORATION AND BUSINESS DEVELOPMENT EXPENSE

<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
IN US$ MILLIONS                   2005                                         2004 VS 2003          2003 VS 2002
                                FORECAST     2004       2003      2002     Change $   Change %   Change $   Change %
- --------------------------------------------------------------------------------------------------------------------
<S>                              <C>        <C>        <C>       <C>        <C>          <C>      <C>          <C>
Exploration and business
 development                     $ 22.1     $ 20.4     $ 24.3    $ 11.6     $ (3.9)      (16%)    $ 12.7       109%
- --------------------------------------------------------------------------------------------------------------------
</TABLE>

2004 The focus of the Company's exploration program is to replace and increase
reserves at existing mines and increase reserves at its development projects.
Exploration expense in 2004, while down 16%


                                       23
<PAGE>

from 2003,  still exceeded $20 million.  Exploration  expenditures  at mines the
Company  operates  totaled $14.4  million.  This included $2.2 million at Kettle
River,  $0.6  million at Fort Knox,  $0.8  million  at Round  Mountain  and $0.4
million at Kubaka.  The Company's  share of  exploration  expenditures  at joint
venture properties  operated by others included $3.2 million at Porcupine,  $2.0
million at Musselwhite, $0.5 million at La Coipa and $0.3 million at Crixas. For
2005,  the Company  plans to spend a total of $28.7 million on  exploration,  of
which $22.1 million will be expensed and $6.6 million will be capitalized.

2003 Exploration  activities increased  significantly in 2003 upon completion of
the  TVX/Echo  Bay merger  and as a result of higher  gold  prices.  Exploration
activities were focused  principally at and around existing  operating mines and
at the Kettle River - Emanuel Creek project in Washington  State and the Refugio
project in Chile. During 2003, the Company spent $11.3 million on exploration at
mines it operates  including $2.7 million at Kettle River,  $2.4 million at Fort
Knox,  $2.1 million on district  exploration and advancing the Gold Hill project
at Round  Mountain and $1.3 million in the Kubaka area. At the  Company's  joint
venture  properties  operated by others,  the Company's  portion of  exploration
expenditures  in 2003 totaled $6.0 million,  including $2.5 million at Porcupine
and $2.1  million  at  Musselwhite.  Other  exploration  expenses  totaled  $3.8
million, of which $1.4 million was spent at Refugio.

GENERAL AND ADMINISTRATIVE

<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
IN US$ MILLIONS                                                        2004 VS 2003           2003 VS 2002
                                 2004       2003        2002      Change $   Change %    Change $    Change %
- --------------------------------------------------------------------------------------------------------------
<S>                             <C>         <C>         <C>        <C>            <C>      <C>           <C>
General and administrative      $ 36.4      $ 25.0      $ 11.3     $ 11.4         46%      $ 13.7        121%
- --------------------------------------------------------------------------------------------------------------
</TABLE>

General and  administrative  costs include  corporate office expenses related to
the  overall  management  of the  business  which  are not part of  direct  mine
operating costs.  General and administrative costs include the costs incurred at
corporate offices located in Toronto, Reno and Brazil.

The 46% increase in general and administrative expense in 2004 was the result of
a number of factors.  Increased legal costs,  insurance and payroll and benefits
costs contributed to the higher general and administrative expense. In addition,
the Company  also began  recording  stock  option  expense,  which  totaled $1.8
million in 2004.  The  weakening  U.S.  dollar  also had an  impact,  as a large
portion of the  Company's  general  and  administrative  is incurred in Canadian
dollars.  The average  exchange rate of the U.S.  dollar  vis-a-vis the Canadian
dollar decreased by 8% between 2003 and 2004.

General  and  administrative  expenses  in 2003 were higher than 2002 due to the
increased size of the Company  resulting from the combination  with TVX and Echo
Bay along with  various  transitional  issues.  Compliance  with new  regulatory
requirements also increased costs.

IMPAIRMENT OF GOODWILL

Goodwill is not amortized, however, the Company evaluates, on at least an annual
basis, its carrying value. An impairment test is required if the carrying amount
of the reporting unit exceeds the sum of the undiscounted cash flows expected to
result from the use and any  residual  value of the units.  If it is  determined
that goodwill needs to be tested for  impairment,  an analysis is performed that
compares the fair value of the reporting  units against  their  carrying  value.
Based on the analysis performed by an independent  valuator,  as of December 31,
2004, the Company  recorded an impairment loss of $12.4 million against goodwill
relating to the Gurupi exploration project.

The  restated  results  for the year ended  December  31,  2003,  resulted  in a
goodwill impairment loss of $394.4 million.  The restatement to goodwill,  which
followed discussions with regulators, is described in


                                       24
<PAGE>

the "Restatement of Financial  Statements" in the "Developments"  section of the
MD&A. A breakdown of the impairment charges to goodwill is as follows:

- ------------------------------------------------------------------------------
IN US$ MILLIONS
                                                            2004        2003
- ------------------------------------------------------------------------------

Gurupi property - exploration project                       $ 12.4     $ 26.2
Paracatu                                                        --       99.4
Crixas                                                          --       42.5
La Coipa                                                        --       65.9
Round Mountain                                                  --       87.2
Musselwhite                                                     --       53.9
Aquarius                                                        --       19.3
- ------------------------------------------------------------------------------
Total                                                       $ 12.4    $ 394.4
==============================================================================

IMPAIRMENT OF ASSETS AND INVESTMENTS

To impairment-test the carrying values of tangible assets,  Kinross re-estimates
the future cash flows from reserves and resources.  If the sum of all these cash
flows is less than the carrying  value,  Kinross  writes down the assets to fair
value, which is generally the present value of the cash flows.

The following is a breakdown of the impairments  recorded  against the Company's
property, plant and equipment and investments for the three years ended December
31, 2004:

<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
IN US$ MILLIONS
                                                                              2004           2003           2002
- -------------------------------------------------------------------------------------------------------------------
<S>                                                                           <C>            <C>             <C>
PROPERTY, PLANT AND EQUIPMENT
Kubaka                                                                        $ 25.1         $   --          $  --
Gurupi property - exploration project                                            5.0             --             --
Paracatu                                                                         2.1             --             --
Round Mountain                                                                    --            2.7             --
La Coipa                                                                          --            2.9             --
Lupin                                                                            7.9            4.4             --
New Britannia                                                                    1.3             --             --
Norseman property - exploration project                                          3.5
E-Crete - aerated concrete producer                                               --            5.2             --
Reclamation projects                                                             1.2             --             --
- -------------------------------------------------------------------------------------------------------------------
                                                                                46.1           15.2             --
- -------------------------------------------------------------------------------------------------------------------
INVESTMENTS
Loan receivable from joint venture partner                                        --            1.2             --
Marketable securities and long-term investments                                  1.4            0.7            0.2
- -------------------------------------------------------------------------------------------------------------------
                                                                                 1.4            1.9            0.2
- -------------------------------------------------------------------------------------------------------------------
                                                                              $ 47.5         $ 17.1          $ 0.2
- -------------------------------------------------------------------------------------------------------------------
</TABLE>

In 2004,  impairment  losses of $46.1 million were recorded against the carrying
value of long-lived assets at various operations,  along with an impairment loss
of $1.4 million  recorded against  investments for a total of $47.5 million.  An
impairment loss of $25.1 million was recorded at the Company's Kubaka operation,
following  the decision not to proceed with the  development  of the Tsokol vein
located near the Kubaka mill.  At Lupin,  a charge of $7.9 million was recorded,
as the mine is  scheduled  for  reclamation  in 2005.  Based on a review  of the
resources  at year end, an  impairment  charge of $5.0  million was  recorded at
Gurupi on its  long-lived  assets,  in addition to the  impairment  loss against
goodwill.  The Company is evaluating options concerning Gurupi going forward. An
impairment loss of $3.5 million was recorded


                                       25
<PAGE>

against  the  carrying  value of the  Norseman  property  in  Australia,  as the
decision was made by the Company to dispose of the property.  Impairment  losses
were also recorded at Paracatu ($2.1 million),  New Britannia ($1.3 million) and
the Delamar reclamation property ($1.2 million).

For the year ended December 31, 2003,  following a  comprehensive  review of its
properties,  Kinross determined that the fair value of Round Mountain, La Coipa,
Lupin and E-Crete,  a producer of aerated concrete located in Phoenix,  Arizona,
was less than net book  value.  Accordingly,  Kinross  recorded a $15.2  million
impairment charge in relation to these properties. In addition, Kinross recorded
an impairment to investments of $1.9 million.

In the fourth  quarter of 2002, an impairment  charge  against  investments  was
recorded for $0.2 million.

GAIN ON DISPOSAL OF ASSETS

Kinross had followed a strategy of investing in junior gold companies.  In 2004,
the  Company  realized a net gain on the  disposals  of assets of $1.7  million,
versus $29.5 million in 2003 and $2.7 million in 2002.

OTHER INCOME - NET

<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
IN US$ MILLIONS                                                                2004 VS 2003         2003 VS 2002
                                               2004     2003       2002     Change $   Change %   Change $  Change %
- -------------------------------------------------------------------------------------------------------------------
<S>                                          <C>      <C>        <C>          <C>        <C>        <C>       <C>
Interest and other income                    $ 9.1    $ 12.3     $ 16.9       (3.2)      (26%)      (4.6)     (27%)
Non-hedge derivative gains (losses)            3.1       0.4       (2.7)       2.7       675%        3.1        nm
Interest expense on long-term liabilities     (5.1)     (5.1)      (5.0)        --         0%       (0.1)      (2%)
Foreign exchange gains (losses)              (13.3)    (19.5)      (4.3)      (8.0)     (174%)       8.9        nm
Loss on redemption of convertible
  debentures                                    --      (1.1)        --        1.1       100%       (1.1)       nm
- -------------------------------------------------------------------------------------------------------------------
Total other income                           $(6.2)   $(13.0)     $ 4.9       (7.4)      (67%)       6.2      127%
===================================================================================================================
</TABLE>

Other income (expense) was a net expense of $6.2 million in 2004,  compared with
a net expense of $13.0  million in 2003 and net income of $4.9  million in 2002.
Interest income was lower in 2004 due to lower average cash balances  throughout
the year. Also,  foreign exchange losses of $13.3 million were recorded versus a
loss of $19.5 million in 2003.  These foreign  exchange  losses were largely the
result  of the  impact  of  strengthening  foreign  currencies  on net  monetary
liabilities in the Company's foreign operations.  Kinross recorded net income of
$4.9  million in 2002 versus a net expense of $13.0  million in 2003 largely due
to  increased  foreign  exchange  losses and lower  interest  and other  income.
Interest and other  income is expected to be lower in 2005 due to  significantly
lower cash balances,  while interest expense is expected to increase as a result
of higher debt levels.

INCOME AND MINING TAX EXPENSE

Kinross is subject to tax in various jurisdictions  including Canada, the United
States,  Russia,  Brazil,  and Chile.  The Company  recorded a recovery of $11.5
million and  provisions  of $4.1  million and $6.5 million for income and mining
taxes in 2004,  2003 and 2002 on  losses  before  tax and  other  items of $74.1
million,  $432.6  million and $14.2  million,  respectively.  Kinross'  combined
federal and  provincial  statutory tax rate was 39%, 39% and 40% for 2004,  2003
and 2002,  respectively.  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.   A
reconciliation  of the  Company's  statutory  rate to the  actual  provision  is
provided in Note 18 to the consolidated financial statements.

Due to the number of factors that can potentially  impact the effective tax rate
and the sensitivity of the tax provision to these factors,  as discussed  above,
it is expected that the Company's  effective tax rate will continue to fluctuate
in future periods.


                                       26
<PAGE>

RELATED PARTY TRANSACTIONS

During 2004, the Company  entered into a shareholders'  agreement  providing for
the incorporation of Kinross Forrest Ltd. ("KF Ltd.") and the issuance of 35% of
the shares of KF Ltd. to the Company,  25% to a company controlled by Art Ditto,
a former  director  and officer of the Company,  and 40% to an  unrelated  third
party.  Mr.  Ditto paid the  Company his share of the  expenses  incurred in the
amount of $0.3 million.  As at December 31, 2004,  this investment was valued at
$0.1 million on the Company's balance sheet.

KF Ltd. is a  corporation  incorporated  under the laws of the  Territory of the
British  Virgin  Islands and is a party to a joint  venture with La Generale des
Carrieres et des Mines, a Congolese  state-owned  mining  enterprise.  The joint
venture was formed for the purpose of exploiting  the Kamoto Copper Mine located
in the Democratic Republic of Congo.

A former  related  director  of the  Company is also a partner in the legal firm
that provides legal services to the Company. This related director resigned from
the Board of Directors  effective  November 2004. The payments made to the legal
firm  relating  to services  provided  in the normal  course of business at fair
value for the years ended  December 31, 2004,  2003 and 2002 were $0.7  million,
$1.6 million and $2.4 million, respectively.

7. LIQUIDITY AND CAPITAL RESOURCES

The mining business is highly capital intensive. It is important that Kinross is
liquid with  sufficient  cash  resources  to meet the  objectives  of  expanding
existing  mine  production,  to add  to its  reserves  through  exploration  and
development and to have the ability to acquire properties.

The following table  summarizes  Kinross' cash flow activity for the three years
ended December 31, 2004:

<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
IN US$ MILLIONS                                                               2004 VS 2003         2003 VS 2002
                                             2004       2003       2002    Change $   Change %   Change $  Change %
- -------------------------------------------------------------------------------------------------------------------
<S>                                         <C>       <C>        <C>       <C>          <C>       <C>          <C>
Cash flow:
   Provided from operating activities       $ 161.2   $  89.5    $  56.7   $  71.7        80%     $ 32.8       58%
   Used in investing activities              (442.3)    (50.1)     (37.9)   (392.2)     (783%)     (12.2)     (32%)
   Provided by financing acitvities            82.6      28.1       67.8      54.5       194%      (39.7)     (59%)
Effect of exchange rate changes on cash         0.6       7.7        3.0      (7.1)      (92%)       4.7      157%
- -------------------------------------------------------------------------------------------------------------------

(Decrease) increase in cash and
   cash equivalents                          (197.9)     75.2       89.6    (273.1)        nm      (14.4)     (16%)
Cash and cash equivalents:
   Beginning of year                          245.8     170.6       81.0      75.2        44%       89.6      111%
- -------------------------------------------------------------------------------------------------------------------
   End of year                              $  47.9   $ 245.8    $ 170.6   $(197.9)      (81%)    $ 75.2       44%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>

OPERATING ACTIVITIES

Cash flow provided from operating  activities increased by $71.7 million in 2004
to $161.2  million.  The  increase  was largely  the result of cash  provided by
changes in operating  assets and liabilities of $28.5 million in 2004,  versus a
use of cash  related to changes in  operating  assets and  liabilities  of $42.9
million in 2003.  Also,  impacting  operating cash flow was higher realized gold
prices, which was partially offset by higher operating costs.


                                       27
<PAGE>

Cash flow provided by operating  activities was $89.5 million in 2003,  compared
to $56.7 million in 2002. The  improvement  in cash flow was due  principally to
the properties  added from the TVX/Echo Bay  acquisition and the increase in the
realized gold price.

INVESTING ACTIVITIES

Net cash used in investing  activities was $442.3 million in 2004,  versus $50.1
million in 2003 and $37.9  million in 2002.  The  increase  in 2004 was  largely
related to $261.2  million used in the  acquisition  of the remaining 51% of the
Paracatu mine and additions to property, plant and equipment. In 2004, additions
to  property,  plant and  equipment  were $169.5  million,  compared  with $73.4
million in 2003 and $22.6  million in 2002.  The following  schedule  provides a
breakdown by segment of the capital expenditures:

<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
                                                                           2004 VS 2003           2003 VS 2002
                                                                      ----------------------------------------------
(IN US$ MILLIONS)                     2004      2003 (a)    (2002)     Change $   Change %    Change $   Change %
- --------------------------------------------------------------------------------------------------------------------
<S>                                    <C>        <C>           <C>        <C>           <C>      <C>            <C>
OPERATING SEGMENTS
  Fort Knox                          $  58.7     $ 26.5        $ 14.9     $ 32.2        122%     $ 11.6         78%
  Paracatu                               5.8        5.2            --        0.6         12%        5.2          nm
  Round Mountain                         8.8        5.7            --        3.1         54%        5.7          nm
  Porcupine Joint Venture               24.5        8.3           6.7       16.2        195%        1.6         24%
  La Coipa                               1.0        0.5            --        0.5        100%        0.5          nm
  Crixas                                 3.6        3.2            --        0.4         13%        3.2          nm
  Musselwhite                            3.9        2.7            --        1.2         44%        2.7          nm
  Kubaka                                17.0        1.7           0.1       15.3        900%        1.6       1600%
  Other operations                      45.5       13.2            --       32.3         245%      13.2          nm
CORPORATE & OTHER                        0.7        6.4           0.9       (5.7)       (89%)       5.5        611%
- --------------------------------------------------------------------------------------------------------------------
TOTAL                                $ 169.5     $ 73.4        $ 22.6     $ 96.1        131%     $ 50.8        225%
====================================================================================================================
</TABLE>

(a)     2003  results  include  TVX and Echo Bay  properties  for 11 months only
        (February through December).

Capital  expenditures  increased  by $96.1  million  in 2004.  The  major  focus
included  expenditures  at Fort Knox on the  tailings  dam,  equipment  and mine
development, recommissioning of Refugio and development of the Pamour pit at the
Porcupine joint venture.

Capital  expenditures  increased  by  $50.8  million  in 2003  over  2002,  with
approximately  $28 million spent on additions to the mines added pursuant to the
TVX/Echo  Bay  acquisition,  including  $9.4  million  in  preparation  for  the
reactivation of the Kettle River  operation.  The largest amount spent was $26.5
million at the Fort Knox mine, with a focus on equipment purchases and rebuilds,
and the drilling of pit-dewatering wells.

All capital  expenditures  in 2003 and 2004 were funded from cash flow  provided
from operating activities and existing cash balances.

Kinross had  followed a strategy of  investing  in junior  gold  companies  with
projects that the Company  believed could be developed  over a relatively  short
time  horizon.  During  2004,  net cash of $11.8  million was used on  long-term
investments  and other assets.  This  compared with 2003,  where net proceeds of
$57.2 million were generated  largely on the sale of equity  investments,  which
resulted in a gain of $29.5 million. At December 31, 2004, Kinross had long-term
investments  in  resource  companies  with a book value of $25.7  million  and a
market value of $31.2 million.

The Company had  restricted  cash of $5.1  million at December  31,  2003.  This
restricted  cash was associated with cash deposits that were made by Echo Bay to
secure letters of credit for various financial  assurance  requirements.  During
2004,  $3.7 million of the  assurance was  released,  leaving a restricted  cash
balance at December 31, 2004 of $1.4 million.


                                       28
<PAGE>

FINANCING ACTIVITIES

Net cash  provided  by  financing  activities  during  2004 was  $82.6  million,
compared  with $28.1  million in 2003 and $67.8  million in 2002.  As  discussed
below,  the Company entered into a new three-year $200 million  revolving credit
facility. Proceeds from the new facility, totaling $105.0 million, were received
during the year and were used to help fund the  purchase  of the  remaining  51%
interest in Paracatu.  During the first quarter of 2004,  the Company repaid the
Industrial  Revenue  Bonds  of $25.0  million  owing  to the  Alaska  Industrial
Development and Export Authority. The repurchase of common shares resulting from
a share consolidation followed by an immediate  deconsolidation required the use
of $11.8 million.  The Company decided to undertake this action to eliminate the
large number of shareholders  who held less than 100 shares.  As of November 18,
2005,  there  were  345.4  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.

The Company had two major equity issues during 2003. On August 28, 2003, Kinross
issued 23.0 million  common shares for net proceeds of $145.9  million.  The net
proceeds from the offering were used to redeem the outstanding  5.5% convertible
unsecured  subordinated  debentures.  The  principal  amount of the  convertible
debentures  was $144.8  million.  The  convertible  debentures  were redeemed on
September  29, 2003.  On November 14, 2003,  Kinross  issued 6.7 million  common
shares,  realizing  proceeds  of $34.9  million,  upon the  exercise of Echo Bay
warrants.  In addition to the  redemption  of the  convertible  debentures,  the
Company also repaid other long-term debt of $10.5 million during 2003, including
$4.7 million of capital leases, $3.8 million of debt at E-Crete and $2.0 million
of debt in Russia.

No dividends were declared or paid to the holders of the  convertible  preferred
shares of Kinam Gold Inc., a subsidiary of the Company, in 2004, 2003, or 2002.

BALANCE SHEET

Despite increased cash flow from operating activities, cash and cash equivalents
were down significantly, from $245.8 million at the end of 2003 to $47.9 million
at the end of 2004.  The decrease was largely due to the cash used in the $261.2
million  purchase of the 51% interest in Paracatu,  net of the $105.0 million in
debt borrowed  against the credit facility.  In addition,  the Company also went
from a net cash  position  of $215.7  million  (cash and cash  equivalents  less
long-term  debt) at the end of 2003 to a net debt  position of $75.0  million at
the end of 2004.

Non-cash  working  capital  (current  assets less cash and cash  equivalents and
restricted  cash) at  December  31,  2004 of $157.6  million  was similar to the
balance at December 31, 2003 of $151.4 million.

Property,  plant and equipment increased during 2004 by $233.7 million,  despite
depreciation,  depletion  and  amortization  expense  of $170.1  million  and an
impairment  charge of $46.1  million.  This was due to capital  expenditures  of
$169.5  million  during the year and  property,  plant and equipment and mineral
interests acquired in the acquisition of the remaining 51% of Paracatu.

CREDIT FACILITY

In February 2003,  immediately  following the business  combination with TVX and
Echo Bay, Kinross arranged a syndicated  credit facility for $125 million having
a maturity  date of December 31, 2005.  The primary  purpose of this  syndicated
credit  facility  was to enable  Kinross  to issue  letters of credit to various
regulatory agencies to satisfy its financial assurance  requirements,  primarily
associated with environmental and reclamation related activities.


                                       29
<PAGE>

In December 2004, the Company  replaced the $125 million credit  facility with a
new three-year $200 million  revolving  credit  facility.  The Company  borrowed
$105.0 million under the new facility to satisfy a portion of the $261.2 million
cost to purchase the remaining 51% interest in the Paracatu  mine.  The facility
also provides  credit support for letters of credit issued to satisfy  financial
assurance  requirements.  As at December  31, 2004,  letters of credit  totaling
$94.9 million had been issued under this facility.

The  facility  allowed  for the limit to be  increased  to $300  million  either
through  existing  lenders  increasing their exposure or through the addition of
new lenders.  Its also allows for up to seventy percent of the outstanding limit
to be drawn in gold.  In February  2005,  one of the four 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.  In March
2005,  another of the four lenders  increased  its limit 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. 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.  A
total of ten banks have participated in the facility.

The new facility  provides the Company with more senior terms including  reduced
pricing, the release of certain security and more flexible covenants. Pricing is
dependent  upon the ratio of the  Company's  net debt to  operating  cash  flow.
Assuming the Company  maintains a leverage ratio less than 1.25 (previously less
than 1.0), interest charged will be as follows:

<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
                                                             INTEREST RATES IN NEW          INTEREST RATES IN OLD
TYPE OF CREDIT                                                 CREDIT FACILITY                CREDIT FACILITY
- -----------------------------------------------------------------------------------------------------------------
<S>                                                                           <C>                          <C>
Dollar based LIBOR loan                                            LIBOR plus 1.00%             LIBOR plus 1.50%
Letters of credit                                                             1.00%                        1.50%
Bullion loan                                             Gold lease rate plus 1.25%                            -
Standby fee applicable to unused availability                                 0.25%                        0.30%
- -----------------------------------------------------------------------------------------------------------------
</TABLE>

Obligations  under the  facility are secured by the assets of the Fort Knox mine
as well as by a pledge of shares in various wholly owned subsidiaries.

The  credit  facility   contains  various   covenants  that  include  limits  on
indebtedness,  distributions,  asset sales and liens, although these limits have
all been increased in relation to the old credit facility. Significant financial
covenants  include a minimum  tangible net worth of $727.9 million  (2003-$698.0
million),  an  interest  coverage  ratio  of  4.5:1.0  (2003-same),  net debt to
operating cash flow of 3.0:1.0  (2003-3.5:1.0),  and minimum proven and probable
reserves of 6.0 million gold equivalent ounces (2003-5.0  million).  The Company
was in compliance with all covenants as at December 31, 2004.

The following table outlines the credit facility utilization as at December 31:

- --------------------------------------------------------------------------------
IN US$ MILLIONS                                             2004           2003
- --------------------------------------------------------------------------------
Credit facility limit (a)                                $ 200.0        $ 125.0
LIBOR loan                                                (105.0)             -
Letters of credit                                          (94.9)        (118.2)
- --------------------------------------------------------------------------------
Credit facility availability as at December 31,          $   0.1        $   6.8
- --------------------------------------------------------------------------------

(a)     In April 2005 the outstanding limit on the credit facility was increased
        to $295 million.

At December  31,  2004,  in addition to the $105.0  million  borrowed  under the
credit  facility,  the Company had long-term  debt of $2.7 million in Russia and
capital leases of $15.2 million, for total long-term debt of $122.9 million. The
debt in Russia along with $3.3 million in capital lease payments are current and
are expected to be paid in 2005.


                                       30
<PAGE>

LIQUIDITY OUTLOOK

It is expected  that the cash  requirements  for 2005 will be largely  funded by
Kinross' 2004 year-end cash position and forecasted  cash flow from  operations,
with the increased credit facility available to provide any additional cash that
is  required.  The  three  major  uses of cash in  2005,  outside  of  operating
activities and general and administrative costs, are expected to be:

- -----------------------------------------------------------------------------
                                                             IN US$ MILLIONS

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

   Site restoration                                                  $  28.8
   Exploration and business development expense                         22.1
   Property, plant and equipment additions                             172.0
- -----------------------------------------------------------------------------
   Total                                                             $ 222.9
- -----------------------------------------------------------------------------

The exploration  costs are discussed  further in the  "Exploration  and business
development expense" section under "Consolidated Financial Results".

The Company  anticipates  certain letters of credit will continue to be released
as various closure properties proceed with final reclamation; however, the exact
timing of these  releases  is  uncertain.  It is also  difficult  to predict the
specific timing of reductions or further increases in LIBOR based borrowings. In
addition, Kinross anticipates the need for additional bonding requirements.

The Company has  increased  the LIBOR loan from $105.0  million at December  31,
2004 to $140.0  million in the first half of 2005 and expects  issued letters of
credit to total $103.5  million and $110.5  million at the end of 2005 and 2006,
respectively.  As a result, with a credit facility limit of $295.0 million,  the
credit  facility  available is expected to be $51.5 million and $44.5 million at
December 31, 2005 and 2006, respectively.

2005 CAPITAL ADDITIONS

Kinross  plans  to  continue  its  aggressive  capital  expansion  program  with
forecasted  expenditures of $172 million.  Major projects include phase five and
six  development  at the Fort Knox mine ($45 million),  continued  expansion and
recommissioning  work at Refugio ($30  million),  pit  development at Pamour and
underground  development at the Porcupine Joint Venture ($23 million),  and work
on the mill expansion at Paracatu ($37 million).  All amounts represent Kinross'
proportionate share of planned expenditures.

2005 SITE RESTORATION

Site  restoration  is  forecast  to be  $28.8  million  in 2005.  The  Company's
estimated  share of  proportionate  expenditures  include $7.1 million at Lupin,
$5.5 million at Kubaka,  $2.7 million at New  Britannia  and $1.3 million at the
Porcupine Joint Venture. Concurrent reclamation is also scheduled at many of the
operating mines.  Reclamation and monitoring continues at the Company's Delamar,
Haile and Mineral Hill sites.

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."


                                       31
<PAGE>

TABLE OF CONTRACTUAL OBLIGATIONS

<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
                                                                                                          2009 AND
(in US$ millions)                             TOTAL        2005        2006        2007         2008       BEYOND
- -------------------------------------------------------------------------------------------------------------------
<S>                                          <C>          <C>          <C>         <C>         <C>         <C>
Long-term debt obligations                   $ 107.7      $   2.7      $   --      $   --      $ 105.0     $    --
Capital lease obligations                       15.2          3.3         2.7         2.8          3.1         3.3
Operating lease obligations                    145.5         55.3        23.7        22.9         22.2        21.4
Purchase obligations                           119.3         57.5        32.2        16.8         12.8          --
Reclamation and remediation obligations        163.3         23.6        29.9        10.0          9.7        90.1
- -------------------------------------------------------------------------------------------------------------------
Total                                        $ 551.0      $ 142.4      $ 88.5      $ 52.5      $ 152.8     $ 114.8
===================================================================================================================
</TABLE>

Kinross'  Paracatu  operation  participates  in a Brazilian  Central Bank export
prepayment program,  which commits the Company to conduct export activities.  As
at December  31, 2004,  Kinross is committed to export $50.0  million of gold in
2005.

FINANCIAL INSTRUMENTS

Kinross may manage its exposure to fluctuations in commodity  prices and foreign
exchange rates by entering into  derivative  financial  instrument  contracts in
accordance  with the formal risk  management  policies  approved by its Board of
Directors. Kinross' exposure with respect to foreign exchange is addressed under
the section entitled "Risk  Analysis-Foreign  Currency  Exchange Risk" and, with
respect to commodities,  in the section entitled "Risk  Analysis-Commodity Price
Risks."

8. QUARTERLY INFORMATION

For a summary of Quarterly  Data please refer to the  Supplementary  Information
section at the back of the Annual Report.

9. CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Kinross'  accounting  policies  are  described  in  Note 4 to  the  consolidated
financial statements.  The preparation of the Company's  consolidated  financial
statements,  in conformity with CDN GAAP,  requires management to make estimates
and  assumptions  that affect  amounts  reported in the  consolidated  financial
statements  and  accompanying  notes.  The following is a list of the accounting
policies that the Company believes are critical due to the degree of uncertainty
regarding the estimates or assumptions  involved and the magnitude of the asset,
liability, revenue or expense being reported:

        o       Purchase price allocation;
        o       Carrying value of goodwill;
        o       Carrying value of operating mines,  mineral rights,  development
                properties and other assets;
        o       Depreciation, depletion and amortization;
        o       Inventories;
        o       Reclamation and remediation obligations;
        o       Provision for income and mining taxes; and
        o       Contingencies.

Management  has discussed the  development  and selection of the above  critical
accounting policies with the Audit Committee of the Board of Directors,  and the
Audit  Committee  has reviewed the  disclosure  relating to such policies in the
MD&A.


                                       32
<PAGE>

PURCHASE PRICE ALLOCATION

Business  acquisitions  are accounted for by the purchase  method of accounting.
Under this method,  the purchase  price is allocated to the assets  acquired and
the liabilities assumed based on fair value at the time of the acquisition.  The
excess purchase price over the fair value of identifiable assets and liabilities
acquired is goodwill.  The determination of fair value often requires management
to make  assumptions  and estimates  about future events.  The  assumptions  and
estimates  with respect to  determining  the fair value of  property,  plant and
equipment  acquired generally require the most judgment and include estimates of
reserves acquired,  future gold prices and discount rates. Changes in any of the
assumptions or estimates used in determining  the fair value of acquired  assets
and  liabilities  could impact the amounts  assigned to assets,  liabilities and
goodwill in the purchase price  allocation.  Future net earnings can be affected
as a result of changes in future depreciation and depletion, asset impairment or
goodwill impairment.

CARRYING VALUE OF GOODWILL

At  December  31,  2004,  the  carrying  value of Kinross'  goodwill  was $329.9
million.  The  goodwill,  as described in Note 6 to the  consolidated  financial
statements,  arose in connection to the Company's  January 31, 2003 TVX/Echo Bay
acquisition.  The goodwill  represents the excess of the purchase price over the
fair value of identifiable  net assets of TVX and Echo Bay.  Kinross  originally
recorded  goodwill of $918.0 million  relating to the TVX/Echo Bay  acquisition,
with  $908.4  million  being  allocated  to  the  Exploration  and  Acquisitions
reporting unit and the balance,  $9.6 million,  being allocated to the Corporate
reporting unit. However, following discussions with regulatory authorities and a
valuation by an independent  firm,  the December 31, 2003  financial  statements
were restated and the goodwill  component of the purchase price was reduced from
$918.0 million to $736.7 million and reallocated to the reporting units acquired
in the  transaction.  In  addition,  the  independent  valuator  also  performed
impairment  testing as at December 31, 2003,  which resulted in a $394.4 million
goodwill impairment charge. Prior to the restatement, there had been no goodwill
impairment  charge  recorded  in  2003.  At  December  31,  2004,  based  on  an
independent  valuation,  an additional goodwill impairment loss of $12.4 million
was recorded.

Upon the acquisition of TVX and Echo Bay, the goodwill,  as of January 31, 2003,
of $736.7 million was determined to represent:

        1.      The  ability  of  the  Company  to  increase  its  reserves  and
                resources based on its development of the identified exploration
                targets  existing  on the  properties  which  were  part  of the
                acquisition;

        2.      The optionality (real option value associated with the portfolio
                of acquired  mines as well as each  individual  mine) relates to
                the Company's  ability to to make  exploration  decisions on the
                acquired  properties and other  properties based upon changes in
                gold  prices,  including  the  ability  to  develop  additional,
                higher-cost  reserves  and to  intensify  efforts to develop the
                more  promising  acquired   properties  and  reduce  efforts  at
                developing  the less  promising  acquired  properties  when gold
                prices increase in the future; and

        3.      The going concern value of the Company's capacity to replace and
                augment reserves through  completely new discoveries whose value
                is not  reflected  in any of the other  valuations  of  existing
                mining assets.

Goodwill  that  represents  the  Company's  ability to increase its reserves and
resources was allocated to the  respective  reporting  units based on management
estimates,  which  were  corroborated  by a  three-year  rolling  ratio of value
additions  into the reserves and resources.  In attempting to increase  reserves
and  resources  beyond  those  identified  at the time of the  acquisition,  the
Company will have to make expenditures on exploration and development, which may
be  significant.  Subject to any  significant  adverse  changes in the Company's
long-term view of gold prices and foreign  exchange rates,  the Company believes
it has the  ability to provide  funding  for this work.  In addition to negative
gold price and foreign  exchange  rate  changes,  Kinross  faces  further  risks
involved in realizing production beyond


                                       33
<PAGE>

the acquired reserves and resources. Exploration at the acquired reporting units
will have to be successful for there not to be further  goodwill  carrying value
issues.

The goodwill representing the optionality available to the Company was allocated
pro-rata, based on the fair value of the reporting units. The realization of the
optionality  portion of  goodwill is  contingent  upon the  realized  gold price
exceeding  the prices used to calculate the fair value of the  identifiable  net
assets and the  success of the  Company in  capitalizing  on these  higher  gold
prices,  through the  development  of  additional,  higher costs  reserves.  The
realization  of  the  optionality   value  is  also  dependent  on  successfully
evaluating new information on the Company's  properties and allocating resources
between  those   properties  in  order  to  maximize   future   production   and
profitability. There is a great deal of uncertainty involved in making decisions
about allocating resources.  However, Kinross believes it has a management group
that has the requisite skills, abilities and experience to respond appropriately
to developments relating to the Company's various properties.

Goodwill is not  amortized;  however,  Kinross tests for goodwill  impairment at
least  annually,  in the fourth  quarter of its fiscal year. If a reporting unit
contains goodwill,  Kinross compares the estimated fair value of the entire unit
with its  carrying  value  (including  goodwill).  If the fair  value  equals or
exceeds the carrying  value,  Kinross  concludes that the unit's goodwill is not
impaired.  If the carrying value exceeds the fair value,  Kinross  estimates the
fair values of all assets and  liabilities  in the reporting  unit, and compares
the net fair value amount of assets less  liabilities to the estimated  value of
the whole unit. The difference  between the estimated  value of the unit and the
net fair value  amount  represents  the fair value of  goodwill.  If  necessary,
Kinross  reduces the  carrying  amount of goodwill to that newly  computed  fair
value.

As described above, an impairment loss of $12.4 million to goodwill was recorded
for the year ended December 31, 2004,  and an impairment  loss of $394.4 million
was recorded for the year ended December 31, 2003. The calculations  involved in
determining  the  fair  values  of the  reporting  units  involve  a  number  of
assumptions  that  are  subject  to risks  and  uncertainty.  These  assumptions
include,  but are not limited to future market prices of gold,  foreign exchange
rates,  inflation  rates,  discount rates, tax rates,  operating costs,  capital
expenditures and the discovery of additional mineral reserves.

While the Company  believes that the approach  used to calculate  fair value for
each reporting unit is appropriate,  the Company also recognizes that the timing
and future value of  additions  to proven and  probable  reserves as well as the
gold price are  subject  to  potentially  significant  change  from the  current
expectations.  For example,  at December 31, 2004, a 10% reduction in proven and
probable reserves,  while keeping other variables constant,  would have resulted
in a goodwill  impairment  of $17.0 million  versus the $12.4  million  actually
recorded.

At December 31, 2004, a reduction in the gold price of 10% would have the impact
of reducing the value of the goodwill by $6.5 million,  keeping other  variables
constant.

CARRYING VALUE OF OPERATING MINES,  MINERAL RIGHTS,  DEVELOPMENT  PROPERTIES AND
OTHER ASSETS

Kinross  reviews and  evaluates the carrying  value of its  operating  mines and
development  properties for impairment on an annual basis or earlier when events
or changes in circumstances indicate that the carrying amounts of related assets
or groups of assets might not be recoverable. If the total estimated future cash
flows on an  undiscounted  basis are less than the carrying amount of the asset,
an  impairment  loss is measured  and  recorded.  Future cash flows are based on
estimated future recoverable mine production, expected sales prices (considering
current and historical  prices,  price trends and related  factors),  production
levels  and  costs,  capital  and  reclamation  costs,  all  based  on  detailed
engineering life-of-mine plans. Future recoverable mine production is determined
from proven and probable  reserves and measured,  indicated and inferred mineral
resources after taking into account losses during ore


                                       34
<PAGE>

processing and treatment.  Estimates of  recoverable  production  from measured,
indicated,   and  inferred   mineral   interests  are  risk  adjusted  based  on
management's  relative  confidence  in converting  such  interests to proven and
probable reserves.  All long-lived assets at a particular operation are combined
for purposes of estimating  future cash flows. In the case of exploration  stage
mineral interests associated with greenfields exploration potential, fair values
are  individually  evaluated  based primarily on recent  transactions  involving
sales of similar properties.  Assumptions  underlying future cash flow estimates
are subject to risks and uncertainties. It is possible that changes in estimates
with  respect to the  Company's  mine  plans  could  occur  which may affect the
expected  recoverability of Kinross'  investments in the carrying value of these
assets.

These  changes in estimates  could include  differences  in estimated and actual
costs of mining, differences between the actual gold price and price assumptions
used in the  estimation  of reserves and resources  and  differences  in capital
expenditure estimates from actual.

The reviews and evaluations  completed for 2004,  2003, and 2002 determined that
certain  asset values had become  impaired and charges of $47.5  million,  $17.1
million and $0.2 million,  respectively,  were  recorded.  The components of the
asset impairment charges are discussed in "Impairment of Assets and Investments"
under the "Consolidated Financial Results" section.

DEPRECIATION, DEPLETION AND AMORTIZATION

Expenditures  for new facilities or equipment and  expenditures  that extend the
useful life of existing  facilities  or equipment  are  capitalized.  Mobile and
other equipment is depreciated, net of residual value, on a straight-line basis,
over the  useful  life of the  equipment.  Plant and other  facilities,  used in
carrying   out   the   mine   operating    plan,   are   amortized   using   the
units-of-production ("UOP") method over the estimated life of the ore body based
on recoverable ounces to be mined from estimated proven and probable reserves.

Costs to develop new properties are  capitalized as incurred,  where it has been
determined that a mineral property can be economically  developed as a result of
establishing  proven and probable  reserves.  At the  Company's  open pit mines,
these  costs  include  costs  to  further  delineate  the ore  body  and  remove
overburden to initially expose the ore body. At the Company's underground mines,
these costs include the costs of building access ways, shaft sinking and access,
lateral development,  drift development,  ramps and infrastructure  development.
All such costs are amortized using the UOP method based on recoverable ounces to
be mined from proven and probable reserves.

Major  development  costs  incurred  after the  commencement  of production  are
amortized  using the UOP  method  based on  recoverable  ounces to be mined from
estimated proven and probable reserves.

The  calculation  of the UOP rate of  amortization,  and  therefore  the  annual
depreciation,  depletion, and amortization expense, could be materially affected
by changes in  estimates.  These  changes in  estimates  could be as a result of
actual future  production  differing from current forecasts of future production
based on proven and probable reserves.  These factors could include an expansion
of proven and probable  reserves  through  exploration  activities,  differences
between  estimated and actual costs of mining and differences in gold price used
in the estimation of proven and probable reserves.

The  calculation of  straight-line  amortization  of intangible  assets could be
materially affected by changes in the estimated useful life and residual values.
These changes could be a result of  exploration  activities  and  differences in
gold and silver prices used in the estimation of reserves.


                                       35
<PAGE>

Significant  judgment  is  involved  in the  determination  of  useful  life and
residual values for the computation of depreciation, depletion, and amortization
and no assurance can be given that actual useful lives and residual  values will
not differ significantly from current assumptions.

INVENTORIES

Expenditures and depreciation, depletion, and amortization of assets incurred in
the mining and processing  activities that will result in future gold production
are  deferred  and  accumulated  as ore in  stockpiles,  ore on  leach  pads and
in-process  inventories.  These  deferred  amounts  are  carried at the lower of
average cost or net realizable value ("NRV").  NRV is the difference between the
estimated  future gold price based on  prevailing  and  long-term  prices,  less
estimated costs to complete production into a saleable form.  Write-downs of ore
in stockpiles,  ore on leach pads and inventories resulting from NRV impairments
are reported as a component of current  period costs.  The primary  factors that
influence the need to record  write-downs  include prevailing and long-term gold
prices and  prevailing  costs for  production  inputs  such as labour,  fuel and
energy,  materials  and  supplies,  as well as  realized  ore  grades and actual
production levels.

Stockpiles are comprised of coarse ore that has been extracted from the mine and
is available for further  processing.  Stockpiles are measured by estimating the
number of tonnes added and removed from the  stockpile,  the number of contained
gold ounces based on assay data and the estimated  recovery  percentage based on
the  expected  processing  method.  Stockpile  tonnages are verified by periodic
surveys. Stockpiles are valued based on mining costs incurred up to the point of
stockpiling  the  ore,  including  applicable   depreciation,   depletion,   and
amortization relating to mining operations.  Costs are added to stockpiles based
on the current mining cost per tonne and removed at the average costs per tonne.
The  Company's  ore in  stockpiles  had a  carrying  value of $24.2  million  at
December 31, 2004.

Ore on leach pads  represents  ore that is placed on pads where it is  permeated
with a chemical  solution  that  dissolves  the gold  contained  in the ore. The
resulting  recovered  solution,  which is included in in-process  inventory,  is
further  processed in a plant where gold is recovered.  Costs are  attributed to
the leach pads based on current mining costs, including applicable depreciation,
depletion,  and amortization  relating to mining  operations.  Costs are removed
from the leach pad as ounces are  recovered in circuit at the plant based on the
average  cost per  recoverable  ounce of gold on the  leach  pad.  Estimates  of
recoverable  gold on the leach pads are  calculated  from the  quantities of ore
placed on the pads,  the grade of ore placed on the leach  pads  (based on assay
data) and a recovery percentage.  Timing and ultimate recovery of gold contained
on leach pads can vary  significantly.  Although the  quantities of  recoverable
gold  placed on the leach pads are  reconciled  by  comparing  the grades of ore
placed  on  the  leach  pads  to  the  quantities  of  gold  actually  recovered
(metallurgical  balancing), the nature of the leaching process inherently limits
the  ability  to  precisely  monitor   inventory   levels.  As  a  result,   the
metallurgical  balancing  process is constantly  monitored  and the  engineering
estimates are refined based on actual results over time.  The ultimate  recovery
of gold from a pad will not be known until the leaching  process is  terminated.
The Company's ore on leach pads had a carrying value of $15.7 million.

In-process  inventories represent materials that are currently in the process of
being converted to a saleable  product.  Conversion  processes vary depending on
the  nature of the ore and the  specific  mining  operation,  but  include  mill
in-circuit,  leach  in-circuit,  flotation and column cells,  and carbon in-pulp
inventories. In-process material is measured based on assays of the material fed
to the processing plants and the projected  recoveries of the respective plants.
In-process inventories are valued at the average cost of the material fed to the
processing  plant which is  attributable  to the source material coming from the
mines,  stockpiles or leach pads plus the in-process conversion costs, including
applicable  depreciation  relating to the process  facilities,  incurred to that
point in the process. The Company's in-process inventory had a carrying value of
$9.1 million at December 31, 2004.


                                       36
<PAGE>

The allocation of costs to ore in  stockpiles,  ore on leach pads and in-process
inventories and the  determination of NRV involves the use of estimates.  A high
degree of judgment is involved in  estimating  future costs,  future  production
levels,  proven and probable reserve  estimates,  gold and silver prices and the
ultimate  estimated  recovery (for ore on leach pads). There can be no assurance
that actual  results will not differ  significantly  from  estimates used in the
determination of the carrying value of inventories.

RECLAMATION AND REMEDIATION OBLIGATIONS

Mining and  exploration  activities are subject to various laws and  regulations
governing  the  protection  of the  environment.  In  general,  these  laws  and
regulations are continually  changing and, over time, becoming more restrictive.
The Company has made, and intends to make in the future,  expenditures to comply
with such laws and regulations.  On January 1, 2004, the Company adopted Section
3110 of the CICA Handbook "Asset Retirement Obligations" ("Section 3110"). Under
Section 3110,  the Company  records the estimated  present value of  reclamation
liabilities in the period in which they are incurred.  A corresponding  increase
to the carrying amount of the related asset is recorded and depreciated over the
life of the asset.  Over time,  the liability  will be increased  each period to
reflect the interest element (accretion) reflected in its initial measurement at
fair value, and will also be adjusted for changes in the estimate of the amount,
timing and cost of the work to be carried out.

Future  remediation  costs for inactive mines are accrued based on  management's
best estimate at the end of each period of the undiscounted costs expected to be
incurred at each site.  Changes in  estimates  are  reflected in earnings in the
period an estimate is revised.

Accounting for reclamation and remediation  obligations  requires  management to
make estimates  unique to each mining  operation of the future costs the Company
will incur to complete the reclamation  and remediation  work required to comply
with  existing laws and  regulations.  Actual costs  incurred in future  periods
could  differ  from  amounts   estimated.   Additionally,   future   changes  to
environmental  laws and regulations could increase the extent of reclamation and
remediation  work required to be performed by the Company.  Any such increase in
future  costs could  materially  impact the amounts  charged to  operations  for
reclamation and  remediation.  At December 31, 2004, the estimated  undiscounted
future cost of reclamation and remediation  obligations was approximately $163.3
million. The present value of estimated future cash outflows for reclamation and
remediation  obligations  were $131.7 million and $130.3 million at December 31,
2004 and 2003, respectively.

PROVISION FOR INCOME AND MINING TAXES

The Corporation recognizes the future tax benefit related to deferred income and
resource tax assets and sets up a valuation  allowance  against any portion that
it believes will,  more likely than not, fail to be realized (see Note 18 to the
consolidated  financial  statements).  Assessing  the  recoverability  of future
income tax assets requires  management to make  significant  estimates of future
taxable  income.  Estimates of future  taxable  income are subject to changes in
estimates as discussed  under the section  "Carrying  Value of Operating  Mines,
Mineral  Rights,  Development  Properties and Other Assets".  To the extent that
future cash flows and taxable income differs  significantly from estimates,  the
ability of the Company to realize the net  deferred  tax assets  recorded at the
balance sheet date could be impacted.  In addition,  future  changes in tax laws
could limit the ability of the  Corporation  to obtain tax  deductions in future
periods from deferred income and resource tax assets.

10. RECENT PRONOUNCEMENTS AND ACCOUNTING CHANGES

Please  refer  to  Note  5 to  the  December  31,  2004  consolidated  financial
statements.


                                       37
<PAGE>

11. RISK ANALYSIS

The  operations  of Kinross are  high-risk  due to the nature of the  operation,
exploration, and development of mineral properties.  Certain of the risk factors
listed  below are  related to the  mining  industry  in  general  while some are
specific  to  Kinross.  Included  in the risk  factors  below are details on how
Kinross  seeks to mitigate  these risks  wherever  possible.  For an  additional
discussion of risk factors please refer to the Company's Annual Information Form
which is available on the Company's website WWW.KINROSS.COM and on WWW.SEDAR.COM
or is available upon request from the Company.

GOLD PRICE

The  profitability of any gold mining operation in which Kinross has an interest
will be  significantly  affected  by changes in the market  price of gold.  Gold
prices  fluctuate on a daily basis and are affected by numerous  factors  beyond
the  control of Kinross.  The supply and demand for gold,  the level of interest
rates,  the rate of  inflation,  investment  decisions by large holders of gold,
including  governmental  reserves, and stability of exchange rates can all cause
significant  fluctuations in gold prices.  Such external economic factors are in
turn  influenced by changes in  international  investment  patterns and monetary
systems and political developments.  The price of gold has fluctuated widely and
future serious price declines could cause continued commercial  production to be
impractical.  Depending on the price of gold,  cash flow from mining  operations
may not be sufficient to cover costs of production and capital expenditures. If,
as a result of a decline in gold prices,  revenues from metal sales were to fall
below operating costs, production may be discontinued.

NATURE OF MINERAL EXPLORATION AND MINING

The  exploration  and  development  of  mineral  deposits  involves  significant
financial  and  other  risks  over an  extended  period  of time,  which  even a
combination of careful  evaluation,  experience and knowledge may not eliminate.
While discovery of a gold-bearing  structure may result in substantial  rewards,
few properties  explored are ultimately  developed into producing  mines.  Major
expenses are required to establish  reserves by drilling and to construct mining
and processing facilities at a site. It is impossible to ensure that the current
or proposed  exploration programs on properties in which Kinross has an interest
will result in profitable commercial mining operations.

The operations of Kinross are subject to the hazards and risks normally incident
to  exploration,  development  and  production of gold and silver,  any of which
could  result in damage to life or property,  environmental  damage and possible
legal  liability  for such damage.  The  activities of Kinross may be subject to
prolonged  disruptions  due to weather  conditions  depending on the location of
operations  in which it has  interests.  Hazards,  such as unusual or unexpected
formations, rock bursts, pressures,  cave-ins, flooding or other conditions, may
be encountered in the drilling and removal of material. While Kinross may obtain
insurance against certain risks,  potential claims could exceed policy limits or
could be excluded  from  coverage.  There are also risks  against  which Kinross
cannot or may elect not to insure. The potential costs which could be associated
with any liabilities not covered by insurance or in excess of insurance coverage
or compliance with applicable laws and regulations may cause substantial  delays
and require significant capital outlays, adversely affecting the future earnings
and competitive position of Kinross and, potentially, its financial viability.

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


                                       38
<PAGE>

Kinross mitigates the likelihood and potential severity of these mining risks it
encounters  in  its  day-to-day  operations  through  the  application  of  high
operating  standards.  In addition,  Kinross  reviews its insurance  coverage at
least  annually  to ensure the most  complete  and  cost-effective  coverage  is
obtained.

ENVIRONMENTAL RISKS

Kinross' mining and processing operations and exploration  activities in Canada,
the United States,  Russia,  Brazil,  Chile,  and other countries are subject to
various  laws and  regulations  governing  the  protection  of the  environment,
exploration,   development,   production,   exports,  taxes,  labour  standards,
occupational  health, waste disposal,  toxic substances,  mine safety, and other
matters. New laws and regulations,  amendments to existing laws and regulations,
or more stringent  implementation  of existing laws and regulations could have a
material  adverse  impact on Kinross  through  increased  costs,  a reduction in
levels of  production  and/or a delay or prevention  of the  development  of new
mining  properties.   Compliance  with  these  laws  and  regulations   requires
significant  expenditures and increases  Kinross' mine development and operating
costs.

In  all  jurisdictions,   permits  from  various  governmental  authorities  are
necessary in order to engage in mining  operations.  Such permits relate to many
aspects  of mining  operations,  including  maintenance  of air,  water and soil
quality  standards.  In most  jurisdictions,  the  requisite  permits  cannot be
obtained prior to completion of an  environmental  impact statement and, in some
cases,  public  consultation.  Further,  Kinross  may be  required to submit for
government  approval a reclamation  plan and to pay for the  reclamation  of the
mine site upon the  completion  of mining  activities.  At  December  31,  2004,
Kinross estimates its undiscounted share of reclamation  closure  obligations at
$163.3 million based on information currently available.  Kinross mitigates this
risk by performing certain reclamation activities concurrent with production. In
addition,  planned  spending on closure  properties  of $23.6 million in 2005 is
part of an aggressive plan to bring the majority of the closure projects to post
closure monitoring by the end of 2005.

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

RESERVE ESTIMATES

The amounts of reserves and  resources  are  estimates,  and no assurance can be
given that the  anticipated  tonnages  and grades  will be  achieved or that the
indicated level of recovery will be realized.  Market  fluctuations in the price
of gold may render the mining of ore reserves  uneconomical  and require Kinross
to take a write-down of the asset or to  discontinue  development or production.
Moreover,  short-term  operating  factors relating to the reserves,  such as the
need  for  orderly  development  of the  ore  body or the  processing  of new or
different ore grades,  may cause a mining  operation to be  unprofitable  in any
particular accounting period.

Proven and probable  reserves at Kinross'  mines and  development  projects were
estimated as of December 31, 2004,  based upon a gold price of $350 per ounce of
gold.  Prior to  2002,  gold  prices  were  significantly  below  these  levels.
Prolonged declines in the market price of gold may render reserves containing


                                       39
<PAGE>

relatively lower grades of gold  mineralization  uneconomic to exploit and could
materially  reduce Kinross'  reserves.  Should such reductions  occur,  material
write-downs of Kinross'  investment in mining properties or the  discontinuation
of  development  or  production  might be required,  and there could be material
delays in the development of new projects and reduced income and cash flow.

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

OPERATIONS OUTSIDE OF NORTH AMERICA

Kinross  has mining  operations  and  carries out  exploration  and  development
activities outside of North America in Russia, Brazil, Chile and Zimbabwe. There
is no assurance that future political and economic conditions in these countries
will not result in those  countries'  governments  adopting  different  policies
respecting  foreign  development  and ownership of mineral  resources.  Any such
changes in policy may result in changes in laws  affecting  ownership of assets,
taxation,  rates of  exchange,  gold  sales,  environmental  protection,  labour
relations,  repatriation  of income,  and return of  capital.  Changes in any of
these areas may affect both the ability of Kinross to undertake  exploration and
development  activities in respect of future  properties in the manner currently
contemplated,  as well as its  ability to  continue  to  explore,  develop,  and
operate those properties for which it has obtained exploration, development, and
operating  rights to date.  The  possibility  that a future  government of these
countries  may adopt  substantially  different  policies,  which might extend to
expropriation of assets, cannot be ruled out.

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

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

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


                                       40
<PAGE>

operations in Zimbabwe, the Company discontinued consolidation of the results of
this operation in 2002 and stopped reporting mining production in 2003.

In  addition,  the  economies  of  Russia,  Brazil,  Chile and  Zimbabwe  differ
significantly from the economies of Canada and the United States.  Growth rates,
inflation  rates and  interest  rates of  developing  nations  have been and are
expected to be more volatile than those of western industrial countries.

LICENSES AND PERMITS

The operations of Kinross require licenses and permits from various governmental
authorities. However, such licenses and permits are subject to change in various
circumstances.  There can be no guarantee that Kinross will be able to obtain or
maintain all necessary  licenses and permits that may be required to explore and
develop its properties,  commence construction or operation of mining facilities
and  properties  under  exploration  or  development  or to  maintain  continued
operations  that  economically  justify  the cost.  Kinross  endeavors  to be in
compliance with these regulations at all times.

TITLE TO PROPERTIES

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

Certain of Kinross'  mineral  rights in the United States  consist of unpatented
lode mining  claims.  Unpatented  mining  claims may be located on United States
federal  public  lands open to  appropriation,  and may be either lode claims or
placer  claims  depending  upon the nature of the deposit  within the claim.  In
addition,  unpatented  mill  site  claims,  which  may be  used  for  processing
operations or other activities ancillary to mining operations, may be located on
federal public lands that are non-mineral in character. Unpatented mining claims
and mill sites are unique property interests, and are generally considered to be
subject to greater  title risk than other real  property  interests  because the
validity of unpatented mining claims is often uncertain and is always subject to
challenges of third parties or contests by the federal  government of the United
States.  The  validity  of an  unpatented  mining  claim,  in  terms of both its
location and its maintenance,  is dependent on strict  compliance with a complex
body of United  States  federal  and state  statutory  and  decisional  law.  In
addition,  there are few public records that definitively  control the issues of
validity and ownership of unpatented  mining  claims.  The General Mining Law of
the United States,  which governs mining claims and related activities on United
States federal public lands,  includes provisions for obtaining a patent,  which
is  essentially  equivalent to fee title,  for an  unpatented  mining claim upon
compliance  with certain  statutory  requirements  (including the discovery of a
valuable mineral deposit).

COMPETITION

The mineral exploration and mining business is competitive in all of its phases.
Kinross  competes  with numerous  other  companies  and  individuals,  including
competitors with greater financial, technical, and other resources than Kinross,
in the search for and the  acquisition  of attractive  mineral  properties.  The
ability of Kinross to acquire  properties  in the future will depend not only on
its ability to develop its present properties, but also on its ability to select
and acquire suitable producing  properties or prospects for mineral exploration.
There  is no  assurance  that  Kinross  will  continue  to be  able  to  compete
successfully with its competitors in acquiring such properties or prospects.

JOINT VENTURES

Certain of the operations in which Kinross has an interest are operated  through
joint ventures with other mining companies.  Any failure of such other companies
to meet their obligations to Kinross or to third


                                       41
<PAGE>

parties could have a material adverse effect on the joint venture. In addition,
Kinross may be unable to exert control over strategic decisions made in respect
of such properties.

INTEREST RATE FLUCTUATIONS

Fluctuations  in interest  rates can affect  Kinross'  results of operations and
cash flow. The Company's credit facility is subject to variable  interest rates.
At December 31, 2004, $105.0 million had been drawn down on the credit facility.

DISCLOSURES ABOUT MARKET RISKS

To determine its market risk sensitivities, Kinross uses an internally generated
financial forecast that is sensitized to various gold prices,  currency exchange
rates,  interest rates and energy prices.  The variable with the greatest impact
is the gold price, and Kinross prepares a base case scenario and then sensitizes
it by a 10% increase and decrease in the gold price. For 2005,  sensitivity to a
10% change in the gold price is $67 million on pre-tax earnings.

The financial  forecast  Kinross uses covers the projected life of its mines. In
each year  gold is  produced  according  to the mine  plan,  the  production  is
estimated based on current production costs plus the impact of any major changes
to the  operation  during its life.  Quantitative  disclosure of market risks is
disclosed below.

COMMODITY PRICE RISKS

Kinross' net income can vary significantly with fluctuations in the market price
of gold. At various times, in response to market conditions, Kinross has entered
into gold forward sales  contracts,  spot deferred  forward sales  contracts and
written call options for some portion of expected future  production to mitigate
the risk of  adverse  price  fluctuations.  Kinross  is not  subject  to  margin
requirements  on any of its hedging  lines.  Due to the increase in gold prices,
Kinross  made a  decision  in 2002 to  continue  to  deliver  into its  existing
financial  instruments,  thereby  increasing  its  exposure  to  changes in gold
prices.

While  Kinross  made the  decision  not to continue  with a  comprehensive  gold
hedging  program,  the  Company,  on  occasion,  may enter  into  forward  sales
contracts or similar instruments in a limited nature when deemed advantageous by
management. As at December 31, 2004, the Company had spot deferred forward sales
contracts on 200,000  ounces of gold with deliver  dates in the first quarter of
2005. While these contracts  provide the Company with an economic hedge, they do
not meet the requirements for formal hedge accounting.  As a result,  changes in
fair  value  are  recognized  in  income in the  period  incurred.  Based on the
year-end gold price of $435.60 per ounce and an average  contract  price of $452
per  ounce,  the  contracts  had a fair  value of $3.0  million,  which has been
recognized  in  income  during  2004.  In the  first  quarter  of 2005,  Kinross
delivered  200,000  ounces of gold into the spot  deferred  contracts  realizing
proceeds of approximately  $4.2 million more than would have been realized based
on prevailing spot prices.  In addition,  at December 31, 2004,  Kinross had put
options on 300,000  ounces.  If the market price of gold remains  above $250 per
ounce through 2005 and 2006 these put options will expire  unexercised.  Kinross
does not  include  these  financial  instruments  in testing for  impairment  of
operating mines, mineral rights, and development properties.

FOREIGN CURRENCY EXCHANGE RISK

Kinross  conducts the majority of its operations in the United  States,  Canada,
Brazil,  Chile  and  Russia.  Currency  fluctuations  affect  the cash flow that
Kinross  realizes  from its  operations as gold is sold in U.S.  dollars,  while
production  costs are incurred in U.S. and Canadian  dollars,  Brazilian  reals,
Chilean pesos and Russian rubles.  Kinross' results are positively affected when
the U.S.  dollar  strengthens  against  these foreign  currencies  and adversely
affected when the U.S. dollar weakens against these foreign currencies.


                                       42
<PAGE>

Where possible, Kinross' cash and cash equivalent balances are primarily held in
U.S.   dollars.   Holdings   denominated  in  other  currencies  are  relatively
insignificant.

RUSSIAN RUBLES

Kinross operates the Kubaka mine in Russia.  Kinross estimates a 10% change from
a budgeted  exchange  rate of 28 rubles to one U.S.  dollar  could  result in an
approximate $0.9 million change in Kinross' operating earnings.

CHILEAN PESOS

Kinross has joint  venture  interests  in the Refugio and La Coipa  mines,  both
located in Chile.  Kinross  estimates a 10% change from a budgeted exchange rate
of 575 pesos to one U.S.  dollar  could  result in an  approximate  $2.4 million
change in Kinross' operating earnings. In addition, Kinross has budgeted capital
expenditures  of 19.2 billion  Chilean  pesos. A 10% change in the exchange rate
could  result  in  an  approximate  $1.1  million  change  in  Kinross'  capital
expenditures.

BRAZILIAN REALS

Kinross is a partner in the Crixas mine and, as of December 31,  2004,  the 100%
owner of the  Paracatu  mine,  both located in Brazil.  Kinross  estimates a 10%
change from a budgeted  exchange  rate of 3 Brazilian  reals to one U.S.  dollar
could  result  in an  approximate  $5.5  million  change in  Kinross'  operating
earnings.  In  addition,  Kinross has  budgeted  capital  expenditures  of 132.5
million  Brazilian  reals.  A 10% change in the exchange rate could result in an
approximate $4.1 million change in Kinross' capital expenditures.

CANADIAN DOLLARS

Kinross  operates  the  Lupin  mine  and  is a  partner  in the  New  Britannia,
Musselwhite,  and  Porcupine  joint  ventures.  As a result  of these  ownership
interests and expenses incurred by the Canadian  corporate  office,  Kinross has
Canadian dollar denominated operating, exploration, and administrative expenses.
Kinross has currency  forward  contracts for CDN $14.3 million during 2005 at an
exchange rate of 1.4322 to one U.S.  dollar.  Including the 2005 Canadian dollar
forward  contracts,  the Company estimates a 10% change from a budgeted exchange
rate of CDN $1.25 per U.S.  dollar could result in an  approximate  $9.7 million
change in Kinross' operating earnings. In addition, Kinross has budgeted capital
and reclamation  expenditures  of CDN $36 million.  A 10% change in the exchange
rate could result in an approximate  $2.9 million change in Kinross' capital and
reclamation expenditures.

CREDIT RISK

Credit risk relates to accounts  receivable and derivative  contracts and arises
from the possibility that a counterparty to an instrument fails to perform.  The
Company  only  transacts  with  highly-rated   counterparties  and  a  limit  on
contingent  exposure has been  established  for each  counterparty  based on the
counterparty's  credit rating.  At December 31, 2004, the Company's gross credit
exposure was $34.6 million (2003 - $43.6 million).


                                       43
<PAGE>

MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL STATEMENTS

The  consolidated  financial  statements,  the notes thereto and other financial
information  contained  in the  annual  report  are  the  responsibility  of the
management of Kinross Gold  Corporation.  These  financial  statements have been
prepared in accordance with Canadian generally accepted  accounting  principles,
using management's best estimates and judgments where appropriate.

The Board of Directors is responsible for ensuring that management  fulfills its
responsibilities  for  financial  reporting  and  internal  control.  The  Audit
Committee,  which  is  comprised  of  Directors  none of whom are  employees  or
officers of the Company,  meets with management as well as the external auditors
to  satisfy  itself  that  management  is  properly  discharging  its  financial
reporting  responsibilities  to  the  Directors  who  approve  the  consolidated
financial statements.

The  integrity  of  the  information  presented  in  the  financial  statements,
including  estimates and  judgments  relating to matters not concluded by fiscal
year end, is the responsibility of management.  To fulfill this  responsibility,
the  Company  maintains  a system of internal  accounting  controls  designed to
provide  reasonable  assurance that the Company's  assets are protected and that
events and  transactions  are  properly  recorded as they occur.  This system of
internal control includes organizational  arrangement with clearly defined lines
of responsibility.

The  consolidated  financial  statements  have been audited by Deloitte & Touche
LLP, the  independent  registered  chartered  accountants,  in  accordance  with
Canadian  generally  accepted  auditing  standards  and  of the  Public  Company
Accounting   Oversight  Board  (United  States).  The  auditors  have  full  and
unrestricted access to the Audit Committee.




/s/ TYE W. BURT                               /s/ LARS-ERIC JOHANSSON
- ---------------                               -----------------------
TYE W. BURT                                   LARS-ERIC JOHANSSON
President and Chief Executive Officer         Executive Vice President, Finance
                                              and Chief Financial Officer


Toronto, Canada
November 18, 2005


                                       44
<PAGE>

REPORT OF INDEPENDENT REGISTERED CHARTERED ACCOUNTANTS

TO THE SHAREHOLDERS OF KINROSS GOLD CORPORATION

We have audited the consolidated balance sheets of Kinross Gold Corporation (the
"Company") as at December 31, 2004 and 2003 and the  consolidated  statements of
operations,  cash flows and common shareholders' equity for each of the years in
the three-year  period ended December 31, 2004.  These financial  statements are
the responsibility of the Company's management. Our responsibility is to express
an opinion on these financial statements based on our audits.

We conducted our audits in accordance with Canadian  generally accepted auditing
standards and the standards of the Public  Company  Accounting  Oversight  Board
(United  States).  These standards  require that we plan and perform an audit to
obtain  reasonable  assurance  whether  the  financial  statements  are  free of
material  misstatement.  An audit includes examining,  on a test basis, evidence
supporting  the amounts and  disclosures in the financial  statements.  An audit
also includes assessing the accounting principles used and significant estimates
made by  management,  as well as  evaluating  the  overall  financial  statement
presentation.  We believe  that our audits  provide a  reasonable  basis for our
opinion.

In our opinion,  these consolidated  financial statements present fairly, in all
material  respects,  the financial  position of Kinross Gold  Corporation  as at
December 31, 2004 and 2003 and the results of its  operations and its cash flows
for each of the  years in the  three-year  period  ended  December  31,  2004 in
accordance with Canadian generally accepted accounting principles.

Our previous report, dated November 18, 2005, on the consolidated balance sheets
as at December 31, 2004 and 2003 and the consolidated  statements of operations,
cash  flows  and  common  shareholders'  equity  for  each of the  years  in the
three-year  period ended  December 31, 2004,  which were restated to reflect the
changes  described in Note 3 to these  financial  statements,  was  withdrawn on
December 23, 2005.  Those  financial  statements  have been further  restated to
reflect  the  changes  described  in  Note  2 to  these  consolidated  financial
statements.

The Company is not required to have, nor were we engaged to perform, an audit of
its internal control over financial reporting.  Our audit included consideration
of internal  control over  financial  reporting as a basis for  designing  audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the  effectiveness  of the Company's  internal  control
over financial reporting. Accordingly we express no such opinion.




/s/ "Deloitte & Touche LLP"
- ---------------------------
"Deloitte & Touche LLP"

Independent Registered Chartered Accountants
Toronto, Canada

November  18,  2005,  except as to Notes 2 and 25(f) which are as of February 8,
2006

COMMENTS BY INDEPENDENT REGISTERED CHARTERED ACCOUNTANTS ON CANADA - UNITED
STATES OF AMERICA REPORTING DIFFERENCES

The standards of the Public Company  Accounting  Oversight Board (United States)
require  the  addition  of  an  explanatory  paragraph  (following  the  opinion
paragraph) when there are changes in accounting  principles that have a material
effect on the comparability of the Company's financial  statements,  such as the
changes described in note 5 to the consolidated financial statements. Our report
to the  Shareholders,  dated  November 18,  2005,  except as to Note 2 and 25(f)
which are as of February 8, 2006,  is  expressed  in  accordance  with  Canadian
reporting  standards  which  do not  require  a  reference  to such  changes  in
accounting  principles  in the  auditors'  report when such changes are properly
accounted for and adequately disclosed in the financial statements.




/s/ "Deloitte & Touche LLP"
- ---------------------------
"Deloitte & Touche LLP"

Independent Registered Chartered Accountants
Toronto, Canada

November  18,  2005,  except as to Notes 2 and 25(f) which are as of February 8,
2006


                                       45
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEETS

(EXPRESSED IN MILLIONS OF U.S. DOLLARS)
As at December 31
<S>                                                                      <C>            <C>             <C>
- ---------------------------------------------------------------------------------------------------------------------
                                                                                           2004             2003
- ---------------------------------------------------------------------------------------------------------------------
ASSETS                                                                                  RESTATED (a)    RESTATED (a)
  Current assets
    Cash and cash equivalents                                         Note 7            $       47.9    $      245.8
    Restricted cash                                                                              1.4             5.1
    Short-term investments                                                                       5.7              --
    Accounts receivable and other assets                              Note 7                    40.9            42.2
    Inventories                                                       Note 7                   111.0           109.2
                                                                                      -------------------------------
                                                                                               206.9           402.3
  Property, plant and equipment                                       Note 7                 1,244.1         1,010.4
  Goodwill                                                            Notes 3, 6 & 7           329.9           342.3
  Future income and mining taxes                                      Note 18                      -             1.5
  Long-term investments                                               Note 7                    25.7             2.1
  Deferred charges and other long-term assets                         Note 7                    27.6            35.9
                                                                                      -------------------------------
                                                                                        $    1,834.2    $    1,794.5
                                                                                      -------------------------------
LIABILITIES
  Current liabilities
    Accounts payable and accrued liabilities                          Note 7            $      143.2    $      101.9
    Current portion of long-term debt                                 Note 10                    6.0            29.4
    Current portion of reclamation and remediation obligations        Note 11                   23.6            19.2
                                                                                      -------------------------------
                                                                                               172.8           150.5
  Long-term debt                                                      Note 10                  116.9             0.7
  Reclamation and remediation obligations                             Note 11                  108.1           111.1
  Future income and mining taxes                                      Note 18                  123.5           152.5
  Other long-term liabilities                                                                    9.5             6.9
  Redeemable retractable preferred shares                             Note 13                    2.6             3.0
                                                                                      -------------------------------
                                                                                               533.4           424.7
                                                                                      -------------------------------
COMMITMENTS AND CONTINGENCIES                                         Note 24
NON-CONTROLLING INTEREST                                                                         0.4             0.7
                                                                                      -------------------------------
CONVERTIBLE PREFERRED SHARES OF SUBSIDIARY COMPANY                    Note 14                   13.3            12.6
                                                                                      -------------------------------
COMMON SHAREHOLDERS' EQUITY
  Common share capital and common share purchase warrants             Note 15                1,775.8         1,783.5
  Contributed surplus                                                                           33.9            30.0
  Accumulated deficit                                                                         (521.4)         (455.8)
  Cumulative translation adjustments                                                            (1.2)           (1.2)
                                                                                      -------------------------------
                                                                                             1,287.1         1,356.5
                                                                                      -------------------------------
                                                                                        $    1,834.2    $    1,794.5
                                                                                      -------------------------------

TOTAL ISSUED AND OUTSTANDING COMMON SHARES (MILLIONS)                                          345.1           345.6
- ---------------------------------------------------------------------------------------------------------------------

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

(a)     See Notes 2 & 3

Signed on behalf of the Board:

/s/ John A. Brough              /s/ John M.H. Huxley
- ------------------              --------------------
John A. Brough                  John M.H. Huxley
Director                        Director


                                       46
<PAGE>

CONSOLIDATED STATEMENTS OF OPERATIONS

(EXPRESSED IN MILLIONS OF U.S. DOLLARS, EXCEPT PER SHARE AMOUNTS)
For the years ended December 31

<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
                                                                                          2004          2003          2002
- ------------------------------------------------------------------------------------------------------------------------------
                                                                                      RESTATED (a)  RESTATED (a)  RESTATED (a)
<S>                                                                                     <C>          <C>            <C>
REVENUE AND OTHER OPERATING INCOME
 Metal sales                                                                            $ 666.8      $  571.9       $ 261.0

OPERATING COSTS AND EXPENSES
 Cost of sales (excludes accretion, depreciation, depletion
  and amortization)                                                                       402.4         362.0         169.8
 Accretion                                                                                 21.4           9.0           1.6
 Depreciation, depletion and amortization                                                 170.1         172.7          85.6
                                                                                 ------------------------------------------
                                                                                           72.9          28.2           4.0
 Other operating costs                                                                     25.8          16.5           2.7
 Exploration and business development                                                      20.4          24.3          11.6
 General and administrative                                                                36.4          25.0          11.3
 Impairment charges:                                                Note 7
   Goodwill                                                                                12.4         394.4            --
   Property, plant and equipment                                                           46.1          15.2            --
   Investments                                                                              1.4           1.9           0.2
 Gain on disposal of assets                                                                (1.7)        (29.5)         (2.7)
                                                                                 ------------------------------------------
OPERATING LOSS                                                                            (67.9)       (419.6)        (19.1)

 Other income (expense) - net                                       Note 7                 (6.2)        (13.0)          4.9
                                                                                 ------------------------------------------
LOSS BEFORE TAXES AND OTHER ITEMS                                                         (74.1)       (432.6)        (14.2)

 Income and mining taxes recovery (expense)                         Note 18                11.5          (4.1)         (6.5)
 Non-controlling interest                                                                   0.3          (0.2)           --
 Share in loss of investee companies                                                         --            --          (0.6)
 Dividends on convertible preferred shares of subsidiary                                   (0.8)         (0.8)         (1.5)
                                                                                 ------------------------------------------
NET LOSS                                                                                $ (63.1)     $ (437.7)      $ (22.8)
                                                                                 ------------------------------------------

ATTRIBUTABLE TO COMMON SHAREHOLDERS:

 Net loss                                                                               $ (63.1)     $ (437.7)      $ (22.8)
 Increase in equity component of convertible debentures             Note 12                  --          (6.5)         (7.3)
 Gain on redemption of equity component of convertible debentures   Note 12                  --          16.5            --
                                                                                 ------------------------------------------
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS                                            $ (63.1)     $ (427.7)      $ (30.1)
                                                                                 ------------------------------------------

LOSS PER SHARE
 Basic and diluted                                                 Note 17              $ (0.18)     $  (1.39)      $ (0.25)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (millions)
 Basic and diluted                                                 Note 17                346.0         308.6         119.7
- ---------------------------------------------------------------------------------------------------------------------------

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

(a) See Notes 2 & 3


                                       47
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS

(EXPRESSED IN MILLIONS OF U.S. DOLLARS)
For the years ended December 31

- ------------------------------------------------------------------------------------------------------------------------------------
                                                                                          2004             2003           2002
- ------------------------------------------------------------------------------------------------------------------------------------
                                                                                      RESTATED (a)     RESTATED (a)   RESTATED (a)
<S>                                                                                    <C>             <C>            <C>
NET INFLOW (OUTFLOW) OF CASH RELATED TO THE FOLLOWING ACTIVITIES:
OPERATING:
Net loss                                                                               $    (63.1)     $   (437.7)    $    (22.8)
Items not affecting cash:
  Depreciation, depletion and amortization                                                  170.1           172.7           85.6
  Impairment charges                                                                         59.9           411.5            0.2
  Gain on disposal of assets                                                                 (1.7)          (29.5)          (2.7)
  Future income and mining taxes                                                            (29.3)          (12.7)            --
  Deferred revenue recognized                                                                (6.3)           (2.3)          (5.1)
  Unrealized foreign exchange (gains) losses and other                                        3.1            30.4            3.3
  Changes in operating assets and liabilities:
    Accounts receivable and other assets                                                      4.2            (1.7)          (1.6)
    Inventories                                                                             (19.3)          (11.3)           2.4
    Accounts payable and accrued liabilities                                                 43.6           (29.9)          (2.6)
                                                                                     -----------------------------------------------
CASH FLOW PROVIDED FROM OPERATING ACTIVITIES                                                161.2            89.5           56.7
                                                                                     -----------------------------------------------
INVESTING:
  Additions to property, plant and equipment                                               (169.5)          (73.4)         (22.6)
  Business acquisitions, net of cash acquired                    Note 6                    (261.2)          (81.9)          (0.1)
  Proceeds on sale of marketable securities                                                   0.7             4.6            2.8
  Proceeds on sale of long-term investments and other assets                                 14.6            63.3            5.5
  Additions to long-term investments and other assets                                       (26.4)           (6.1)          (3.7)
  Proceeds from the sale of property, plant and equipment                                     1.5             5.9            1.3
  Additions to short-term investments                                                        (5.7)             --             --
  Decrease (increase) in restricted cash                                                      3.7            37.5          (21.1)
                                                                                     -----------------------------------------------
CASH FLOW USED IN INVESTING ACTIVITIES                                                     (442.3)          (50.1)         (37.9)
                                                                                     -----------------------------------------------
FINANCING:
  Repurchase of common shares                                                               (11.8)             --             --
  Issuance of common shares and common share purchase warrants                                3.1           187.9          112.8
  Redemption of convertible debentures                                                         --          (144.8)             -
  Acquisition of convertible preferred shares of subsidiary company                            --            (0.3)         (11.4)
  Reduction of debt component of convertible debentures                                        --            (4.2)          (5.1)
  Debt issue costs                                                                           (1.4)             --             --
  Proceeds from issuance of debt                                                            119.5              --             --
  Repayment of debt                                                                         (26.8)          (10.5)         (28.5)
                                                                                     -----------------------------------------------
CASH FLOW PROVIDED FROM FINANCING ACTIVITIES                                                 82.6            28.1           67.8
                                                                                     -----------------------------------------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH                                                       0.6             7.7            3.0
                                                                                     -----------------------------------------------
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                                           (197.9)           75.2           89.6
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                                                245.8           170.6           81.0
                                                                                     -----------------------------------------------
CASH AND CASH EQUIVALENTS, END OF YEAR                                                 $     47.9      $    245.8     $    170.6
- ------------------------------------------------------------------------------------------------------------------------------------

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

(a)     See Notes 2 & 3


                                                                 48
<PAGE>

CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY

(EXPRESSED IN MILLIONS OF U.S. DOLLARS)
For the years ended December 31

<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
                                                                       2004              2003              2002
- ------------------------------------------------------------------------------------------------------------------------
                                                                   RESTATED (a)      RESTATED (a)       RESTATED (a)
<S>                                                                <C>                <C>                <C>
COMMON SHARES
 Balance at the beginning of the year                              $  1,783.5         $  1,058.5         $    945.7
   Common shares issued                                                  --                145.9              102.2
   Common shares issued for acquisitions                                 --              1,334.0                --
   Fair value of common share warrants                                   --                 --                 9.4
   Expiry of TVX and Echo Bay options and warrants                       (1.1)              (0.6)               --
   Reduction of legal stated capital                                     --               (761.4)               --
   Common shares issued for stock-based awards                            4.6                7.1                1.2
   Conversion of redeemable retractable preferred shares                  0.6               --                  --
   Repurchase of common shares                                          (11.8)              --                  --
- ------------------------------------------------------------------------------------------------------------------------

Balance at the end of the year                                     $  1,775.8         $  1,783.5         $  1,058.5
- ------------------------------------------------------------------------------------------------------------------------

CONTRIBUTED SURPLUS
 Balance at the beginning of the year                              $     30.0         $     12.9         $     12.9
   Transfer of fair value of expired warrants                             1.1                0.6                --
   Transfer of fair value of exercised options                           (0.2)              --                  --
   Redemption of convertible debentures                                   --                16.5                --
   Stock-based compensation                                               1.8               --                  --
   Adoption of new accounting standards             Notes 5 & 16          2.5               --                  --
   Redemption on share consolidation                                     (1.3)              --                  --
- ------------------------------------------------------------------------------------------------------------------------
Balance at the end of the year                                     $     33.9         $     30.0         $     12.9
- ------------------------------------------------------------------------------------------------------------------------

EQUITY COMPONENT OF CONVERTIBLE DEBENTURES
 Balance at the beginning of the year                              $      --          $    132.3         $    124.8
   Increase in equity component of convertible debentures                 --                 6.7                7.5
   Redemption of convertible debentures                                   --              (139.0)               --
- ------------------------------------------------------------------------------------------------------------------------
Balance at the end of the year                                     $      --          $     --           $    132.3
- ------------------------------------------------------------------------------------------------------------------------

ACCUMULATED DEFICIT
 Balance at the beginning of the year                              $   (455.8)        $   (773.0)        $   (723.2)
   Adoption of new accounting standards             Notes 5 & 16         (2.5)              --                (19.7)
   Reduction of legal stated capital                                      --               761.4                --
   Net loss                                                             (63.1)            (437.7)             (22.8)
   Increase in equity component of convertible debentures                 --                (6.5)              (7.3)
- ------------------------------------------------------------------------------------------------------------------------
Balance at the end of the year                                     $   (521.4)        $   (455.8)        $   (773.0)
- ------------------------------------------------------------------------------------------------------------------------

CUMULATIVE TRANSLATION ADJUSTMENTS
 Balance at the beginning of the year                              $     (1.2)        $    (23.4)        $    (28.6)
   Translation of self sustaining operations                              --                22.2                5.2
- ------------------------------------------------------------------------------------------------------------------------
Balance at the end of the year                                     $     (1.2)        $     (1.2)        $    (23.4)
- ------------------------------------------------------------------------------------------------------------------------

TOTAL SHAREHOLDERS' EQUITY                                         $  1,287.1         $  1,356.5         $    407.3
========================================================================================================================

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

(a) See Notes 2 & 3


                                        49
<PAGE>

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31
(IN MILLIONS OF US DOLLARS)

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.

        The operating cash flow and profitability of the Company are affected by
        various  factors,  including the amount of gold and silver  produced and
        sold, the market prices of gold and silver,  operating  costs,  interest
        rates,  environmental  costs  and the  level of  exploration  and  other
        discretionary   costs.  Due  to  the  global  nature  of  the  Company's
        operations,  exposure also arises from  fluctuations in foreign currency
        exchange  rates,  political risk and varying  levels of taxation.  While
        Kinross seeks to manage the level of risk  associated with its business,
        many of the  factors  affecting  these  risks are beyond  the  Company's
        control.

        The  United  States  ("U.S.")  dollar  is  the  functional  currency  of
        measurement  for all of the  Company's  operations  and is the reporting
        currency of the  Company's  business;  accordingly,  these  consolidated
        financial  statements are expressed in U.S.  dollars.  The  consolidated
        financial  statements of Kinross have been  prepared in accordance  with
        Canadian  generally  accepted  accounting  principles ("CDN GAAP") which
        differ in certain material respects from those generally accepted in the
        United States ("U.S. GAAP"), as described in Note 22.

        The  following  table sets forth the  Company's  ownership of its mining
        interests:

<TABLE>
<CAPTION>
        ---------------------------------------------------------------------------------------------
                                                                        DECEMBER 31,    DECEMBER 31,
                                                                                2004            2003
        ---------------------------------------------------------------------------------------------
<S>                                                            <C>              <C>             <C>
        THROUGH MAJORITY OWNED SUBSIDIARIES
          Fort Knox                                                             100%            100%
          Paracatu (a)                                         Note 6           100%             49%
          Kubaka                                               Note 6            98%             98%
          Lupin                                                Note 6           100%            100%
          Blanket (b)                                                           100%            100%
          Kettle River/ Emanuel Creek                          Note 6           100%            100%
        ---------------------------------------------------------------------------------------------

        AS INTERESTS IN UNINCORPORATED JOINT VENTURES
          Round Mountain                                       Note 6            50%             50%
          Porcupine                                                              49%             49%
          Musselwhite                                          Note 6            32%             32%
          New Britannia                                        Note 6            50%             50%
        ---------------------------------------------------------------------------------------------

        AS INTERESTS IN INCORPORATED JOINT VENTURES
          La Coipa                                             Note 6            50%             50%
          Crixas                                               Note 6            50%             50%
          Refugio                                                                50%             50%
        ---------------------------------------------------------------------------------------------
</TABLE>

        (a)     On December 31, 2004, the Company completed the purchase of the
                remaining 51% interest in the Paracatu mine (see Note 6).
        (b)     In light of the economic and political conditions and the
                negative impact of inflationary pressures in Zimbabwe, the
                Blanket mine was written down in 2001 and Kinross discontinued
                consolidation of the results of this operation in 2002 (see Note
                4).

        JOINT VENTURES

        The Company conducts a substantial portion of its business through joint
        ventures  under  which  the  joint  venture  participants  are  bound by
        contractual  arrangements  establishing joint control over the ventures.
        The Company  records  its  proportionate  share of assets,  liabilities,
        revenue and operating costs of the joint ventures.

        (a)     PARACATU
                Prior to December 31, 2004,  the Company owned a 49% interest in
                Rio Paracatu Mineracao S.A. ("RPM").  RPM owns the Paracatu mine
                located next to the city of  Paracatu,  Brazil,  200  kilometers
                southeast of Brasilia,  Brazil's  capital city.  Under the joint
                venture  agreement,  Rio Tinto Brasil, a subsidiary of Rio Tinto
                Plc. was the operator.


                                       50
<PAGE>

                On December 31, 2004, the Company  completed the purchase of the
                remaining 51% of RPM. Consequently,  as at December 31, 2004 the
                Company owns 100% of the property and is now the operator.

                Prior to the Company's  acquisition  of the remaining 51% of RPM
                on December  31,  2004,  the Board of  Directors of RPM approved
                annual  programs and budgets and authorized  major  transactions
                prior  to  execution  by  site  management.  The  joint  venture
                participants were entitled to their pro-rata share of profits in
                the  form of  distributions  and  were  obliged  to  make  their
                pro-rata share of contributions if required.

        (b)     ROUND MOUNTAIN
                The  Company  owns a 50%  interest  in the Smoky  Valley  Common
                Operation  joint  venture,  which owns the Round  Mountain mine,
                located in Nye  County,  Nevada,  USA.  Under the joint  venture
                agreement,  the Company is the  operator  of the Round  Mountain
                mine.

                The  Management  Committee of the joint venture  represents  the
                joint venture  partners,  authorizes annual programs and budgets
                and  approves  major  transactions  prior to  execution  by site
                management.  The joint  venture  owners  are  entitled  to their
                pro-rata  share of  production  and are  obliged  to make  their
                pro-rata share of contributions as requested.

        (c)     PORCUPINE
                The Company owns a 49% interest in the  Porcupine  Joint Venture
                ("PJV"),   which  conducts   mining,   milling  and  exploration
                operations  in the Timmins area of Ontario.  As of July 1, 2002,
                the Company agreed to transfer to Placer Dome (CLA) Limited,  an
                undivided  51%  interest  in various  owned and  leased  mineral
                properties,  including  the Hoyle  Pond  mine.  Correspondingly,
                Placer Dome (CLA)  Limited  agreed to transfer to the Company an
                undivided  49%  interest  in various  owned and  leased  mineral
                properties  which  are  also  part  of the  PJV.  Under  the PJV
                agreement, Placer Dome (CLA) Limited is the operator.

                The Management Committee of the PJV approves annual programs and
                budgets, and authorizes major transactions prior to execution by
                site  management.  The PJV  participants  are  entitled to their
                pro-rata  share of  production  and are  obliged  to make  their
                pro-rata share of contributions as requested.

        (d)     MUSSELWHITE
                The  Company  owns a 31.9%  interest  in the  Musselwhite  joint
                venture. The mine is located 430 kilometers north of the city of
                Thunder Bay, in  northwestern  Ontario.  Under the joint venture
                agreement, Placer Dome (CLA) Limited is the operator.

                The Management  Committee of the joint venture  approves  annual
                programs and budgets, and authorizes major transactions prior to
                execution by site management. The joint venture participants are
                entitled to their  pro-rata  share of production and are obliged
                to make their pro-rata share of contributions as requested.

        (e)     NEW BRITANNIA
                The  Company  owns a 50%  interest  in the New  Britannia  joint
                venture.  The  mine is  located  in the  town  of  Snow  Lake in
                northern Manitoba,  700 kilometers north of Winnipeg.  Under the
                joint venture agreement, the Company is the operator.

                The Management  Committee of the joint venture  approves  annual
                programs and budgets, and authorizes major transactions prior to
                execution by site management. The joint venture participants are
                entitled to their  pro-rata  share of production and are obliged
                to make their pro-rata share of contributions as requested.  The
                Company has a loan  receivable  from its joint venture  partner.
                Kinross  sells  all of the  production  from  the mine and on an
                annual basis,  is entitled to apply its  partner's  share of any
                operating  surplus against the outstanding  balance of the loan.
                Both partners are required to fund their  pro-rata  share of any
                annual operating deficit.

        (f)     LA COIPA
                The Company owns a 50% interest in Compania Minera Mantos de Oro
                ("MDO"), a Chilean  contractual mining company.  MDO owns the La
                Coipa mine,  located in central Chile, 140 kilometers  northeast
                of the city of Copiapo.  Under the joint  venture  agreement,  a
                wholly owned subsidiary of Placer Dome Inc. is the operator.

                The Board of  Directors  of MDO  approves  annual  programs  and
                budgets and authorizes major  transactions prior to execution by
                site management.  The joint venture participants are entitled to
                their pro-rata share of profits in the form of distributions and
                are obliged to make their  pro-rata  share of  contributions  if
                required.

        (g)     CRIXAS
                The Company owns a 50% interest in Mineracao Serra Grande,  S.A.
                ("MSG").  MSG owns the Crixas mine,  located in central  Brazil,
                260  kilometers  northeast  of the city of  Brasilia.  Under the
                joint venture agreement,  a wholly owned subsidiary of AngloGold
                Ashanti Limited is the operator.

                The Board of  Directors  of MSG  approves  annual  programs  and
                budgets, and authorizes major transactions prior to


                                       51
<PAGE>

                execution by site management. The joint venture participants are
                entitled  to  their  pro-rata  share of  profits  in the form of
                distributions  and are obliged to make their  pro-rata  share of
                contributions if required.

        (h)     REFUGIO
                The Company  owns a 50%  interest in Compania  Minera  Maricunga
                ("CMM"),  a Chilean  contractual  mining  company.  CMM owns the
                Refugio  mine  located in central  Chile.  On June 1, 1999,  the
                Company was appointed Operator of the Refugio mine and continues
                in that capacity.  The Company  provides  services to CMM in the
                planning and conduct of exploration, development and mining, and
                related   operations   with  respect  to  the  Refugio   Project
                Properties and the Refugio mine.

                The Board of Directors of CMM approves annual budgets,  approves
                distributions  and  authorizes  major   transactions   prior  to
                execution by site  management.  The shareholders are entitled to
                their pro-rata share of profits in the form of distributions and
                are obliged to make their  pro-rata  share of  contributions  if
                required.

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

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

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

<TABLE>
<CAPTION>
        --------------------------------------------------------------------------------------------------------
                                                                  AS PREVIOUSLY                         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)
        --------------------------------------------------------------------------------------------------------
        As at December 31, 2003
        Liabilities
          Future income and mining taxes                           $   126.6          $    25.9     $  152.5
        Common shareholders' equity
          Accumulated deficit                                      $  (429.1)         $   (26.7)    $ (455.8)
          Cumulative translation adjustments                       $    (2.0)         $     0.8     $   (1.2)
        --------------------------------------------------------------------------------------------------------
</TABLE>

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

        Consolidated statements of operations

<TABLE>
<CAPTION>
        --------------------------------------------------------------------------------------------------------
                                                                  AS PREVIOUSLY                         AS
                                                                   REPORTED (a)      ADJUSTMENTS     RESTATED
        --------------------------------------------------------------------------------------------------------
<S>                                                                <C>                <C>              <C>
        Year ended December 31, 2004
        Operating loss                                             $   (67.9)         $       -      $ (67.9)
          Other income (expense) - net                             $     3.7          $    (9.9)     $  (6.2)
        Loss before taxes and other items                          $   (64.2)         $    (9.9)     $ (74.1)
        Income and mining taxes recovery                           $     8.6          $     2.9      $  11.5
        Non-controlling interest                                   $     0.3          $       -      $   0.3
        Share in loss of investee companies                        $       -          $       -      $     -
        Dividends on convertible preferred shares of subsidiary    $    (0.8)         $       -      $  (0.8)
        Net loss                                                   $   (56.1)         $    (7.0)     $ (63.1)
        Net loss attributable to common shareholders               $   (56.1)         $    (7.0)     $ (63.1)
        Loss per share
          Basic and diluted                                        $   (0.16)         $   (0.02)     $ (0.18)
        --------------------------------------------------------------------------------------------------------
        Year ended December 31, 2003
        Operating loss                                             $  (419.6)         $       -      $(419.6)
          Other income (expense) - net                             $    11.1          $   (24.1)     $ (13.0)
        Loss before taxes and other items                          $  (408.5)         $   (24.1)     $(432.6)
        Income and mining taxes expense                            $    (1.5)         $    (2.6)     $  (4.1)
        Non-controlling interest                                   $    (0.2)         $       -      $  (0.2)
        Share in loss of investee companies                        $       -          $       -      $     -
        Dividends on convertible preferred shares of subsidiary    $    (0.8)         $       -      $  (0.8)
        Net loss                                                   $  (411.0)         $   (26.7)     $(437.7)
        Net loss attributable to common shareholders               $  (401.0)         $   (26.7)     $(427.7)
        Loss per share
          Basic and diluted                                        $   (1.30)         $   (0.09)     $ (1.39)
        --------------------------------------------------------------------------------------------------------
</TABLE>

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


                                       52
<PAGE>

3.      RESTATEMENT 2 - GOODWILL AND ASSET RETIREMENT OBLIGATIONS

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

        PURCHASE PRICE ALLOCATION AND GOODWILL
        On January 31, 2003, the Company acquired 100% of the outstanding shares
        of TVX Gold  Inc.  ("TVX")  and  Echo Bay  Mines  Ltd.  ("Echo  Bay") as
        described  in  further  detail  in Note 5.  The  consolidated  financial
        statements  presented  for the  year  ended  December  31,  2003 and the
        interim  periods of 2003 and 2004 have been restated with respect to the
        accounting for the assets and liabilities acquired by the Company in the
        TVX and Echo Bay transaction (the "Acquisitions").

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

        (a)     Reduction of $181.3 million in goodwill from the $918.0 million
                initially recorded on the Acquisitions to $736.7 million
                resulting from an increase in property, plant and equipment and
                mineral interests, net of related future income tax liabilities;
        (b)     Increase in depreciation, depletion and amortization expense for
                the year of $31.8 million;
        (c)     Recognition of impairment losses with respect to goodwill and
                mineral interests of $394.4 million and $10.0 million,
                respectively; and
        (d)     Reduction in income taxes related to (b) and (c) above of $11.6
                million.

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

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

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

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

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

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


                                       53
<PAGE>

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

        FURTHER REVISION OF VALUATION, ALLOCATION AND IMPAIRMENT METHODOLOGY
        In January 2005, following additional comments from regulatory agencies,
        the Company engaged an independent  valuation advisory firm ("the Firm")
        to provide:  (i) a valuation of the  significant  assets and liabilities
        acquired  as  part  of  the  Acquisitions;  (ii)  an  allocation  to the
        reporting  units  of the  goodwill  resulting  from  the  excess  of the
        purchase  price  over the  fair  value of the  identifiable  assets  and
        liabilities  acquired in the Acquisitions;  and (iii) a valuation of the
        assets and liabilities acquired in the Acquisitions and an assessment of
        the resulting goodwill for impairment as at December 31, 2003 and 2004.

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

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

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

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

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

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

        IMPAIRMENT TESTING OF LONG-LIVED ASSETS
        The Company tested its long-lived  assets,  including  tangible  mineral
        interests and plant and equipment for impairment as at December 31, 2003
        and 2004 and  accordingly  has  reflected in the  restated  consolidated
        financial statements  impairment charges of $10.0 million and $5 million
        as at December 31, 2003 and 2004, respectively. These impairment charges
        relate to mineral interests and exploration properties.

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


                                       54
<PAGE>

        IMPAIRMENT TESTING OF GOODWILL
        In accordance  with CICA Section.  3062 and SFAS 142, the Company tested
        its  goodwill  for  impairment  as at December 31, 2003 and 2004 and has
        recorded  impairment charges of $394.4 million and $12.4 million for the
        years ended  December 31, 2003 and 2004,  respectively,  in the restated
        consolidated financial statements.

        The valuations performed at December 31, 2003 and 2004 computed the fair
        value of each  reporting  unit. The fair value of the reporting unit was
        based  on the fair  value  of the  mineral  interests  computed  using a
        discounted cash flow method and assumptions similar to those used on the
        acquisition  date at January 31, 2003 and included  expected  additional
        value based on the expected ability to find additional ore. However,  no
        value could be computed for the optionality and the going concern value,
        which were  contributors to goodwill at January 31, 2003. This inability
        to directly value  optionality and going concern value results primarily
        from the  requirements  under  Section  3062  and  SFAS 142 to  allocate
        goodwill to reporting  units,  which in the case of mining companies are
        typically  individual  mine  sites.  The  Company  would have  relied on
        real-option  pricing  methodology  had the models  been  specified  well
        enough to support reliable fair values. In a single mining operation any
        going  concern  value would have to be finite and limited to the life of
        the mineral that can be extracted  economically.  However,  even if such
        models had been readily  available,  empirical  evidence  suggests  that
        market  participants  do not perceive  significant  real-option or going
        concern value at the mine site level,  which are the reporting units for
        goodwill impairment testing purposes.

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

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

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

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

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

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


                                       55
<PAGE>

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

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

        (a)     As previously  disclosed in 2003 financial statements filed with
                regulators in March 2004.
        (b)     Reclassification to mineral interests.

        IMPACT OF INDEPENDENT VALUATIONS AND IMPAIRMENT TESTING AT DECEMBER 31,
        2003 AND 2004
        Based on independent valuations as of December 31, 2003 and 2004 and the
        impairment  testing  methodology  described  above, the Company recorded
        impairments  of  long-lived  assets of $10.0  million  and $5.0  million
        relating to mineral  interests and  exploration  properties and goodwill
        impairment  of $394.4  million  and $12.4  million  for the years  ended
        December  31,  2003 and 2004,  respectively.  See Note 7 for  details of
        goodwill impairment by reportable segment.

        RECLAMATION AND REMEDIATION OBLIGATIONS
        The CICA issued  Handbook  Section 3110 "Asset  Retirement  Obligations"
        ("Section   3110")  sets  out  new  accounting   requirements   for  the
        recognition,   measurement  and  disclosure  of  liabilities  for  asset
        retirement obligations (reclamation and remediation obligations) and the
        related  asset  retirement  cost.  This new standard is to be applied to
        fiscal years,  which  commenced on or after January 1, 2004. The details
        on the adoption of this  standard  are  described in Note 5 and Note 11.
        Effective  January 1, 2004, the Company adopted the initial  recognition
        and   measurement   provisions   of  Section   3110  and  applied   them
        retroactively  with a restatement of 2003 and 2002 comparative  figures.
        The  tables  shown  below   include  the  impact  of  this   retroactive
        application of Section 3110.

        On  adoption  of the new  standard,  reflected  as at  January  1,  2002
        recorded  a $19.7  million  increase  in the  accumulated  deficit as of
        January  1,  2002,  and  recorded  a   corresponding   increase  in  the
        reclamation and remediation  obligations for the same amount  reflecting
        the fair value of the  liability.  During  2002,  the Company  increased
        property,  plant  and  equipment  by $1.8  million  as a  result  of the
        formation  of a  joint  venture.  During  2003,  the  Company  increased
        property, plant and equipment by $45.4 million and increased reclamation
        and  remediation  obligations by $10.6 million to reflect the fair value
        of the  asset and the  related  liability.  Net loss for the year  ended
        December 31, 2003 decreased by $3.1 million,  while the net loss for the
        year ended December 31, 2002 decreased by $8.1 million.

        IMPACT OF RESTATEMENT ON CONSOLIDATED FINANCIAL STATEMENTS
        The effect of the revised valuations, allocation of goodwill and testing
        of impairment and adoption of Section 3110 on the  consolidated  balance
        sheet as of December 31, 2003 and  consolidated  statement of operations
        for the year ended December 31, 2003 and 2002 are shown below:


                                       56
<PAGE>
<TABLE>
<CAPTION>

Consolidated balance sheets as at December 31, 2003
- ---------------------------------------------------

==========================================================================================================================
                                                           AS
                                                       PREVIOUSLY
                                                       REPORTED (a)  RESTATEMENT 2 (b)   RESTATEMENT 1 (c)   AS RESTATED
- --------------------------------------------------------------------------------------------------------------------------
<S>                                                     <C>           <C>                  <C>                <C>
ASSETS
  Current assets
    Cash and cash equivalents                           $    245.8    $           --       $          --      $    245.8
    Restricted cash                                            5.1                --                  --             5.1
    Accounts receivable and other assets                      42.2                --                  --            42.2
    Inventories                                              109.2                --                  --           109.2
                                                       -------------------------------------------------------------------
                                                             402.3                --                  --           402.3
  Property, plant and equipment                              782.7             227.7                  --         1,010.4
  Goodwill                                                   918.0            (575.7)                 --           342.3
  Future income and mining taxes                               1.5                --                  --             1.5
  Long-term investments                                        2.1                --                  --             2.1
  Deferred charges and other long-term assets                 35.9                --                  --            35.9
                                                       -------------------------------------------------------------------
                                                        $  2,142.5    $       (348.0)      $          --      $  1,794.5
                                                       ===================================================================
LIABILITIES
  Current liabilities
    Accounts payable and accrued liabilities            $    101.4    $          0.5       $          --      $    101.9
    Current portion of long-term debt                         29.4                --                  --            29.4
    Current portion of reclamation
      and remediation obligations                             19.2                --                  --            19.2
                                                       -------------------------------------------------------------------
                                                             150.0               0.5                  --           150.5
  Long-term debt                                               0.7                --                  --             0.7
  Reclamation and remediation obligations                    100.5              10.6                  --           111.1
  Future income and mining taxes                              55.6              71.0                25.9           152.5
  Other long-term liabilities (d)                              4.7               2.2                  --             6.9
  Redeemable retractable preferred shares                      3.0                --                  --             3.0
                                                       -------------------------------------------------------------------
                                                             314.5              84.3                25.9           424.7
                                                       -------------------------------------------------------------------
NON-CONTROLLING INTEREST                                       0.7                --                  --             0.7
                                                       -------------------------------------------------------------------

CONVERTIBLE PREFERRED SHARES OF SUBSIDIARY COMPANY            12.6                --                  --            12.6
                                                       -------------------------------------------------------------------
COMMON SHAREHOLDERS' EQUITY
  Common share capital and
    common share purchase warrants                         1,783.5                --                  --         1,783.5
  Contributed surplus                                         30.0                --                  --            30.0
  Accumulated deficit                                          3.2            (432.3)              (26.7)         (455.8)
  Cumulative translation adjustments                          (2.0)               --                 0.8            (1.2)
                                                       -------------------------------------------------------------------
                                                           1,814.7            (432.3)              (25.9)        1,356.5
                                                       -------------------------------------------------------------------
                                                        $  2,142.5    $       (348.0)      $          --      $  1,794.5
==========================================================================================================================
</TABLE>
(a)     As previously disclosed in the original 2003 financial statements filed
        with regulators in March 2004.
(b)     Impact of restatement relating to purchase price allocation and goodwill
        per financial statements filed with regulators in November 2005.
(c)     Restatement for correction of foreign currency translation impact on
        future tax liabilities. See Note 2.
(d)     Change in Other Long-term liabilities relates to the reclassification of
        certain asset retirement related liabilities to the reclamation and
        remediation obligations.


                                       57
<PAGE>
<TABLE>
<CAPTION>

Consolidated statement of operations for the year ended December 31, 2003
- -------------------------------------------------------------------------

==============================================================================================================================
                                                               AS
                                                           PREVIOUSLY
                                                           REPORTED (a)  RESTATEMENT 2 (b)   RESTATEMENT 1 (c)   AS RESTATED
- ------------------------------------------------------------------------------------------------------------------------------
<S>                                                         <C>           <C>                  <C>                <C>
REVENUE AND OTHER OPERATING INCOME
  Metal sales                                               $    571.9    $           --       $          --      $    571.9

OPERATING COSTS AND EXPENSES
  Cost of sales (excluding items shown below)                    370.8              (8.8)                 --           362.0
  Accretion expense                                                 --               9.0                  --             9.0
  Depreciation, depletion and amortization                       140.9              31.8                  --           172.7
                                                           -------------------------------------------------------------------
                                                                  60.2             (32.0)                 --            28.2
  Other operating costs                                           16.5                --                  --            16.5
  Exploration and business development                            24.3                --                  --            24.3
  General and administrative                                      25.0                --                  --            25.0
  Impairment charges
    Goodwill                                                        --             394.4                  --           394.4
    Long-lived assets                                              8.0               7.2                  --            15.2
    Investments                                                    1.9                --                  --             1.9
  Gain on disposal of assets                                     (29.5)               --                  --           (29.5)
                                                           -------------------------------------------------------------------
OPERATING EARNINGS (LOSS)                                         14.0            (433.6)                 --          (419.6)

  Other income (expense) - net                                     9.8               1.3               (24.1)          (13.0)
                                                           -------------------------------------------------------------------
EARNINGS (LOSS) BEFORE TAXES AND OTHER ITEMS                      23.8            (432.3)              (24.1)         (432.6)

  Income and mining taxes recovery (expense)                     (13.1)             11.6                (2.6)           (4.1)
  Non-controlling interest                                        (0.2)               --                  --            (0.2)
  Dividends on convertible preferred shares of subsidiary         (0.8)               --                  --            (0.8)
                                                           -------------------------------------------------------------------
NET EARNINGS (LOSS)                                         $      9.7    $       (420.7)      $       (26.7)     $   (437.7)
                                                           ===================================================================

ATTRIBUTABLE TO COMMON SHAREHOLDERS:

  Net earnings (loss)                                       $      9.7    $       (420.7)      $       (26.7)     $   (437.7)
  Increase in equity component of convertible debentures          (6.5)               --                  --            (6.5)
  Gain on redemption of equity component of
    convertible debentures                                        16.5                --                  --            16.5
                                                           -------------------------------------------------------------------
NET EARNINGS (LOSS) ATTRIBUTABLE
  TO COMMON SHAREHOLDERS                                    $     19.7    $       (420.7)      $       (26.7)     $   (427.7)
                                                           ===================================================================

EARNINGS (LOSS) PER SHARE
  Basic                                                     $     0.06    $        (1.36)      $       (0.09)     $    (1.39)
  Diluted                                                   $     0.06    $        (1.36)      $       (0.09)     $    (1.39)

WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING (MILLIONS)
  Basic                                                          308.6                --                  --           308.6
  Diluted                                                        309.6              (1.0)                 --           308.6
==============================================================================================================================
</TABLE>
(a)     As previously disclosed in the original 2003 financial statements filed
        with regulators in March 2004.
(b)     Impact of restatement relating to purchase price allocation and goodwill
        per financial statements filed with regulators in November 2005.
(c)     Restatement for correction of foreign currency translation impact on
        future tax liabilities. See Note 2.


                                       58
<PAGE>
<TABLE>
<CAPTION>

Consolidated statement of operations for the year ended December 31, 2002
- -------------------------------------------------------------------------

==============================================================================================================================
                                                               AS
                                                           PREVIOUSLY
                                                           REPORTED (a)  RESTATEMENT 2 (b)   RESTATEMENT 1 (c)   AS RESTATED
- ------------------------------------------------------------------------------------------------------------------------------
<S>                                                         <C>           <C>                  <C>                <C>
REVENUE AND OTHER OPERATING INCOME
  Metal sales                                               $    261.0    $           --       $          --      $    261.0

OPERATING COSTS AND EXPENSES
  Cost of sales (excluding items shown below)                    172.1              (2.3)                 --           169.8
  Accretion expense                                                 --               1.6                  --             1.6
  Depreciation, depletion and amortization                        85.3               0.3                  --            85.6
                                                           -------------------------------------------------------------------
                                                                   3.6               0.4                  --             4.0
  Other operating costs                                            2.7                --                  --             2.7
  Exploration and business development                            11.6                --                  --            11.6
  General and administrative                                      11.3                --                  --            11.3
  Impairment charges
    Goodwill                                                        --                --                  --              --
    Long-lived assets                                              7.7              (7.7)                 --              --
    Investments                                                    0.2                --                  --             0.2
  Gain on disposal of assets                                      (2.7)               --                  --            (2.7)
                                                           -------------------------------------------------------------------
OPERATING LOSS                                                   (27.2)              8.1                  --           (19.1)

  Other income - net                                               4.9                --                  --             4.9
                                                           -------------------------------------------------------------------
LOSS BEFORE TAXES AND OTHER ITEMS                                (22.3)              8.1                  --           (14.2)

  Income and mining taxes recovery (expense)                      (6.5)               --                  --            (6.5)
  Non-controlling interest                                          --                --                  --              --
  Share in loss of investee companies                             (0.6)               --                  --            (0.6)
  Dividends on convertible preferred shares of subsidiary         (1.5)               --                  --            (1.5)
                                                           -------------------------------------------------------------------
NET LOSS                                                    $    (30.9)   $          8.1       $          --      $    (22.8)
                                                           ===================================================================

ATTRIBUTABLE TO COMMON SHAREHOLDERS:

  Net loss                                                  $    (30.9)   $          8.1       $          --      $    (22.8)
  Increase in equity component of convertible debentures          (7.3)               --                  --            (7.3)
  Gain on redemption of equity
    component of convertible debentures                             --                --                  --              --
                                                           -------------------------------------------------------------------
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS                $    (38.2)   $          8.1       $          --      $    (30.1)
                                                           ===================================================================

LOSS PER SHARE
  Basic                                                     $    (0.32)   $         0.07       $          --      $    (0.25)
  Diluted                                                   $    (0.32)   $         0.07       $          --      $    (0.25)

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
(MILLIONS)
  Basic                                                          119.7                --                  --           119.7
  Diluted                                                        119.7                --                  --           119.7
==============================================================================================================================
</TABLE>
(a)     As previously disclosed in the original 2003 financial statements filed
        with regulators in March 2004.
(b)     Impact of restatement relating to purchase price allocation and goodwill
        per financial statements filed with regulators in November 2005.
(c)     Restatement for correction of foreign currency translation impact on
        future tax liabilities. See Note 2.


                                       59
<PAGE>

4.      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

        BASIS OF PRESENTATION
        The  consolidated  financial  statements  include  the  accounts  of the
        Company  and its  subsidiaries  and its  proportionate  share of assets,
        liabilities,  revenues and expenses of jointly controlled  companies and
        ventures in which it has an interest.  Effective  December 31, 2001, the
        Company discontinued the consolidation of its wholly owned subsidiary in
        Zimbabwe,   which  operates  the  Blanket  mine.  Extreme   inflationary
        pressures within Zimbabwe, civil unrest and currency export restrictions
        have prevented the Company from  exercising  control over the Zimbabwean
        subsidiary.  As a result,  Kinross  accounts for its  investment  in the
        Blanket mine on a cost basis.

        On January 28, 2003,  the  shareholders  of the Company  authorized  the
        consolidation of one consolidated common share for each three old common
        shares of the issued and outstanding  common shares of the Company.  The
        consolidation was made effective on January 31, 2003. All share capital,
        share  and  option  data  in  the  accompanying  consolidated  financial
        statements  and notes have been  retroactively  revised  to reflect  the
        share consolidation (see Note 15).

        PRINCIPLES OF CONSOLIDATION
        The financial  statements of entities,  which are  controlled by Kinross
        through  voting  equity  interests,  referred  to as  subsidiaries,  are
        consolidated.  Entities,  which are jointly  controlled,  referred to as
        joint ventures,  are  proportionately  consolidated.  Variable  Interest
        Entities  ("VIEs")  (which  includes,  but is not  limited  to,  special
        purpose  entities,  trusts,  partnerships and other legal structures) as
        defined  by the  Accounting  Standards  Board  in  Accounting  Guideline
        ("AcG") 15, "Consolidation of Variable Interest Entities" ("AcG-15") are
        entities in which equity investors do not have the  characteristics of a
        "controlling  financial  interest" or there is not sufficient  equity at
        risk  for the  entity  to  finance  its  activities  without  additional
        subordinated financial support. VIEs are subject to consolidation by the
        primary  beneficiary  who  will  absorb  the  majority  of the  entities
        expected losses and/or expected residual returns.  Intercompany accounts
        and  transactions,   unrealized   intercompany   gains  and  losses  are
        eliminated upon consolidation.

        USE OF ESTIMATES
        The preparation of the Company's  consolidated  financial  statements in
        conformity  with CDN GAAP  requires  management  to make  estimates  and
        assumptions that affect amounts  reported in the consolidated  financial
        statements  and  accompanying  notes.  These  estimates and  assumptions
        affect the reported amounts of assets and liabilities and disclosures of
        contingent  assets  and  liabilities  at the  date  of the  consolidated
        financial  statements and the reported  amounts of revenues and expenses
        during the  reporting  period.  Changes in estimates of useful lives are
        accounted  for  prospectively  from the date of change.  Actual  results
        could  differ from these  estimates.  The assets and  liabilities  which
        require  management to make  significant  estimates and  assumptions  in
        determining  carrying  values  include  property,  plant and  equipment;
        mineral interests;  inventories;  goodwill;  reclamation and remediation
        obligations;  provision  for income and mining taxes;  employee  pension
        costs and post employment benefit obligations.

        TRANSLATION OF FOREIGN CURRENCIES
        DOMESTIC AND FOREIGN OPERATIONS
        As of September 29, 2003, the  functional  currency of all the Company's
        operations  is the U.S.  dollar.  Prior to that date,  the  currency  of
        measurement for certain of the Company's  operations domiciled in Canada
        was the Canadian  dollar.  On September 29, 2003, the Company repaid its
        entire  outstanding   Canadian  dollar  denominated  debt.  All  of  the
        Company's revenues are in U.S. dollars.

        Prior to the repayment of its Canadian  dollar  denominated  convertible
        debentures  (see Note 12),  certain  of the  Company's  Canadian  dollar
        amounts were translated to U.S. dollars for reporting purposes using the
        current  rate  method.  Under  the  current  rate  method,   assets  and
        liabilities  were  translated  at the  exchange  rates in  effect at the
        balance sheet date and revenues and expenses were  translated at average
        rates for the period.


                                       60
<PAGE>

        After  September  29, 2003,  for these  operations  and for all non-U.S.
        operations, the temporal method is used to translate to U.S. dollars for
        reporting  purposes.  Under the temporal method,  all non-monetary items
        are translated at historical rates.  Monetary assets and liabilities are
        translated  at  exchange  rates in effect  at the  balance  sheet  date,
        revenues and expenses are  translated  at average rates for the year and
        gains and losses on translation are included in income.

        The cumulative translation  adjustments ("CTA") relate to the unrealized
        translation  gains  and  losses  on  the  Company's  net  investment  in
        self-sustaining  operations,  translated  using the current rate method,
        prior to September 29, 2003.  Such exchange gains and losses will become
        realized  in income upon the  substantial  disposition,  liquidation  or
        closure  of the mining  property  or  investment  that gave rise to such
        amounts.

        FOREIGN CURRENCY TRANSACTIONS
        Monetary  assets and  liabilities are translated at the rate of exchange
        prevailing   at  the  balance  sheet  date.   Non-monetary   assets  and
        liabilities are translated at historical rates. Revenue and expenses are
        translated at the average rate of exchange for the year.  Exchange gains
        and losses are included in income.

        CASH AND CASH EQUIVALENTS
        Cash and cash  equivalents  include cash and highly  liquid  investments
        with an original  maturity of three months or less. The Company  invests
        cash in  term  deposits  maintained  in high  credit  quality  financial
        institutions.

        SHORT-TERM INVESTMENTS
        Short-term  investments are highly liquid  investments  with an original
        maturity greater than three months and less than twelve months.

        LONG-TERM INVESTMENTS
        Investments in shares of investee  companies in which Kinross' ownership
        is greater  than 20% but not more than 50%,  over which the  Company has
        the ability to exercise significant  influence,  are accounted for using
        the equity  method.  The cost  method is used for  entities in which the
        Company owns less than 20% or cannot exercise significant influence. The
        Company periodically reviews the carrying value of its investments. When
        a decline in the value of an  investment  is other than  temporary,  the
        investment is written down accordingly.

        INVENTORIES
        Expenditures  and  depreciation,  depletion and  amortization  of assets
        incurred  in the mining and  processing  activities  that will result in
        future  gold   production  are  deferred  and   accumulated  as  ore  in
        stockpiles, ore on leach pads and in-process inventories. These deferred
        amounts are carried at the lower of average cost or net realizable value
        ("NRV").  NRV is the difference  between the estimated future gold price
        based on prevailing and long-term  metal prices,  and estimated costs to
        complete  production  into  a  saleable  form.  Write-downs  of  ore  in
        stockpiles,  ore on  leach  pads  and  inventories  resulting  from  NRV
        impairments are reported as a component of current period costs.

        ORE IN STOCKPILES
        Stockpiles  are comprised of coarse ore that has been extracted from the
        mine and is available for further processing. Stockpiles are measured by
        estimating  the number of tonnes (via truck counts and/or in-pit surveys
        of the ore before  processing)  added and  removed  from the  stockpile.
        Stockpile  tonnages are  verified by periodic  surveys.  Stockpiles  are
        valued based on mining costs incurred up to the point of stockpiling the
        ore,  including  applicable  depreciation,  depletion  and  amortization
        relating  to  operations.  Costs  are added to  stockpiles  based on the
        current mining cost per tonne and removed at the average cost per tonne.

        Ore in stockpiles is processed  according to a life of mine plan that is
        designed to optimize use of known mineral reserves,  present  processing
        capacity and pit design. The market price of gold does not significantly
        affect the timing of processing of ore in stockpiles.  While  stockpiled
        ore can be processed  earlier than planned in the event of an unforeseen
        disruption  to  mining  activities,   the  current  portion  of  ore  in
        stockpiles  represents  the amount  expected to be processed in the next
        twelve  months.  Ore in  stockpiles  not expected to be processed in the
        next twelve months is classified as long-term.

        ORE ON LEACH PADS
        The recovery of gold from certain  oxide ores is best  achieved  through
        the heap leaching  process.  Under this process,  ore is placed on leach
        pads where it is permeated with a chemical solution, which dissolves the
        gold contained in the ore. The resulting  recovered  solution,  which is
        included in in-process inventory,  is further processed in a plant where
        gold is recovered.  For  accounting  purposes,  costs are added to leach
        pads based on current mining costs,  including applicable  depreciation,
        depletion,  and amortization  relating to operations.  Costs are removed
        from the leach pad as ounces are recovered in circuit at the plant based
        on the average cost per recoverable ounce of gold on the leach pad.

        The  engineering  estimates  of  recoverable  gold on the leach pads are
        calculated  from the  quantities of ore placed on the pads  (measured as
        tonnes  added to the leach  pads),  the grade of ore placed on the leach
        pads (based on assay data) and a recovery percentage (based on the leach
        process and ore type).  While it may not be uncommon for  recoveries  to
        occur on a  declining  basis  over a period  of time in excess of twelve
        months,   economically  recoverable  gold  reflected  in  the  Company's
        carrying value for ore on leach pads,  based on its current  operations,
        will be recovered  within a period of twelve months or less.  All of the
        Company's ore on leach pads is classified as current.  In the event that
        the Company determined,


                                       61
<PAGE>

        based on engineering estimates, that a quantity of gold contained in ore
        on leach pads was to be recovered over a period exceeding twelve months,
        that portion would be classified as long-term.

        Although the quantities of recoverable gold placed on the leach pads are
        reconciled  by  comparing  the grades of ore placed on the leach pads to
        the quantities of gold actually recovered (metallurgical balancing), the
        nature  of  the  leaching  process  inherently  limits  the  ability  to
        precisely  monitor  inventory  levels.  As a result,  the  metallurgical
        balancing process is constantly monitored and the engineering  estimates
        are refined based on actual results over time.  Variances between actual
        and  estimated  quantities  resulting  from changes in  assumptions  and
        estimates that do not result in write-downs to net realizable  value are
        accounted for on a prospective basis. The ultimate recovery of gold from
        a leach pad will not be known until the leaching process is concluded.

        IN-PROCESS INVENTORY
        In-process  inventories  represent  materials  that are currently in the
        process of being converted to a saleable product.  Conversion  processes
        vary  depending  on the  nature  of the  ore  and  the  specific  mining
        operation, but include mill in-circuit, leach in-circuit,  flotation and
        column cells, and  carbon-in-pulp  inventories.  In-process  material is
        measured  based on assays of the material fed to the  processing  plants
        and  the  projected  recoveries  of the  respective  plants.  In-process
        inventories  are valued at the average  cost of the  material fed to the
        processing  plant  attributable  to the source  material coming from the
        mines,  stockpiles or leach pads plus the in-process  conversion  costs,
        including  applicable  depreciation  relating to the process facilities,
        incurred to that point in the process.

        FINISHED METAL
        Finished  metal  inventories,  comprised  of gold  and  silver  dore and
        bullion,  are  valued at the lower of  average  production  cost and net
        realizable value. Average production cost represents the average cost of
        the  respective  in-process  inventories  incurred prior to the refining
        process, plus applicable refining costs.

        MATERIALS AND SUPPLIES
        Materials  and  supplies  are  valued at the lower of  average  cost and
        replacement cost.

        PROPERTY, PLANT AND EQUIPMENT
        BUILDINGS, PLANT AND EQUIPMENT
        New facilities, plant and equipment are recorded at cost and carried net
        of  depreciation.  Mobile  and  other  equipment  is  amortized,  net of
        residual  value,  using the  straight-line  method,  over the  estimated
        productive  life of the  asset.  Productive  lives for  mobile and other
        equipment  range  from  2 to 5  years,  but do not  exceed  the  related
        estimated  mine life based on proven and  probable  reserves.  Plant and
        other  facilities,  used in carrying out the mine  operating  plan,  are
        amortized  using  the   units-of-production   ("UOP")  method  over  the
        estimated life of the ore body based on  recoverable  ounces to be mined
        from estimated  proven and probable  reserves.  Repairs and  maintenance
        expenditures  are  expensed as  incurred.  Expenditures  that extend the
        useful lives of existing  facilities  or equipment are  capitalized  and
        amortized over the remaining useful life of the related asset.

        MINERAL EXPLORATION AND MINE DEVELOPMENT COSTS
        Mineral  exploration  costs are expensed as  incurred.  When it has been
        determined that a mineral  property can be  economically  developed as a
        result of  establishing  proven and probable  reserves,  costs  incurred
        prospectively  to develop the property are  capitalized  as incurred and
        are amortized  using the UOP method over the  estimated  life of the ore
        body based on recoverable  ounces to be mined from estimated  proven and
        probable reserves.

        At the  Company's  open pit mines,  these costs include costs to further
        delineate the ore body and remove overburden to initially expose the ore
        body. The Company expenses in-pit stripping cost as incurred.

        At the  Company's  underground  mines,  these costs  include the cost of
        building  access ways,  shaft sinking and access,  lateral  development,
        drift development, ramps and infrastructure development.

        Major  development  costs incurred after the  commencement of production
        are  amortized  using the UOP method based on  recoverable  ounces to be
        mined from estimated proven and probable reserves. Commercial production
        occurs when an asset or property is substantially complete and ready for
        its  intended  use.   Ongoing   development   expenditures  to  maintain
        production are charged to operations as incurred.

        MINERAL INTERESTS
        Mineral  interests  include acquired mineral use rights  associated with
        producing,   development   and   exploration   properties.   The  amount
        capitalized  related to a mineral interest  represents its fair value at
        the time it was acquired, either as an individual asset purchase or as a
        part of a business  combination.  The values of such  mineral use rights
        are  primarily  driven by the nature  and  amount of  mineral  interests
        believed to be contained,  or  potentially  contained,  in properties to
        which they relate.

        Mineral  interests  relating  to  producing  properties  pertain  to the
        reserves  and  resources   associated   with  a  property.   Development
        properties  represent mineral use rights in properties under development
        that contain  reserves or resources.  Exploration  properties  represent
        value of the land area around the existing producing mine or development
        property or


                                       62
<PAGE>

        green  field  exploration  area  that is not  part of  resources  and is
        comprised mainly of material outside the immediate mine area.

        The Company's mineral use rights generally are enforceable regardless of
        whether proven and probable mineral reserves have been established.  The
        Company has the ability and intent to renew mineral use rights where the
        existing  term is not  sufficient to recover all  identified  and valued
        proven and probable reserves and/or undeveloped mineral interests.

        DEPRECIATION AND AMORTIZATION
        Production  stage mineral  interests are amortized over the life of mine
        using  the UOP  method  based on  recoverable  ounces  to be mined  from
        estimated  proven and probable  reserves.  Development  and  exploration
        properties are not amortized until such time as the underlying  property
        is  converted  to the  production  stage.  Some plant and  equipment  is
        depreciated on a straight-line basis.

        The  expected  useful  lives  used  in  amortization   calculations  are
        determined  based on the facts  and  circumstances  associated  with the
        mineral  interest.  The Company  evaluates  the  remaining  amortization
        period for each individual mineral interest on at least an annual basis.
        Any changes in estimates of useful lives are accounted for prospectively
        from the date of the change.

        ASSET IMPAIRMENT - LONG-LIVED ASSETS
        Kinross reviews and evaluates the carrying value of its operating mines,
        development and exploration properties for impairment on an annual basis
        or when events or changes in  circumstances  indicate  that the carrying
        amounts of related assets or groups of assets might not be recoverable.

        In assessing the impairment for production and  development  properties,
        if the total estimated  future cash flows on an  undiscounted  basis are
        less  than the  carrying  amount of the  asset,  an  impairment  loss is
        measured and recorded.  Future cash flows are based on estimated  future
        recoverable mine production,  expected sales prices (considering current
        and historical  prices,  price trends and related  factors),  production
        levels and costs,  capital and reclamation and remediation  obligations,
        all based on detailed engineering life of mine plans. Future recoverable
        mine  production  is  determined  from proven and probable  reserves and
        measured,  indicated and inferred  mineral  resources  after taking into
        account losses during ore processing and treatment.  Cash flow estimates
        of  recoverable  production  from  inferred  mineral  interests are risk
        adjusted to reflect the greater  uncertainty  associated with those cash
        flows. All long-lived assets at a particular  operation are combined for
        purposes of estimating future cash flows.

        Exploration properties are the areas adjacent and contiguous to existing
        mines  or  development  properties  containing  reserves,  resources  or
        without  any  identified  exploration  targets,  which is  assessed  for
        impairment  by comparing  the carrying  value with the fair value.  Fair
        value is based  primarily  on  recent  transactions  involving  sales of
        similar properties.

        GOODWILL
        Acquisitions  are  accounted  for  using  the  purchase  method  whereby
        acquired  assets and  liabilities  are  recorded at fair value as of the
        date of  acquisition.  The excess of the  purchase  price over such fair
        value is recorded as goodwill.  Goodwill is  attributed to the following
        factors:

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

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

        The Company evaluates,  on at least an annual basis, the carrying amount
        of goodwill to determine whether events and circumstances  indicate that
        such carrying amount may no longer be recoverable.  To accomplish  this,
        the  Company  compares  the fair  value  of  reporting  units,  to which
        goodwill was allocated, to their carrying amounts. If the carrying value
        of a reporting  unit  exceeds its fair value,  the Company  performs the
        second step of the  impairment  test.  In the second  step,  the Company
        compares the implied fair value of the reporting  unit's goodwill to its
        carrying amount and any excess of the carrying value over the fair value
        is charged to earnings.  Assumptions underlying fair value estimates are
        subject to risks and uncertainties.


                                       63
<PAGE>

        FINANCIAL INSTRUMENTS AND HEDGING ACTIVITY
        As part of its  strategy  to manage  exposure to  fluctuations  in metal
        prices and foreign currency  exchange rates,  Kinross enters into metals
        and currency  contracts,  including  forward  contracts,  spot  deferred
        contracts and options.  The Company formally documents all relationships
        between  hedging  instruments  and  hedged  items,  as well as its  risk
        management   objectives  and  strategies  for   undertaking   the  hedge
        transactions.  This process includes linking all derivatives to specific
        assets  and  liabilities  on  the  balance  sheet  or to  specific  firm
        commitments or forecasted transactions.  Hedge effectiveness is assessed
        based  on the  degree  to  which  the cash  flows  from  the  derivative
        contracts  are  expected  to  offset  the cash  flows of the  underlying
        position or transaction  being hedged.  The Company  formally  assesses,
        both at the  hedge's  inception  and on an ongoing  basis,  whether  the
        derivatives  that are used in hedging  transactions are highly effective
        in offsetting  changes in fair values or cash flows of hedged items.  In
        instances  where the  documentation  supports an  economic  hedge but is
        insufficient  to meet the  standard  for formal  hedge  accounting,  the
        Company  records  changes in fair value of the financial  instruments in
        current earnings.

        For  precious  metal  production,  the use of spot  deferred  and  fixed
        forward  contracts  is intended to hedge the  Company's  exposure to the
        risk of falling  commodity  prices.  Realized  and  unrealized  gains or
        losses on derivative  contracts that  effectively  establish  prices for
        future  production  are  deferred  and  recorded  in  earnings  when the
        underlying hedged transaction,  identified at the contract inception, is
        completed.  Premiums  received at the  inception of written call options
        are recorded as a liability.  Changes in the fair value of the liability
        are recognized in current  earnings.  Realized and  unrealized  gains or
        losses  for  derivative  contracts  which do not  qualify  as hedges for
        accounting purposes or which relate to a hedged transaction or item that
        has been sold or terminated are recorded in current  earnings.  Gains or
        losses on the early  settlement  of metal hedging  contracts,  that were
        deemed to be effective at the inception of the contract, are deferred on
        the  balance  sheet and  included in  earnings  in  accordance  with the
        original delivery schedule of the hedged production.

        Foreign  currency  forward  contracts  are  used to  hedge  exposure  to
        fluctuations in foreign  currency  denominated  anticipated  capital and
        operating  expenditures.  Gains or losses on these contracts are matched
        with the hedged expenditures at the maturity of the contracts.  Realized
        and unrealized gains or losses  associated with foreign exchange forward
        contracts,  which have been terminated or cease to be effective prior to
        maturity,  are deferred under other assets or liabilities on the balance
        sheet and  recognized in earnings in the period in which the  underlying
        hedged transaction is recognized.

        Changes in the fair value of any other financial instruments,  for which
        the Company has not sought hedge accounting, are recognized currently in
        earnings.

        PENSION, POST-RETIREMENT AND POST-EMPLOYMENT BENEFITS
        The  Company  participates  in both  defined  contribution  and  defined
        benefit  pension  plans.  The  costs  of  defined   contribution  plans,
        representing  the  Company's  required  contribution,  and the  costs of
        defined  benefit  pension  plans are  charged  to  earnings  in the year
        incurred.  Defined benefit plan pension  expense,  based on management's
        assumptions,  consists  of the  actuarially  computed  costs of  pension
        benefits in respect of the current year's service,  imputed  interest on
        plan  assets and  pension  obligations,  straight-line  amortization  of
        experience gains and losses, assumption changes and plan amendments over
        the expected average remaining service life of the employee group.

        The expected  costs of  post-retirement  and  post-employment  benefits,
        other  than  pensions,  to  active  employees  are  accrued  for  in the
        consolidated  financial  statements  during the years employees  provide
        service to be entitled to receive such benefits.

        STOCK-BASED INCENTIVE AND COMPENSATION PLANS
        The Company has four stock-based  incentive and compensation plans which
        are  described  in Note  16 to the  consolidated  financial  statements.
        Effective  January 1,  2004,  the  Company  now  records an expense  for
        employee  stock-based  compensation  using the fair value based  method,
        applied  retroactively  without  restatement,  for all awards granted or
        modified  on or after  January  1,  2002 - see Note  5(a).  Compensation
        expense is recognized over the stock option vesting period.  The Company
        accounts  for  forfeitures  in the period in which they occur.  The fair
        value  at  grant  date  of  stock   options  is   estimated   using  the
        Black-Scholes option-pricing model.

        REVENUE RECOGNITION
        Gold revenue is recognized upon shipment to third-party gold refineries,
        when the sales  price is fixed and  title  has  passed to the  customer.
        Silver  revenue,  the Company's only  by-product,  is included in mining
        revenue.

        RECLAMATION AND REMEDIATION OBLIGATIONS
        On January 1, 2004,  Kinross adopted CICA Handbook Section 3110,  "Asset
        Retirement  Obligations"  ("Section 3110") - see Note 5(b). Section 3110
        requires  that  the  estimated  fair  value  of  liabilities  for  asset
        retirement  obligations  be  recognized  in the period in which they are
        incurred. A corresponding increase to the carrying amount of the related
        asset (where one is  identifiable)  is recorded and depreciated over the
        life of the asset. Where a related asset is not easily identifiable with
        a  liability,  the  change in fair  value over the course of the year is
        expensed.  The amount of the liability will be subject to re-measurement
        at each reporting period.  This differs from the practice prior to 2004,
        which  involved  accruing  for the  estimated  reclamation  and  closure
        liability  through annual charges to earnings over the estimated life of
        the mine.  The estimates are based  principally  on legal and regulatory
        requirements. It is possible that the Company's estimates of its


                                       64
<PAGE>

        ultimate  reclamation  and  remediation  obligations  could  change as a
        result  of  changes  in   regulations,   the  extent  of   environmental
        remediation  required,  the  means  of  reclamation  or cost  estimates.
        Changes in estimates are accounted for prospectively from the period the
        estimate is revised.

        INCOME AND MINING TAXES
        The  provision  for income and  mining  taxes is based on the  liability
        method.  Future taxes arise from the recognition of the tax consequences
        of temporary  differences by applying enacted or  substantively  enacted
        statutory tax rates  applicable to future years to  differences  between
        the financial  statement  carrying  amounts and the tax bases of certain
        assets  and  liabilities.  The  Company  records a  valuation  allowance
        against  any portion of those  future tax assets that it believes  will,
        more likely than not,  fail to be  realized.  On business  acquisitions,
        where  differences  between  assigned  values  and tax  bases of  assets
        acquired  (other  than  non-tax  deductible  goodwill)  and  liabilities
        assumed  exist,  the  Company  recognizes  the  future  tax  assets  and
        liabilities for the tax effects of such differences.

        Future withholding taxes are provided for the unremitted net earnings of
        foreign  subsidiaries and joint ventures to the extent that dividends or
        other repatriations are anticipated in the future and will be subject to
        such taxes.

        RECLASSIFICATIONS
        Certain comparative figures for 2003 and 2002 have been reclassified to
        conform to the 2004 presentation.

5.      RECENT PRONOUNCEMENTS AND ACCOUNTING CHANGES

        RECENT PRONOUNCEMENTS

(i)     In January 2004,  the CICA issued  amendments  to CICA Handbook  Section
        3860,  "Financial  Instruments - Presentation and Disclosure"  ("Section
        3860"),  to require  obligations  that may be settled,  at the  issuer's
        option,  by a variable number of the issuer's own equity  instruments to
        be presented as liabilities.  Thus,  securities  issued by an enterprise
        that give the issuer  unrestricted rights to settle the principal amount
        in cash or in the equivalent value of its own equity instruments will no
        longer be presented as equity. Section 3860 is applicable to the Company
        beginning  January 1, 2005 on a retroactive  basis. The Company does not
        expect the  application of Section 3860 to have a material impact on its
        results of operations and financial condition.

(ii)    In November 2004, the Emerging  Issues  Committee of the CICA issued EIC
        149, "Accounting for Certain Financial  Instruments with Characteristics
        of both  Liabilities  and Equity"  ("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
        discloses its mandatorily  redeemable preferred shares as a component of
        liabilities in its Consolidated  balance sheets which is consistent with
        EIC 149.

(iii)   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.

        ACCOUNTING CHANGES

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

        Prior to January 1, 2004,  as  permitted  by Section  3870,  the Company
        presented  the  impact  of  employee  stock-based  awards on a pro forma
        basis.

        Effective  January 1, 2004, the Company recorded an expense for employee
        stock-based  compensation  using the fair value  based  method,  applied
        retroactively without restatement, for all awards granted or modified on
        or after January 1, 2002.  Compensation  expense is recognized  over the
        stock option vesting period. The Company accounts for forfeitures in the


                                       65
<PAGE>

        period  in  which  they  occur.  The fair  value at grant  date of stock
        options is estimated using the Black-Scholes  option-pricing  model, see
        Note  16   "Stock-based   compensation"   for  detailed   discussion  on
        stock-based awards.

        The impact of the adoption of the fair value based method for all awards
        only impacted the Company's method of accounting for stock options. As a
        result, stock option compensation (pre-tax) of $2.5 million was recorded
        as a cumulative  effect of the adoption as an  adjustment to the opening
        accumulated  deficit as shown in the  Consolidated  statements of common
        shareholders'  equity and on adoption  $0.2  million  was  recorded as a
        increase  in the value of  common  shares on the  exercise  of  options.
        During the year ended  December 31,  2004,  the Company  recorded  stock
        option  expense of $1.4  million.  Additionally,  the  Company  recorded
        restricted  stock  unit  expense of $0.7  million  during the year ended
        December 31, 2004.

        Had the Company  adopted the fair value based method of  accounting  for
        all  stock-based  awards  in 2003,  reported  net  earnings  (loss)  and
        earnings  (loss) per common  share  would have been  adjusted to the pro
        forma amounts indicated in the table below:

        ------------------------------------------------------------------------
                                                            2003         2002
        ------------------------------------------------------------------------

        Net loss attributable to common shareholders      $ (427.7)    $ (30.1)
          Stock-based compensation expense - pro forma        (0.4)       (2.0)
        -----------------------------------------------------------------------
        Net loss - pro forma                              $ (428.1)    $ (32.1)
        -----------------------------------------------------------------------

        Loss per common share
          Basic - reported                                $  (1.39)    $ (0.25)
          Basic - pro forma                               $  (1.39)    $ (0.27)
          Diluted - reported                              $  (1.39)    $ (0.25)
          Diluted - pro forma                             $  (1.39)    $ (0.27)
        -----------------------------------------------------------------------

(b)     ASSET RETIREMENT OBLIGATIONS
        Effective  January 1, 2004,  the  Company  applied the  requirements  of
        Section  3110.  Section  3110  requires  a  liability  to  be  initially
        recognized  for the estimated  fair value of the  obligation  when it is
        incurred. The associated asset retirement cost is capitalized as part of
        the carrying  amount of the long-lived  asset and  depreciated  over the
        remaining life of the underlying asset, and the associated  liability is
        accreted to the estimated fair value of the obligation at the settlement
        date through periodic accretion charges to net earnings (loss). When the
        obligation  is settled,  any  difference  between the final cost and the
        recorded liability is recognized as income or loss on settlement.  Prior
        to the  adoption  of Section  3110,  the Company  accrued for  estimated
        reclamation  and  remediation  obligations  over the producing life of a
        mine with an annual  charge to  earnings  based  primarily  on legal and
        regulatory requirements and Company policy.

        The  Company's  asset  retirement  obligations  are described in Note 11
        "Reclamation and remediation  obligations".  Effective  January 1, 2004,
        the Company adopted the initial  recognition and measurement  provisions
        of Section 3110 applied  retroactively  with a  restatement  of 2003 and
        2002 comparative figures. On adoption of the new standard,  reflected as
        at January 1, 2002, the Company recorded a $19.7 million increase in the
        accumulated  deficit as of January 1, 2002, and recorded a corresponding
        increase in the  reclamation  and  remediation  obligations for the same
        amount  reflecting  the fair value of the  liability.  During 2002,  the
        Company  increased  property,  plant and  equipment by $1.8 million as a
        result of the  formation of a joint  venture.  During 2003,  the Company
        increased  property,  plant and equipment by $45.4 million and increased
        reclamation and remediation  obligations by $10.6 million to reflect the
        fair value of the asset and the related liability. Net loss for the year
        ended  December 31, 2003  decreased by $3.1 million,  while the net loss
        for the year ended December 31, 2002 decreased by $8.1 million.

<TABLE>
<CAPTION>
        ------------------------------------------------------------------------------------------
                                                                            2003          2002
        ------------------------------------------------------------------------------------------
<S>                                                                      <C>            <C>
        Net earnings (loss) attributable to common shareholders
          As previously reported                                         $     19.7     $  (38.2)
          Impact of restatement related to acquisitions and goodwill         (423.8)          --
          Impact of adoption of Section 3110                                    3.1          8.1
          Restatement for foreign currency impact on future tax
            liabilities                                                       (26.7)          --
        ------------------------------------------------------------------------------------------
          As currently reported                                          $   (427.7)    $  (30.1)
        ------------------------------------------------------------------------------------------
        Earnings (loss) per common share
        Basic
          As previously reported                                         $     0.06     $  (0.32)
          Impact of restatement related to acquisitions and goodwill          (1.37)          --
          Impact of adoption of Section 3110                                   0.01         0.07
          Restatement for foreign currency impact on future tax
            liabilities                                                       (0.09)          --
        ------------------------------------------------------------------------------------------
          As currently reported                                          $    (1.39)    $  (0.25)
        ------------------------------------------------------------------------------------------
        Diluted
          As previously reported                                         $     0.06     $  (0.32)
          Impact of restatement related to acquisitions and goodwill          (1.37)          --
          Impact of adoption of Section 3110                                   0.01         0.07
          Restatement for foreign currency impact on future tax
            liabilities                                                       (0.09)          --
        ------------------------------------------------------------------------------------------
          As currently reported                                          $    (1.39)    $  (0.25)
        ------------------------------------------------------------------------------------------
</TABLE>


                                       66
<PAGE>

(c)     FLOW THROUGH SHARES
        On March 19,  2004,  the  Emerging  Issues  Committee  (EIC) of the CICA
        issued  Abstract No. 146 "Flow  through  shares"  ("EIC  146").  EIC 146
        requires the  recognition  of a future tax  liability and a reduction to
        shareholders'  equity on the date  that the  company  renounces  the tax
        credits  associated with qualifying  exploration  expenditures  provided
        there is reasonable  assurance that the expenditures  will be made. This
        EIC was applicable on a prospective basis for all transactions initiated
        after March 19, 2004.  The Company has adopted EIC 146 on a  prospective
        basis.

(d)     CONSOLIDATION OF VARIABLE INTEREST ENTITIES
        In  June  2003,   the   Accounting   Standards   Board   issued   AcG-15
        "Consolidation  of Variable  Interest  Entities  (revised November 2003,
        January  2004 and March  2004)"  ("AcG-15").  AcG-15  requires  that the
        assets,  liabilities  and results of  operations  of  variable  interest
        entities be consolidated into the financial statements of the enterprise
        that has the controlling  financial  interest.  AcG-15 also provides the
        framework for determining  whether a variable  interest entity should be
        consolidated  based on voting interest or significant  financial support
        provided  to it.  Although  AcG-15 is  effective  for interim and annual
        periods  beginning  on or after  November  1, 2004,  the  Company  early
        adopted AcG-15 in the quarter ended  September 30, 2004. The Company has
        evaluated  each of its  financial  interests as at December 31, 2004 and
        has  concluded  that  AcG-15  will not have an impact on its  results of
        operations or financial condition.  The Company will continue to monitor
        clarifications  to both AcG-15 and the  comparable  US GAAP  standard as
        they pertain to the consolidation of variable interest entities.

(e)     HEDGING RELATIONSHIPS
        Effective January 1, 2004, the Company adopted  Accounting  Guideline 13
        ("AcG-13"), "Hedging Relationships",  which provides guidance concerning
        documentation  and  effectiveness   testing  for  derivative  contracts.
        Derivative  instruments that do not qualify as a hedge under AcG-13,  or
        are not designated as a hedge, are recorded on the balance sheet at fair
        value with  changes  in fair  value  recognized  in  earnings.  Upon the
        adoption  of  AcG-13,  certain  derivative  instruments  that  had  been
        previously  accounted for as hedges failed to meet the  requirements  of
        AcG-13 for formal hedge accounting. The impact of the adoption of AcG-13
        is outlined further under "Financial instruments" (Note 9).

6.      BUSINESS AND PROPERTY ACQUISITIONS

        ACQUISITIONS

        2004

        ACQUISITION OF REMAINING 51% OF PARACATU MINE

        On  December  31,  2004,  the  Company  completed  the  purchase  of the
        remaining 51% of the Rio Paracatu  Mineracao  ("RPM"),  the owner of the
        Morro do Ouro mine (also  known as  Paracatu)  in Brazil  from Rio Tinto
        Plc.  ("Rio  Tinto").  The RPM gold mine is located near Brasilia in the
        state of Minas Gerais, Brazil. It has been in operation since 1987. As a
        result of this  transaction,  the Company now owns 100% of the  property
        and is now the operator.  Kinross  acquired its original 49% interest in
        the  mine on  January  31,  2003  when the  Company  acquired  TVX.  The
        acquisition  of the remaining 51% interest was completed on December 31,
        2004. On  completion,  consideration  of $260.2 million was paid in cash
        and is subject to a post completion working capital adjustment, which is
        yet to be finalized.  The Company  financed the transaction with debt of
        $105 million and the remainder in cash.

        The following table reflects the preliminary  purchase price  allocation
        for the  acquisition  of the remaining 51% interest of the Paracatu mine
        (in millions):


                                       67
<PAGE>

<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
<S>                                                                         <C>
Cash paid                                                                   $  249.6
Working capital adjustment                                                      10.6
- --------------------------------------------------------------------------------------
Total cash paid to Rio Tinto Plc.                                           $  260.2

Plus - direct acquisition costs incurred by the Company                          1.2
- --------------------------------------------------------------------------------------
Total purchase price                                                        $  261.4

Plus - Fair value of liabilities assumed by Kinross
    Accounts payable and accrued liabilities                                $    8.3
    Long-term debt, including current portion                                   10.5
    Reclamation and remediation obligations, including current portion           5.4

Less - Fair value of assets acquired by Kinross
    Cash                                                                        (5.7)
    Short-term investments                                                      (0.4)
    Accounts receivable and other assets                                        (2.7)
    Inventories                                                                 (3.7)
    Property, plant and equipment                                              (37.5)
    Mineral interests                                                         (226.7)
    Future income tax asset                                                     (8.1)
    Other non-current assets                                                    (0.8)
- --------------------------------------------------------------------------------------
Residual purchase price allocated to goodwill                               $     --
- --------------------------------------------------------------------------------------
</TABLE>

Pro forma consolidated results

The purchase of the remaining 51% interest in the Paracatu mine was effective on
December 31, 2004. If the  combination had been effective as of January 1, 2004,
pro forma  consolidated  revenues  for the year ended  December  31,  2004 would
increase by $39.8 million to $706.6 million and pro forma  consolidated net loss
for the year ended  December  31, 2004 would  decrease by $7.5  million to $55.6
million.  These pro forma results were based on the  preliminary  purchase price
allocation, which as noted above is subject to a working capital adjustment.

2003

(a)     TVX GOLD INC., ECHO BAY MINES LTD. AND THE TVX NEWMONT AMERICAS JOINT
        VENTURE

        On January 31, 2003, pursuant to a Canadian Plan of Arrangement, Kinross
        acquired  100% of TVX and 100% of Echo Bay.  Consideration  paid for the
        TVX common shares was 2.1667  Kinross  common shares for each TVX common
        share.  Consideration  paid for the  Echo Bay  shares  was  0.1733  of a
        Kinross common share for each Echo Bay common share.  The exchange ratio
        reflects the three for one  consolidation of the Company's common shares
        as  described  in Note 15.  The  purchase  price for these  acquisitions
        totaled $1.3 billion,  comprised of 177.8 million Kinross common shares,
        $12.6  million of direct costs and $29.3 million  representing  the fair
        value of common share purchase  warrants and stock options assumed.  The
        value of Kinross  shares was $7.14 per share based on the average market
        price of the shares  over the two-day  period  before and after June 10,
        2002,  being  the  date  Kinross,  TVX and  Echo  Bay  entered  into the
        combination agreement.

        In  a  separate   transaction,   immediately   prior  to  the   business
        combination,  TVX acquired Newmont Mining Corporation's  ("Newmont") 50%
        non-controlling interest in the TVX Newmont Americas joint venture ("TVX
        Newmont JV") for $180.0 million in cash. The purchase price comprised of
        TVX's  available  cash of $85.5  million and cash advanced by Kinross to
        TVX of $94.5 million.

        Upon  completion  of  the  acquisition  of TVX  and  TVX's  purchase  of
        Newmont's   interest  in  the  TVX  Newmont  JV,  Kinross  held  various
        non-operating interests in gold mines located in Chile (La Coipa - 50%),
        Brazil (Paracatu - 49% and Crixas - 50%) and Canada (Musselwhite - 32%),
        an operating  interest in one other  Canadian mine (New Britannia - 50%)
        and exploration  interests in Brazil.  Upon acquiring Echo Bay,  Kinross
        held  operating  interests  in gold mines  located in the United  States
        (Round  Mountain  - 50%) and  Canada  (Lupin - 100%)  and  interests  in
        development properties in both Canada and the United States.

        The  acquisitions  were  accounted  for  using  the  purchase  method of
        accounting whereby  identifiable assets acquired and liabilities assumed
        were recorded at their fair market values as of the date of acquisition.
        The excess of the  purchase  price over such fair value was  recorded as
        goodwill  and  amounted  to  $736.7  million.  In  accordance  with CICA
        Handbook  Section  3062,  "Goodwill  and Other  Intangible  Assets," and
        Statement of Financial  Accounting Standards ("SFAS") 142, "Goodwill and
        Other  Intangible  Assets,"  for the  purpose  of testing  goodwill  for
        impairment,  goodwill  was  assigned to the  Company's  reporting  units
        acquired  and  will not be  amortized.  See  Note 3  Restatement  to the
        consolidated   financial   statements  for  additional  details  on  the
        valuation on the reporting units,  allocation of goodwill and subsequent
        testing for  impairment  of goodwill  and of the  recoverability  of the
        assets.


                                       68
<PAGE>

        The estimated  fair value of property,  plant and equipment was based on
        the  replacement  costs as  determined  through  independent  appraisals
        performed by an independent third party. Mineral interests, representing
        acquired  mineral  use rights  were  recorded  at fair value based on an
        independent  valuation  (see  Note  3).  Details  of  mineral  interests
        acquired  pursuant  to the  business  combination  are  included  in the
        Property,  plant and equipment  section of Note 7. Estimated future cash
        flows used in the valuation  were based on estimated  quantities of gold
        to be produced at each site,  the  estimated  costs,  timing and capital
        expenditures   associated  with  such   production,   valuation  of  the
        exploration property surrounding operating assets,  independent forecast
        of gold prices,  inflation and foreign  currency  exchange  rates at the
        date of acquisition and a discount rate of a similar market participant.

        Based on the  impairment  testing  for  long-lived  assets,  the Company
        recorded  impairments  related  to the  exploration  properties  of $5.0
        million  and $10.0  million for the years  ended  December  31, 2004 and
        2003,  respectively.  Also, the Company recorded goodwill impairments of
        $12.4 million and $394.4  million for the years ended  December 31, 2004
        and 2003,  respectively.  For further details on impairments  associated
        with goodwill and with the recoverability of assets see the Goodwill and
        Impairment charges section of Note 7.

        The  following   table   reflects  the  restated  final  purchase  price
        allocation for the acquisition of 100% of Echo Bay and 100% of TVX:

<TABLE>
<CAPTION>
        -------------------------------------------------------------------------------------------------------------------
          (IN MILLIONS, EXCEPT PER SHARE DATA)                                         TVX        ECHO BAY        TOTAL
        -------------------------------------------------------------------------------------------------------------------
<S>                                                                                 <C>           <C>           <C>
        Common shares of Kinross issued to Echo Bay and TVX shareholders                  93.9         83.9         177.8
        Value of Kinross common stock per share                                     $     7.14    $    7.14     $    7.14
        -------------------------------------------------------------------------------------------------------------------
        Fair value of the Company's common stock issued                             $    670.7    $   599.1     $ 1,269.8

        Plus - fair value of warrants and options assumed by the Company            $      6.8    $    22.5     $    29.3
        Plus - direct acquisition costs incurred by the Company                            6.3          6.3          12.6
        Plus - the Company's previous 10.6% ownership interest in Echo Bay                  --          7.0           7.0
        -------------------------------------------------------------------------------------------------------------------
        Total purchase price                                                        $    683.8    $   634.9     $ 1,318.7

        Plus - Fair value of liabilities assumed by Kinross
            Accounts payable and accrued liabilities                                      53.6         23.1          76.7
            Long-term debt, including current portion                                      2.2           --           2.2
            Site restoration cost accruals, including current portion                     17.5         45.5          63.0
            Future income tax liabilities                                                134.8          1.1         135.9
            Other long-term liabilities                                                    0.1           --           0.1
            Liability with respect to TVX Newmont JV assets acquired                      94.5           --          94.5

        Less - Fair value of assets acquired by Kinross
            Cash                                                                         (27.8)       (16.4)        (44.2)
            Restricted cash                                                              (11.3)       (10.1)        (21.4)
            Marketable securities                                                         (0.5)        (1.9)         (2.4)
            Accounts receivable and other assets                                         (18.1)        (4.7)        (22.8)
            Inventories                                                                  (19.1)       (28.8)        (47.9)
            Property, plant and equipment                                               (114.0)       (54.3)       (168.3)
            Mineral interests                                                           (425.3)      (168.4)       (593.7)
            Long-term investments and other non-current assets                            (5.1)       (48.6)        (53.7)
        -------------------------------------------------------------------------------------------------------------------
        Residual purchase price allocated to goodwill                               $    365.3    $   371.4     $   736.7
        -------------------------------------------------------------------------------------------------------------------
</TABLE>

        Pro forma consolidated results

        The  combination  of Kinross,  TVX and Echo Bay was effective on January
        31, 2003. Had the combination  been effective as of January 1, 2003, the
        results for the year ended  December 31, 2003 would have  increased  the
        pro forma consolidated  revenues, by $28.9 million to $600.8 million and
        would have increased pro forma  consolidated  net loss, by $16.3 million
        to $454.0 million. The pro forma financial  information does not purport
        to project the Company's results of operations for any future periods.

(b)     OMOLON GOLD MINING CORPORATION

        On December 3, 2002, the Company  entered into purchase  agreements with
        four of the five Russian  minority  shareholders,  holding in aggregate,
        44.2% of the shares of Omolon Gold  Mining  Company  ("Omolon").  Omolon
        agreed to purchase these shares,  from the four shareholders,  for $44.7
        million,  including  legal fees.  The  transactions  were  completed  in
        February  2003 and Omolon  subsequently  cancelled  these  shares.  As a
        result of the share cancellation, the Company increased its ownership in
        the outstanding shares of Omolon to 98.1% from 54.7%.


                                       69
<PAGE>

        The fair value of the assets and  liabilities  of the 45.3%  interest in
        Omolon and the allocation of the purchase  consideration  are as follows
        (in millions):

        ------------------------------------------------------------------------
        Fair value of assets acquired by Kinross:
          Cash                                                         $ 26.1
          Accounts receivable                                             2.9
          Inventories                                                    12.3
          Property, plant and equipment                                  13.8
          Other non-current assets                                        1.9

        Less - fair value of liabilities assumed by Kinross:
          Accounts payable and accrued liabilities                       (5.7)
          Long-term debt, including current portion                      (2.2)
          Site restoration cost accruals, including current portion      (3.4)
          Non-controlling interest                                       (1.0)
        ------------------------------------------------------------------------
        Total cash consideration                                       $ 44.7
        ------------------------------------------------------------------------

        Financed by:
          Cash (including cash acquired - $26.1 million)               $ 44.7
        ------------------------------------------------------------------------

(c)     E-CRETE

        During 2003, the Company acquired a further 1.2% interest in E-Crete for
        cash  consideration  of $0.1 million,  by funding its partner's share of
        cash calls, thereby increasing its ownership interest to 90.0%.

        2002

        E-CRETE

        During 2002, the Company acquired a further 2.9% interest in E-Crete for
        cash  consideration  of $0.1 million by funding its  partner's  share of
        cash calls, thereby increasing its ownership interest to 88.8%.

7.      CONSOLIDATED FINANCIAL STATEMENT DETAILS

        CONSOLIDATED BALANCE SHEETS

        Accounts receivable and other assets:

<TABLE>
<CAPTION>
        -----------------------------------------------------------------------------------------------
                                                                                 2004          2003
        -----------------------------------------------------------------------------------------------
<S>                                                                           <C>           <C>
        Trade receivables                                                     $     2.2     $     7.5
        Taxes recoverable                                                           7.9           4.6
        Deferred costs associated with business and property acquisitions           3.3           0.4
        Deferred hedge losses                                                       4.7            --
        Fair value of non-hedge derivatives                                         4.1            --
        Marketable securities (a)                                                   0.3           0.1
        Prepaid expenses                                                            4.0           7.1
        Other                                                                      14.4          22.5
        -----------------------------------------------------------------------------------------------
                                                                              $    40.9     $    42.2
        -----------------------------------------------------------------------------------------------
</TABLE>

(a)     Quoted market value: 2004 - $0.4 million, 2003 - $0.5 million.


                                       70
<PAGE>

        Inventories:

        ------------------------------------------------------------------------
                                                         2004           2003
        ------------------------------------------------------------------------
        In-process                                    $      9.1    $     15.5
        Finished metal                                      25.8          15.4
        Ore in stockpiles (a)                               24.2          15.3
        Ore on leach pads (b)                               15.7           8.3
        Materials and supplies                              51.1          62.5
        ------------------------------------------------------------------------
                                                           125.9         117.0
        Long-term portion of ore in stockpiles             (14.9)         (7.8)
        ------------------------------------------------------------------------
                                                      $    111.0    $    109.2
        ------------------------------------------------------------------------

        (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 December 31, 2004 and 2003 relate  entirely
                to the Company's 50% owned Round  Mountain  mine. As at December
                31, 2004,  the weighted  average cost per  recoverable  ounce of
                gold on the  leach  pads  was $200  per  ounce  (2003 - $120 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>
        -------------------------------------------------------------------------------------------
                                                                           2004          2003
        -------------------------------------------------------------------------------------------
<S>                                                                    <C>            <C>
        PROPERTY, PLANT AND EQUIPMENT
        Cost - net of writedown
        Producing properties
          Plant and equipment amortized on a straight line basis       $     165.6    $    118.7
          Plant and equipment amortized on units of production basis         983.4         926.3
        Development properties                                                39.9          19.5
        Exploration properties                                                 6.1           9.8
        -------------------------------------------------------------------------------------------
        MINERAL INTERESTS
        GROSS CARRYING VALUE
        Production stage                                               $     680.5    $    460.6
        Development properties                                                36.6          36.6
        Exploration properties                                                88.3          91.4
        -------------------------------------------------------------------------------------------
                                                                       $   2,000.4    $  1,662.9
        -------------------------------------------------------------------------------------------
        PROPERTY, PLANT AND EQUIPMENT
        ACCUMULATED DEPRECIATION
        Producing properties
          Plant and equipment amortized on a straight line basis       $     (75.7)   $    (56.9)
          Plant and equipment amortized on units of production basis        (552.8)       (532.7)
        -------------------------------------------------------------------------------------------
        MINERAL INTERESTS
        ACCUMULATED DEPRECIATION
        Production stage                                               $    (127.8)   $    (62.9)
        Development properties                                                  --            --
        Exploration properties                                                  --            --
        -------------------------------------------------------------------------------------------
                                                                       $    (756.3)   $   (652.5)
        -------------------------------------------------------------------------------------------
        Property, plant and equipment - net                            $   1,244.1    $  1,010.4
        -------------------------------------------------------------------------------------------
</TABLE>

        For  impairments  associated  with property,  plant and  equipment,  see
        Impairment  charges within this note.  There were no major  disposals in
        2004 or 2003.

        Goodwill:

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


                                       71
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
                                                        2003                                               2004
                             -----------------------------------------------------------------------------------------------------
                                    Dec 31, 2002  Additions (a)  Impairment  Dec 31, (2003) Additions     Impairment Dec 31, (2004)
                             -----------------------------------------------------------------------------------------------------
<S>                                  <C>         <C>            <C>          <C>            <C>           <C>           <C>
OPERATING SEGMENTS
  Fort Knox                          $    --     $      --      $    --      $     --       $   --        $     --      $     --
  Kubaka                                  --            --           --            --           --              --            --
  Round Mountain                          --         173.7        (87.2)         86.5           --              --          86.5
  La Coipa                                --         137.3        (65.9)         71.4           --              --          71.4
  Crixas                                  --          80.5        (42.5)         38.0           --              --          38.0
  Paracatu                                --         164.9        (99.4)         65.5           --              --          65.5
  Musselwhite                             --          84.9        (53.9)         31.0           --              --          31.0
  Porcupine Joint Venture                 --            --                        --            --              --            --
Other operations                          --          95.4        (45.5)         49.9           --           (12.4)         37.5
CORPORATE AND OTHER                       --            --           --            --           --              --            --
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL                                $    --     $   736.7      $ (394.4)    $ 342.3        $   --        $  (12.4)      $ 329.9
==================================================================================================================================
</TABLE>

(a)     Resulting from the acquisitions of TVX and Echo Bay (see Note 6).

Long-term investments:

The quoted market value of the Company's  long-term  investments at December 31,
2004  is  $31.2  million  (December  31,  2003 - $9.0  million).  All  long-term
investments  are  recorded  at cost.  During  2004,  the  Company  sold  certain
long-term investments with a book value of $9.0 million for net proceeds of $9.1
million (2003 - net proceeds of $56.2 million, book value of $30.2 million).

Deferred charges and other long-term assets:

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

- ----------------------------------------------------------------------------
                                                     2004           2003
- ----------------------------------------------------------------------------
Long-term ore in stockpiles (a)                       $ 14.9          $ 7.8
Deferred charges, net of amortization                    2.4            2.2
Long-term receivables                                    5.3            7.1
Long-term deposits                                       2.6            2.6
Assets held for sale (b)                                  --           14.1
Other                                                    2.4            2.1
- ----------------------------------------------------------------------------
                                                      $ 27.6         $ 35.9
============================================================================

(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 (2003 - Fort Knox, Round Mountain,  La Coipa
        and the Porcupine Joint Venture).
(b)     The Ulu property and airplane  hangar in Edmonton,  Alberta were sold in
        2004 for proceeds of $11.8 million.

Accounts payable and accrued liabilities:

Accounts payable and accrued liabilities are comprised of the following:

- ------------------------------------------------------------------------
                                                2004           2003
- ------------------------------------------------------------------------
Trade payables                               $      33.1   $      29.8
Accrued liabilties                                  27.4          16.6
Employee related accrued liabilities                22.9          16.0
Taxes payable                                       18.4          12.3
Accruals related to acquisition                     10.6            --
Other accruals                                      30.8          27.2
- ------------------------------------------------------------------------
                                             $     143.2   $     101.9
- ------------------------------------------------------------------------


                                       72
<PAGE>

        CONSOLIDATED STATEMENT OF OPERATIONS

        Impairment charges:

        The Company  annually  reviews the carrying  values of its  portfolio of
        investments and mining development and reclamation properties, including
        estimated costs for closure. Through this process the Company determined
        that certain  asset values had become  impaired and  accordingly  assets
        that were  impaired  were  written down to their  estimated  recoverable
        amounts.

        The components of the non-cash impairment charges are as follows:

<TABLE>
<CAPTION>
        ------------------------------------------------------------------------------------------
                                                           2004          2003           2002
        ------------------------------------------------------------------------------------------
<S>                                                     <C>           <C>            <C>
        Goodwill impairment                             $     12.4    $    394.4     $      --
        Impairment of long-lived assets
          Kubaka                                              25.1            --            --
          Lupin                                                7.9           4.4            --
          New Britannia                                        1.3            --            --
          Round Mountain                                        --           2.7            --
          La Coipa                                              --           2.9            --
          Exploration projects and other assets               11.8            --            --
          E-Crete                                               --           5.2            --
        Impairment of investments
          Loan receivable from joint venture partner            --           1.2            --
          Marketable securities                                 --           0.2            0.1
          Long-term investments                                1.4           0.5            0.1
        ------------------------------------------------------------------------------------------
        Total                                           $     59.9    $    411.5     $      0.2
        ------------------------------------------------------------------------------------------
</TABLE>

        In the fourth quarter of 2004,  following a comprehensive  review of its
        mining  properties  and  investments on the basis set out in Note 4, the
        Company determined that the net recoverable amount of Kubaka,  Lupin and
        New  Britannia  mines was less than the net book value,  resulting  in a
        write-down of $34.3 million. In addition, the Gurupi exploration project
        in Brazil  and  Norseman  exploration  project  in  Australia  were also
        written down by $8.5 million.

        In the fourth quarter of 2003,  following a comprehensive  review of its
        investments  and  properties on the basis set out in Note 4, the Company
        determined that the net recoverable amount of its investment in E-Crete,
        a producer of aerated  concrete  located in Phoenix,  Arizona,  was less
        than net book value.  Accordingly,  the Company  recorded a $5.2 million
        write-down.  In addition,  the Company determined that a loan receivable
        from a joint venture  partner was not collectible and required a further
        $1.2 million accrual.

        Other income (expense):

<TABLE>
<CAPTION>
        ----------------------------------------------------------------------------------------------
                                                              2004           2003           2002
        ----------------------------------------------------------------------------------------------
<S>                                                        <C>            <C>            <C>
        Interest income                                    $     5.6      $     4.5      $      1.5
        Interest expense                                        (5.1)          (5.1)           (5.0)
        Foreign exchange (losses) gains                        (13.3)         (19.5)           (4.3)
        Sundry sales                                             1.3            6.6             0.5
        Other                                                    2.2            1.2             4.6
        Non-hedge derivative gains (losses)                      3.1            0.4            (2.7)
        Loss on redemption of convertible debentures              --           (1.1)             --
        Insurance proceeds                                        --             --            10.3
        ----------------------------------------------------------------------------------------------
                                                           $    (6.2)     $   (13.0)     $      4.9
        ----------------------------------------------------------------------------------------------
</TABLE>

        CONSOLIDATED STATEMENTS OF CASH FLOWS

        Cash and cash equivalents:

<TABLE>
<CAPTION>
        ----------------------------------------------------------------------------------------------
                                                              2004           2003           2002
        ----------------------------------------------------------------------------------------------
<S>                                                        <C>            <C>            <C>
        Cash on hand and balances with banks               $    29.5      $    89.8      $     16.3
        Short-term deposits                                     18.4          156.0           154.3
        ----------------------------------------------------------------------------------------------
                                                           $    47.9      $   245.8      $    170.6
        ----------------------------------------------------------------------------------------------
</TABLE>


                                       73
<PAGE>

        Interest and taxes paid:

<TABLE>
<CAPTION>
        ----------------------------------------------------------------------------------------------
                                                              2004           2003           2002
        ----------------------------------------------------------------------------------------------
<S>                                                        <C>            <C>            <C>
        Interest                                           $     2.4      $     8.0      $      8.8
        Income taxes                                       $    16.1      $     7.0      $      6.8
        ----------------------------------------------------------------------------------------------
</TABLE>

8.      JOINT VENTURE INTERESTS

        The Company conducts a substantial portion of its business through joint
        ventures under which the venturers are bound by contractual arrangements
        establishing  joint control over the ventures.  The Company  records its
        proportionate share of assets, liabilities,  revenue and operating costs
        of the  joint  ventures.  As at  December  31,  2004,  the  Company  had
        interests  in 7  joint  venture  projects  after  consideration  of  the
        acquisition of the remaining 51% interest of the Paracatu Mine (See Note
        6). As at  December  31,  2003,  the Company  had  interests  in 8 joint
        ventures  after  acquiring an interest in six joint ventures as a result
        of the combination with TVX and Echo Bay, and the full  consolidation of
        Omolon (a Russian  joint stock  company)  following  the increase in the
        Company's  ownership  interest  from 54.7% to 98.1% in  February of 2003
        (see Note 6).

        SUMMARY OF JOINT VENTURE INFORMATION

<TABLE>
<CAPTION>
        ---------------------------------------------------------------------------------------------------------------------------
                                                                 Round                 La              Mussel-    New
        2004                               Porcupine   Refugio  Mountain  Paracatu    Coipa   Crixas   white    Britannia   Total
        ---------------------------------------------------------------------------------------------------------------------------
<S>                                  <C>       <C>       <C>       <C>       <C>      <C>      <C>       <C>      <C>
        Metal sales                          $   78.8  $   3.8   $ 154.1   $  38.2   $ 59.0   $ 38.2   $ 32.1    $ 10.8   $  415.0
        ---------------------------------------------------------------------------------------------------------------------------
        Cost of sales                            44.4      2.0      82.3      20.6     39.7     12.2     21.1       7.9      230.2
        Accretion                                 2.3       --       1.9       0.5      0.4      0.1      0.1      (0.1)       5.2
        Depreciation, depletion and
          amortization                           22.7       --      43.3       9.5     16.8     12.8     12.5        --      117.6
        Exploration                               3.2       --       0.8        --      0.5      0.3      2.0       0.4        7.2
        Impairment charges                         --       --        --       2.1       --       --       --       1.3        3.4
        Other operating costs                     0.3      1.7        --       2.6      0.7     (0.1)     0.2       1.3        6.7
        ---------------------------------------------------------------------------------------------------------------------------
                                                 72.9      3.7     128.3      35.3     58.1     25.3     35.9      10.8      370.3
        ---------------------------------------------------------------------------------------------------------------------------
        Operating earnings (loss)            $    5.9  $   0.1   $  25.8   $   2.9   $  0.9   $ 12.9   $ (3.8)   $   --   $   44.7
        ---------------------------------------------------------------------------------------------------------------------------
        Current assets                       $    9.6  $   7.1   $  31.6   $  19.2   $ 16.4   $ 13.8   $  3.7    $  0.6   $  102.0
        Property, plant and equipment            75.3     43.0      86.3     451.2     74.1     50.9     92.2        --      873.0
        Goodwill                                   --       --      86.5      65.5     71.4     38.0     31.0        --      292.4
        Deferred charges and other assets         4.4      0.9       1.4       3.2      0.4      0.2      0.1        --       10.6
        ---------------------------------------------------------------------------------------------------------------------------
                                                 89.3     51.0     205.8     539.1    162.3    102.9    127.0       0.6    1,278.0
        ---------------------------------------------------------------------------------------------------------------------------
        Current liabilities                      14.5      7.4      16.5      16.4      8.5      1.9      2.3       1.5       69.0
        Long-term liabilities                    11.8     13.4      26.0      77.2     13.8     21.2      2.0       0.6      166.0
        ---------------------------------------------------------------------------------------------------------------------------
                                                 26.3     20.8      42.5      93.6     22.3     23.1      4.3       2.1      235.0
        ---------------------------------------------------------------------------------------------------------------------------
        Net investment in joint ventures     $   63.0  $  30.2   $ 163.3   $ 445.5   $140.0   $ 79.8   $122.7    $ (1.5)  $1,043.0
        ---------------------------------------------------------------------------------------------------------------------------
        Cash flow provided from (used in):
        ---------------------------------------------------------------------------------------------------------------------------
          Operating activities               $   30.4  $   0.6   $  63.7   $  13.3   $ 14.3   $ 25.8   $ 10.3    $  2.2   $  160.6
        ---------------------------------------------------------------------------------------------------------------------------
          Investing activities               $  (24.5) $ (44.3)  $  (8.5)  $ (15.7)  $ (0.9)  $ (3.6)  $ (3.9)   $ (0.5)  $ (101.9)
        ---------------------------------------------------------------------------------------------------------------------------
          Financing activities               $     --  $  13.0   $    --   $    --   $   --   $   --   $   --    $   --   $   13.0
        ---------------------------------------------------------------------------------------------------------------------------


        ---------------------------------------------------------------------------------------------------------------------------
                                                                 Round                 La              Mussel-    New
        2003 (a)                           Porcupine   Refugio  Mountain  Paracatu    Coipa   Crixas   white    Britannia   Total
        ---------------------------------------------------------------------------------------------------------------------------
        Metal sales                          $   83.0  $    --   $ 131.9   $  32.0   $ 51.5   $ 31.9   $ 22.5    $ 11.8   $  364.6
        ---------------------------------------------------------------------------------------------------------------------------
        Cost of sales                            48.9     (0.1)     74.9      18.0     34.4     10.3     15.9      11.1      213.4
        Accretion                                 2.3     (0.4)      1.6       0.5      0.3      0.1      0.1       1.1        5.6
        Depreciation, depletion and
          amortization                           24.9       --      45.0       9.8     17.9     12.3     11.2       2.6      123.7
        Exploration                               2.5      1.4       2.1        --      0.9      0.5      2.1       0.8       10.3
        Impairment charges                         --       --      89.9      99.4     68.8     42.5     53.9       1.2      355.7
        Other operating costs                     2.9      0.4        --       1.1      0.3      0.3      0.2       0.1        5.3
        ---------------------------------------------------------------------------------------------------------------------------
                                                 81.5      1.3     213.5     128.8    122.6     66.0     83.4      16.9      714.0
        ---------------------------------------------------------------------------------------------------------------------------
        Operating earnings (loss)            $    1.5  $  (1.3)  $ (81.6)  $ (96.8)  $(71.1)  $(34.1)  $(60.9)   $ (5.1)  $ (349.4)
        ---------------------------------------------------------------------------------------------------------------------------
        Current assets                       $    9.5  $   2.4   $  27.3   $  11.5   $ 10.7   $ 11.8   $  6.3    $  2.8   $   82.3
        Property, plant and equipment            70.9      1.5     125.2     193.3     90.4     59.8    100.5        --      641.6
        Goodwill                                   --       --      86.5      65.5     71.4     38.0     31.0        --      292.4
        Deferred charges and other assets         3.2       --       2.0       1.7      1.1      0.1       --        --        8.1
        ---------------------------------------------------------------------------------------------------------------------------
                                                 83.6      3.9     241.0     272.0    173.6    109.7    137.8       2.8    1,024.4
        ---------------------------------------------------------------------------------------------------------------------------
        Current liabilities                       9.7      0.8      16.7       4.0      8.7      2.2      1.8       1.1       45.0
        Long-term liabilities                     8.8      4.2      26.3      86.9     26.1     23.2      1.7       1.6      178.8
        ---------------------------------------------------------------------------------------------------------------------------
                                                 18.5      5.0      43.0      90.9     34.8     25.4      3.5       2.7      223.8
        ---------------------------------------------------------------------------------------------------------------------------
        Net investment in joint ventures     $   65.1  $  (1.1)  $ 198.0   $ 181.1   $138.8   $ 84.3   $134.3    $  0.1   $  800.6
        ---------------------------------------------------------------------------------------------------------------------------
        Cash flow provided from (used in):
        ---------------------------------------------------------------------------------------------------------------------------
          Operating activities               $   30.7  $  (2.2)  $  58.5   $  16.4   $ 14.7   $ 20.6   $  3.2    $   --   $  141.9
        ---------------------------------------------------------------------------------------------------------------------------
          Investing activities               $   (8.3) $  (1.5)  $  (6.0)  $  (5.0)  $ (0.5)  $ (3.1)  $ (2.7)   $ (1.1)  $  (28.2)
        ---------------------------------------------------------------------------------------------------------------------------
          Financing activities               $     --  $    --   $    --   $    --   $ (0.7)  $ (1.5)  $   --    $   --   $   (2.2)
        ---------------------------------------------------------------------------------------------------------------------------
</TABLE>


                                       74
<PAGE>

<TABLE>
<CAPTION>
        ------------------------------------------------------------------------------------------------------------------------
        2002 (a)                                                           Porcupine       Refugio        Kubaka        Total
        ------------------------------------------------------------------------------------------------------------------------
<S>                                                                        <C>             <C>            <C>          <C>
         Metal sales                                                       $    28.5       $    4.3       $  69.2      $  102.0
        ------------------------------------------------------------------------------------------------------------------------
         Cost of sales                                                          21.0            3.0          29.4          53.4
         Accretion                                                               0.3            0.3           0.2           0.8
         Depreciation, depletion and amortization                                7.7             --          17.4          25.1
         Exploration                                                             1.6            0.4           1.3           3.3
         Other operating costs                                                   0.4            0.9            --           1.3
        ------------------------------------------------------------------------------------------------------------------------
                                                                                31.0            4.6          48.3          83.9
        ------------------------------------------------------------------------------------------------------------------------
         Operating earnings (loss)                                         $    (2.5)      $   (0.3)      $  20.9      $   18.1
        ------------------------------------------------------------------------------------------------------------------------
         Current assets                                                          8.2            3.1          46.5          57.8
         Property, plant and equipment                                          74.9             --           9.8          84.7
         Deferred charges and other assets                                       1.5             --           2.9           4.4
        ------------------------------------------------------------------------------------------------------------------------
                                                                                84.6            3.1          59.2         146.9
        ------------------------------------------------------------------------------------------------------------------------
         Current liabilities                                                     5.3            6.0           9.5          20.8
         Long-term liabilities                                                   3.1            5.1           3.8          12.0
        ------------------------------------------------------------------------------------------------------------------------
                                                                                 8.4           11.1          13.3          32.8
        ------------------------------------------------------------------------------------------------------------------------
         Net investment in joint ventures                                  $    76.2       $   (8.0)      $  45.9      $  114.1
        ------------------------------------------------------------------------------------------------------------------------
         Cash flow provided from (used in):
        ------------------------------------------------------------------------------------------------------------------------
           Operating activities                                            $     3.4       $   14.3       $  39.6      $   57.3
        ------------------------------------------------------------------------------------------------------------------------
           Investing activities                                            $    (2.9)      $     --       $  (0.1)     $   (3.0)
        ------------------------------------------------------------------------------------------------------------------------
           Financing activities                                            $      --       $     --       $  (1.6)     $   (1.6)
        ------------------------------------------------------------------------------------------------------------------------
</TABLE>

        (a)     Restated for change in accounting  policy related to Reclamation
                and remediation obligations (see Note 5).

9.      FINANCIAL INSTRUMENTS

        The Company manages its exposure to fluctuations in commodity prices and
        foreign exchange rates by entering into derivative  financial instrument
        contracts  in  accordance  with  the  formal  risk  management  policies
        approved by the Company's Board of Directors.

        COMMODITY RISK MANAGEMENT

        The profitability of the Company is directly related to the market price
        of gold and silver. From time to time, the Company may use spot deferred
        contracts  and fixed  forward  contracts  to hedge  against  the risk of
        falling   commodity  prices  for  a  portion  of  its  forecasted  metal
        production.  Spot  deferred  contracts are forward sale  contracts  with
        flexible delivery dates that enable management to choose to deliver into
        the contract on a specific date or defer  delivery  until a future date.
        However,  if  the  delivery  is  postponed,  a  new  contract  price  is
        established  based on the old contract price plus a premium (referred to
        as "contango").

        From time to time, the Company sells call options as part of its overall
        strategy  of  managing  the risk of changing  metal  prices.  The option
        premium is received at the time call options are sold. If the gold price
        is higher  than the call option  strike  price on the expiry date of the
        option,  Kinross will either sell gold at the strike price of the option
        or enter into a spot deferred  contract  with a starting  price equal to
        the  strike  price of the  option.  If the gold  price is lower than the
        strike price of the call option at expiry, the option expires worthless.

        The Company may also  purchase  gold put options to protect  against the
        risk of the gold price  falling.  The option  premium is paid out at the
        time the put options are purchased.  If the gold price is lower than the
        strike price of the put option on the expiry  date,  gold is sold at the
        strike price of the option.  If the gold price is higher than the strike
        price of the put option, the option expires worthless.

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

<TABLE>
<CAPTION>
        --------------------------------------------------------------------------------------------------
                                                                              PUT OPTIONS
                                                SPOT DEFERRED     AVERAGE          BOUGHT        AVERAGE
        EXPECTED YEAR OF DELIVERY               OUNCES HEDGED       PRICE        (OUNCES)   STRIKE PRICE
        --------------------------------------------------------------------------------------------------
<S>                                                   <C>         <C>             <C>       <C>
        2005                                          200,000     $   452         150,000   $        250
        2006                                               --          --         150,000   $        250
        --------------------------------------------------------------------------------------------------
        Total                                         200,000     $   452         300,000   $        250
        --------------------------------------------------------------------------------------------------
</TABLE>

        As at December 31, 2004, the Company had spot deferred contracts for the
        sale of 200,000  ounces of gold,  which it  delivered  into in the first
        quarter of 2005. While these contracts  provide an economic hedge,  they
        did not qualify for formal


                                       75
<PAGE>

        hedge accounting.  As such, a fair value unrealized gain of $3.0 million
        has been included in revenue for the year ended December 31, 2004.

        As at December 31, 2003, the Company had spot deferred contracts hedging
        the sale of 175,000  ounces with a fair value  unrealized  loss of $24.1
        million.  Since these contracts qualified for hedge accounting this loss
        remained  off  balance  sheet.   Beginning   January  1,  2004,  on  the
        application  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.  In addition,  the unrealized
        loss  of  $24.1  million  of  which  $4.7  million  related  to  2005 is
        recognized in earnings in connection with the original  maturity date of
        the  contracts.  During the year ended  December 31,  2004,  the Company
        delivered 85,000 ounces into these contracts and financially  closed out
        the  remaining  90,000 ounces at a cost of $9.6  million.  However,  for
        accounting  purposes,  the January 1, 2004 deferred loss of $4.7 million
        relating to these contracts  remains deferred on the balance sheet as at
        December 31, 2004, to be recognized into earnings in 2005.

        As at December 31, 2004,  the Company had no gold call options  sold. As
        at December 31, 2003, the Company had 50,000 ounces of written gold call
        options  outstanding  for which the Company had  recorded a $4.0 million
        unrealized loss. During 2004, the Company  financially  closed out these
        gold call  options at a cost of $2.0  million,  resulting  in a realized
        gain of $2.0 million.

        As at December  31,  2004,  the Company  had  purchased  put options for
        300,000  ounces  of gold at a at strike  price of $250 per ounce  (2003-
        450,000  ounces at a strike price of $250 per ounce) and the Company had
        not sought hedge  accounting for the 300,000 ounces of gold put options,
        which were acquired in the combination  with TVX.  Changes in their fair
        value are recorded in current earnings.

        In February 2001, the Company closed out 500,000 ounces of spot deferred
        contracts that were designated as hedges for 2001 to 2004 and realized a
        gain of  $16.6  million  on  proceeds  of  $21.1  million.  The gain was
        deferred  on the  balance  sheet and  recognized  in  earnings  over the
        original  delivery  schedule of the  various  contracts.  In 2004,  $2.3
        million was  recognized  in revenue  (2003 - $2.3  million,  2002 - $4.5
        million) and there is no unamortized amount at December 31, 2004.

        As at  December  31,  2004,  the  Company  has no  derivative  financial
        instruments outstanding relating to silver. As at December 31, 2003, the
        Company had sold  250,000  ounces of silver  forward at a price of $4.92
        per ounce.

        FOREIGN CURRENCY RISK MANAGEMENT

        All sales revenues for the Company are denominated in U.S. dollars.  The
        Company is primarily  exposed to currency  fluctuations  relative to the
        U.S. dollar,  on expenditures  that are denominated in Canadian dollars,
        Russian  rubles,  Chilean  pesos and  Brazilian  real.  These  potential
        currency  fluctuations  could have a  significant  impact on the cost of
        producing gold and thereby, the profitability of the Company.  This risk
        is  reduced,  from time to time,  through  the use of  foreign  exchange
        forward  contracts  to lock in the  exchange  rates  on  future  foreign
        currency  denominated cash outflows.  The Company is also exposed to the
        impact of currency fluctuations on its monetary liabilities. The Company
        does not actively manage this exposure.

        As at December  31,  2004,  the Company  has  foreign  currency  forward
        contracts  to sell U.S.  dollars and buy  Canadian  dollars of CDN $14.3
        million at an average  exchange rate of 1.4322 (2003 - CDN $28.4 million
        at an average  exchange rate of 1.4221).  These contracts  mature over a
        six-month period ending June 30, 2005.

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

<TABLE>
<CAPTION>
        --------------------------------------------------------------------------------------------------------------
                                                  MATURITY
                                               PERIOD (TO THE                   AVERAGE PRICE
                                                    YEAR)           QUANTITY       (C$/USD)           FAIR VALUE
        --------------------------------------------------------------------------------------------------------------
                                                                   (MILLIONS)                         (MILLIONS)
<S>                                                 <C>              <C>            <C>                  <C>
        Fixed forward contracts (CDN$)              2005             $ 10.0         1.4322               $ 1.9
        --------------------------------------------------------------------------------------------------------------
</TABLE>

        The Company uses these fixed  forward  contracts to partially  hedge its
        Canadian  dollar  denominated  general  and  administrative   costs  and
        Canadian mine operating  costs.  During 2004,  the Company  recognized a
        gain of $2.9 million from hedging against movements in the exchange rate
        against the U.S.  dollar  (2003 - gain of $2.0  million,  2002 - loss of
        $0.5 million).  The gain in 2004 has been netted against operating costs
        from the  Company's  Canadian  mines and  against  Canadian  general and
        administrative  expenses.  The 2003 gain and 2002 loss were  recorded in
        earnings as a foreign  exchange  gain or loss.  In  addition,  beginning
        January 1, 2004 hedge  contracts  outstanding  as at December  31, 2003,
        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 as at January 1, 2004 is  recognized in earnings in
        connection  with the  original  maturity  date of the  contracts.  As at
        December  31, 2004,  $0.9  million of this gain remains  deferred on the
        balance sheet to be recognized into earnings in 2005.


                                       76
<PAGE>

        INTEREST RATE RISK MANAGEMENT

        The Company is exposed to interest  rate risk on its variable rate debt.
        There were no interest rate derivative financial instruments outstanding
        as at December 31, 2004 or December 31, 2003. The Company did not engage
        in any interest rate hedging activity during 2002, 2003 or 2004.

        ENERGY PRICE RISK

        The  Company  is  exposed  to changes in crude oil prices as a result of
        diesel fuel consumption,  primarily at its open pit mines. The potential
        fluctuations in crude oil prices could have a significant  impact on the
        cost of producing gold and the profitability of the Company.  While this
        risk may be reduced,  from time to time, through the use of fuel forward
        purchase contracts to lock in future operating costs, as at December 31,
        2004,  the Company had no derivative  financial  instruments in place to
        purchase  fuel. The Company did not engage in any fuel or energy hedging
        activity during 2002, 2003 or 2004.

        CREDIT RISK MANAGEMENT

        Credit risk relates to accounts receivable and derivative  contracts and
        arises from the possibility  that a counterparty to an instrument  fails
        to perform. The Company only transacts with highly-rated  counterparties
        and a limit  on  contingent  exposure  has  been  established  for  each
        counterparty based on the counterparty's  credit rating. At December 31,
        2004,  the  Company's  gross credit  exposure was $34.6  million (2003 -
        $43.6 million).

        FAIR VALUES OF FINANCIAL INSTRUMENTS

        Carrying values for primary  financial  instruments,  including cash and
        cash equivalents,  short-term investments, bullion settlements and other
        accounts receivable, marketable securities, accounts payable and accrued
        liabilities, approximate fair values due to their short-term maturities.
        The carrying value for long-term debt (other than redeemable retractable
        preferred shares)  approximates fair value primarily due to the floating
        rate nature of the debt instruments.

        Fair value estimates for derivative contracts are based on quoted market
        prices for  comparable  contracts  and  represent the amount the Company
        would  have  received  from,  or paid to, a  counterparty  to unwind the
        contract  at the market  rates in effect at December  31. The  following
        table  represents  the fair value gain  (loss)  relating  to  derivative
        contracts outstanding as at December 31:

        ------------------------------------------------------------------------
                                                        2004          2003
        ------------------------------------------------------------------------
        Gold forward sales contracts (a)              $    3.0      $  (24.1)
        Silver forward sales contracts (b)            $     --      $   (0.3)
        Foreign currency contracts (c)                $    1.9      $    1.8
        ------------------------------------------------------------------------

        (a)     Based on a spot gold price of $436 and $417 per ounce as at
                December 31, 2004 and 2003, respectively.
        (b)     Based on a spot silver price of $5.97 per ounce as at December
                31, 2003.
        (c)     Based on a Canadian dollar exchange rate of 1.2036 and 1.2924 at
                December 31, 2004 and 2003, respectively.

10.     LONG-TERM DEBT AND CREDIT FACILITIES

        LONG-TERM DEBT

<TABLE>
<CAPTION>
        ---------------------------------------------------------------------------------------
                                                                          2004         2003
        ---------------------------------------------------------------------------------------
<S>                                                                    <C>           <C>
        Corporate revolving credit facility            Variable        $   105.0     $     --
        Kubaka project-financing debt - EBRD loan      Variable              2.7          2.7
        Fort Knox industrial revenue bonds             Variable               --         25.0
        Fort Knox capital leases                     5.0% - 5.25%            2.1          2.4
        Refugio capital leases                       5.7% - 6.2%            13.1           --
        ---------------------------------------------------------------------------------------
                                                                           122.9         30.1
        Less: current portion                                               (6.0)       (29.4)
        ---------------------------------------------------------------------------------------
        Long-term debt                                                 $   116.9     $    0.7
        ---------------------------------------------------------------------------------------
</TABLE>


                                       77
<PAGE>

        As of December 31, 2004, the long-term debt repayments for each of the
        years ending December 31 are as follows:

<TABLE>
<CAPTION>
        -------------------------------------------------------------------------------------------------------------------------
                                                           2005          2006         2007        2008        2009        TOTAL
        -------------------------------------------------------------------------------------------------------------------------
<S>                                                     <C>           <C>          <C>         <C>          <C>        <C>
        Corporate revolving credit facility             $      --     $      --    $      --   $   105.0    $     --   $  105.0
        Kubaka project-financing debt - EBRD loan             2.7            --           --          --          --        2.7
        Fort Knox capital leases                              1.1           0.3          0.3         0.4          --        2.1
        Refugio capital leases                                2.2           2.4          2.5         2.7         3.3       13.1
        -------------------------------------------------------------------------------------------------------------------------
        Total long-term debt payable                    $     6.0     $     2.7    $     2.8   $   108.1    $    3.3   $  122.9
        -------------------------------------------------------------------------------------------------------------------------
</TABLE>

        (a)     After giving effect to subsequent amendment, see Note 25(b).

        SYNDICATED CREDIT FACILITY

        In February 2003,  immediately  following the business  combination with
        TVX and  Echo  Bay,  Kinross  arranged  a  syndicated  credit  facility,
        comprised of eight banks,  for $125.0  million having a maturity date of
        December  31,  2005.  The  primary  purpose  of this  syndicated  credit
        facility  was to enable  Kinross  to issue  letters of credit to various
        regulatory  agencies to satisfy its  financial  assurance  requirements,
        primarily associated with reclamation related activities.

        In December 2004, the Company  replaced the $125 million credit facility
        with a new  three-year  $200  million  revolving  credit  facility.  The
        Company  borrowed  $105.0  million  under the new  facility to satisfy a
        portion  of the  $261.2  million  cost to  purchase  the  remaining  51%
        interest in the Paracatu mine. The facility also provides credit support
        for   letters   of  credit   issued  to  satisfy   financial   assurance
        requirements.

        The credit  agreement also allows for existing lenders to increase their
        exposure  or new  lenders  to join up to an  aggregate  limit of  $300.0
        million.  As at December  31, 2004 issue costs of $3.0 million have been
        deferred on the balance sheet and will be amortized over the term of the
        new  facility.  This credit  agreement  provides  the Company  with more
        favourable  terms  including  reduced  pricing,  the  release of certain
        security and more flexible  covenants.  The assets of the Fort Knox mine
        and  shares  of  certain  wholly  owned   subsidiaries  are  pledged  as
        collateral for this facility.  The credit agreement can be drawn in U.S.
        or  Canadian  dollars  and  allows  for  up to  seventy  percent  of the
        outstanding  limit to be drawn in gold.  The facility can be extended at
        each of the first two maturity dates by an additional year at the option
        of the lenders.

        Pricing  is  dependent  upon  the  ratio  of the  Company's  net debt to
        operating  cash flow.  Assuming the Company  maintains a leverage  ratio
        less than 1.25 (previously  less than 1.0),  interest charged will be as
        follows:

<TABLE>
<CAPTION>
        ---------------------------------------------------------------------------------------------------------------------
                                                                                           INTEREST RATES IN
                                                                    ---------------------------------------------------------
        TYPE OF CREDIT                                                      NEW CREDIT FACILITY          OLD CREDIT FACILITY
        ---------------------------------------------------------------------------------------------------------------------
<S>                                                                 <C>                                     <C>
        Dollar based Libor loan                                                LIBOR plus 1.00%             LIBOR plus 1.50%
        Letters of credit                                                                 1.00%                        1.50%
        Bullion loan                                                 Gold lease rate plus 1.25%                           --
        Standby fee applicable to unused availability                                     0.25%                        0.30%
        ---------------------------------------------------------------------------------------------------------------------
</TABLE>

        The credit agreement  contains various  covenants that include limits on
        indebtedness,  distributions,  asset  sales and  liens,  although  these
        limits have all been  increased in relation to the old credit  facility.
        Significant  financial covenants include a minimum tangible net worth of
        $727.9 million (2003 - $698.0  million),  an interest  coverage ratio of
        4.5:1.0 (2003 - same),  net debt to operating cash flow of 3.0:1.0 (2003
        - 3.5:1.0), and minimum proven and probable reserves of 6.0 million gold
        equivalent ounces (2003 - 5.0 million).

        KUBAKA PROJECT FINANCING DEBT - EBRD LOAN

        The European Bank for Reconstruction and Development  ("EBRD") continues
        to provide financing to Omolon Gold Mining Company ("Omolon"),  owner of
        the Kubaka mine. As at December 31, 2003,  the remaining  debt was $2.75
        million.  The final  repayment  was  scheduled  for  December  15, 2004,
        however  the  Company  had the  option  of  extending  the  loan  for an
        additional  year. In November 2004, the Company  exercised its option to
        extend the loan to December 15, 2005, at which time the remaining  $2.75
        million is due. Interest on the debt is variable based upon LIBOR and as
        at December 31, 2004 is approximately  6.9% per annum (December 31, 2003
        - 5.6%). Standard default covenants apply to the debt and the EBRD has a
        right of first  refusal on any future  project debt  required by Omolon.
        The assets of Omolon  secure the debt.  In  addition,  the loan is fully
        cash collateralized by a wholly owned subsidiary of Kinross.

        FORT KNOX INDUSTRIAL REVENUE BONDS

        The solid waste disposal facility at the Fort Knox mine was historically
        financed by $71.0 million of tax-exempt  industrial revenue bonds issued
        by the Alaska Development and Export Authority.  The bonds,  maturing in
        May 2009, could be prepaid at any time without  penalty.  As at December
        31,  2003,  $25.0  million  remained  outstanding.  On  January 7, 2004,
        Kinross  repaid  this  outstanding  balance  plus any  accrued  interest
        thereon.  As a  result,  the  letter of  credit  supporting  outstanding
        principle and accrued and unpaid  interest,  issued by Kinross under its
        credit facility, was returned and cancelled.


                                       78
<PAGE>

        CAPITAL LEASES

        The  Company  has  capital  leases at its  Refugio  and Fort Knox mines.
        During the year, the Company  purchased $13.1 million (Kinross share) of
        equipment  under capital  leases at its Refugio mine,  having a weighted
        average  interest  rate of 6.0%.  In addition,  Fort Knox added  capital
        leases of $1.3 million during 2004.  Repayment on these leases runs from
        2005 to 2009. The underlying equipment secures these leases.

        ECHO BAY CREDIT FACILITY

        The Company inherited a $4.0 million cash collateralized credit facility
        in  the  business  combination  with  Echo  Bay.  The  purpose  of  this
        collateralized  credit  facility  was to issue  letters  of  credit to a
        surety  underwriter  who had  underwritten  surety  bonds  on  Echo  Bay
        properties. During 2004, $3.8 million in restricted cash was returned to
        the Company by the financial institution holding the credit facility and
        $0.2  million  was posted  with the surety  underwriter,  replacing  the
        remaining letters of credit.  The financial  institution  simultaneously
        cancelled the credit facility.

11.     RECLAMATION AND REMEDIATION OBLIGATIONS

        The Company's  mining and exploration  activities are subject to various
        laws and regulations for federal,  provincial and various  international
        jurisdictions  governing the protection of the  environment.  These laws
        and  regulations  are  continually  changing.  The Company  conducts its
        operations  so as to protect  the  public  health  and  environment  and
        believes its operations are in compliance  with all applicable  laws and
        regulations.  The Company  has made,  and expects to make in the future,
        expenditures  to  comply  with  such laws and  regulations,  but  cannot
        predict the full amount of such future  expenditures.  Estimated  future
        reclamation   costs  are  based  principally  on  legal  and  regulatory
        requirements.  Reclamation  and remediation  obligations  arise from the
        acquisition,  development,  construction and normal operations of mining
        property, plant and equipment.

        The Company recorded  accretion  expense of $21.4 million,  $9.0 million
        and $1.6 million and depreciation expense of $13.8 million, $8.9 million
        and $0.2 million related to reclamation and remediation  obligations and
        the related asset for the years ended December 31, 2004,  2003 and 2002,
        respectively.   At  December  31,  2004,   reclamation  and  remediation
        obligations were $131.7 million.  The  undiscounted  amount of estimated
        cash flows to settle the  reclamation  and  remediation  obligations  is
        approximately  $163.3  million.  The  majority of the  expenditures  are
        expected to occur from 2005 to 2030. The credit adjusted  risk-free rate
        used in estimating the site  restoration cost obligation was 7% for 2003
        and 6.5% for 2004.

        The following  table provides a  reconciliation  of the  reclamation and
        remediation obligations for the year ended December 31:

<TABLE>
<CAPTION>
        -------------------------------------------------------------------------------------------------
                                                             2004            2003             2002
        -------------------------------------------------------------------------------------------------
<S>                                                        <C>             <C>              <C>
        Balance at January 1,                              $  130.3        $   69.5         $   55.6
          Impact on adoption of section 3110                     --              --             19.7
          Additions resulting from acquisitions (a)             5.4            65.6               --
          Reclamation spending                                (17.9)          (19.3)            (9.8)
          Accretion expense                                    21.4             9.0              1.6
          Foreign exchange                                      0.8             2.3               --
          Asset retirement cost                                (6.7)            3.2              1.8
          Other                                                (1.6)             --              0.6
        -------------------------------------------------------------------------------------------------
        Balance at December 31,                            $  131.7        $  130.3         $   69.5
        -------------------------------------------------------------------------------------------------
</TABLE>

        (a)     Reflects the 2004 acquisition of remaining 51% of Paracatu and
                2003 acquisitions of TVX and Echo Bay as well as the increase in
                ownership of Kubaka.

        The current portions of reclamation and remediation obligations of $23.6
        million and $19.2  million at December 31, 2004 and 2003,  respectively,
        are included in current liabilities.  Regulatory  authorities in certain
        jurisdictions  require that  security be provided to cover the estimated
        reclamation and remediation obligations. While there were no assets that
        were  legally  restricted  for  purposes  of  settling  reclamation  and
        remediation  obligations  as at  December  31,  2004,  letters of credit
        totaling $94.9 million had been issued to various regulatory agencies to
        satisfy financial assurance  requirements for this purpose.  The letters
        of credit were issued against the Company's credit facility.

12.     CONVERTIBLE DEBENTURES

        On  December  5,  1996,  the  Company  issued   unsecured   subordinated
        convertible  debentures  in the  aggregate  principal  amount  of $146.0
        million (CDN $200.0  million).  The debentures bore interest at 5.5% per
        annum,  matured on December 5, 2006, and, at the holders'  option,  were
        convertible  into common shares of the Company at a conversion  price of
        CDN  $40.05 per share,  being a rate of  24.9687  common  shares per CDN
        $1,000  principal  amount of  debentures.  Interest was payable in cash;
        however, the Company had the right to settle the principal amount by the
        issuance of common shares. On or after


                                       79
<PAGE>

        December 31, 2001,  the debentures  were  redeemable at par plus accrued
        and unpaid interest.

        The  debentures  were  being  accounted  for in  accordance  with  their
        substance  and  were  presented  in the  financial  statements  in their
        component parts, measured at their respective fair values at the time of
        issue.  The debt  component had been  calculated as the present value of
        the required  interest payments  discounted at a rate  approximating the
        interest rate that would have been applicable to non-convertible debt at
        the time the debentures were issued.  Interest expense was determined on
        the  debt  component,  such  component  being  reduced  by the  required
        semi-annual interest payments. The difference between the debt component
        and the face value of the debentures  was  classified as equity,  net of
        issuance  costs and adjusted for income taxes.  The equity  component of
        the debentures,  net of the value ascribed to the holders'  option,  was
        increased  over the term to the full face value by  charges to  retained
        earnings (deficit).

        No debentures  were  redeemed in 2002.  On September  29, 2003,  Kinross
        redeemed  all of the  outstanding  convertible  debentures  at par  plus
        accrued  interest.  The total  payment  was $146.8  million  (CDN $198.3
        million),  comprised  of the  principal  amount of $144.8  million  (CDN
        $195.6 million) and accrued interest of $2.0 million (CDN $2.7 million).

        The cost of redemption was allocated based on the respective fair values
        of the  debt  and  equity  components  at the  date of  redemption.  The
        redemption  of the  debentures  resulted in a loss on  redemption of the
        debt  component  of the  debentures  of $1.1  million  and a net gain on
        redemption of the equity  component of the  debentures of $16.5 million.
        The loss on the debt  component was charged  against income and the gain
        on the equity  component was accounted for as an increase in contributed
        surplus.

        As at December 31, 2004 and 2003, the  outstanding  principal  amount of
        the debentures was nil.

13.     REDEEMABLE RETRACTABLE PREFERRED SHARES

        The  redeemable  retractable  preferred  shares  entitle  the  holder to
        receive a CDN $0.80 per share fixed cumulative annual  preferential cash
        dividend,  payable in equal quarterly  installments  and, is entitled at
        any  time  to  convert  all or any  part of the  redeemable  retractable
        preferred shares into common shares on the basis of 2.7518 common shares
        for each redeemable retractable preferred share so converted, subject to
        anti-dilution  adjustments.  The Company may at anytime  redeem,  upon a
        minimum thirty day notice, all or any part of the redeemable retractable
        preferred  shares at a price of CDN  $10.00  per  share,  together  with
        unpaid  dividends  accrued to the date of redemption.  The holder of the
        redeemable  retractable  preferred  shares is  entitled  to require  the
        Company to redeem for cash all or any part of the redeemable retractable
        preferred shares at this price. These redeemable  retractable  preferred
        shares are  outstanding and held by a former senior officer and director
        of the  Company.  As at  December  31,  2004 and  2003,  the  redeemable
        preferred  shares  outstanding  were 311,933 and 384,613,  respectively.
        During  2004,  72,680  redeemable   retractable  preferred  shares  were
        converted into 200,001 common shares of the Company.

14.     CONVERTIBLE PREFERRED SHARES OF SUBSIDIARY COMPANY

        The convertible preferred shares of subsidiary company were comprised of
        1,840,000 shares of $3.75 Series B Convertible Preferred Shares of Kinam
        ("Kinam Preferred Shares").  The Kinam Preferred Shares are exchangeable
        into common  shares of the Company at a  conversion  price of $30.92 per
        share  (equivalent to a conversion rate of 1.6171 common shares for each
        Kinam Preferred Share), subject to adjustment in certain events.

        The Kinam  Preferred  Shares are redeemable at the option of the Company
        at anytime on or after  August 15, 1997,  in whole or in part,  for cash
        initially at a redemption  price of $52.63 per share  declining  ratably
        annually to $50.00 per share on or after August 15,  2004,  plus accrued
        and unpaid dividends.

        Annual cumulative  dividends of $3.75 per share are payable quarterly on
        each  February 15, May 15, August 15 and November 15, as and if declared
        by Kinam's Board of Directors. No dividends were declared or paid on the
        Kinam Preferred Shares during 2004, 2003 or 2002.  Dividend  payments on
        these  shares were  suspended in  accordance  with their terms in August
        2000 and  continue to remain  suspended.  The  cumulative  dividends  in
        arrears  on  the  Kinam   Preferred   Shares  owned  by   non-affiliated
        shareholders  of $3.4  million and $2.7  million as at December 31, 2004
        and 2003,  respectively  have been  accrued and included in the carrying
        value of the convertible  preferred shares of subsidiary company.  These
        convertible   preferred   shares  are  also  considered  as  a  form  of
        non-controlling interests.

        During 2004,  1,722 Kinam  Preferred  Shares were  exchanged  into 2,781
        common shares of the Company. During 2003, 14,700 Kinam Preferred Shares
        were  acquired at $18.00 per share and a further  1,645 Kinam  Preferred
        Shares were  exchanged  into 2,657 common shares of the Company.  During
        2002, the Company  repurchased  670,722 Kinam Preferred Shares at $16.00
        per share and 350 Kinam Preferred  Shares were exchanged into 566 common
        shares of the Company.  There were  205,461,  207,183 and 223,528  Kinam
        Preferred Shares held by non-affiliated  shareholders as at December 31,
        2004, 2003 and 2002,  respectively.  If all the Kinam  Preferred  Shares
        owned by  non-affiliated  shareholders  were  exchanged,  an  additional
        332,251 common shares of the Company would be issued.


                                       80
<PAGE>

15.     COMMON SHARE CAPITAL

        The authorized share capital of the Company is comprised of an unlimited
        number of common shares. A summary of common share transactions for each
        of the years in the  three-year  period  ended  December  31, 2004 is as
        follows:

<TABLE>
<CAPTION>
        ---------------------------------------------------------------------------------------------------------------------
                                                               2004                     2003                     2002
        ---------------------------------------------------------------------------------------------------------------------
                                                      Number of                Number of                Number of
                                                       shares      Amount       shares      Amount       shares      Amount
        ---------------------------------------------------------------------------------------------------------------------
                                                       (000's)        $         (000's)        $         (000's)        $
<S>                                                     <C>       <C>           <C>       <C>            <C>       <C>
        COMMON SHARES
        Balance, January 1, (a)                         345,638   $ 1,774.1     136,201   $ 1,049.1      111,573   $   945.7
        Issued (cancelled):
          Repurchase and cancellation of shares          (1,609)      (11.8)         --          --           --          --
          Reduction of stated capital                        --          --          --      (761.4)          --          --
          Acquisition of TVX                                 --          --      93,931       670.7           --          --
          TVX options assumed                                --          --          --         6.8           --          --
          Acquisition of Echo Bay                            --          --      83,903       599.1           --          --
          Echo Bay options assumed                           --          --          --         1.5           --          --
          Common share offering                              --          --      23,000       145.9       24,333       102.2
          Under employee share purchase plan                218         1.4         138         1.0          158         0.9
          Under stock option and restricted share plan      616         3.2       1,736         6.1          136         0.3
          Expiry of TVX and Echo Bay options                 --        (1.1)         --        (0.4)          --          --
          Expiry of Echo Bay warrants                        --          --          --        (0.2)          --          --
        Conversions:
          Echo Bay warrants                                  --          --       6,727        55.9           --          --
          Kinam Preferred Shares                              3          --           2          --            1          --
          Redeemable retractable preferred shares           200         0.6          --          --           --          --
        ---------------------------------------------------------------------------------------------------------------------
        Balance, December 31,                           345,066   $ 1,766.4     345,638   $ 1,774.1      136,201   $ 1,049.1
        ---------------------------------------------------------------------------------------------------------------------

        COMMON SHARE PURCHASE WARRANTS (b)
        Balance, January 1,                               8,333   $     9.4       8,333   $     9.4           --   $      --
        Issued pursuant to public offering, net              --          --          --          --        8,333         9.4
        Upon acquisition of TVX and Echo Bay                 --          --       6,794        21.0           --          --
        Exercise/expiry of TVX and Echo Bay warrants         --          --      (6,794)      (21.0)          --          --
        ---------------------------------------------------------------------------------------------------------------------
        Balance, December 31,                             8,333   $     9.4       8,333   $     9.4        8,333   $     9.4
        ---------------------------------------------------------------------------------------------------------------------
        Total common share capital                                $ 1,775.8               $ 1,783.5                $ 1,058.5
        ---------------------------------------------------------------------------------------------------------------------
</TABLE>

        (a)     On January 28, 2003, the shareholders of the Company authorized
                the consolidation of one consolidated common share for each
                three old common shares of the issued and outstanding common
                shares of the Company. The consolidation was made effective on
                January 31, 2003. All share capital, share and option data for
                2002 and January 2003 in the accompanying consolidated financial
                statements and notes have been retroactively revised to reflect
                this share consolidation (see Note 4).
        (b)     On December 5, 2002, the Company issued 16.6 million common
                shares and 25.0 million common share purchase warrants, for
                total proceeds, before costs of issue, of $97.7 million. Three
                common share purchase warrants can be exercised on or before
                December 5, 2007 for one common share at an exercise price of
                CDN $15.00. The fair value of the common share purchase warrants
                was $9.4 million.

        On  November  26,  2004,  the  Company  held a  special  meeting  of its
        shareholders  and  approved an amendment  to the  Company's  articles to
        effect a  consolidation  (reverse split) of its common shares on a 100:1
        basis, followed by an immediate  deconsolidation  (split) of such shares
        on a 1:100 basis. The effective date for the  consolidation was December
        5, 2004 and with the  deconsolidation  to follow immediately on December
        6, 2004 to allow  Kinross  common  shares to begin trading under its new
        CUSIP  number.  Shareholders  holding  less  than 100  pre-consolidation
        shares received a cash payment of CDN $9.71 or US $8.19 per share (equal
        to the weighted  average  trading  price per share on the Toronto  Stock
        Exchange  for the  five  trading  days  prior  to  November  26,  2004).
        Shareholders  holding  100 or more  pre-consolidation  shares  were  not
        affected by the  consolidation/deconsolidation  except for the change in
        CUSIP numbers. As a result of this transaction,  the Company repurchased
        1,608,844 of its common shares for $11.8 million.

        During  November 2003, the Company issued 6.7 million common shares from
        treasury  upon  the  exercise  of  Echo  Bay  warrants  assumed  on  the
        acquisition  of Echo Bay resulting in an increase in common share equity
        of $55.9 million. This increase was comprised of $21.0 million being the
        fair value of warrants  assumed at acquisition and $34.9 million of cash
        received on the exercise date.

        On August 28, 2003,  the Company  issued 23.0 million common shares from
        treasury for total  proceeds,  before costs of issue, of $152.5 million.
        The  net  proceeds  from  the  offering  were  used to  redeem  Kinross'
        outstanding 5.5% convertible unsecured subordinated debentures (see Note
        12).


                                       81
<PAGE>

        On January 31, 2003,  the Company issued 93.9 million common shares from
        treasury to effect a  combination  with TVX under a plan of  arrangement
        whereby shareholders of TVX received 2.1667 common shares of the Company
        for each TVX common share. Also pursuant to the arrangement, the Company
        issued 83.9 million  common shares from treasury to effect a combination
        with Echo Bay whereby  shareholders  of Echo Bay received  0.1733 common
        shares of the Company for each Echo Bay common share. The aggregate fair
        value of the  Company's  common  shares  issued  with  respect  to these
        acquisitions was $1,269.8 million (see Note 6). At the same meeting, the
        shareholders  of the Company  approved the  elimination of the Company's
        accumulated  deficit  balance of $761.4  million at  December  31,  2002
        through a reduction in the Company's stated share capital.

        On February 12, 2002,  the Company issued 7.7 million common shares from
        treasury for gross proceeds of $19.5 million.

16.     STOCK-BASED COMPENSATION

        SHARE PURCHASE PLAN

        The Company has an employee share purchase plan whereby employees of the
        Company have an opportunity to purchase  common shares.  The plan allows
        employees  to  contribute  up to a maximum of 10% of their  base  annual
        salary.  In  addition,   the  Company  matches  50%  of  the  employees'
        contributions. Quarterly, the Company issues from treasury common shares
        equal to the employees' contribution and the Company's contribution. The
        common  shares are  purchased  based on the  average of the last  twenty
        trading  sessions  prior to the end of the quarter.  The Company  issued
        217,529,  74,000 and 158,000  common shares during the years ended 2004,
        2003 and 2002, respectively.

        RESTRICTED SHARE PLAN

        On February 15, 2001, the Company  adopted a restricted  share plan. The
        restricted  share plan  provides  that  restricted  share  rights may be
        granted  to  employees,  officers,  directors  and  consultants  of  the
        Company.  A restricted  share right is exercisable into one common share
        entitling  the holder to  acquire  the  common  share for no  additional
        consideration.  Restricted  share rights vest over a three-year  period.
        The  remaining  maximum  number  of  common  shares  issuable  under the
        restricted  share plan is  currently  529,805.  There were  567,464  and
        196,007  restricted  share rights granted and outstanding as at December
        31, 2004 and 2003, respectively.

        DEFERRED SHARE UNIT PLAN

        On October 1, 2003, the Company adopted of a Deferred Share Unit ("DSU")
        Plan for its outside directors.  The DSU plan provides that each outside
        director  receives,  on the date in each  quarter  which is two business
        days following the  publication  by the Company of its earnings  results
        for the previous  quarter,  (or year in the case of the first  quarter),
        that number of DSU's having a value equal to 50% of the  compensation of
        the  outside  director  for the  current  quarter.  The  number of DSU's
        granted  to an outside  director  is based on the  closing  price of the
        Company's  common shares on the Toronto  Stock  Exchange on the business
        day immediately  preceding the date of grant. At such time as an outside
        director  ceases to be a director,  the Company will make a cash payment
        to the outside  director,  equal to the market value of a Kinross common
        share on the date of  departure,  multiplied by the number of DSU's held
        on that  date.  There  were  57,409 and 8,874  DSU's  outstanding  as at
        December 31, 2004 and 2003, respectively.

        STOCK OPTION PLAN

        The  Company  has a  stock  option  plan  for  directors,  officers  and
        employees,  enabling them to purchase common shares. The total number of
        options outstanding at any time cannot exceed 10% of the total number of
        outstanding  common shares.  Each option granted under the plan is for a
        maximum term of five years and options  granted before July 20, 2000 are
        exercisable  as to 33.33% each year,  commencing one year after the date
        of grant.  Options  granted from July 20, 2000 to September 19, 2001 are
        exercisable 50%  immediately  and 50% on or after the first  anniversary
        date of such  grant.  Options  granted to the  Chairman,  President  and
        Directors, subsequent to September 19, 2001 are exercisable as to 33.33%
        each year  commencing one year after the date of grant.  Options granted
        to all other officers and  employees,  subsequent to September 19, 2001,
        are  exercisable as to 50% each year  commencing one year after the date
        of grant.  Effective  November 24, 2003, all options granted pursuant to
        the plan are  exercisable  as to 33.33%  each year  commencing  one year
        after  the  date of  grant.  The  exercise  price is  determined  by the
        Company's Board of Directors at the time the option is granted,  subject
        to regulatory approval and may not be less than the closing market price
        of the common  shares on the last  trading day prior to the grant of the
        option.  The stock  options  outstanding  at December 31, 2004 expire at
        various dates to 2009. As at December 31, 2004, 2,360,813 common shares,
        in  addition  to those  outstanding  at year  end,  were  available  for
        granting of options.

        In November 2001, the CICA issued  Handbook  Section 3870,  "Stock-Based
        Compensation and Other Stock-Based Payments" ("Section 3870"), which was
        revised in November  2003.  Section 3870  establishes  standards for the
        recognition, measurement, and disclosure of stock-based compensation and
        other  stock-based  payments made in exchange for goods and services and
        applies to transactions, including non-reciprocal transactions, in which
        an enterprise grants common shares, stock options or other equity


                                       82
<PAGE>

        instruments,  or incurs  liabilities based on the price of common shares
        or other equity  instruments.  Section 3870  outlines a fair value based
        method of accounting  required for stock-based  transactions,  effective
        January 1, 2002 and applied to awards granted on or after that date.

        A summary  of the status of the stock  option  plan as at  December  31,
        2004, 2003, and 2002, and changes during the years ended on those dates,
        is as follows:

        ------------------------------------------------------------------------
                                                 2004        2003         2002
        ------------------------------------------------------------------------
                                               (000's)     (000's)      (000's)
        Outstanding at January 1,               3,452       3,319        3,916
        Exercised                                (579)     (1,736)        (123)
        Granted                                 1,229         712          535
        Options assumed on acquisition             --       2,116           --
        Cancelled                                (605)       (959)      (1,009)
        ------------------------------------------------------------------------
        Outstanding at December 31,             3,497       3,452        3,319
        ------------------------------------------------------------------------

        The  following  table  summarizes  information  about the stock  options
        outstanding  and exercisable at December 31, 2004 (all per share amounts
        in Canadian dollars):

<TABLE>
<CAPTION>
        -----------------------------------------------------------------------------------------------------------
                                              OPTIONS OUTSTANDING                         OPTIONS EXERCISABLE
                                          ----------------------------------------  -------------------------------
                                                                         WEIGHTED
                                                                         AVERAGE
                                                        WEIGHTED        REMAINING                     WEIGHTED
                                          NUMBER         AVERAGE       CONTRACTUAL     NUMBER         AVERAGE
        RANGE OF EXERCISE PRICES        OUTSTANDING   EXERCISE PRICE       LIFE      EXERCISABLE    EXERCISE PRICE
        -----------------------------------------------------------------------------------------------------------
                                                             ($)         (YEARS)                          ($)
<S>                                      <C>             <C>               <C>          <C>           <C>
          $  1.62  -  $  2.42              568,334       $  2.22           0.6          568,334       $  2.22
          $  2.43  -  $  3.65              329,444       $  2.83           1.8          329,444       $  2.83
          $  3.66  -  $  5.49               95,698       $  4.39           1.7           67,198       $  4.05
          $  5.50  -  $  8.25              609,088       $  5.88           3.2          411,873       $  5.67
          $  8.26  -  $ 12.39            1,644,207       $  8.30           4.6          218,045       $  8.50
          $ 12.40  -  $ 18.60               26,178       $ 13.54           3.8           26,178       $ 13.54
          $ 18.61  -  $ 82.34              223,799       $ 51.49           1.2          223,799       $ 51.49
        -----------------------------------------------------------------------------------------------------------
                                         3,496,748       $  9.07           3.1        1,844,871       $ 10.05
        -----------------------------------------------------------------------------------------------------------
</TABLE>

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

        ------------------------------------------------------------------------
                                                      2004      2003      2002
        ------------------------------------------------------------------------

        Black-Scholes weighted-average assumptions
          Expected dividend yield                      0.0%      0.0%      0.0%
          Expected volatility                         40.4%     68.2%     70.4%
          Risk-free interest rate                      3.2%      3.2%      3.2%
          Expected option life in years                3.5       5.0       5.0

        WEIGHTED AVERAGE FAIR VALUE
          PER STOCK OPTION GRANTED                  $ 3.18    $ 6.31    $ 1.99
        ------------------------------------------------------------------------

17.     EARNINGS (LOSS) PER SHARE

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


                                       83
<PAGE>

<TABLE>
<CAPTION>
        -----------------------------------------------------------------------------------------------------------
        (NUMBER OF COMMON SHARES IN MILLIONS)                                  2004 (a)      2003 (a)      2002 (a)
        -----------------------------------------------------------------------------------------------------------
<S>                                                                            <C>           <C>           <C>
        Basic weighted average shares outstanding:                             346,034       308,559       119,700

        Weighted average shares dilution adjustments:
          Dilutive stock options (b)                                                --            --            --
          Restricted shares                                                         --            --            --
          Echo Bay warrants (d)                                                     --            --            --
        -----------------------------------------------------------------------------------------------------------
        Diluted weighted average shares outstanding                            346,034       308,559       119,700
        -----------------------------------------------------------------------------------------------------------

        Weighted average shares dilution adjustments - exclusions: (c)
          Dilutive stock options                                                    --           487           851
          Restricted shares                                                        230           196            --
          Redeemable preferred shares                                              858         1,058            --
          Kinam Preferred Shares                                                   335           335            --
        -----------------------------------------------------------------------------------------------------------
</TABLE>

        (a)     As a result of the net loss from continuing operations for the
                year ended December 31, 2004, 2003 and 2002, 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 years ended December
                31, 2004, 2003 and 2002 the average share price used was $6.57,
                $7.11 and $5.23 per share, respectively.
        (c)     These adjustments were excluded, as they were anti-dilutive for
                the years ended December 31, 2004, 2003 and 2002, respectively.
        (d)     Echo Bay warrants were exercised during the year ended December
                31, 2003.

18.     INCOME AND MINING TAXES

        The following table shows the recovery of (provision for) income and
        mining taxes:

        ------------------------------------------------------------------------
                                              2004          2003          2002
        ------------------------------------------------------------------------
        INCOME TAXES
        Current
          Canada (a)                       $   (0.5)     $   (0.6)     $   (0.3)
          Foreign                             (17.3)        (16.2)         (6.2)
        Future
          Canada                                 --            --            --
          Foreign                              28.2          11.4            --

        MINING TAXES
          Future - Canada                       1.1           1.3            --
        ------------------------------------------------------------------------
        TOTAL                              $   11.5      $   (4.1)     $   (6.5)
        ------------------------------------------------------------------------

        (a)     Represents Large Corporations Tax.

        The  reconciliation  of the  combined  Canadian  federal and  provincial
        statutory income tax rate to the effective tax rate is as follows:

        ------------------------------------------------------------------------
                                              2004          2003          2002
        ------------------------------------------------------------------------
        Combined statutory income tax rate   (39.1%)       (39.1%)       (40.1%)

        Increase (decrease) resulting from:
          Mining taxes                        (1.4%)        (0.3%)        (0.3%)
          Resource allowance and depletion   (16.3%)        (0.6%)        (5.8%)
          Difference in foreign tax rates    (23.6%)         1.2%        (12.8%)
          Benefit of losses not recognized    64.2%         39.7%        102.1%
          Other                                0.7%            --          2.0%
        ------------------------------------------------------------------------
        Effective tax rate                   (15.5%)         0.9%         45.1%
        ------------------------------------------------------------------------


                                       84
<PAGE>

        The following information summarizes the principal temporary differences
        and the related future tax effect:

        ------------------------------------------------------------------------
                                                           2004         2003
        ------------------------------------------------------------------------
        Future tax assets - gross
        Accrued expenses and other                       $   18.9     $    8.6
        Reclamation and remediation obligations              36.0         34.7
        Alternative minimum tax credits                      11.3         10.4
        Non-capital loss carryforwards                      306.4        324.5
        Inventory capitalization                              0.3          0.4
        Property, plant and equipment                       111.1        104.5
        ------------------------------------------------------------------------
        Gross future tax assets                             484.0        483.1
        Valuation allowance                                (423.5)      (415.3)
        ------------------------------------------------------------------------
                                                             60.5         67.8
        Future tax liabilities - gross
        Property, plant and equipment                       183.6        218.8
        ------------------------------------------------------------------------
        Gross future tax liabilities                        183.6        218.8
        ------------------------------------------------------------------------
        Net future tax liabilities (f)                   $  123.1     $  151.0
        ------------------------------------------------------------------------

        (a)     At December 31, 2004, the Company has Canadian losses carried
                forward of approximately $159.8 million that expire in 2006
                through 2014, including approximately $93.9 million that are
                limited in their deduction to income from specific operations.
        (b)     At December 31, 2004, the Company has U.S. net operating loss
                carry forwards of approximately $627.8 million and alternative
                minimum tax net operating losses of approximately $357.7 million
                expiring in 2005 through 2024. The use of the U.S. loss carry
                forwards will be limited in any given year as a result of
                previous changes in ownership of the Company.
        (c)     At December 31, 2004, the Company has Chilean net operating loss
                carry forwards of approximately $166.1 million that do not
                expire.
        (d)     At December 31, 2004, the Company has Brazilian net operating
                loss carry forwards of approximately $6.8 million that do not
                expire.
        (e)     At December 31, 2004, the Company has Australian net operating
                loss carry forwards of approximately $14.3 million that do not
                expire.
        (f)     Net future tax liabilities is shown net of current future tax
                asset of $0.4 million included within accounts receivable and
                other assets as at December 31, 2004 and a long-term portion of
                future tax asset of $1.5 million as at December 31, 2003.

19.     SEGMENTED INFORMATION

        The  Company  operates  primarily  in  the  gold  mining  industry.  Its
        activities  include  gold  production,  exploration  for  gold  and  the
        acquisition of gold properties.  The Company's primary mining operations
        are in North America,  South America and Russia and are supported by two
        corporate offices, one in Canada and the other in the United States. The
        Company's major product is gold. Segments are operations reviewed by the
        Chief Operating  Decision Maker (Chief  Executive  Officer).  Reportable
        segments are  identified  based on  quantitative  thresholds,  which are
        those operations  whose revenues,  earnings (loss) or assets are greater
        than 10% of the total consolidated  revenues,  earnings (loss) or assets
        of all the  reportable  segments.  In  addition,  the Company  considers
        qualitative  factors,  such as which  operations  are  considered  to be
        significant by the Chief  Operating  Decision  Maker.  Less  significant
        properties  that  are  either  producing  or  in  development  prior  to
        commercial  production  are classified as Other  operations.  Operations
        under care and  maintenance or shutdown  (properties in the  reclamation
        phase), less significant  non-mining operations and other operations not
        meeting these thresholds are included in Corporate and other.

        OPERATING RESULTS BY SEGMENTS:

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


                                       85
<PAGE>

<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                                                      SEGMENT
                                     METAL     COST OF                                                                EARNINGS
                                     SALES    SALES (a)   ACCRETION   DD&A (b)  EXPLORATION   IMPAIRMENT   OTHER (c)   (LOSS)
- --------------------------------------------------------------------------------------------------------------------------------
<S>                                 <C>        <C>         <C>         <C>        <C>           <C>         <C>       <C>
For the year ended December 31, 2004:
OPERATING SEGMENTS
  Fort Knox                         $ 143.9    $  89.2     $  1.3      $ 35.9     $  0.6        $   --      $  0.3    $   16.6
  Kubaka                               53.6       36.4        0.4         6.9        0.4          25.1         2.5       (18.1)
  Round Mountain                      154.1       82.3        1.9        43.3        0.8            --          --        25.8
  La Coipa                             59.0       39.7        0.4        16.8        0.5            --         0.7         0.9
  Crixas                               38.2       12.2        0.1        12.8        0.3            --          --        12.8
  Paracatu (d)                         38.2       20.6        0.5         9.5         --           2.1         2.6         2.9
  Musselwhite                          32.1       21.1        0.1        12.5        2.0            --         0.2        (3.8)
  Porcupine Joint Venture              78.8       44.4        2.3        22.7        3.2            --         0.5         5.7
  Other operations                     78.3       54.2        9.9        11.8        5.3          26.6         6.8       (36.3)
CORPORATE AND OTHER (e)                (9.4)       2.3        4.5        (2.1)       7.3           6.1        46.9       (74.4)
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL                               $ 666.8    $ 402.4     $ 21.4      $170.1     $ 20.4        $ 59.9      $ 60.5    $  (67.9)
- --------------------------------------------------------------------------------------------------------------------------------

<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                                                      SEGMENT
                                     METAL     COST OF                                                                EARNINGS
                                     SALES    SALES (a)   ACCRETION   DD&A (b)  EXPLORATION   IMPAIRMENT   OTHER (c)   (LOSS)
- --------------------------------------------------------------------------------------------------------------------------------
<S>                                 <C>        <C>         <C>         <C>        <C>           <C>         <C>       <C>
For the year ended December 31, 2003:
OPERATING SEGMENTS
  Fort Knox                         $ 136.3    $  90.3     $  0.6      $ 36.0     $  2.4        $   --      $   --    $    7.0
  Kubaka (f)                           60.7       29.9        0.1        16.7        1.3            --         0.7        12.0
  Round Mountain                      131.9       74.9        1.6        45.0        2.1          89.9          --       (81.6)
  La Coipa                             51.5       34.4        0.3        17.9        0.9          68.8          --       (70.8)
  Crixas                               31.9       10.3        0.1        12.3        0.5          42.5          --       (33.8)
  Paracatu (d)                         32.0       18.0        0.5         9.8         --          99.4         1.1       (96.8)
  Musselwhite                          22.5       15.9        0.1        11.2        2.1          53.9         0.2       (60.9)
  Porcupine Joint Venture              83.0       48.9        2.3        24.9        2.5            --         2.9         1.5
  Other operations                     35.6       36.7        2.5         4.7        6.0          24.9        11.0       (50.2)
CORPORATE AND OTHER (e)               (13.5)       2.7        0.9        (5.8)       6.5          32.1        (3.9)      (46.0)
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL                               $ 571.9    $ 362.0     $  9.0      $172.7     $ 24.3        $411.5      $ 12.0    $ (419.6)
- --------------------------------------------------------------------------------------------------------------------------------

<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                                                      SEGMENT
                                     METAL     COST OF                                                                EARNINGS
                                     SALES    SALES (a)   ACCRETION   DD&A (b)  EXPLORATION   IMPAIRMENT   OTHER (c)   (LOSS)
- --------------------------------------------------------------------------------------------------------------------------------
<S>                                 <C>        <C>         <C>         <C>        <C>           <C>         <C>       <C>
For the year ended December 31, 2002:
OPERATING SEGMENTS
  Fort Knox                         $ 131.6    $  99.0     $  0.5      $ 54.9     $  1.2        $   --      $   --    $  (24.0)
  Kubaka                               69.2       28.2        0.2        20.1        1.3            --          --        19.4
  Porcupine Joint Venture              58.3       36.2       (2.4)       16.7        2.3            --         0.8         4.7
  Other Operations                      4.3        3.0        0.3          --        0.4            --         0.9        (0.3)
CORPORATE AND OTHER (e)                (2.4)       3.4        3.0        (6.1)       6.4           0.2         9.6       (18.9)
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL                               $ 261.0    $ 169.8     $  1.6      $ 85.6     $ 11.6        $  0.2      $ 11.3    $  (19.1)
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>

        (a)     Cost of sales excludes accretion, depreciation, depletion and
                amortization.
        (b)     Depreciation, depletion and amortization is referred to as
                "DD&A" in the tables above.
        (c)     Other includes Other operating costs, General and administrative
                expenses and Gain (loss) on disposals of assets.
        (d)     The acquisition of Paracatu was completed on December 31, 2004.
                Therefore, the Company's 49% proportionate share of Paracatu`s
                operating results have been included for the year ended December
                31, 2004.
        (e)     Includes Corporate, shutdown operations and other non-core
                operations.
        (f)     Segment information for the year ended December 31, 2003
                included the Company's portion of Kubaka's financial results
                (54.7% until February 28, 2003 and 100% thereafter).


                                       86
<PAGE>

        SEGMENT ASSETS AND CAPITAL EXPENDITURES:

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

<TABLE>
<CAPTION>
        ----------------------------------------------------------------------------------------------------
                                                SEGMENT ASSETS                  CAPITAL EXPENDITURES
                                           -------------------------   -------------------------------------
                                              AS AT DECEMBER 31,             YEARS ENDED DECEMBER 31,
                                           -------------------------   -------------------------------------
                                               2004        2003           2004         2003        2002
        ----------------------------------------------------------------------------------------------------
<S>                                          <C>        <C>             <C>          <C>         <C>
        OPERATING SEGMENTS
          Fort Knox                          $  284.2   $   261.2       $   58.7     $   26.5    $   14.9
          Kubaka (a)                             50.5        73.3           17.0          1.7         0.1
          Round Mountain                        205.8       241.0            8.8          5.7          --
          La Coipa                              162.3       173.6            1.0          0.5          --
          Crixas                                102.9       109.7            3.6          3.2          --
          Paracatu (b)                          539.1       272.0            5.8          5.2          --
          Musselwhite                           127.0       137.8            3.9          2.7          --
          Porcupine Joint Venture                89.3        83.6           24.5          8.3         6.7
          Other operations                      196.4       117.4           45.5         13.2          --
        CORPORATE AND OTHER (c)                  76.7       324.9            0.7          6.4         0.9
        ----------------------------------------------------------------------------------------------------
        TOTAL                               $ 1,834.2   $ 1,794.5       $  169.5     $   73.4    $   22.6
        ----------------------------------------------------------------------------------------------------
</TABLE>

        (a)     Segment information for the year ended December 31, 2003
                included the Company's portion of Kubaka's financial results
                (54.7% until February 28, 2003 and 100% thereafter).
        (b)     Segment assets reflect the 100% interest in the assets of
                Paracatu as a result of the acquisition of the remaining 51%
                interest in the Paracatu mine.
        (c)     Includes Corporate, shutdown operations and other non-core
                operations. Also includes $14.4 million and $192.2 million in
                cash and cash equivalents held at the Corporate level as at
                December 31, 2004 and December 31, 2003, respectively.

        MINING REVENUES AND PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHICAL
        REGIONS:

<TABLE>
<CAPTION>
        ------------------------------------------------------------------------------------------------------------------------
                                                               MINING REVENUES                     PROPERTY, PLANT & EQUIPMENT
                                                      --------------------------------------     -------------------------------
                                                            YEARS ENDED DECEMBER 31,                   AS AT DECEMBER 31,
                                                      --------------------------------------     -------------------------------
                                                          2004         2003        2002               2004 (a)      2003
        ------------------------------------------------------------------------------------------------------------------------
<S>                                                      <C>          <C>         <C>               <C>            <C>
        GEOGRAPHIC INFORMATION:
        United States                                    $ 335.6      $ 268.2     $ 131.6           $   351.4      $   381.9
        Canada                                             138.4        127.6        55.9               217.8          218.0
        Brazil                                              76.4         63.9          --               547.1          303.1
        Chile                                               62.8         51.5         4.3               117.1           91.9
        Russia                                              53.6         60.7        69.2                 9.0           10.3
        Other                                                 --           --          --                 1.7            5.2
        ------------------------------------------------------------------------------------------------------------------------
        Total                                            $ 666.8      $ 571.9     $ 261.0           $ 1,244.1      $ 1,010.4
        ------------------------------------------------------------------------------------------------------------------------
</TABLE>

        (a)     Property, plant and equipment 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 year ended December
        31,  2004,  sales  to four  customers  totaled  $190.2  million,  $108.5
        million,  $98.5 million, and $88.4 million,  respectively.  For the year
        ended  December  31,  2003,  sales to  three  customers  totaled  $139.9
        million,  $121.4 million and $96.2 million,  respectively.  For the year
        ended December 31, 2002, sales to five customers  totaled $52.1 million,
        $41.3  million,   $35.7  million,   $34.1  million  and  $27.4  million,
        respectively.

20.     EMPLOYEE PENSION AND POST-RETIREMENT BENEFIT PLANS

        DEFINED CONTRIBUTION PENSION AND RETIREMENT PLANS

        The Company  has several  defined  contribution  pension and  retirement
        plans covering  substantially all employees in North America and certain
        foreign  countries.  Under these plans, the Company either contributes a
        set percentage of the  employee's  salary or matches a percentage of the
        employee's   contributions.   The  employees  are  able  to  direct  the
        contributions into a variety of investment funds offered by the plans.

        In 2004,  the Company  adopted an Executive  Retirement  Allowance  Plan
        ("ERAP") to bring the Company's retirement


                                       87
<PAGE>

        arrangements  for  executives in line with industry  standards,  thereby
        assuring   that  the  Company   could   attract  and  retain   qualified
        individuals.  Executives, both in the U.S. and Canada,  participating in
        the ERAP are unable to  participate  in the Company's  other  retirement
        plans.  The  Company  has set up a letter of credit for the ERAP plan of
        $2.6 million.  As of December 31, 2004,  the liability  associated  with
        past  and   current   service  was  $1.9   million  and  $0.9   million,
        respectively.

        The Company's  expense  related to these plans was $6.0 million in 2004,
        $3.9 million in 2003, and $2.0 million in 2002.

        DEFINED BENEFIT PENSION PLANS

        In Canada,  the Company has a defined  benefit pension plan covering the
        former  employees  of the Macassa  mine.  The plan is  currently  in the
        process of being wound up effective  November 30,  2001.  The  Financial
        Services Commission of Ontario approved the wind up report early in 2003
        and benefits were partially  settled in 2003 and 2004. The final wind up
        is being delayed due to the  inability to locate some plan  participants
        to determine  whether  they will  receive  lump sums or annuitize  their
        entitlements. The Company will continue its efforts to locate these plan
        participants  in 2005 to  finalize  the  plan  wind  up.  An  additional
        contribution  of  approximately  $0.5  million to $0.7  million  will be
        necessary  to  allow  all  benefits  to  be  settled.   This  additional
        contribution is dependent on the choice of those plan  participants  who
        have yet to be located  and thus have not  notified  the  Company of the
        form,  annuity or lump sum,  in which they wish to receive  their  final
        benefit. The supplemental contribution has been accounted for in accrued
        liabilities.

        In the United States,  defined  benefit plans cover former  employees of
        the  Candelaria  and DeLamar  mines,  and certain U.S.  employees of the
        mines previously  owned by Kinam.  Prior to the Kinam  acquisition,  all
        employees   in  the  U.S.   employed   by  Kinam   were   covered  by  a
        non-contributory  defined  benefit pension plan. That plan was frozen on
        June  1,1998,  and  all  active  employees  were  transferred  into  the
        Company's defined  contribution pension plan. Benefits under these plans
        are based on either the employees'  compensation  prior to retirement or
        stated  amounts for each year of service with the  Company.  The Company
        makes annual  contributions  to the U.S.  plans in  accordance  with the
        requirements  of the  Employee  Retirement  Income  Security Act of 1974
        (ERISA).

        OTHER BENEFIT PLANS

        The Company provides  certain health care benefits to retired  employees
        in the United  States.  The retiree plan covers the former  employees of
        the  Candelaria  and DeLamar  mines as well as former  Kinam  employees.
        Following the  acquisition of the Candelaria and DeLamar mines in August
        1993,  that  retiree  plan was frozen and  employees  who retired  after
        August 1993, were not eligible to participate in the plan. Following the
        merger  with Kinam in June 1998 that  retiree  plan was also  frozen and
        employees, who retired after June 1998, were not eligible to participate
        in the plan, absent special  circumstances.  The post-retirement  health
        plans are  contributory  in certain  cases  based upon years of service,
        age, and  retirement  date.  The Company  does not fund  post-retirement
        benefits  other than pensions and may modify the plan  provisions at its
        discretion.


                                       88
<PAGE>

        The following  tables  summarize the change in benefit  obligations  and
        fair value of assets as at December 31:

<TABLE>
<CAPTION>
        ----------------------------------------------------------------------------------------------------------------
                                                                DEFINED BENEFIT PLANS             OTHER BENEFITS
                                                             ----------------------------   ----------------------------
                                                                 2004          2003             2004          2003
        ----------------------------------------------------------------------------------------------------------------
<S>                                                            <C>           <C>              <C>           <C>
        CHANGE IN BENEFIT OBLIGATION
          Benefit obligation, beginning of year                $   12.1      $   10.9         $    2.9      $    3.1
            Service costs                                            --            --               --            --
            Interest costs                                          0.7           0.7              0.1           0.2
            Plan participants' contributions                         --            --              0.1           0.1
            Amendments                                               --          (0.3)              --            --
            Actuarial loss (gain)                                   0.7           1.2             (0.2)         (0.1)
          Benefits paid                                            (0.5)         (0.4)            (0.3)         (0.4)
        ----------------------------------------------------------------------------------------------------------------
        Benefit obligation, end of year                        $   13.0      $   12.1         $    2.6      $    2.9
        ----------------------------------------------------------------------------------------------------------------

        CHANGE IN PLAN ASSETS
          Fair value of plan assets, beginning of year         $   10.5      $    9.6         $     --      $     --
            Actual return on plan assets                            0.6           0.9               --            --
            Employer contributions                                   --           0.4              0.2           0.3
            Plan participant contributions                           --            --              0.1           0.1
            Benefits paid                                          (0.5)         (0.4)            (0.3)         (0.4)
        ----------------------------------------------------------------------------------------------------------------
          Fair value of plan assets, end of year               $   10.6      $   10.5         $     --      $     --
        ----------------------------------------------------------------------------------------------------------------

          Funded status                                            (2.4)         (1.6)             2.6          (2.9)
          Unrecognized net actuarial loss                           3.1           2.6               --           0.3
          Unrecognized prior service cost                            --            --               --            --
        ----------------------------------------------------------------------------------------------------------------
          Net amount recognized                                $    0.7      $    1.0         $    2.6      $   (2.6)
        ----------------------------------------------------------------------------------------------------------------
</TABLE>

        The following table summarizes components of net periodic pension
        expense for the years December 31:

<TABLE>
<CAPTION>
        ----------------------------------------------------------------------------------------------------------------
                                                    DEFINED BENEFIT PLANS                      OTHER BENEFITS
                                              ------------------------------------  ------------------------------------
                                                 2004        2003        2002          2004        2003        2002
        ----------------------------------------------------------------------------------------------------------------
<S>                                            <C>         <C>         <C>           <C>         <C>         <C>
        Service cost                           $    --     $    --     $    0.1      $     --    $     --    $     --
        Interest cost                              0.7         0.7          0.8           0.1         0.2         0.2
        Expected return on plan assets            (0.6)       (0.8)        (0.9)           --          --          --
        Amortization of prior service costs         --          --           --            --          --          --
        Amortization of net loss                   0.2         0.1          0.8            --          --          --
        ----------------------------------------------------------------------------------------------------------------
        Net periodic cost                      $   0.3     $    --     $    0.8      $    0.1    $    0.2    $    0.2
        ----------------------------------------------------------------------------------------------------------------
</TABLE>

        The following table summarizes the assumptions used in measuring the
        Company's benefit obligation:

<TABLE>
<CAPTION>
        ----------------------------------------------------------------------------------------------------------------
                                                                DEFINED BENEFIT PLANS             OTHER BENEFITS
                                                             ----------------------------   ----------------------------
                                                                 2004          2003             2004          2003
        ----------------------------------------------------------------------------------------------------------------
<S>                                                            <C>           <C>              <C>           <C>
        Discount rate                                            6.00%         6.00%            6.00%         6.00%
        Expected long-term return on plan assets                 6.00%         6.00%            6.00%         6.00%
        Rate of compensation increase                              n\a           n\a              n\a           n\a
        ----------------------------------------------------------------------------------------------------------------
</TABLE>

        The expected long-term rate of return on assets was determined using a
        weighted average calculation for the various investments of the plans.
        This weighted average is based on the expected yield on bonds, based on
        the Moodys AA year end rate, on current short-term investment rates, the
        yield on cash investments, and for equities, based on current forecasts
        and the plans' historical return on equities. In both 2003 and 2004,
        this weighted average was determined to be 6%.

        The following table summarizes the assumed health care trend rates at
        December 31:

<TABLE>
<CAPTION>
        ----------------------------------------------------------------------------------------------------------------
                                                                                           2004           2003
        ----------------------------------------------------------------------------------------------------------------
<S>                                                                                        <C>            <C>
        Health care cost trend rate assumed for next year                                  10.25%         9.95%
        Rate to which the cost trend rate is assumed to decline (ultimate trend rate)       5.50%         5.50%
        Year that the rate reaches the ultimate trend rate                                   2018          2016
        ----------------------------------------------------------------------------------------------------------------
</TABLE>

        The assumed health care cost trend rates can have a significant effect
        on the amounts reported for the health care plans:


                                       89
<PAGE>

        ------------------------------------------------------------------------
                                                           2004        2003
        ------------------------------------------------------------------------

        Effect on total of service and interest cost
          1% increase                                     $   --      $   --
          1% decrease                                     $   --      $   --
        Effect on post-retirement benefit obligation
          1% increase                                     $ (0.3)     $ (0.3)
          1% decrease                                     $  0.3      $  0.3
        ------------------------------------------------------------------------

        PLAN ASSETS

        The  allocation  of plan  assets is set forth in the  Investment  Policy
        Statement.  The Investment Policy Statement  delegates  authority to the
        Kinross Gold U.S.A.,  Inc. Employee Benefits Committee (the "Committee")
        to maintain and establish  investment  policies  relating to the defined
        benefit and defined contribution pension plans. The Kinross Gold U.S.A.,
        Inc. Board of Directors approves these policies and any changes to these
        policies.

        In  2004,  the  Committee  requested  an  actuarial  evaluation  of  the
        feasibility  and  advisability  of  terminating  the  DeLamar\Candelaria
        Retirement Plan and the Retirement Plan for Non-Exempt Employees of AMAX
        Gold (collectively,  the "Plans") on behalf of Kinross Gold U.S.A., Inc.
        and Kinam Gold,  Inc., the companies that sponsor the respective  Plans.
        The companies,  as sponsor of the respective Plans, ultimately determine
        whether or not to terminate the Plans.  During the evaluation period and
        pending  receipt  of  analysis  regarding   termination  of  the  Plans,
        investments  did  not  conform  to the  written  investment  policy  and
        guidelines established for the Plans. The Plans remained in fixed income
        and cash  positions so as to be in a position to readily  liquidate Plan
        assets in the event a termination  occurred. In November 2004, following
        the conclusion of the  evaluation,  no Plan  terminations  occurred.  In
        light of the determination to continue the Plans, the Committee reviewed
        the asset  allocation and investment  policy in effect and determined to
        recommend changes to the Kinross Gold U.S.A., Inc. Board to provide more
        flexibility  to  address  the  returns  for the  plans in light of their
        on-going  status.  The  Board  approved  the  revised   allocations  and
        investment policy on January 11, 2005. Asset allocations will be altered
        over a prudent  period of time so as to  conform  to the  revised  asset
        allocation and investment policy guidelines.

        The Company has adopted the  following  standards  for the  Committee to
        follow when deciding how to invest the plan assets.

        Assets shall be invested:

        o       In the sole interest of the plan participants and beneficiaries;
        o       With the care, skill, prudence and diligence under the
                circumstances then prevailing that a prudent person acting in
                like capacity and familiar with such matters would use in the
                conduct of an enterprise of a like character and of like aims in
                compliance with Section 404(A) of ERISA, and other applicable
                provisions of ERISA; and
        o       By diversifying the investments so as to minimize the risk of
                large losses as well as provide a reasonable rate of return on
                the assets.

        The following table summarizes the target asset allocation as of
        December 31:

        ------------------------------------------------------------------------
        ASSET CATEGORY                               2004           2003
        ------------------------------------------------------------------------
        Equities                                 40% -   60%    25% -   45%
        Fixed income                             40% -   60%    60% -   70%
        Cash and other investments                0% -   20%     5% -   30%
        ------------------------------------------------------------------------

        The  following   table   summarizes  the  defined   benefit  plan  asset
        weighted-average asset allocation percentages by asset category:

        ------------------------------------------------------------------------
        ASSET CATEGORY                               2004           2003
        ------------------------------------------------------------------------
        Equities                                      24%            22%
        Fixed income                                  54%            73%
        Cash and other investments                    22%             5%
        ------------------------------------------------------------------------


                                       90
<PAGE>

        CONTRIBUTIONS

        The Company has no requirements under ERISA to contribute to its defined
        benefit  pension  plans,  however,  the  Company  has the option to make
        voluntary contributions.  The Company expects to contribute $0.2 million
        to its post-retirement benefit plans in 2005.

        ESTIMATED FUTURE BENEFIT PAYMENTS

        The following table  summarizes the expected future benefit  payments by
        the years indicated:

        -----------------------------------------------------------------------
                                                     DEFINED
                                                     BENEFIT        OTHER
                                                      PLAN         BENEFITS
        -----------------------------------------------------------------------
        2005                                         $   0.3       $    0.2
        2006                                             0.3            0.2
        2007                                             0.4            0.2
        2008                                             0.5            0.2
        2009                                             0.7            0.2
        2010-2014                                    $   3.8       $    0.9
        -----------------------------------------------------------------------

        POST-EMPLOYMENT BENEFITS

        The Company has a number of post-employment plans covering severance and
        disability  income.  At  December  31,  2004  and  2003,  the  Company's
        liability  for  post-employment  benefits  totaled  $6.6  million  ($1.6
        million  in  current  liabilities)  and $5.9  million  ($2.6  million in
        current liabilities), respectively.

21.     OPERATING LEASES

        The  Company  has a  number  of  operating  lease  agreements  primarily
        involving office space. The operating leases for equipment  provide that
        the  Company  may,  after the initial  lease  term,  renew the lease for
        successive  yearly  periods or may  purchase  the  equipment at its fair
        market value. One of the operating leases for office facilities contains
        escalation  clauses for increases in operating costs and property taxes.
        A majority of these leases are  cancelable and are renewable on a yearly
        basis.  Future minimum lease payments  required to meet obligations that
        have  initial or remaining  non-cancelable  lease terms in excess of one
        year as of December 31, 2004 are as follows:

        ------------------------------------------------------------------------
                                                                MINIMUM
                                                                 LEASE
                                                                PAYMENTS
        ------------------------------------------------------------------------
        2005                                                    $    1.9
        2006                                                         1.4
        2007                                                         1.3
        2008                                                         0.7
        2009                                                         0.6
        Thereafter                                                   0.6
        ------------------------------------------------------------------------
        Total                                                   $    6.5
        ------------------------------------------------------------------------

        Rent expense was $2.1 million, $3.1 million and $0.5 million in 2004,
        2003 and 2002, respectively.


                                       91
<PAGE>

22.     DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED
        ACCOUNTING PRINCIPLES

The  consolidated  financial  statements  have been prepared in accordance  with
Canadian generally  accepted  accounting  principles ("CDN GAAP"),  which differ
from those  principles that the Company would have followed had its consolidated
financial  statements  been  prepared  in  accordance  with  generally  accepted
accounting  principles in the United States ("U.S. GAAP").  Financial statements
prepared in  accordance  with U.S.  GAAP have been  restated  for the  following
items:

        1.      Convertible debentures (see a);
        2.      Hedging relationships (see e); and
        3.      Asset retirement obligations (see j).

Material  variations  between  financial  statement items under CDN GAAP and the
amounts determined using U.S. GAAP are as follows:


                                       92
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEETS                                         Elimination of  Property, plant                      Gains on
As at December 31, 2004                                                 effects of    and equipment                    marketable
                                                                   recognizing the   & amortization    Reversal of     securities
                                                                  equity component      differences       1991 and            and
                                                          Under     of convertible    from applying   2003 Deficit      long-term
                                                       CDN GAAP         debentures         SFAS 121   eliminations    investments
                                                   -------------  ----------------- ---------------  ------------- --------------
                                                                                (a)             (b)            (c)            (d)
<S>                                                  <C>            <C>                 <C>              <C>            <C>
ASSETS
 Current assets
   Cash and cash equivalents                         $     47.9     $        --         $      --        $     --       $    --
   Restricted cash                                          1.4              --                --              --            --
   Short-term investments                                   5.7              --                --              --            --
   Accounts receivable and other assets                    40.9              --                --              --            0.1
   Inventories                                            111.0              --                --              --            --
                                                     ----------     -----------         ---------        ---------      --------
                                                          206.9              --                --              --            0.1

 Property, plant and equipment                          1,244.1              --             (24.4)             --            --
 Goodwill                                                 329.9              --                --              --            --
 Long-term investments                                     25.7              --                --              --            5.5
 Deferred charges and other long-term assets               27.6              --                --              --            --
                                                     ----------     -----------         ---------        --------       --------
                                                     $  1,834.2     $        --         $   (24.4)       $    --        $    5.6
                                                     ==========     ===========         =========        ========       ========
LIABILITIES
 Current liabilities
   Accounts payable and accrued liabilities          $    143.2     $        --         $      --        $     --       $    --
   Current portion of long-term debt                        6.0              --                --              --            --
   Current portion of reclamation and remediation
      obligations                                          23.6              --                --              --            --
                                                     ----------     -----------         ---------        --------       --------
                                                          172.8              --                --              --            --

 Long-term debt                                           116.9              --                --              --            --
 Reclamation and remediation obligations                  108.1              --                --              --            --
 Future income and mining taxes                           123.5              --                --              --            --
 Other long-term liabilities                                9.5              --                --              --            --
 Redeemable retractable preferred shares                    2.6              --                --              --            --
                                                     ----------     -----------         ---------        --------       --------
                                                          533.4              --                --              --            --
                                                     ----------     -----------         ---------        --------       --------
NON-CONTROLLING INTEREST                                    0.4
                                                     ----------     -----------         ---------        --------       --------
CONVERTIBLE PREFERRED SHARES OF SUBSIDIARY COMPANY         13.3              --                --              --            --
                                                     ----------     -----------         ---------        --------       --------
COMMON SHAREHOLDERS' EQUITY
 Common share capital and common share purchase
    warrants                                            1,775.8              --                --           766.7            --
 Contributed surplus                                       33.9           (16.5)               --              --            --
 Accumulated deficit                                     (521.4)           16.5             (24.4)         (766.7)           --
 Cumulative translation adjustments                        (1.2)             --                --              --            --
 Other comprehensive income (loss)                           --              --                --              --            5.6
                                                     ----------     -----------         ---------        --------       --------
                                                        1,287.1              --             (24.4)             --            5.6
                                                     ----------     -----------         ---------        --------       --------
                                                     $  1,834.2     $        --         $   (24.4)       $     --       $    5.6
                                                     ==========     ===========         =========        ========       ========
</TABLE>


                                                                      93
<PAGE>
<TABLE>
<CAPTION>

CONSOLIDATED BALANCE SHEETS
As at December 31, 2004
(CONTINUED)

                                                                                        Reclassi-                 Restatement
                                                                                      fication of                   to equity
                                                                             Flow      cumulative                 account for
                                                          Effect of       through     translation  To adjust to investment in
                                                           SFAS 133        shares     adjustments  equity basis      Echo Bay
                                                    --------------- -------------  -------------- ------------- -------------
                                                                (e)           (f)            (h)            (i)           (d)
<S>                                                 <C>             <C>            <C>            <C>            <C>
ASSETS
 Current assets
   Cash and cash equivalents                        $          --   $        --    $       ---    $        --    $       --
   Restricted cash                                             --            --             --             --            --
   Short-term investments                                      --            --             --             --            --
   Accounts receivable and other assets                      (4.7)           --             --             --            --
   Inventories                                                 --            --             --             --            --
                                                    -------------  ------------   ------------   ------------   -----------
                                                             (4.7)           --             --             --            --

 Property, plant and equipment                                 --            --             --             --            --
 Goodwill                                                      --            --             --             --          40.8
 Long-term investments                                         --            --             --             --            --
 Deferred charges and other long-term assets                   --            --             --             --            --
                                                    --------------  ------------   ------------   ------------   -----------
                                                    $        (4.7)  $        --    $        --    $        --    $     40.8
                                                    ==============  ============   ============   ============   ===========

LIABILITIES
 Current liabilities
   Accounts payable and accrued liabilities         $          --   $        --    $        --    $        --    $       --
   Current portion of long-term debt                           --            --             --             --            --
   Current portion of reclamation and remediation
      obligations                                              --            --             --             --            --
                                                     --------------  ------------   ------------   ------------   -----------
                                                               --            --             --             --            --

 Long-term debt                                                --            --             --             --            --
 Reclamation and remediation obligations                       --            --             --             --            --
 Future income and mining taxes                                --            --             --             --            --
 Other long-term liabilities                                   --            --             --             --            --
 Redeemable retractable preferred shares                       --            --             --             --            --
                                                    --------------  ------------   ------------   ------------   -----------
                                                               --            --             --             --            --
                                                    --------------  ------------   ------------   ------------   -----------
NON-CONTROLLING INTEREST                                       --            --             --             --            --
                                                    --------------  ------------   ------------   ------------   -----------
CONVERTIBLE PREFERRED SHARES OF SUBSIDIARY COMPANY             --            --             --             --            --
                                                    --------------  ------------   ------------   ------------   -----------
COMMON SHAREHOLDERS' EQUITY
 Common share capital and common share purchase
    warrants                                                   --          (1.1)            --             --            --
 Contributed surplus                                           --            --             --             --            --
 Accumulated deficit                                         (4.7)          1.1             --             --          40.8
 Cumulative translation adjustments                            --            --            1.2             --            --
 Other comprehensive income (loss)                             --            --           (1.2)            --            --
                                                    --------------  ------------   ------------   ------------   -----------
                                                             (4.7)           --             --             --          40.8
                                                    --------------  ------------   ------------   ------------   -----------
                                                    $        (4.7)  $        --    $        --    $        --    $     40.8
                                                    ==============  ============   ============   ============   ===========
</TABLE>


                                                                94
<PAGE>
<TABLE>
<CAPTION>

CONSOLIDATED BALANCE SHEETS
As at December 31, 2004
(CONTININUED)

                                                         Minimum
                                                         pension       Goodwill     Stock-based        Under
                                                       liability     impairment    compensation    U.S. GAAP
                                                   -------------   ------------   -------------  ----------
                                                             (k)            (l)           (m)
<S>                                                <C>             <C>            <C>            <C>
ASSETS
 Current assets
   Cash and cash equivalents                       $         --    $        --    $       --     $     47.9
   Restricted cash                                           --             --            --            1.4
   Short-term investments                                    --             --            --            5.7
   Accounts receivable and other assets                      --             --            --           36.3
   Inventories                                               --             --            --          111.0
                                                   -------------   ------------   -----------    -----------
                                                             --             --            --          202.3

 Property, plant and equipment                               --             --            --        1,219.7
 Goodwill                                                    --          (40.2)           --          330.5
 Long-term investments                                       --             --            --           31.2
 Deferred charges and other long-term assets                 --             --            --           27.6
                                                   -------------   ------------   -----------    -----------
                                                   $         --    $     (40.2)   $       --     $  1,811.3
                                                   =============   ============   ===========    ===========
LIABILITIES
 Current liabilities
   Accounts payable and accrued liabilities        $         --    $        --    $       --     $    143.2
   Current portion of long-term debt                         --             --            --            6.0
   Current portion of reclamation and remediation
      obligations                                            --             --            --           23.6
                                                   -------------   ------------   -----------    -----------
                                                             --             --            --          172.8

 Long-term debt                                              --             --            --          116.9
 Reclamation and remediation obligations                     --             --            --          108.1
 Future income and mining taxes                              --             --            --          123.5
 Other long-term liabilities                                3.3             --            --           12.8
 Redeemable retractable preferred shares                     --             --            --            2.6
                                                   -------------   ------------   -----------    -----------
                                                            3.3             --            --          536.7
                                                   -------------   ------------   -----------    -----------
NON-CONTROLLING INTEREST                                     --             --            --            0.4
                                                   -------------   ------------   -----------    -----------
CONVERTIBLE PREFERRED SHARES OF SUBSIDIARY COMPANY           --             --            --           13.3
                                                   -------------   ------------   -----------    -----------
COMMON SHAREHOLDERS' EQUITY
 Common share capital and common share purchase
    warrants                                                 --             --            --        2,541.4
 Contributed surplus                                         --             --          (2.5)          14.9
 Accumulated deficit                                         --          (40.2)          2.5       (1,296.5)
 Cumulative translation adjustments                          --             --            --             --
 Other comprehensive income (loss)                         (3.3)            --            --            1.1
                                                   -------------   ------------   -----------    -----------
                                                           (3.3)         (40.2)           --        1,260.9
                                                   -------------   ------------   -----------    -----------
                                                   $         --    $     (40.2)   $       --     $  1,811.3
                                                   =============   ============   ===========    ===========
</TABLE>


                                                      95
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEETS                                         ELIMINATION OF  PROPERTY, PLANT                      GAINS ON
As at December 31, 2003                                                 EFFECTS OF    AND EQUIPMENT                    MARKETABLE
                                                                   RECOGNIZING THE   & AMORTIZATION    REVERSAL OF     SECURITIES
                                                                  EQUITY COMPONENT      DIFFERENCES       1991 AND            AND
                                                          UNDER     OF CONVERTIBLE    FROM APPLYING   2003 DEFICIT      LONG-TERM
                                                       CDN GAAP         DEBENTURES         SFAS 121   ELIMINATIONS    INVESTMENTS
                                                   -------------  ----------------- ---------------  ------------- --------------
                                                                                (a)             (b)            (c)            (d)
<S>                                                  <C>            <C>                 <C>              <C>            <C>
ASSETS
 Current assets
   Cash and cash equivalents                         $    245.8     $        --         $      --        $     --       $    --
   Restricted cash                                          5.1              --                --              --            --
   Accounts receivable and other assets                    42.2              --                --              --            0.3
   Inventories                                            109.2              --                --              --            --
                                                     ----------     -----------         ---------        ---------      --------
                                                          402.3              --                --              --            0.3

 Property, plant and equipment                          1,010.4              --             (28.2)             --            --
 Goodwill                                                 342.3              --                --              --            --
 Future income and mining taxes                             1.5              --                --              --            --
 Long-term investments                                      2.1              --                --              --            6.9
 Deferred charges and other long-term assets               35.9              --                --              --            --
                                                     ----------     -----------         ---------        --------       --------
                                                     $  1,794.5     $        --         $   (28.2)       $    --        $    7.2
                                                     ==========     ===========         =========        ========       ========
LIABILITIES
 Current liabilities
   Accounts payable and accrued liabilities          $    101.9     $        --         $      --        $     --       $    --
   Current portion of long-term debt                       29.4              --                --              --            --
   Current portion of reclamation and remediation
      obligations                                          19.2              --                --              --            --
                                                     ----------     -----------         ---------        --------       --------
                                                          150.5              --                --              --            --

 Long-term debt                                             0.7              --                --              --            --
 Reclamation and remediation obligations                  111.1              --                --              --            --
 Future income and mining taxes                           152.5              --                --              --            --
 Other long-term liabilities                                6.9              --                --              --            --
 Redeemable retractable preferred shares                    3.0              --                --              --            --
                                                     ----------     -----------         ---------        --------       --------
                                                          424.7              --                --              --            --
                                                     ----------     -----------         ---------        --------       --------
NON-CONTROLLING INTEREST                                    0.7
                                                     ----------     -----------         ---------        --------       --------
CONVERTIBLE PREFERRED SHARES OF SUBSIDIARY COMPANY         12.6              --                --              --            --
                                                     ----------     -----------         ---------        --------       --------
COMMON SHAREHOLDERS' EQUITY
 Common share capital and common share purchase
    warrants                                            1,783.5              --                --           766.7            --
 Contributed surplus                                       30.0           (16.5)               --              --            --
 Accumulated deficit                                     (455.8)           16.5             (28.2)         (766.7)           --
 Cumulative translation adjustments                        (1.2)             --                --              --            --
 Other comprehensive income (loss)                           --              --                --              --            7.2
                                                     ----------     -----------         ---------        --------       --------
                                                        1,356.5              --             (28.2)             --            7.2
                                                     ----------     -----------         ---------        --------       --------
                                                     $  1,794.5     $        --         $   (28.2)       $     --       $    7.2
                                                     ==========     ===========         =========        ========       ========

</TABLE>

                                                                      96
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEETS
As at December 31, 2003
(CONTINUED)

                                                                                        RECLASSI-                 RESTATEMENT
                                                                                      FICATION OF                   TO EQUITY
                                                                             FLOW      CUMULATIVE                 ACCOUNT FOR
                                                          EFFECT OF       THROUGH     TRANSLATION  TO ADJUST TO INVESTMENT IN
                                                           SFAS 133        SHARES     ADJUSTMENTS  EQUITY BASIS      ECHO BAY
                                                    --------------- -------------  -------------- ------------- -------------
                                                                (e)           (f)            (h)            (i)           (d)
<S>                                                 <C>             <C>            <C>            <C>            <C>
ASSETS
 Current assets
   Cash and cash equivalents                        $          --   $        --    $       ---    $        --    $       --
   Restricted cash                                             --            --             --             --            --
   Accounts receivable and other assets                        --            --             --             --            --
   Inventories                                                 --            --             --             --            --
                                                    -------------  ------------   ------------   ------------   -----------
                                                               --            --             --             --            --

 Property, plant and equipment                                 --            --             --             --            --
 Goodwill                                                      --            --             --             --          40.8
 Future income and mining taxes
 Long-term investments                                         --            --             --             --            --
 Deferred charges and other long-term assets                   --            --             --             --            --
                                                    --------------  ------------   ------------   ------------   -----------
                                                    $          --   $        --    $        --    $        --    $     40.8
                                                    ==============  ============   ============   ============   ===========

LIABILITIES
 Current liabilities
   Accounts payable and accrued liabilities         $         22.7  $        --    $        --    $        --    $       --
   Current portion of long-term debt                           --            --             --             --            --
   Current portion of reclamation and remediation
      obligations                                              --            --             --             --            --
                                                     --------------  ------------   ------------   ------------   -----------
                                                    $         22.7           --             --             --            --

 Long-term debt                                                --            --             --             --            --
 Reclamation and remediation obligations                       --            --             --             --            --
 Future income and mining taxes                                --            --             --             --            --
 Other long-term liabilities                                  (2.2)          --             --             --            --
 Redeemable retractable preferred shares                       --            --             --             --            --
                                                    --------------  ------------   ------------   ------------   -----------
                                                              20.5           --             --             --            --
                                                    --------------  ------------   ------------   ------------   -----------
NON-CONTROLLING INTEREST                                       --            --             --             --            --
                                                    --------------  ------------   ------------   ------------   -----------
CONVERTIBLE PREFERRED SHARES OF SUBSIDIARY COMPANY             --            --             --             --            --
                                                    --------------  ------------   ------------   ------------   -----------
COMMON SHAREHOLDERS' EQUITY
 Common share capital and common share purchase
    warrants                                                   --          (1.1)            --             --            --
 Contributed surplus                                           --            --             --             --            --
 Accumulated deficit                                        (20.8)          1.1             --             --          40.8
 Cumulative translation adjustments                            --            --            1.2             --            --
 Other comprehensive income (loss)                            0.3            --           (1.2)            --            --
                                                    --------------  ------------   ------------   ------------   -----------
                                                            (20.5)           --             --             --          40.8
                                                    --------------  ------------   ------------   ------------   -----------
                                                    $          --   $        --    $        --    $        --    $     40.8
                                                    ==============  ============   ============   ============   ===========
</TABLE>


                                                                97
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEETS
AS AT DECEMBER 31, 2003
(CONTINUED)

                                                         MINIMUM
                                                         PENSION       GOODWILL     STOCK-BASED       UNDER
                                                       LIABILITY     IMPAIRMENT    COMPENSATION   U.S. GAAP
                                                   -------------   ------------   -------------  ----------
                                                             (k)            (l)           (m)
<S>                                                <C>             <C>            <C>            <C>
ASSETS
 Current assets
   Cash and cash equivalents                       $         --    $        --    $       --     $    245.8
   Restricted cash                                           --             --            --            5.1
   Accounts receivable and other assets                      --             --            --           42.5
   Inventories                                               --             --            --          109.2
                                                   -------------   ------------   -----------    -----------
                                                             --             --            --          402.6

 Property, plant and equipment                               --             --            --          982.2
 Goodwill                                                    --          (40.2)           --          342.9
 Future income and mining taxes                              --             --            --            1.5
 Long-term investments                                       --             --            --            9.0
 Deferred charges and other long-term assets                 --             --            --           35.9
                                                   -------------   ------------   -----------    -----------
                                                   $         --    $     (40.2)   $       --     $  1,774.1
                                                   =============   ============   ===========    ===========
LIABILITIES
 Current liabilities
   Accounts payable and accrued liabilities        $         --    $        --    $       --     $    124.6
   Current portion of long-term debt                         --             --            --           29.4
   Current portion of reclamation and remediation
      obligations                                            --             --            --           19.2
                                                   -------------   ------------   -----------    -----------
                                                             --             --            --          173.2

 Long-term debt                                              --             --            --            0.7
 Reclamation and remediation obligations                     --             --            --          111.1
 Future income and mining taxes                              --             --            --          152.5
 Other long-term liabilities                                3.1             --            --            7.8
 Redeemable retractable preferred shares                     --             --            --            3.0
                                                   -------------   ------------   -----------    -----------
                                                            3.1             --            --          448.3
                                                   -------------   ------------   -----------    -----------
NON-CONTROLLING INTEREST                                     --             --            --            0.7
                                                   -------------   ------------   -----------    -----------
CONVERTIBLE PREFERRED SHARES OF SUBSIDIARY COMPANY           --             --            --           12.6
                                                   -------------   ------------   -----------    -----------
COMMON SHAREHOLDERS' EQUITY
 Common share capital and common share purchase
    warrants                                                 --             --            --        2,549.1
 Contributed surplus                                         --             --            --           13.5
 Accumulated deficit                                         --          (40.2)           --       (1,253.3)
 Cumulative translation adjustments                          --             --            --             --
 Other comprehensive income (loss)                         (3.1)            --            --            3.2
                                                   -------------   ------------   -----------    -----------
                                                           (3.1)         (40.2)           --        1,312.5
                                                   -------------   ------------   -----------    -----------
                                                   $         --    $     (40.2)   $       --     $  1,774.1
                                                   =============   ============   ===========    ===========
</TABLE>


                                       98
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF OPERATIONS                                             RECOGNITION   ELIMINATION OF   PROPERTY, PLANT
FOR THE YEAR ENDED DECEMBER 31, 2004                                              OF DEFERRED       EFFECTS OF     AND EQUIPMENT
                                                                                     EXCHANGE  RECOGNIZING THE    & AMORTIZATION
                                                                                 GAINS/LOSSES  QUITY COMPONENT       DIFFERENCES
                                                                       UNDER   ON CONVERTIBLE   OF CONVERTIBLE     FROM APPLYING
                                                                    CDN GAAP       DEBENTURES       DEBENTURES          SFAS 121
                                                                -------------  --------------  ---------------   ---------------
                                                                                         (a)              (a)            (b)
<S>                                                                 <C>             <C>            <C>                <C>
REVENUE AND OTHER OPERATING INCOME
 Metal sales                                                        $   666.8       $   --         $   --             $  --
                                                                    ---------       ------         ------             -----

OPERATING COSTS AND EXPENSES
  Cost of sales (excludes accretion, depreciation,
   depletion and amortization)                                          402.4           --             --                --
  Accretion                                                              21.4           --             --                --
  Depreciation, depletion and amortization                              170.1           --             --              (3.8)
                                                                    ---------       ------         ------             -----
                                                                         72.9           --             --               3.8
  Other operating expenses                                               25.8           --             --                --
  Exploration and business development                                   20.4           --             --                --
  General and administrative                                             36.4           --             --                --
  Impariment charges:
    Goodwill                                                             12.4           --             --                --
    Property, plant and equipment                                        46.1           --             --                --
    Investments                                                           1.4           --             --                --
  Gain on disposal of assets                                             (1.7)                                           --
                                                                    ---------       ------         ------             -----
OPERATING LOSS                                                          (67.9)          --             --               3.8
                                                                    ---------       ------         ------             -----

  Other income (expense) - net                                           (6.2)          --             --                --
                                                                    ---------       ------         ------             -----
LOSS BEFORE TAXES AND OTHER ITEMS                                       (74.1)          --             --               3.8
                                                                    ---------       ------         ------             -----

  Income and mining taxes recovery                                       11.5                                            --
  Non-controlling interest                                                0.3           --             --                --
  Dividends on convertible preferred shares
      of subsidiary company                                              (0.8)                                           --
                                                                    ---------       ------         ------             -----

NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS                        $   (63.1)      $   --         $   --             $ 3.8
                                                                    =========       ======         ======             =====

LOSS PER SHARE
  Basic and diluted                                                 $   (0.18)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (MILLIONS)
  Basic and diluted                                                     346.0
</TABLE>


                                                              99
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2004
(CONTINUED)

                                                                             GAINS ON                                  RECLASSI-
                                                        REVERSAL OF        MARKETABLE                                FICATION OF
                                                           1991 AND     SECURTIES AND                       FLOW      CUMULATIVE
                                                       2003 DEFICIT         LONG-TERM     EFFECT OF       THROUGH    TRANSLATION
                                                       ELIMINATIONS       INVESTMENTS      SFAS 133        SHARES    ADJUSTMENTS
                                                       ------------     -------------    ---------- -------------  --------------
                                                             (c)                 (d)            (e)           (f)            (h)
<S>                                                     <C>              <C>              <C>            <C>           <C>
REVENUE AND OTHER OPERATING INCOME
 Metal sales                                            $    --          $    --          $  17.5        $ --          $ --
                                                        --------         --------         --------       -----         -----

OPERATING COSTS AND EXPENSES
  Cost of sales (excludes accretion, depreciation,
   depletion and amortization)                               --               --             --             --            --
  Accretion                                                  --               --             --             --            --
  Depreciation, depletion and amortization                   --               --             --             --            --
                                                        -------          --------         --------       -----         -----
                                                             --               --             17.5           --            --
  Other operating expenses                                   --               --             --             --            --
  Exploration and business development                       --               --             --             --            --
  General and administrative                                 --               --             --             --            --
  Impariment charges:
    Goodwill                                                 --               --             --             --            --
    Property, plant and equipment                            --               --             --             --            --
    Investments                                              --               --             --             --            --
  Gain on disposal of assets                                 --               --             --             --            --
                                                        -------          -------          -------       ------         -----
OPERATING LOSS                                               --               --             17.5           --            --
                                                        -------          -------          --------       -----         -----

  Other income (expense) - net                               --               --             (1.4)          --            --
                                                        -------          -------          --------       -----         -----
LOSS BEFORE TAXES AND OTHER ITEMS                            --               --             16.1           --            --
                                                        -------          -------          --------       -----         -----

  Income and mining taxes recovery                           --               --              --            --            --
  Non-controlling interest                                   --               --              --            --            --
  Dividends on convertible preferred shares
      of subsidiary company                                  --               --              --            --            --
                                                        -------          -------          --------       -----         -----

NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS            $   --           $   --           $  16.1        $ --          $ --
                                                        ======           ======           =======        =====         =====

LOSS PER SHARE
  Basic and diluted
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (MILLIONS)
  Basic and diluted
</TABLE>


                                                             100
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2004
(CONTINUED)

                                                                         Restatement
                                                                           to equity
                                                                         account for
                                                         To adjust to  investment in     Effect of       Goodwill          Under
                                                         equity basis       Echo Bay      SFAS 143     impairment      U.S. GAAP
                                                        ------------- -------------- -------------  ------------- --------------
                                                                 (i)            (d)           (j)            (l)
<S>                                                          <C>            <C>           <C>            <C>           <C>
REVENUE AND OTHER OPERATING INCOME
 Metal sales                                                 $ --           $ --          $ --           $ --          $  684.3
                                                             -----          -----         -----          -----         --------

OPERATING COSTS AND EXPENSES
  Cost of sales (excludes accretion, depreciation,
   depletion and amortization)                                  --            --            --             --             402.4
  Accretion                                                     --            --            --             --              21.4
  Depreciation, depletion and amortization                      --            --            --             --             166.3
                                                             -----          ----          ----           ----           --------
                                                                --            --            --             --              94.2
  Other operating expenses                                      --            --            --             --              25.8
  Exploration and business development                          --            --            --             --              20.4
  General and administrative                                    --            --            --             --              36.4
  Impariment charges:
    Goodwill                                                    --            --            --             --              12.4
    Property, plant and equipment                               --            --            --             --              46.1
    Investments                                                 --            --            --             --               1.4
  Gain on disposal of assets                                    --            --            --             --              (1.7)
                                                             -----         -----          ----           ----          --------
OPERATING LOSS                                                  --            --            --             --             (46.6)
                                                             -----         -----          ----           ----          --------

  Other income (expense) - net                                  --            --            --             --              (7.6)
                                                             -----         -----          ----           ----          --------
LOSS BEFORE TAXES AND OTHER ITEMS                               --            --            --             --             (54.2)
                                                             -----         -----          ----           ----          --------

  Income and mining taxes recovery                             --            --             --             --              11.5
  Non-controlling interest                                     --            --             --             --               0.3
  Dividends on convertible preferred shares
      of subsidiary company                                    --            --             --             --              (0.8)
                                                             -----         -----          ----           ----          --------

NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS                 $ --          $ --           $ --           $ --          $  (43.2)
                                                             ====          =====          ====           ====          =========

LOSS PER SHARE
  Basic and diluted                                                                                                       (0.12)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (MILLIONS)
  Basic and diluted                                                                                                       346.0
</TABLE>


                                                             101
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF OPERATIONS                                   RECOGNITION    ELIMINATION OF  PROPERTY, PLANT
FOR THE YEAR ENDED DECEMBER 31, 2003                                    OF DEFERRED        EFFECTS OF    AND EQUIPMENT
(CONTINUED)                                                          EXCHANGE GAINS    RECOGNITION OF   & AMORTIZATION   REVERSAL OF
                                                                         AND LOSSES  EQUITY COMPONENT      DIFFERENCES      1991 AND
                                                             UNDER   ON CONVERTIBLE    OF CONVERTIBLE    FROM APPLYING  2003 DEFICIT
                                                          CDN GAAP       DEBENTURES        DEBENTURES         SFAS 121  ELIMINATIONS
                                                       -----------  ---------------  ----------------  ---------------  ------------
                                                                                (A)               (A)              (B)           (C)
<S>                                                    <C>           <C>              <C>               <C>              <C>
REVENUE AND OTHER OPERATING INCOME
  Metal sales                                           $   571.9    $          --    $           --    $          --    $       --

OPERATING COSTS AND EXPENSES
  Cost of sales (excludes accretion, depreciation,
    depletion and amortization                              362.0               --                --               --            --
  Accretion                                                   9.0               --                --               --            --
  Depreciation, depletion and amortization                  172.7               --                --             (6.3)           --
                                                       -----------  ---------------  ----------------  ---------------  ------------
                                                             28.2               --                --              6.3            --
  Other operating expenses                                   16.5
  Exploration and business development                       24.3               --                --               --            --
  General and administrative                                 25.0               --                --               --            --
  Impariment charges:
    Goodwill                                                394.4               --                --               --            --
    Property, plant and equipment                            15.2               --                --               --            --
    Investments                                               1.9               --                --               --            --
  Gain on disposal of assets                                (29.5)              --                --               --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------
OPERATING LOSS                                             (419.6)              --                --              6.3            --
                                                       -----------  ---------------  ----------------  ---------------  ------------

  Other income (expense) - net                              (13.0)           (17.8)             (3.2)              --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------
LOSS BEFORE TAXES AND OTHER ITEMS                          (432.6)           (17.8)             (3.2)             6.3            --
                                                       -----------  ---------------  ----------------  ---------------  ------------

  Income and mining taxes recovery (expense)                 (4.1)              --                --               --            --
  Non-controlling interest                                   (0.2)              --                --               --            --
  Share in income (loss) on investee companies                 --               --                --               --            --
  Dividends on convertible preferred shares of
    subsidiary company                                       (0.8)              --                --               --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------

NET LOSS BEFORE CUMULATIVE EFFECT OF A CHANGE IN
  ACCOUNTING PRINCIPLE                                     (437.7)           (17.8)             (3.2)             6.3            --

  Cumulative effect of a change in accounting principle        --               --                --               --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------

NET LOSS                                                   (437.7)           (17.8)             (3.2)             6.3            --
                                                       -----------  ---------------  ----------------  ---------------  ------------

ATTRIBUTABLE TO COMMON SHAREHOLDERS:
  Net loss                                                 (437.7)           (17.8)             (3.2)             6.3            --
  Increase in equity component of convertible
    debentures                                               (6.5)              --               6.5               --            --
  Gain on redemption of equity component of
    convertible debentures                                   16.5               --             (16.5)              --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------

NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS            $  (427.7)   $       (17.8)   $        (13.2)   $         6.3    $       --
                                                       ===========  ===============  ================  ===============  ============

LOSS PER SHARE
  Basic and diluted                                     $   (1.39)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (MILLIONS)
  Basic and diluted                                         308.6
</TABLE>


                                                             102
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF OPERATIONS                          GAINS                              RECLASSI-
FOR THE YEAR ENDED DECEMBER 31, 2003                   ON MARKETABLE                            FICATION OF
(CONTINUED)                                                SECURTIES                     FLOW    CUMULATIVE
                                                       AND LONG-TERM     EFFECT OF    THROUGH   TRANSLATION   TO ADJUST TO
                                                         INVESTMENTS      SFAS 133     SHARES   ADJUSTMENTS   EQUITY BASIS
                                                       -------------   -----------   --------  ------------   ------------
                                                                 (D)           (E)        (F)           (H)            (I)
<S>                                                     <C>             <C>           <C>       <C>            <C>
REVENUE AND OTHER OPERATING INCOME
  Metal sales                                           $        --     $    (2.8)    $   --    $       --     $     (6.0)

OPERATING COSTS AND EXPENSES
  Cost of sales (excludes accretion, depreciation,
    depletion and amortization                                   --            --         --            --           (2.9)
  Accretion                                                      --            --         --            --              -
  Depreciation, depletion and amortization                       --            --         --            --           (1.2)
                                                       -------------   -----------   --------  ------------   ------------
                                                                 --          (2.8)        --            --           (1.9)
  Other operating expenses
  Exploration and business development                           --            --         --            --           (0.1)
  General and administrative                                     --            --         --            --             --
  Impariment charges:
    Goodwill                                                     --            --         --            --             --
    Property, plant and equipment                                --            --         --            --             --
    Investments                                                  --            --         --            --             --
  Gain on disposal of assets                                     --            --         --            --             --
                                                       -------------   -----------   --------  ------------   ------------
OPERATING LOSS                                                   --          (2.8)        --            --           (1.8)
                                                       -------------   -----------   --------  ------------   ------------

  Other income (expense) - net                                   --           2.1         --            --            0.3
                                                       -------------   -----------   --------  ------------   ------------
LOSS BEFORE TAXES AND OTHER ITEMS                                --          (0.7)        --            --           (1.5)
                                                       -------------   -----------   --------  ------------   ------------

  Income and mining taxes recovery (expense)                     --            --         --            --            0.4
  Non-controlling interest                                       --            --         --            --             --
  Share in income (loss) on investee companies                   --            --         --            --            1.1
  Dividends on convertible preferred shares of
    subsidiary company                                           --            --         --            --             --
                                                       -------------   -----------   --------  ------------   ------------

NET LOSS BEFORE CUMULATIVE EFFECT OF A CHANGE IN
  ACCOUNTING PRINCIPLE                                           --          (0.7)        --            --             --

  Cumulative effect of a change in accounting principle          --            --         --            --             --
                                                       -------------   -----------   --------  ------------   ------------

NET LOSS                                                         --          (0.7)        --            --             --
                                                       -------------   -----------   --------  ------------   ------------

ATTRIBUTABLE TO COMMON SHAREHOLDERS:
  Net loss                                                       --          (0.7)        --            --             --
  Increase in equity component of convertible
    debentures                                                   --            --         --            --             --
  Gain on redemption of equity component of
    convertible debentures                                       --            --         --            --             --
                                                       -------------   -----------   --------  ------------   ------------

NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS            $        --     $    (0.7)    $   --    $       --     $       --
                                                       =============   ===========   ========  ============   ============

LOSS PER SHARE
  Basic and diluted
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (MILLIONS)
  Basic and diluted
</TABLE>


                                                             103
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF OPERATIONS                    RESTATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2003                       TO EQUITY
(CONTINUED)                                              ACCOUNT FOR
                                                       INVESTMENT IN    EFFECT OF       GOODWILL              UNDER
                                                            ECHO BAY     SFAS 143     IMPAIRMENT          U.S. GAAP
                                                       -------------  -----------   ------------  -----------------
                                                                 (D)          (J)            (L)
<S>                                                     <C>            <C>           <C>           <C>
REVENUE AND OTHER OPERATING INCOME
  Metal sales                                           $        --    $      --     $       --    $         563.1

OPERATING COSTS AND EXPENSES
  Cost of sales (excludes accretion, depreciation,
    depletion and amortization                                   --           --             --              359.1
  Accretion                                                      --           --             --                9.0
  Depreciation, depletion and amortization                       --           --             --              165.2
                                                       -------------  -----------   ------------  -----------------
                                                                 --           --             --               29.8
  Other operating expenses                                                                                    16.5
  Exploration and business development                           --           --             --               24.2
  General and administrative                                     --           --             --               25.0
  Impariment charges:
    Goodwill                                                     --           --           40.2              434.6
    Property, plant and equipment                                --           --             --               15.2
    Investments                                                  --           --             --                1.9
  Gain on disposal of assets                                     --           --             --              (29.5)
                                                       -------------  -----------   ------------  -----------------
OPERATING LOSS                                                   --           --          (40.2)            (458.1)
                                                       -------------  -----------   ------------  -----------------

  Other income (expense) - net                                   --           --             --              (31.6)
                                                       -------------  -----------   ------------  -----------------
LOSS BEFORE TAXES AND OTHER ITEMS                                --           --          (40.2)            (489.7)
                                                       -------------  -----------   ------------  -----------------

  Income and mining taxes recovery (expense)                     --           --             --               (3.7)
  Non-controlling interest                                       --           --             --               (0.2)
  Share in income (loss) on investee companies                 (1.0)          --             --                0.1
  Dividends on convertible preferred shares of
    subsidiary company                                           --           --             --               (0.8)
                                                       -------------  -----------   ------------  -----------------

NET LOSS BEFORE CUMULATIVE EFFECT OF A CHANGE IN
  ACCOUNTING PRINCIPLE                                         (1.0)          --          (40.2)            (494.3)

  Cumulative effect of a change in accounting principle          --        (11.6)            --              (11.6)
                                                       -------------  -----------   ------------  -----------------

NET LOSS                                                       (1.0)       (11.6)         (40.2)            (505.9)
                                                       -------------  -----------   ------------  -----------------

ATTRIBUTABLE TO COMMON SHAREHOLDERS:
  Net loss                                                     (1.0)       (11.6)         (40.2)            (505.9)
  Increase in equity component of convertible
    debentures                                                   --           --             --                 --
  Gain on redemption of equity component of
    convertible debentures                                       --           --             --                 --
                                                       -------------  -----------   ------------  -----------------

NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS            $      (1.0)   $   (11.6)    $    (40.2)   $        (505.9)
                                                       =============  ===========   ============  =================

LOSS PER SHARE
  Basic and diluted                                                                                $         (1.64)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (MILLIONS)
  Basic and diluted                                                                                          308.6
</TABLE>


                                                             104
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF OPERATIONS                                   RECOGNITION    ELIMINATION OF  PROPERTY, PLANT
FOR THE YEAR ENDED DECEMBER 31, 2002                                    OF DEFERRED        EFFECTS OF    AND EQUIPMENT
(CONTINUED)                                                          EXCHANGE GAINS    RECOGNITION OF   & AMORTIZATION   REVERSAL OF
                                                                         AND LOSSES  EQUITY COMPONENT      DIFFERENCES      1991 AND
                                                             UNDER   ON CONVERTIBLE    OF CONVERTIBLE    FROM APPLYING  2003 DEFICIT
                                                          CDN GAAP       DEBENTURES        DEBENTURES         SFAS 121  ELIMINATIONS
                                                       -----------  ---------------  ----------------  ---------------  ------------
                                                                                (A)               (A)              (B)           (C)
<S>                                                    <C>           <C>              <C>               <C>              <C>
REVENUE AND OTHER OPERATING INCOME
  Metal sales                                          $    261.0    $          --    $           --    $          --    $       --

OPERATING COSTS AND EXPENSES
  Cost of sales (excludes accretion, depreciation,
    depletion and amortization)                             169.8               --                --               --            --
  Accretion                                                   1.6               --                --               --            --
  Depreciation, depletion and amortization                   85.6               --                --             (8.1)           --
                                                       -----------  ---------------  ----------------  ---------------  ------------
                                                              4.0               --                --              8.1            --
  Other operating expenses                                    2.7               --                --               --            --
  Exploration and business development                       11.6               --                --               --            --
  General and administrative                                 11.3               --                --               --            --
  Impariment charges:
    Goodwill                                                   --               --                --               --            --
    Property, plant and equipment                              --               --                --               --            --
    Investments                                               0.2               --                --               --            --
  Gain on disposal of assets                                 (2.7)              --                --               --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------
OPERATING LOSS                                              (19.1)              --                --              8.1            --
                                                       -----------  ---------------  ----------------  ---------------  ------------

  Other income (expense) - net                                4.9             (0.3)             (4.5)              --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------
LOSS BEFORE TAXES AND OTHER ITEMS                           (14.2)            (0.3)             (4.5)             8.1            --
                                                       -----------  ---------------  ----------------  ---------------  ------------

  Income and mining taxes recovery (expense)                 (6.5)              --                --               --            --
  Share in loss on investee companies                        (0.6)              --                --               --            --
  Dividends on convertible preferred shares of
    subsidiary company                                       (1.5)              --                --               --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------

NET (LOSS) EARNINGS                                         (22.8)            (0.3)             (4.5)             8.1            --
                                                       -----------  ---------------  ----------------  ---------------  ------------

  Net (loss) earnings                                       (22.8)            (0.3)             (4.5)             8.1            --
  Increase in equity component of convertible
    debentures                                               (7.3)              --               7.3               --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------

NET (LOSS) EARNINGS ATTRIBUTABLE TO COMMON
  SHAREHOLDERS                                          $   (30.1)   $        (0.3)   $          2.8    $         8.1    $       --
                                                       ===========  ===============  ================  ===============  ============
(LOSS) EARNINGS PER SHARE
  Basic and diluted                                     $   (0.25)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (MILLIONS)
  Basic and diluted                                         119.7
</TABLE>


                                                             105
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF OPERATIONS                          GAINS                              RECLASSI-
FOR THE YEAR ENDED DECEMBER 31, 2002                   ON MARKETABLE                            FICATION OF
(CONTINUED)                                                SECURTIES                     FLOW    CUMULATIVE
                                                       AND LONG-TERM     EFFECT OF    THROUGH   TRANSLATION   TO ADJUST TO
                                                         INVESTMENTS      SFAS 133     SHARES   ADJUSTMENTS   EQUITY BASIS
                                                       -------------   -----------   --------  ------------   ------------
                                                                 (D)           (E)        (F)           (H)            (I)
<S>                                                     <C>             <C>           <C>       <C>            <C>
REVENUE AND OTHER OPERATING INCOME
  Metal sales                                           $        --     $   (14.1)    $   --    $       --     $    (69.2)

OPERATING COSTS AND EXPENSES
  Cost of sales (excludes accretion, depreciation,
    depletion and amortization)                                  --            --         --            --          (27.2)
  Accretion                                                      --            --         --            --             --
  Depreciation, depletion and amortization                       --            --         --            --          (17.4)
                                                       -------------   -----------   --------  ------------   ------------
                                                                 --         (14.1)        --            --          (24.6)
  Other operating expenses                                       --            --         --            --             --
  Exploration and business development                           --            --         --            --           (1.3)
  General and administrative                                     --            --         --            --             --
  Impariment charges:
    Goodwill                                                     --            --         --            --             --
    Property, plant and equipment                                --            --         --            --             --
    Investments                                                  --            --         --            --             --
  Gain on disposal of assets                                     --            --         --            --             --
                                                       -------------   -----------   --------  ------------   ------------
OPERATING LOSS                                                   --         (14.1)        --            --          (23.3)
                                                       -------------   -----------   --------  ------------   ------------

  Other income (expense) - net                                 42.5           0.7        1.1            --            3.6
                                                       -------------   -----------   --------  ------------   ------------
LOSS BEFORE TAXES AND OTHER ITEMS                              42.5         (13.4)       1.1            --          (19.7)
                                                       -------------   -----------   --------  ------------   ------------

  Income and mining taxes recovery (expense)                     --            --         --            --            6.2
  Share in loss on investee companies                            --            --         --            --           13.5
  Dividends on convertible preferred shares of
    subsidiary company                                           --            --         --            --             --
                                                       -------------   -----------   --------  ------------   ------------

NET (LOSS) EARNINGS                                            42.5         (13.4)       1.1            --             --
                                                       -------------   -----------   --------  ------------   ------------

  Net (loss) earnings                                          42.5         (13.4)       1.1            --             --
  Increase in equity component of convertible
    debentures                                                   --            --         --            --             --
                                                       -------------   -----------   --------  ------------   ------------

NET (LOSS) EARNINGS ATTRIBUTABLE TO COMMON
  SHAREHOLDERS                                          $      42.5     $   (13.4)    $  1.1    $       --     $       --
                                                       =============   ===========   ========  ============   ============
(LOSS) EARNINGS PER SHARE
  Basic and diluted
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (MILLIONS)
  Basic and diluted
</TABLE>


                                                             106
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF OPERATIONS                    RESTATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2002                       TO EQUITY
(CONTINUED)                                              ACCOUNT FOR
                                                       INVESTMENT IN    EFFECT OF       GOODWILL              UNDER
                                                            ECHO BAY     SFAS 143     IMPAIRMENT          U.S. GAAP
                                                       -------------  -----------   ------------  -----------------
                                                                 (D)          (J)            (L)
<S>                                                     <C>            <C>           <C>           <C>
REVENUE AND OTHER OPERATING INCOME
  Metal sales                                           $        --    $      --     $       --    $         177.7

OPERATING COSTS AND EXPENSES
  Cost of sales (excludes accretion, depreciation,
    depletion and amortization)                                  --          0.7             --              143.3
  Accretion                                                      --           --             --                1.6
  Depreciation, depletion and amortization                       --         (0.3)            --               59.8
                                                       -------------  -----------   ------------  -----------------
                                                                 --         (0.4)            --              (27.0)
  Other operating expenses                                       --           --             --                2.7
  Exploration and business development                           --           --             --               10.3
  General and administrative                                     --           --             --               11.3
  Impariment charges:
    Goodwill                                                     --           --             --                 --
    Property, plant and equipment                                --           --             --                 --
    Investments                                                  --          7.7             --                7.9
  Gain on disposal of assets                                     --           --             --               (2.7)
                                                       -------------  -----------   ------------  -----------------
OPERATING LOSS                                                   --         (8.1)            --              (56.5)
                                                       -------------  -----------   ------------  -----------------

  Other income (expense) - net                                   --           --             --               48.0
                                                       -------------  -----------   ------------  -----------------
LOSS BEFORE TAXES AND OTHER ITEMS                                --         (8.1)            --               (8.5)
                                                       -------------  -----------   ------------  -----------------

  Income and mining taxes recovery (expense)                     --           --             --               (0.3)
  Share in loss on investee companies                          (0.7)          --             --               12.2
  Dividends on convertible preferred shares of
    subsidiary company                                           --           --             --               (1.5)
                                                       -------------  -----------   ------------  -----------------

NET (LOSS) EARNINGS                                            (0.7)        (8.1)            --                1.9
                                                       -------------  -----------   ------------  -----------------

  Net (loss) earnings                                          (0.7)        (8.1)            --                1.9
  Increase in equity component of convertible
    debentures                                                   --           --             --                 --
                                                       -------------  -----------   ------------  -----------------

NET (LOSS) EARNINGS ATTRIBUTABLE TO COMMON
  SHAREHOLDERS                                          $      (0.7)   $    (8.1)    $       --    $           1.9
                                                       =============  ===========   ============  =================
(LOSS) EARNINGS PER SHARE
  Basic and diluted                                                                                $          0.02
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (MILLIONS)
  Basic and diluted                                                                                          119.7
</TABLE>


                                                             107
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS                                   RECOGNITION    ELIMINATION OF  PROPERTY, PLANT
FOR THE YEAR ENDED DECEMBER 31, 2004                                    OF DEFERRED        EFFECTS OF    AND EQUIPMENT
(CONTINUED)                                                          EXCHANGE GAINS    RECOGNITION OF   & AMORTIZATION   REVERSAL OF
                                                                         AND LOSSES  EQUITY COMPONENT      DIFFERENCES      1991 AND
                                                             UNDER   ON CONVERTIBLE    OF CONVERTIBLE    FROM APPLYING  2003 DEFICIT
                                                          CDN GAAP       DEBENTURES        DEBENTURES         SFAS 121  ELIMINATIONS
                                                       -----------  ---------------  ----------------  ---------------  ------------
                                                                                (A)               (A)              (B)           (C)
<S>                                                    <C>           <C>              <C>               <C>              <C>
NET INFLOW (OUTFLOW) OF CASH RELATED TO THE
  FOLLOWING ACTIVITIES:
OPERATING:
Net (loss) earnings                                     $   (63.1)   $          --    $           --    $         3.8    $       --
Items not affecting cash:
  Depreciation, depletion and amortization                  170.1               --                --             (3.8)           --
  Impairment charges                                         59.9               --                --               --            --
  Gain on disposal of assets                                 (1.7)              --                --               --            --
  Future income and mining taxes                            (29.3)              --                --               --            --
  Deferred revenue realized                                  (6.3)              --                --               --            --
  Unrealized foreign exchange (gains) losses and other        3.1               --                --               --            --
  Changes in non-cash operating assets and liabilities:
    Accounts receivable and other assets                      4.2               --                --               --            --
    Inventories                                             (19.3)              --                --               --            --
    Accounts payable and accrued liabilities                 43.6               --                --               --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------
CASH FLOW PROVIDED FROM OPERATING ACTIVITIES                161.2               --                --               --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------
INVESTING:
  Additions to property, plant and equipment               (169.5)              --                --               --            --
  Business acquisitions, net of cash acquired              (261.2)              --                --               --            --
  Proceeds on sale of marketable securities                   0.7               --                --               --            --
  Proceeds on sale of long-term investments and
    other assets                                             14.6               --                --               --            --
  Additions to long-term investment and other assets        (26.4)              --                --               --            --
  Proceeds from the sale of property, plant and
    equipment                                                 1.5               --                --               --            --
  Additions to short-term investments                        (5.7)              --                --               --            --
  Decrease in restricted cash                                 3.7               --                --               --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------
CASH FLOW USED IN INVESTING ACTIVITIES                     (442.3)              --                --               --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------
FINANCING:
  Repurchase of common shares                               (11.8)              --                --               --            --
  Issurance of common shares and common share
    purchase warrants                                         3.1               --                --               --            --
  Debt issue costs                                           (1.4)              --                --               --            --
  Proceeds from the issuance of debt                        119.5               --                --               --            --
  Repayment of debt                                         (26.8)              --                --               --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------
CASH FLOW PROVIDED FROM FINANCING ACTIVITIES                 82.6               --                --               --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH                       0.6               --                --               --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------
DECREASE IN CASH AND CASH EQUIVALENTS                      (197.9)              --                --               --            --
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                245.8               --                --               --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------
CASH AND CASH EQUIVALENTS, END OF YEAR                  $    47.9    $          --    $           --    $          --    $       --
                                                       ===========  ===============  ================  ===============  ============
</TABLE>


                                                             108
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS                          GAINS                              RECLASSI-
FOR THE YEAR ENDED DECEMBER 31, 2004                   ON MARKETABLE                            FICATION OF
(CONTINUED)                                                SECURTIES                     FLOW    CUMULATIVE
                                                       AND LONG-TERM     EFFECT OF    THROUGH   TRANSLATION   TO ADJUST TO
                                                         INVESTMENTS      SFAS 133     SHARES   ADJUSTMENTS   EQUITY BASIS
                                                       -------------   -----------   --------  ------------   ------------
                                                                 (D)           (E)        (F)           (H)            (I)
<S>                                                     <C>             <C>           <C>       <C>            <C>
NET INFLOW (OUTFLOW) OF CASH RELATED TO THE
  FOLLOWING ACTIVITIES:
OPERATING:
Net (loss) earnings                                     $        --     $    16.1     $   --    $       --     $       --
Items not affecting cash:
  Depreciation, depletion and amortization                       --            --         --            --             --
  Impairment charges                                             --            --         --            --             --
  Gain on disposal of assets                                     --            --         --            --             --
  Future income and mining taxes                                 --            --         --            --             --
  Deferred revenue realized                                      --           6.9         --            --             --
  Unrealized foreign exchange (gains) losses and other           --          (0.3)        --            --             --
  Changes in non-cash operating assets and liabilities:
    Accounts receivable and other assets                         --            --         --            --             --
    Inventories                                                  --            --         --            --             --
    Accounts payable and accrued liabilities                     --         (22.7)        --            --             --
                                                       -------------   -----------   --------  ------------   ------------
CASH FLOW PROVIDED FROM OPERATING ACTIVITIES                     --            --         --            --             --
                                                       -------------   -----------   --------  ------------   ------------
INVESTING:
  Additions to property, plant and equipment                     --            --         --            --             --
  Business acquisitions, net of cash acquired                    --            --         --            --             --
  Proceeds on sale of marketable securities                      --            --         --            --             --
  Proceeds on sale of long-term investments and
    other assets                                                 --            --         --            --             --
  Additions to long-term investment and other assets             --            --         --            --             --
  Proceeds from the sale of property, plant and
    equipment                                                    --            --         --            --             --
  Additions to short-term investments                            --            --         --            --             --
  Decrease in restricted cash                                    --            --         --            --             --
                                                       -------------   -----------   --------  ------------   ------------
CASH FLOW USED IN INVESTING ACTIVITIES                           --            --         --            --             --
                                                       -------------   -----------   --------  ------------   ------------
FINANCING:
  Repurchase of common shares                                    --            --         --            --             --
  Issurance of common shares and common share
    purchase warrants                                            --            --         --            --             --
  Debt issue costs                                               --            --         --            --             --
  Proceeds from the issuance of debt                             --            --         --            --             --
  Repayment of debt                                              --            --         --            --             --
                                                       -------------   -----------   --------  ------------   ------------
CASH FLOW PROVIDED FROM FINANCING ACTIVITIES                     --            --         --            --             --
                                                       -------------   -----------   --------  ------------   ------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH                          --            --         --            --             --
                                                       -------------   -----------   --------  ------------   ------------
DECREASE IN CASH AND CASH EQUIVALENTS                            --            --         --            --             --
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                     --            --         --            --             --
                                                       -------------   -----------   --------  ------------   ------------
CASH AND CASH EQUIVALENTS, END OF YEAR                  $        --     $      --     $   --    $       --     $       --
                                                       =============   ===========   ========  ============   ============
</TABLE>


                                                             109
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS                    RESTATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2004                       TO EQUITY
(CONTINUED)                                              ACCOUNT FOR
                                                       INVESTMENT IN    EFFECT OF       GOODWILL              UNDER
                                                            ECHO BAY     SFAS 143     IMPAIRMENT          U.S. GAAP
                                                       -------------  -----------   ------------  -----------------
                                                                 (D)          (J)            (L)
<S>                                                     <C>            <C>           <C>           <C>
NET INFLOW (OUTFLOW) OF CASH RELATED TO THE
  FOLLOWING ACTIVITIES:
OPERATING:
Net (loss) earnings                                     $        --    $      --     $       --    $         (43.2)
Items not affecting cash:
  Depreciation, depletion and amortization                       --           --             --              166.3
  Impairment charges                                             --           --             --               59.9
  Gain on disposal of assets                                     --           --             --               (1.7)
  Future income and mining taxes                                 --           --             --              (29.3)
  Deferred revenue realized                                      --           --             --                0.6
  Unrealized foreign exchange (gains) losses and other           --           --             --                2.8
  Changes in non-cash operating assets and liabilities:
    Accounts receivable and other assets                         --           --             --                4.2
    Inventories                                                  --           --             --              (19.3)
    Accounts payable and accrued liabilities                     --           --             --               20.9
                                                       -------------  -----------   ------------  -----------------
CASH FLOW PROVIDED FROM OPERATING ACTIVITIES                     --           --             --              161.2
                                                       -------------  -----------   ------------  -----------------
INVESTING:
  Additions to property, plant and equipment                     --           --             --             (169.5)
  Business acquisitions, net of cash acquired                    --           --             --             (261.2)
  Proceeds on sale of marketable securities                      --           --             --                0.7
  Proceeds on sale of long-term investments and
    other assets                                                 --           --             --               14.6
  Additions to long-term investment and other assets             --           --             --              (26.4)
  Proceeds from the sale of property, plant and
    equipment                                                    --           --             --                1.5
  Additions to short-term investments                            --           --             --               (5.7)
  Decrease in restricted cash                                    --           --             --                3.7
                                                       -------------  -----------   ------------  -----------------
CASH FLOW USED IN INVESTING ACTIVITIES                           --           --             --             (442.3)
                                                       -------------  -----------   ------------  -----------------
FINANCING:
  Repurchase of common shares                                    --           --             --              (11.8)
  Issurance of common shares and common share
    purchase warrants                                            --           --             --                3.1
  Debt issue costs                                               --           --             --               (1.4)
  Proceeds from the issuance of debt                             --           --             --              119.5
  Repayment of debt                                              --           --             --              (26.8)
                                                       -------------  -----------   ------------  -----------------
CASH FLOW PROVIDED FROM FINANCING ACTIVITIES                     --           --             --               82.6
                                                       -------------  -----------   ------------  -----------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH                          --           --             --                0.6
                                                       -------------  -----------   ------------  -----------------
DECREASE IN CASH AND CASH EQUIVALENTS                            --           --             --             (197.9)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                     --           --             --              245.8
                                                       -------------  -----------   ------------  -----------------
CASH AND CASH EQUIVALENTS, END OF YEAR                  $        --    $      --     $       --    $          47.9
                                                       =============  ===========   ============  =================
</TABLE>


                                       110
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS                                   RECOGNITION    ELIMINATION OF  PROPERTY, PLANT
FOR THE YEAR ENDED DECEMBER 31, 2003                                    OF DEFERRED        EFFECTS OF    AND EQUIPMENT
(CONTINUED)                                                          EXCHANGE GAINS    RECOGNITION OF   & AMORTIZATION   REVERSAL OF
                                                                         AND LOSSES  EQUITY COMPONENT      DIFFERENCES      1991 AND
                                                             UNDER   ON CONVERTIBLE    OF CONVERTIBLE    FROM APPLYING  2003 DEFICIT
                                                          CDN GAAP       DEBENTURES        DEBENTURES         SFAS 121  ELIMINATIONS
                                                       -----------  ---------------  ----------------  ---------------  ------------
                                                                                (A)               (A)              (B)           (C)
<S>                                                    <C>           <C>              <C>               <C>              <C>
NET INFLOW (OUTFLOW) OF CASH RELATED TO THE
  FOLLOWING ACTIVITIES:
OPERATING:
Net loss                                                $  (437.7)   $       (17.8)   $         (3.2)   $         6.3    $       --
Items not affecting cash:
  Depreciation, depletion and amortization                  172.7               --                --             (6.3)           --
  Impairment charges                                        411.5               --                --               --            --
  Gain on disposal of assets                                (29.5)              --                --               --            --
  Future income and mining taxes                            (12.7)              --                --               --            --
  Deferred revenue realized                                  (2.3)              --                --               --            --
  Cumulative effect of a change in accounting principle         -               --                --               --            --
  Unrealized foreign exchange (gains) losses and other       30.4             17.8              (1.0)               -             -
  Changes in non-cash operating assets and liabilities
    Accounts receivable and other assets                     (1.7)              --                --               --            --
    Inventories                                             (11.3)              --                --               --            --
    Accounts payable and accrued liabilities                (29.9)              --                --               --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------
CASH FLOW PROVIDED FROM OPERATING ACTIVITIES                 89.5               --              (4.2)              --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------
INVESTING:
  Additions to property, plant and equipment                (73.4)              --                --               --            --
  Business acquisitions, net of cash acquired               (81.9)              --                --               --            --
  Proceeds on sale of marketable securities                   4.6               --                --               --            --
  Proceeds on sale of long-term investments and other
    assets                                                   63.3               --                --               --            --
  Additions to long-term investments and other assets        (6.1)              --                --               --            --
  Proceeds from the sale of property, plant and
    equipment                                                 5.9               --                --               --            --
  Decrease in restricted cash                                37.5               --                --               --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------
CASH FLOW USED IN INVESTING ACTIVITIES                      (50.1)              --                --               --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------
FINANCING:
  Issuance of common shares and common share purchase
    warrants                                                187.9               --                --               --            --
  Redemption of convertible debentures                     (144.8)              --                --               --            --
  Acquisition of convertible preferred shares of
    subsidiary company                                       (0.3)              --                --               --            --
  Reduction of debt component of convertible debentures      (4.2)              --               4.2               --            --
  Repayment of debt                                         (10.5)              --                --               --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------
CASH FLOW PROVIDED FROM FINANCING ACTIVITIES                 28.1               --               4.2               --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH                       7.7               --                --               --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------
INCREASE IN CASH AND CASH EQUIVALENTS                        75.2               --                --               --            --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD              170.6               --                --               --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                $   245.8    $          --    $           --    $          --    $       --
                                                       ===========  ===============  ================  ===============  ============
</TABLE>


                                       111
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS                          GAINS                              RECLASSI-
FOR THE YEAR ENDED DECEMBER 31, 2003                   ON MARKETABLE                            FICATION OF
(CONTINUED)                                                SECURTIES                     FLOW    CUMULATIVE
                                                       AND LONG-TERM     EFFECT OF    THROUGH   TRANSLATION   TO ADJUST TO
                                                         INVESTMENTS      SFAS 133     SHARES   ADJUSTMENTS   EQUITY BASIS
                                                       -------------   -----------   --------  ------------   ------------
                                                                 (D)           (E)        (F)           (H)            (I)
<S>                                                     <C>             <C>           <C>       <C>            <C>
NET INFLOW (OUTFLOW) OF CASH RELATED TO THE
  FOLLOWING ACTIVITIES:
OPERATING:
Net loss                                                $        --     $    (0.7)    $   --    $       --     $       --
Items not affecting cash:
  Depreciation, depletion and amortization                       --            --         --            --           (1.2)
  Impairment charges                                             --            --         --            --             --
  Gain on disposal of assets                                     --            --         --            --             --
  Future income and mining taxes                                 --            --         --            --             --
  Deferred revenue realized                                      --           2.2         --            --             --
  Cumulative effect of a change in accounting principle          --            --         --            --             --
  Unrealized foreign exchange (gains) losses and other           --          (3.2)        --            --           (1.1)
  Changes in non-cash operating assets and liabilities
    Accounts receivable and other assets                         --            --         --            --             --
    Inventories                                                  --            --         --            --             --
    Accounts payable and accrued liabilities                     --           1.7         --            --             --
                                                       -------------   -----------   --------  ------------   ------------
CASH FLOW PROVIDED FROM OPERATING ACTIVITIES                     --            --         --            --           (2.3)
                                                       -------------   -----------   --------  ------------   ------------
INVESTING:
  Additions to property, plant and equipment                     --            --         --            --             --
  Business acquisitions, net of cash acquired                    --            --         --            --             --
  Proceeds on sale of marketable securities                      --            --         --            --             --
  Proceeds on sale of long-term investments and other
    assets                                                       --            --         --            --             --
  Additions to long-term investments and other assets            --            --         --            --           31.7
  Proceeds from the sale of property, plant and
    equipment                                                    --            --         --            --             --
  Decrease in restricted cash                                    --            --         --            --             --
                                                       -------------   -----------   --------  ------------   ------------
CASH FLOW USED IN INVESTING ACTIVITIES                           --            --         --            --           31.7
                                                       -------------   -----------   --------  ------------   ------------
FINANCING:
  Issuance of common shares and common share purchase
    warrants                                                     --            --         --            --             --
  Redemption of convertible debentures                           --            --         --            --             --
  Acquisition of convertible preferred shares of
    subsidiary company                                           --            --         --            --             --
  Reduction of debt component of convertible debentures          --            --         --            --             --
  Repayment of debt                                              --            --         --            --             --
                                                       -------------   -----------   --------  ------------   ------------
CASH FLOW PROVIDED FROM FINANCING ACTIVITIES                     --            --         --            --             --
                                                       -------------   -----------   --------  ------------   ------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH                          --            --         --            --             --
                                                       -------------   -----------   --------  ------------   ------------
INCREASE IN CASH AND CASH EQUIVALENTS                            --            --         --            --           29.4
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                   --            --         --            --          (29.4)
                                                       -------------   -----------   --------  ------------   ------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                $        --     $      --     $   --    $       --     $       --
                                                       =============   ===========   ========  ============   ============
</TABLE>


                                       112
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS                    RESTATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2003                       TO EQUITY
(CONTINUED)                                              ACCOUNT FOR
                                                       INVESTMENT IN    EFFECT OF       GOODWILL              UNDER
                                                            ECHO BAY     SFAS 143     IMPAIRMENT          U.S. GAAP
                                                       -------------  -----------   ------------  -----------------
                                                                 (D)          (J)            (L)
<S>                                                     <C>            <C>              <C>        <C>
NET INFLOW (OUTFLOW) OF CASH RELATED TO THE
  FOLLOWING ACTIVITIES:
OPERATING:
Net loss                                                $      (1.0)   $   (11.6)       $ (40.2)   $        (505.9)
Items not affecting cash:
  Depreciation, depletion and amortization                       --           --             --              165.2
  Impairment charges                                             --           --           40.2              451.7
  Gain on disposal of assets                                     --           --             --              (29.5)
  Future income and mining taxes                                 --           --             --              (12.7)
  Deferred revenue realized                                      --           --             --               (0.1)
  Cumulative effect of a change in accounting principle          --         11.6             --               11.6
  Unrealized foreign exchange (gains) losses and other          1.0           --             --               43.9
  Changes in non-cash operating assets and liabilities
    Accounts receivable and other assets                         --           --             --               (1.7)
    Inventories                                                  --           --             --              (11.3)
    Accounts payable and accrued liabilities                     --           --             --              (28.2)
                                                       -------------  -----------   ------------  -----------------
CASH FLOW PROVIDED FROM OPERATING ACTIVITIES                     --           --             --               83.0
                                                       -------------  -----------   ------------  -----------------
INVESTING:
  Additions to property, plant and equipment                     --           --             --              (73.4)
  Business acquisitions, net of cash acquired                    --           --             --              (81.9)
  Proceeds on sale of marketable securities                      --           --             --                4.6
  Proceeds on sale of long-term investments and other
    assets                                                       --           --             --               63.3
  Additions to long-term investments and other assets            --           --             --               25.6
  Proceeds from the sale of property, plant and
    equipment                                                    --           --             --                5.9
  Decrease in restricted cash                                    --           --             --               37.5
                                                       -------------  -----------   ------------  -----------------
CASH FLOW USED IN INVESTING ACTIVITIES                           --           --             --              (18.4)
                                                       -------------  -----------   ------------  -----------------
FINANCING:
  Issuance of common shares and common share purchase
    warrants                                                     --           --             --              187.9
  Redemption of convertible debentures                           --           --             --             (144.8)
  Acquisition of convertible preferred shares of
    subsidiary company                                           --           --             --               (0.3)
  Reduction of debt component of convertible debentures          --           --             --                  -
  Repayment of debt                                              --           --             --              (10.5)
                                                       -------------  -----------   ------------  -----------------
CASH FLOW PROVIDED FROM FINANCING ACTIVITIES                     --           --             --               32.3
                                                       -------------  -----------   ------------  -----------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH                          --           --             --                7.7
                                                       -------------  -----------   ------------  -----------------
INCREASE IN CASH AND CASH EQUIVALENTS                            --           --             --              104.6
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                   --           --             --              141.2
                                                       -------------  -----------   ------------  -----------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                $        --    $      --     $       --    $         245.8
                                                       =============  ===========   ============  =================
</TABLE>


                                       113
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS                                   RECOGNITION    ELIMINATION OF  PROPERTY, PLANT
FOR THE YEAR ENDED DECEMBER 31, 2002                                    OF DEFERRED        EFFECTS OF    AND EQUIPMENT
(CONTINUED)                                                          EXCHANGE GAINS    RECOGNITION OF   & AMORTIZATION   REVERSAL OF
                                                                         AND LOSSES  EQUITY COMPONENT      DIFFERENCES      1991 AND
                                                             UNDER   ON CONVERTIBLE    OF CONVERTIBLE    FROM APPLYING  2003 DEFICIT
                                                          CDN GAAP       DEBENTURES        DEBENTURES         SFAS 121  ELIMINATIONS
                                                       -----------  ---------------  ----------------  ---------------  ------------
                                                                                (A)               (A)              (B)           (C)
<S>                                                    <C>           <C>              <C>               <C>              <C>
NET INFLOW (OUTFLOW) OF CASH RELATED TO THE
  FOLLOWING ACTIVITIES:
OPERATING:
Net loss                                                $   (22.8)   $        (0.3)   $         (4.5)   $         8.1    $       --
Items not affecting cash:
  Depreciation, depletion and amortization                   85.6               --                --             (8.1)           --
  Impairment charges                                          0.2               --                --               --            --
  Gain on disposal of assets                                 (2.7)              --                --               --            --
  Deferred revenue realized                                  (5.1)              --                --               --            --
  Unrealized foreign exchange (gains) losses and other        3.3              0.3              (0.6)              --            --
  Changes in non-cash operating assets and liabilities
    Accounts receivable                                      (1.6)              --                --               --            --
    Inventories                                               2.4               --                --               --            --
    Accounts payable and accrued liabilities                 (2.6)              --                --               --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------
CASH FLOW PROVIDED FROM OPERATING ACTIVITIES                 56.7               --              (5.1)              --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------
INVESTING:
  Additions to property, plant and equipment                (22.6)              --                --               --            --
  Business acquisitions, net of cash acquired                (0.1)              --                --               --            --
  Proceeds on sale of marketable securities                   2.8               --                --               --            --
  Proceeds on sale of long-term investments and other
    assets                                                    5.5               --                --               --            --
  Additions to long-term investments and other assets        (3.7)              --                --               --            --
  Proceeds from the sale of property, plant and
    equipment                                                 1.3               --                --               --            --
  (Increase) decrease in restricted cash                    (21.1)              --                --               --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------
CASH FLOW USED IN INVESTING ACTIVITIES                      (37.9)              --                --               --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------
FINANCING:
  Issuance of common shares and common share purchase
    warrants                                                112.8               --                --               --            --
  Acquisition of convertible preferred shares of
    subsidiary company                                      (11.4)              --                --               --            --
  Reduction of debt component of convertible debentures      (5.1)              --               5.1               --            --
  Repayment of debt                                         (28.5)              --                --               --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------
CASH FLOW PROVIDED FROM FINANCING ACTIVITIES                 67.8               --               5.1               --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH                       3.0               --                --               --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------
INCREASE IN CASH AND CASH EQUIVALENTS                        89.6               --                --               --            --
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                 81.0               --                --               --            --
                                                       -----------  ---------------  ----------------  ---------------  ------------
CASH AND CASH EQUIVALENTS, END OF YEAR                  $   170.6    $          --    $           --    $          --    $       --
                                                       ===========  ===============  ================  ===============  ============
</TABLE>


                                       114
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS                          GAINS                              RECLASSI-
FOR THE YEAR ENDED DECEMBER 31, 2002                   ON MARKETABLE                            FICATION OF
(CONTINUED)                                                SECURTIES                     FLOW    CUMULATIVE
                                                       AND LONG-TERM     EFFECT OF    THROUGH   TRANSLATION   TO ADJUST TO
                                                         INVESTMENTS      SFAS 133     SHARES   ADJUSTMENTS   EQUITY BASIS
                                                       -------------   -----------   --------  ------------   ------------
                                                                 (D)           (E)        (F)           (H)            (I)
<S>                                                     <C>             <C>           <C>       <C>            <C>
NET INFLOW (OUTFLOW) OF CASH RELATED TO THE
  FOLLOWING ACTIVITIES:
OPERATING:
Net loss                                                $      42.5     $   (13.4)    $  1.1    $       --     $       --
Items not affecting cash:
  Depreciation, depletion and amortization                       --            --         --            --          (17.4)
  Impairment charges                                             --            --         --            --             --
  Gain on disposal of assets                                     --            --         --            --             --
  Deferred revenue realized                                      --           4.5         --            --             --
  Unrealized foreign exchange (gains) losses and other        (42.5)         (7.2)        --            --          (13.5)
  Changes in non-cash operating assets and liabilities
    Accounts receivable                                          --            --         --            --            3.8
    Inventories                                                  --            --         --            --           (1.4)
    Accounts payable and accrued liabilities                     --          16.1       (1.1)           --            3.9
                                                       -------------   -----------   --------  ------------   ------------
CASH FLOW PROVIDED FROM OPERATING ACTIVITIES                     --            --         --            --          (24.6)
                                                       -------------   -----------   --------  ------------   ------------
INVESTING:
  Additions to property, plant and equipment                     --            --         --            --            0.3
  Business acquisitions, net of cash acquired                    --            --         --            --             --
  Proceeds on sale of marketable securities                      --            --         --            --             --
  Proceeds on sale of long-term investments and other
    assets                                                       --            --         --            --             --
  Additions to long-term investments and other assets            --            --         --            --           (1.4)
  Proceeds from the sale of property, plant and
    equipment                                                    --            --         --            --             --
  (Increase) decrease in restricted cash                         --            --        4.6            --             --
                                                       -------------   -----------   --------  ------------   ------------
CASH FLOW USED IN INVESTING ACTIVITIES                           --            --        4.6            --           (1.1)
                                                       -------------   -----------   --------  ------------   ------------
FINANCING:
  Issuance of common shares and common share purchase
    warrants                                                     --            --         --            --             --
  Acquisition of convertible preferred shares of
    subsidiary company                                           --            --         --            --             --
  Reduction of debt component of convertible debentures          --            --         --            --             --
  Repayment of debt                                              --            --         --            --            1.8
                                                       -------------   -----------   --------  ------------   ------------
CASH FLOW PROVIDED FROM FINANCING ACTIVITIES                     --            --         --            --            1.8
                                                       -------------   -----------   --------  ------------   ------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH                          --            --         --            --             --
                                                       -------------   -----------   --------  ------------   ------------
INCREASE IN CASH AND CASH EQUIVALENTS                            --            --        4.6            --          (23.9)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                     --            --       (4.6)           --           (5.5)
                                                       -------------   -----------   --------  ------------   ------------
CASH AND CASH EQUIVALENTS, END OF YEAR                  $        --     $      --     $   --    $       --     $    (29.4)
                                                       =============   ===========   ========  ============   ============
</TABLE>


                                       115
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS                    RESTATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2002                       TO EQUITY
(CONTINUED)                                              ACCOUNT FOR
                                                       INVESTMENT IN    EFFECT OF       GOODWILL              UNDER
                                                            ECHO BAY     SFAS 143     IMPAIRMENT          U.S. GAAP
                                                       -------------  -----------   ------------  -----------------
                                                                 (D)          (J)            (L)
<S>                                                     <C>           <C>            <C>           <C>
NET INFLOW (OUTFLOW) OF CASH RELATED TO THE
  FOLLOWING ACTIVITIES:
OPERATING:
Net loss                                                $      (0.7)  $     (8.1)    $       --    $           1.9
Items not affecting cash:
  Depreciation, depletion and amortization                       --         (0.3)            --               59.8
  Impairment charges                                             --          7.7             --                7.9
  Gain on disposal of assets                                     --           --             --               (2.7)
  Deferred revenue realized                                      --           --             --               (0.6)
  Unrealized foreign exchange (gains) losses and other          0.7           --             --              (59.5)
  Changes in non-cash operating assets and liabilities
    Accounts receivable                                          --           --             --                2.2
    Inventories                                                  --           --             --                1.0
    Accounts payable and accrued liabilities                     --          0.7             --               17.0
                                                       -------------  -----------   ------------  -----------------
CASH FLOW PROVIDED FROM OPERATING ACTIVITIES                     --           --             --               27.0
                                                       -------------  -----------   ------------  -----------------
INVESTING:
  Additions to property, plant and equipment                     --           --             --              (22.3)
  Business acquisitions, net of cash acquired                    --           --             --               (0.1)
  Proceeds on sale of marketable securities                      --           --             --                2.8
  Proceeds on sale of long-term investments and other
    assets                                                       --           --             --                5.5
  Additions to long-term investments and other assets            --           --             --               (5.1)
  Proceeds from the sale of property, plant and
    equipment                                                    --           --             --                1.3
  (Increase) decrease in restricted cash                         --           --             --              (16.5)
                                                       -------------  -----------   ------------  -----------------
CASH FLOW USED IN INVESTING ACTIVITIES                           --           --             --              (34.4)
                                                       -------------  -----------   ------------  -----------------
FINANCING:
  Issuance of common shares and common share purchase
    warrants                                                     --           --             --              112.8
  Acquisition of convertible preferred shares of
    subsidiary company                                           --           --             --              (11.4)
  Reduction of debt component of convertible debentures          --           --             --                  -
  Repayment of debt                                              --           --             --              (26.7)
                                                       -------------  -----------   ------------  -----------------
CASH FLOW PROVIDED FROM FINANCING ACTIVITIES                     --           --             --               74.7
                                                       -------------  -----------   ------------  -----------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH                          --           --             --                3.0
                                                       -------------  -----------   ------------  -----------------
INCREASE IN CASH AND CASH EQUIVALENTS                            --           --             --               70.3
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                     --           --             --               70.9
                                                       -------------  -----------   ------------  -----------------
CASH AND CASH EQUIVALENTS, END OF YEAR                  $        --    $      --     $       --    $         141.2
                                                       =============  ===========   ============  =================
</TABLE>


                                       116
<PAGE>

Consolidated Statements of Comprehensive Income (Loss):

The Company's  statements of comprehensive  income (loss) under U.S. GAAP are as
follows:

<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
                                                                    TWELVE MONTHS ENDED DECEMBER 31,
- -------------------------------------------------------------------------------------------------------------
                                                                       2004            2003             2002
- -------------------------------------------------------------------------------------------------------------
<S>                                                                 <C>            <C>                 <C>
Net earnings (loss) for the period under U.S. GAAP                  $ (43.2)       $ (505.9)           $ 1.9
  Change in currency translation adjustments                             --            22.2              5.2
  Change in unrealized gains on marketable securities
    and long-term investments  (d)                                     (1.6)           (6.4)             8.7
  SFAS 133 (e)                                                         (0.3)           (3.2)            (7.2)
  Change in minimum pension liability                                  (0.2)           (3.1)              --
- -------------------------------------------------------------------------------------------------------------
Comprehensive earnings (loss) under U.S. GAAP                       $ (45.3)       $ (496.4)           $ 8.6
- -------------------------------------------------------------------------------------------------------------
</TABLE>


                                       117
<PAGE>

(a)     Under CDN GAAP, the  convertible  debentures,  described in Note 12 were
        accounted  for in accordance  with their  substance  and, as such,  were
        presented in the  financial  statements  in their  liability  and equity
        component parts. The Company  redeemed these  convertible  debentures on
        September 29, 2003.  Under U.S. GAAP, the entire principal amount of the
        convertible   debentures   plus  accrued   interest  of  $146.8  million
        immediately  prior to the  redemption and $123.8 million at December 31,
        2002, was treated as debt with interest expense based on the coupon rate
        of 5.5%.

        In addition,  under CDN GAAP,  realized and unrealized  foreign exchange
        gains and losses on the debt component of the debentures were recognized
        in income.  For U.S.  GAAP,  in  addition to  including  these gains and
        losses in income,  realized  and  unrealized  exchange  gains and losses
        related to the portion of the convertible  debentures included in equity
        under CDN GAAP were also  included in income.  There was no gain or loss
        on the redemption of the convertible debentures for U.S. GAAP.

        The  reconciliation  of CDN GAAP to U.S. GAAP for December 31, 2003, has
        been  restated with a decrease to  accumulated  deficit of $16.5 million
        and an  offsetting  decrease  to  contributed  surplus.  The  adjustment
        reverses the accumulated net losses related to the equity portion of the
        convertible debentures that have been included in income under CDN GAAP.

        Under U.S.  GAAP,  the  reduction of the debt  component of  convertible
        debentures  is  treated  as  interest  expense  and as a cash  flow from
        operating activities. Under CDN GAAP, the interest expense is classified
        as a financing activity.

(b)     Cumulatively,  as a result of  applying  SFAS 121,  "Accounting  for the
        Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed
        Of"  and  following  the  adoption  of  SFAS  144,  "Accounting  for the
        Impairment  or  Disposal  of  Long-Lived  Assets",  property,  plant and
        equipment is reduced and the deficit  increased by $60.5  million.  This
        difference arose from the requirement to discount future cash flows from
        impaired  property,  plant and equipment  under U.S. GAAP and from using
        proven and probable reserves only. At the time of the impairment, future
        cash  flows  from  impaired  property,  plant  and  equipment  were  not
        discounted under CDN GAAP. Under U.S. GAAP, in periods subsequent to the
        impairment, depreciation, depletion and amortization was reduced by $3.8
        million,  $6.3 million and $8.1 million  during the years ended December
        31,  2004,   2003  and  2002,   respectively,   to  reflect  the  above.
        Cumulatively, as a result of these reductions in depreciation, depletion
        and  amortization,  property,  plant and  equipment is increased and the
        deficit  decreased by $36.1 million and $32.3 million as at December 31,
        2004 and 2003, respectively.

(c)     CDN  GAAP  allows  for the  elimination  of  operating  deficits  by the
        reduction  of  stated  capital  attributable  to  common  shares  with a
        corresponding  offset to the  accumulated  deficit.  For CDN  GAAP,  the
        Company eliminated operating deficits of $761.4 million and $5.3 million
        in  2003  and  1991,  respectively.   These  reclassifications  are  not
        permitted  by U.S.  GAAP and would  require  in each  subsequent  year a
        cumulative  increase  in share  capital  and a  cumulative  increase  in
        deficit of $766.7 million.

(d)     Under CDN GAAP, unrealized gains and losses on long-term investments and
        marketable  securities  are not recorded.  Under U.S.  GAAP,  unrealized
        gains  on  long-term  investments  that  are  classified  as  securities
        available for sale of $5.5 million and $6.9 million at December 31, 2004
        and December 31, 2003,  respectively,  and marketable securities of $0.1
        million and $0.3  million at December  31, 2004 and  December  31, 2003,
        respectively,  are  included  as a  component  of  comprehensive  income
        (loss).

        Furthermore,  U.S. GAAP requires that the  transaction on April 3, 2002,
        whereby the Company  exchanged its investment in debt securities of Echo
        Bay for 57.1  million  common  shares of Echo Bay,  be  recorded at fair
        value with the resulting  gain  included in earnings.  Fair value of the
        Echo Bay common shares  received,  under U.S.  GAAP,  was $49.1 million,
        representing 57.1 million common shares at $0.86 each, being the closing
        market  price  of such  shares  on  April  3,  2002.  Fair  value is not
        discounted for liquidity concerns or other valuation considerations. The
        resulting  gain of $42.5  million,  after  deducting  the  $6.6  million
        carrying value of the debt securities exchanged,  increased the carrying
        value of this investment and was included in earnings for the year ended
        December  31,  2002.  Under  CDN GAAP,  the cost of the Echo Bay  common
        shares  acquired  on the  exchange  was  recorded  at the  values of the
        securities  given up.  Since the fair  value of the  capital  securities
        given up  approximated  their carrying value, no gain was recorded under
        CDN GAAP.


                                       118
<PAGE>

        Subsequent to the exchange of debt securities, the Company accounted for
        its share investment in Echo Bay as an available for sale security under
        U.S. GAAP. At January 31, 2003, when the Company  acquired the remaining
        outstanding  common  shares  of  Echo  Bay,  the  Company  retroactively
        restated  its  2002  consolidated  financial  statements,   prepared  in
        accordance  with U.S. GAAP, to account for its share  investment in Echo
        Bay on an equity basis. As a result,  the Company reversed an unrealized
        gain of $21.8 million previously included in other comprehensive income,
        increased  its  deficit by $0.7  million to reflect  its share of equity
        losses  for the  period  ended  December  31,  2002 and  correspondingly
        reduced the carrying value of its investment.  In addition,  the Company
        decreased long-term investments and recorded a share of loss in investee
        company of $1.0  million  for the one month  ended  January 31, 2003 and
        increased  long-term  investments  and  recorded  a share of  income  in
        investee  company of $0.7  million  during the year ended  December  31,
        2002. For U.S. GAAP purposes, as a result of the business combination on
        January 31, 2003, the Company  recognized an additional $40.8 million of
        goodwill  representing  the  difference  in carrying  value of its share
        investment in Echo Bay between CDN and U.S. GAAP.

        For the year ended  December 31, 2003,  the Company,  using its goodwill
        impairment testing methodology, computed a goodwill impairment charge of
        $40.2 million reducing the additional goodwill balance, under U.S. GAAP,
        at December  31, 2003 to $0.6  million.  As at December  31,  2004,  the
        additional goodwill, under U.S. GAAP, remained $0.6 million.

(e)     Effective January 1, 2004, the Company adopted  Accounting  Guideline 13
        ("AcG-13"), "Hedging Relationships",  which provides guidance concerning
        documentation  and  effectiveness   testing  for  derivative  contracts.
        Derivative  instruments that do not qualify as a hedge under AcG-13,  or
        are not designated as a hedge, are recorded on the balance sheet at fair
        value with  changes  in fair  value  recognized  in  earnings.  Upon the
        adoption  of  AcG-13,  certain  derivative  instruments  that  had  been
        previously  accounted for as hedges failed to meet the  requirements  of
        AcG-13 for formal hedge accounting.  As a result, on January 1, 2004 the
        fair value of the outstanding  derivative financial  instruments,  which
        were  not   designated   or  did  not  qualify  as   effective   hedging
        relationships  were deferred on balance sheet and recognized in earnings
        when  the  previously  designated  hedged  item  occurred.  Prior to the
        adoption  of  AcG-13,  the  Company  applied  hedge  accounting  to  its
        derivative financial instruments. These instruments remained off balance
        sheet until the hedged  transaction was recorded.  In addition  realized
        gains or losses on derivatives instruments that were closed out prior to
        their  maturity  were  deferred  and  recognized  in  earnings  when the
        previously designated hedged item occurred.

        On January 1, 2001, the Company adopted Financial  Accounting  Standards
        Board  ("FASB")   Statement  No.  133,   "Accounting   for   "Derivative
        Instruments and Hedging  Activities" ("SFAS 133"), and the corresponding
        amendments  under FASB  Statement No. 138 and FASB  Statements  No. 149.
        SFAS  133  requires  that  all  derivative   financial   instruments  be
        recognized  in the  financial  statements  and  measured  at fair  value
        regardless  of the  purpose or intent for  holding  them.  Realized  and
        unrealized gains and losses on derivative  instruments included in other
        comprehensive  income on transition at January 1, 2001 were reclassified
        into mining revenue for cash flow hedges of forecasted  commodity  sales
        and foreign exchange gain (loss) for forecasted foreign currency revenue
        or expense  when the  previously  hedged  forecasted  revenue or expense
        occurred.

        In previous  years the Company had  designated  its spot  deferred  gold
        forward  contracts and foreign  currency  forward  contract as cash flow
        hedges and applied hedge accounting to effective hedging  relationships.
        The  result  of  the  application  of  hedge  accounting  was  that  the
        derivative contracts were recorded on balance sheet with changes in fair
        value recognized in other  comprehensive  income to the extent effective
        and any ineffectiveness recorded in earnings in the period it occurred.

        Prior years U.S. GAAP  consolidated  financial  statements for the years
        ended  December  31,  2003 and 2002 have been  restated  for  derivative
        financial  instruments,  which previously applied hedge accounting.  The
        restated  U.S  GAAP  consolidated   financial   statements  reflect  the
        adjustment  to account  for  derivative  financial  instruments  at fair
        value,   as  the  Company  has  now   concluded  it  did  not  meet  the
        documentation standards for hedge accounting, with changes in fair value
        recognized  in earnings  in the period  they  occur.  For the year ended
        December  31,  2004 all  outstanding  derivative  instruments  have been
        recorded  at fair value with  changes in fair value  being  recorded  in
        earnings in the current period.

        The  restatement  resulted  in a  cumulative  increase in deficit and an
        offsetting increase in other comprehensive income of $19.4 million as at
        December 31, 2003. For the twelve months ended December 31, 2003,  after
        considering the impact of the  restatements  described in Notes 2 and 3,
        net loss increased from $504.7  million,  or $1.64 per share,  to $505.9
        million,  or $1.64 per share.  For the twelve months ended  December 31,
        2002 the  restatement  resulted in net earnings of $1.9 million or $0.02
        per share  compared  with net  earnings  of $17.3  million  or $0.14 per
        share.

        At  December  31,  2004,  the  application  of  SFAS  133  results  in a
        cumulative  decrease  in  accounts  receivables  and other  assets and a
        cumulative increase in deficit of $4.7 million. In addition, as a result
        of applying  SFAS 133,  there  would be an increase of $17.5  million to
        revenues  and a decrease  of $1.4  million  to other  income for a total
        decrease in the loss under U.S. GAAP of $16.1  million.  At December 31,
        2003, the  application  of SFAS 133 results in a cumulative  decrease in
        other long-term  liabilities of $2.2 million,  a cumulative  increase in
        accounts payable and accrued  liabilities of $22.7 million, a cumulative
        increase in deficit of $20.8 million and a cumulative  increase to other
        comprehensive  income  of $0.3  million.  Additionally,  as a result  of
        applying  SFAS 133,  the net loss under U.S.  GAAP would be increased by
        $0.7 million and $13.4 million for the years ended December 31, 2003 and
        2002, respectively.

(f)     Under Canadian income tax  legislation,  a company is permitted to issue
        shares whereby the company agrees to incur  qualifying  expenditures and
        renounce the related income tax deductions to the investors. The Company
        accounted for the issue of flow-through shares using the deferral method
        in  accordance  with CDN GAAP.  At the time of issue the funds  received
        were recorded as share capital.  Qualifying expenditure did not begin to
        be incurred until 2002. For U.S. GAAP, the premium paid in excess of the
        market  value of $1.1  million  was  credited to other  liabilities  and
        included in income as the qualifying  expenditures were made. All of the
        qualifying  expenditures were made in 2002. $1.1 million was included in
        interest and other income for the year ended December 31, 2002.


                                       119
<PAGE>

(g)     The terms "proven and probable reserves", "exploration",  "development",
        and  "production"  have the same  meaning  under both U.S. and CDN GAAP.
        Exploration  costs incurred are expensed at the same point in time based
        on the same criteria  under both U.S. and CDN GAAP. In addition,  mining
        related costs are only  capitalized  after proven and probable  reserves
        have been designated under both U.S. and CDN GAAP.

(h)     Under CDN  GAAP,  the  unrealized  translation  gains and  losses on the
        Company's net investment in self-sustaining  operations translated using
        the  current  rate  method   accumulated  in  a  separate  component  of
        shareholders' equity, described as cumulative translation adjustments on
        the consolidated balance sheets. Under U.S. GAAP, the unrealized foreign
        exchange gains and losses would not  accumulate in a separate  component
        of shareholders' equity but rather as an adjustment to accumulated other
        comprehensive  income. As indicated in Note 4, as of September 29, 2003,
        the  functional  currency of all the  Company's  operations  is the U.S.
        dollar.  Prior to that date, the currency of measurement  for certain of
        the Company's operations domiciled in Canada was the Canadian dollar. As
        such,   the  $1.2  million   accumulated   translation   loss  in  other
        comprehensive  income  will only become  realized  in earnings  upon the
        substantial  disposition,  liquidation or closure of the mining property
        or investment that gave rise to such amounts.

(i)     Under CDN GAAP,  Kinross  proportionately  consolidates its interests in
        the following  incorporated  joint  ventures:  RPM  (Paracatu),  MDO (La
        Coipa),  MSG  (Crixas)  and CMM  (Refugio).  In  addition,  the  Company
        proportionately    consolidates   its   interests   in   the   following
        unincorporated joint ventures: Round Mountain,  Porcupine Joint Venture,
        Musselwhite and New Britannia. Prior to March 1, 2003, the investment in
        Omolon was also  proportionately  consolidated under CDN GAAP. Effective
        March 1, 2003,  following the Company's  increase in share  ownership to
        98.1%, as described in Note 6, Omolon is fully  consolidated  under both
        CDN and U.S. GAAP.

        These  investments  are accounted for using the equity method under U.S.
        GAAP.  The  Company  relies  on an  accommodation  provided  for in Item
        17(c)(2)(vii) of SEC Form 20-F, which permits a company using the equity
        method for U.S.  GAAP to omit the  differences  arising  from the use of
        proportionate  consolidation  under CDN GAAP. Each of the joint ventures
        listed,  except  Omolon  prior  to  March 1,  2003,  qualifies  for this
        accommodation  on  the  basis  that  it  is  an  operating  entity,  the
        significant   financial  and   operating   policies  of  which  are,  by
        contractual  arrangement,  jointly  controlled by all parties  having an
        equity interest in the entity.

        With respect to Omolon,  the Company  concluded that it did not meet the
        criteria  outlined  for  the  accommodation.  Therefore,  the  financial
        information  of Omolon has been  disclosed  using the equity  method for
        U.S. GAAP purposes for comparative periods prior to March 1, 2003. Under
        the equity method,  an investment in common shares is generally shown in
        the balance  sheet of an investor as a single amount as  "Investment  in
        investee company".  Likewise,  an investor's share of earnings or losses
        from its  investment is ordinarily  shown in its statement of operations
        as a single amount as "Share of income (loss) of investee company".

        On  December  31,  2004,  the Company  purchased  the  remaining  51% of
        Paracatu to own 100%, and therefore,  will no longer be  proportionately
        consolidating results for the operation going forward.

(j)     Effective  January 1, 2004, the Company adopted CICA Section 3110 "Asset
        Retirement Obligations" ("CICA 3110") for CDN GAAP, which is essentially
        the  same  as  the  United  States'  SFAS  143,  "Accounting  for  Asset
        Retirement Obligations" that was applicable to the Company's 2003 fiscal
        year for U.S. GAAP  purposes.  However,  the $11.6  million  increase in
        deficit  as at  January 1, 2003  under CDN GAAP,  which  includes  $19.7
        million as an increase in deficit as at January 1, 2002 and $8.1 million
        as an decrease in loss for the year ended December 31, 2002,  would have
        been recorded in earnings as a cumulative change in accounting principle
        for the year ended December 31, 2003, under U.S. GAAP. There would be no
        differences  between  the  balance  sheets as at  December  31, 2004 and
        December 31, 2003, or between the  statement of operations  for the year
        ended  December  31,  2004  prepared  under U.S.  GAAP for this  matter,
        compared to the balance  sheets and  statement of  operations  presented
        under CDN GAAP. The cumulative  effect of a change in accounting  policy
        under U.S. GAAP would result in an increase of $11.6  million,  or $0.04
        per share, to the net loss.

        Upon the adoption of Section 3110,  the Company  retroactively  restated
        its financial  statements.  As a result, the Company determined that its
        U.S. GAAP computation of cumulative  effect of accounting  change should
        be lower by $0.5 million to $11.6 million.  This change had no impact on
        EPS.

(k)     Under U.S.  GAAP,  if the  accumulated  pension plan benefit  obligation
        exceeds the market value of plan assets, a minimum pension liability for
        the excess is recognized  to the extent that the  liability  recorded in
        the  balance  sheet is less than the minimum  liability.  Any portion of
        this  additional  liability that relates to  unrecognized  prior service
        cost is recognized as an intangible asset while the remainder is charged
        to Other Comprehensive  Income. CDN GAAP does not require the Company to
        record a  minimum  liability  and does  not  have the  concept  of Other
        Comprehensive  Income.  During the year, the Company  recorded a minimum
        pension  liability  of  $3.3  million  (2003  -  $3.1  million)  with  a
        corresponding  decrease  in  Other  Comprehensive  Income.  None  of the
        additional liability relates to unrecognized prior service cost.

(l)     As  described  in  Note  2,  the  Company  revised  its  purchase  price
        allocation,  allocation of goodwill and impairment  testing  methodology
        for  goodwill  related  to the  acquisition  of TVX and Echo  Bay.  As a
        result, the additional  goodwill  identified for U.S. GAAP (see item (d)
        above) was  determined to be impaired and an impairment  charge of $40.2
        million was recorded during the year ended December 31, 2003.

(m)     Effective  January 1, 2004,  the Company  adopted  the amended  Canadian
        accounting standard for stock-based  compensation which requires the use
        of the fair value method to calculate all stock-based compensation. Upon
        adoption,  stock  option  compensation  (pre-tax)  of $2.5  million  was
        recorded as a  cumulative  effect of the  adoption as an  adjustment  to
        opening retained  earnings with an offsetting  adjustment to contributed
        surplus. Under U.S. GAAP, this adjustment would be reversed.


                                      120
<PAGE>

ACCOUNTING CHANGES

STOCK-BASED COMPENSATION

Effective January 1, 2004, the Company adopted the amended Canadian accounting
standard for stock-based compensation which requires the use of the fair value
method to calculate all stock-based compensation associated with granting stock
options.

For purposes of the  reconciliation  to U.S.  GAAP, the Company has adopted SFAS
No. 148,  "Accounting for Stock-Based  Compensation - Transition and Disclosure,
an amendment to SFAS No. 123" ("SFAS 148"),  which is similar to the new amended
Canadian standard, in 2004. Accordingly, adoption of these new Canadian and U.S.
standards  does not result in any  difference in the  calculation of stock-based
compensation  expense.  However,  the  transitional  provisions under the United
States  standard  allow the effects of the fair value method to be accounted for
under the  modified  prospective  method,  which  requires  the  accounting  for
stock-based  compensation  expense  subsequent to the date of adoption as if the
fair value method was applied to all options granted since January 31, 1995.

Prior to  January  1,  2004,  under  U.S.  GAAP,  stock-based  compensation  was
accounted for based on a fair value  methodology,  although the effects could be
disclosed in the notes to the financial  statements rather than in the statement
of  operations.  The method was  comparable  to Canadian  accounting  principles
adopted  in  2002.  However,  as a  result  of the  amended  Canadian  standards
requiring  the  retroactive  application  without  restatement  of prior  years'
results,  details of the fair value of options granted prior to 2004, but earned
during 2003 and 2002, are required to be disclosed for United States  regulatory
purposes.

Had the  Company  determined  compensation  cost  based on the fair value at the
grant date for its stock  options,  the  Company's  earnings for the years ended
December 31, 2003 and 2002, under U.S. GAAP, would have changed to the pro forma
amounts indicated below:

U.S. GAAP                                                      2003        2002
- --------------------------------------------------------------------------------
Net earnings (loss) applicable to common shares
  As reported                                              $  (505.9)   $   1.9
  Add stock compensation cost                                   (1.1)      (2.0)
                                                           ---------------------
  Pro forma                                                $  (507.0)   $  (0.1)
                                                           =====================
Earnings (loss) per share, basic and diluted (dollars)
  As reported (1)                                          $    (1.64)  $   0.02
  Pro forma (1)                                            $    (1.64)  $    --
===============================================================================

(1)     Reflects the effects of a three for one share consolidation approved
        January 2003 as described in Note 4.

Other than the  transitional  adjustment  as  outlined  above  (m),  there is no
difference  in  stock-based  compensation  expense  between  Canadian and United
States accounting principles for 2004.

CONSOLIDATION OF VARIABLE INTEREST ENTITIES

On December 24, 2003, the FASB issued  Interpretation  No. 46 (revised  December
2003) ("FIN 46R"). FIN 46R requires that the assets,  liabilities and results of
variable interest entities be consolidated into the financial  statements of the
entity that has the controlling  financial  interest.  FIN 46R also provides the
framework  for  determining   whether  a  variable  interest  entity  should  be
consolidated based on voting interest or significant  financial support provided
to it. During the three months ended March 31, 2004,  the Company  completed its
initial assessment of the impact of FIN 46R as of March 31, 2004, and determined
that it did not  have an  impact  on its  results  of  operations  or  financial
condition.  The Company has  evaluated  each of its  financial  interests  as at
December 31, 2004 and had concluded  that FIN 46R will not have an impact on its
results of  operations  or financial  condition.  The Company  will  continue to
monitor  clarifications  to both FIN 46R and the comparable CDN GAAP standard as
it pertains to the  consolidation  of variable  interest  entities and will make
modifications to its accounting policies, if applicable.

MINERAL INTERESTS

The Emerging  Issues Task Force  ("EITF")  formed a committee  ("Committee")  to
evaluate  certain mining industry  accounting  issues,  including issues arising
from the application of SFAS No. 141, "Business  Combinations"  ("SFAS No. 141")
and SFAS No. 142,  "Goodwill and Other  Intangible  Assets"  ("SFAS No. 142") to
business  combinations  within the mining industry,  accounting for goodwill and
other  intangibles  and the  capitalization  of costs after the  commencement of
production,  including  deferred  stripping.  The issues discussed also included
whether mineral  interests  conveyed by leases represent  tangible or intangible
assets and the  amortization  of such assets.  In March 2004, the EITF reached a
consensus,  subject to ratification by the Financial  Accounting Standards Board
("FASB"),  that  mineral  interests  conveyed  by leases  should  be  considered
tangible assets, as discussed below. The EITF also reached a consensus,  subject
to ratification by the FASB, on other mining related issues involving impairment
and business combinations.

On March 31, 2004,  the FASB  ratified the consensus of the EITF on other mining
related issues involving impairment and business combinations. This did not have
an impact to the  Company's  financial  statements  since it did not  change the
current  accounting.  The FASB  also  ratified  the  consensus  of the EITF that
mineral  interests  conveyed  by leases  should be  considered  tangible  assets
subject to the finalization of a FASB Staff Position ("FSP") in this regard.

The Company adopted these EITF interpretations on a prospective basis.


                                      121
<PAGE>

On April 30, 2004,  the FASB issued a FSP amending SFAS No. 141 and SFAS No. 142
to provide that certain  mineral use rights are considered  tangible  assets and
that mineral use rights would be accounted for based on their substance. The FSP
is effective for the first reporting period beginning after April 29, 2004, with
early  adoption  permitted.  The  Company  does  not  expect  this FSP to have a
material impact on its results of operation or financial condition.

The Committee is continuing its evaluation of mining industry accounting issues,
which may have an impact on the Company's accounting in the future.

OTHER RECENT ACCOUNTING PRONOUNCEMENTS

(i)     In March  2004,  the EITF  reached  consensus  on Issue No.  03-1,  "The
        Meaning  of  Other-than-Temporary  Impairment  and  Its  Application  to
        Certain  Investments"  ("EITF  03-1").  EITF 03-1  provides  guidance on
        determining  when an  investment is  considered  impaired,  whether that
        impairment is other than temporary and the  measurement of an impairment
        loss. EIFT 03-1 is applicable to marketable  debt and equity  securities
        within the scope of SFAS No. 115, "Accounting for Certain Investments in
        Debt and Equity Securities" ("SFAS 115"), and SFAS No. 124,  "Accounting
        for  Certain  Investments  Held by  Not-for-Profit  Organizations",  and
        equity  securities that are not subject to the scope of SFAS 115 and not
        accounted for under the equity method of accounting.  In September 2004,
        the FASB issued FASB Staff Position ("FSP") EITF 03-1-1, "Effective Date
        of Paragraphs  10-20 of EITF Issue No. 03-1,  `The Meaning of Other-Than
        Temporary Impairment and Its Application to Certain Investments'", which
        delays the effective date for the measurement  and recognition  criteria
        contained in EITF 03-1 until final application  guidance is issued.  The
        delay does not suspend the requirement to recognize other-than-temporary
        impairments as required by existing authoritative  literature.  The FASB
        expects  to issue the  final  FSP in the  fourth  quarter  of 2005.  The
        adoption of EITF 03-1 is not  expected to have a material  impact on the
        Company's results of operations and financial conditions.

(ii)    In November 2004, the FASB issued SFAS No. 151, "Inventory Costs" ("SFAS
        151"). SFAS 151 requires that abnormal amounts of idle facility expense,
        freight,  handling costs and wasted material (spoilage) be recognized as
        current  period  charges  rather  than  capitalized  as a  component  of
        inventory  costs.  In addition,  SFAS 151 requires  allocation  of fixed
        production  overheads to inventory  based on the normal  capacity of the
        production  facilities.  This statement is effective for inventory costs
        incurred in fiscal years  beginning  after June 15,  2005.  The guidance
        should be applied prospectively.  The Company is currently assessing the
        impact of SFAS 151 on its results of operations and financial condition.

(iii)   In  December  2004,  the  FASB  issued  SFAS  No.  123  (Revised  2004),
        "Share-Based  Payments"  ("SFAS 123R"),  which requires all  share-based
        payments to employees, including grants of employee stock options, to be
        recognized  as  compensation  expense  in  the  consolidated   financial
        statements  based on their fair values.  SFAS 123R also modifies certain
        measurement  and expense  recognition  provisions of SFAS 123, that will
        impact the  Company,  including  the  requirement  to estimate  employee
        forfeitures  each  period when  recognizing  compensation  expense,  and
        requiring  that the initial and  subsequent  measurement  of the cost of
        liability-based  awards each period be based on the fair value  (instead
        of the intrinsic  value) of the award.  This  statement is effective for
        the Company as of January 1, 2006. SAB 107,  "Share Based Payment" ("SAB
        107") was issued by the SEC in March  2005,  and  provides  supplemental
        SFAS  123R  application  guidance  based on the  views  of the  SEC.  As
        described  in  "Accounting  Changes"  above,  the  Company is  expensing
        stock-based  compensation using the fair value method  prospectively for
        all awards  granted or modified on or after January 1, 2002 for Canadian
        GAAP, which is similar to SFAS 123R. This change is not expected to have
        a  material  impact  on the  calculated  compensation  expense  and as a
        result,  the adoption of SFAS No. 123R is not expected to have an impact
        on the Company's results of operations and financial condition.

(iv)    In 2004,  EITF Issue No. 04-2,  "Whether  Mineral Rights are Tangible or
        Intangible  Assets"  ("EITF  04-2").  EITF 04-2  concluded  that mineral
        rights,  which are defined as the legal  right to  explore,  extract and
        retain at least a portion of the  benefits  from mineral  deposits,  are
        tangible assets. The accompanying  financial  statements include mineral
        rights as a component of property,  plant and equipment and as a result,
        the  adoption of EITF 04-2 had no impact on the  classification  of such
        assets.

(v)     EITF  Issue  No.  04-3,   "Mining   Assets:   Impairment   and  Business
        Combinations"  ("EITF  04-3") and EITF Issue No.  04-4,  "Allocation  of
        Goodwill to Reporting Units of a Mining  Enterprise"  ("EITF 04-4") were
        issued and adopted by Kinross in 2004. The Company in the restatement of
        the purchase price equation and goodwill  resulting from the acquisition
        of  TVX  and  Echo  Bay,  as  outlined  in  Note  2,   considered   both
        pronouncements.

(vi)    In the mining industry,  companies may be required to remove  overburden
        and other mine waste materials to access mineral  deposits.  The cost of
        removing  overburden  and  waste  materials  are  often  referred  to as
        "stripping  costs".  During the development of a mine (before production
        begins),  it is generally  accepted in practice that stripping costs are
        capitalized as part of the depreciable cost of building,  developing and
        constructing  the mine. The  capitalized  costs are typically  amortized
        over the  productive  life of the  mine  using  the  units-of-production
        method.  A mining  company may continue to remove  overburden  and waste
        materials,  and therefore incur stripping  costs,  during the production
        phase of the mine.  Questions  have been  raised  about the  appropriate
        accounting for stripping costs incurred during the production phase, and
        diversity  in practice  exists.  In response  to these  questions,  FASB
        approved EITF Issue No. 04-6,  "Accounting  for Stripping Costs Incurred
        during  Production in the Mining  Industry"  ("EITF 04-6") in the second
        quarter of 2005.  Under EITF 04-6,  stripping costs incurred each period
        during the  production  phase are recorded as a component of the cost of
        inventory  produced  each  period.  The  Company's  policy is to include
        stripping costs as an operating cost. As a result,  the adoption of EITF
        04-6 did not have an impact on its results of  operations  and financial
        condition.

(vii)   In May 2005, the FASB issued SFAS No. 154, "Accounting Changes and Error
        Corrections"  ("SFAS  154"),  which  relates to the  accounting  for and
        reporting  of a change  in  accounting  principles  and  applies  to all
        voluntary changes in accounting principles. The reporting of corrections
        of an error by restating  previously issued financial statements is also
        addressed by this statement.  SFAS 154 applies to  pronouncements in the
        event  they  do  not  include  specific  transition  provisions.  When a
        pronouncement includes specific transition provisions,  those provisions
        should be followed.  SFAS 154 requires retroactive  application to prior
        periods' financial statements of changes in accounting principle, unless
        the period  specific  effects  or  cumulative  effects of an  accounting
        change are impracticable to determine,  in which case the new accounting
        principle is required to be applied to the assets and  liabilities as of
        the earliest period practicable, with a corresponding adjustment made to
        opening retained  earnings.  Prior to SFAS 154, most accounting  changes
        were recorded effective at the beginning of the year of change, with the
        cumulative  effect at the beginning of the year of change  recorded as a
        charge or credit to  earnings in the period a change was  adopted.  SFAS
        154 will be effective on accounting  changes and  corrections  of errors
        beginning in 2006. SFAS does not change the transition provisions of any
        existing  accounting  pronouncements,  including  those  that are in the
        transition phase as of the effective date of SFAS 154.


                                      122
<PAGE>

23.     RELATED PARTY TRANSACTION

        During  2004,  the  Company  entered  into  a  shareholders'   agreement
        providing for the  incorporation of Kinross Forrest Ltd. ("KF Ltd.") and
        the  issuance of 35% of the shares of KF Ltd. to the  Company,  25% to a
        company  controlled by Art Ditto,  a former  director and officer of the
        Company, and 40% to an unrelated third party. Mr. Ditto paid the Company
        his share of the expenses incurred in the amount of $0.3 million.  As at
        December 31,  2004,  this  investment  was valued at $0.1 million on the
        Company's balance sheet.

        KF Ltd. is a corporation incorporated under the laws of the Territory of
        the British  Virgin  Islands and is a party to a joint  venture  with La
        Generale des  Carrieres  et des Mines,  a Congolese  state-owned  mining
        enterprise. The joint venture was


                                      123
<PAGE>

        formed for the purpose of  exploiting  the Kamoto Copper Mine located in
        the Democratic Republic of Congo.

        A former related  director of the Company is also a partner in the legal
        firm that provides legal services to the Company.  This related director
        resigned  from the  Board of  Directors  effective  November  2004.  The
        payments  made to the legal firm  relating to  services  provided in the
        normal course of business at fair value for the years ended December 31,
        2004,  2003 and 2002 were $0.7  million,  $1.6  million and $2.4 million
        respectively.

24.     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.

        EXPORT PREPAYMENT CONTRACTS

        A Brazilian  Central Bank program enables exporters to borrow US dollars
        and commit to conduct export activities. These contracts are referred to
        as  export  prepayment  contracts.  In 2001,  an  arbitrage  opportunity
        existed whereby the borrowed funds could be reinvested locally in Brazil
        in U.S. denominated  investments at interest rates in excess of those on
        the loans.

        The  Company's  Paracatu mine  participates  in this program and entered
        into  contracts  during  2001,  which  were  immediately  assigned  to a
        Brazilian  bank. The Paracatu mine received a premium of $2.7 million at
        the inception of the loan, instead of the higher interest rate earned by
        the bank.  The  lenders  of the funds  agreed to the  assignment  of the
        borrowed  amounts  to the  local  bank.  There is no  obligation  by the
        Company to repay any of the borrowed  amounts;  however,  the Company is
        committed to exporting gold.

        As of  December  31,  2004,  the  Company  has $0.4  million of unearned
        premium related to the initial premium received,  which will be realized
        in earnings in 2005. In addition,  the Company must export $50.0 million
        of gold during 2005 to meet its remaining  commitment  under this export
        prepayment program.

        OTHER 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
        or is unable  to make a proper  determination  based on the  information
        available.  In  the  opinion  of  management,  the  amount  of  ultimate
        liability  with  respect to these  actions  will not  materially  affect
        Kinross' financial position, results of operations or cash flows.

        The  Company  has  settled  various  litigations  and  included  in  the
        statement of operations was $10.0 million in 2004,  $0.3 million in 2003
        and $0.6 million in 2002. Total accrued liabilities in relation to legal
        contingencies  were $11.2 million,  $15.1 million and nil as at December
        31, 2004, 2003 and 2002, respectively.

        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


                                      124
<PAGE>

        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 19).

        SETTLEMENT IN GREECE

        In January 2003, the Stratoni lead / zinc mine located in Greece,  owned
        by TVX Hellas S.A. ("TVX Hellas"), a subsidiary of the Company, was shut
        down pending the receipt of new mining  permits.  Revised mining permits
        were issued on February 18, 2003. However, operations remained suspended
        throughout  2003 as the  Company  worked with the Greek  government  and
        potential  investors  to  develop  the  appropriate  exit  strategy.  On
        December 10, 2003,  the Greek  government  unilaterally  terminated  the
        contract pursuant to which the Company's two  subsidiaries,  TVX and TVX
        Hellas, held title to the Hellenic gold mines, and invited them to enter
        into a settlement agreement. A settlement agreement was then executed on
        December 12, 2003,  pursuant to which the Greek government agreed to pay
        11 million  Euros to TVX Hellas.  The  Company  agreed to augment the 11
        million Euros ($13.6 million),  with an additional 11 million Euros, and
        to contribute all such amounts in full  satisfaction of labour and trade
        liabilities of TVX Hellas. On January 30, 2004, the Company advanced TVX
        Hellas 11 million Euros ($13.6 million) and received a full release from
        all liabilities in connection with environmental remediation. TVX Hellas
        has  settled  all labour  related  claims and has filed for  bankruptcy.
        Trade and other payables will be settled in the  bankruptcy  proceedings
        out of the remaining funds on hand in Greece.

        THE HELLENIC GOLD PROPERTIES LITIGATION

        On October 14, 1998,  the Ontario Court  (General  Division)  issued its
        judgement in connection with the claim against TVX by three  individuals
        (collectively  the "Alpha  Group")  relating  to TVX's  interest  in the
        Hellenic  Gold Mining assets  ("Hellenic  mines") in Greece owned by TVX
        Hellas. The Court rejected full ownership and monetary damage claims but
        did award the Alpha Group an undivided  12% interest in the Mines as set
        out in the November 25, 1993  agreement  between TVX and the Alpha Group
        and upon payment of 12% of the costs,  as provided for in the agreement,
        the right to acquire a further 12% participating interest, as defined in
        the  agreement,  in the Hellenic Gold assets.  Until the interests  were
        transferred  to the Alpha Group TVX was to hold the  interests  in trust
        for  them.  TVX filed a notice to  appeal  and the Alpha  Group  filed a
        notice of cross appeal.

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

        As a result of the settlement  agreement which the Company executed with
        the Greek Government,  with respect to TVX Hellas S.A., that resulted in
        the Kassandra Mines being  transferred  back to the Greek government and
        subsequently sold to another mining group, the Alpha group has commenced
        further  litigation  due to an alleged  breach of the  October  14, 1998
        judgment in the action  noted above.  By an amended  statement of claim,
        served September 13, 2004, the Alpha Group has


                                      125
<PAGE>

        added  Kinross as a defendant  and expanded the claim to include a claim
        for damages for breach of trust and breach of fiduciary duty and a claim
        for damages in respect of the alleged  refusal to accept the exercise of
        the Alpha  Group's  alleged right of first  refusal.  The Alpha Group is
        seeking  damages  of $50  million  based on  these  claims.  Kinross  is
        defending  this  claim on the basis that it acted  prudently  and fairly
        with respect to its dealings with TVX Hellas S.A., the Greek government,
        and the Alpha Group.  While Kinross  believes that it has a good defense
        to these claims, pleadings and documentary production and discovery have
        not been  completed  and,  therefore,  it is  premature  for  Kinross to
        express an opinion  on its  prospects  of  success.  If the Alpha  Group
        establishes  liability,  the range of possible  damages will depend upon
        the value of the Alpha  Groups  interests.  The value is the  subject of
        expert opinions and at present those opinions give a range of value from
        between zero and $5 million. The Alpha group has not produced any expert
        reports in the  litigation  but asserts that their interest is worth $10
        million to $20 million.  In  addition,  1235866 has  threatened  further
        litigation  for an alleged  breach of fiduciary  duty. No pleadings have
        been exchanged with respect to 1235866's  threatened  action and Kinross
        cannot reasonably predict the outcome of this threatened  litigation and
        believes  that the current  accruals for legal  actions  would cover the
        legal costs associated with this 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 19). The first trial
        was conducted in the Eighth Judicial District Court ("District Court" of
        Nevada April 1997,  with Summa  claiming more than $13 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 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 currently  unnamed  ("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.


                                      126
<PAGE>

        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.)  Howard  Hughes'  motion to
        stay the Venue appeal remains pending.

        HANDY AND HARMAN

        On March 29, 2000, Handy & Harman Refining Group, Inc., which operated a
        facility  used by Echo Bay for the  refinement  of dore bars,  filed for
        protection under Chapter 11 of the U.S.  Bankruptcy Code. Echo Bay filed
        a claim for gold and silver  accounts at this refining  facility with an
        estimated  market  value of  approximately  $2.8 million at the time the
        shipments were made.  $0.6 million of this amount was on behalf of Case,
        Pomeroy  &  Company,  Inc.  ("Case  Pomeroy"),  who  owned a 25  percent
        interest  in the  Round  Mountain  mine at the  time  of the  bankruptcy
        filing.  Echo Bay fully  provided  for its net claim of $2.2  million as
        unrecoverable. Further, in March 2002, the liquidating trustee for Handy
        & Harman  commenced a series of adversary  proceedings  against numerous
        creditors,  including  two of Echo  Bay's  subsidiaries,  alleging  that
        certain creditors received  preferential payments in metal or otherwise.
        The  preferential  payment  claims  against the Echo Bay's  subsidiaries
        approximated $9.0 million.

        In October  2003,  a  settlement  was reached  between  the  liquidating
        trustee, Echo Bay, Homestake Mining Company ("Homestake"),  a subsidiary
        of Barrick Gold  Corporation  ("Barrick")  and Case  Pomeroy.  Under the
        terms of the settlement, the liquidating agent received payments of $0.2
        million from  Homestake and $0.1 million from Echo Bay. The  liquidating
        agent  agreed to release the Company and Barrick from any and all future
        claims.  In addition,  Echo Bay agreed to waive the $2.8  million  claim
        against  the  refinery  and to pay  $0.2  million  to  Case  Pomeroy  in
        settlement of their share of its claim.  This settlement was recorded in
        2003.

        INCOME TAXES

        The  Company  operates  in  numerous  countries  around  the  world  and
        accordingly  is  subject  to, and pays  annual  income  taxes  under the
        various regimes in countries in which it operates. These tax regimes are
        determined under general  corporate income tax laws of the country.  The
        Company has  historically  filed,  and  continues to file,  all required
        income tax returns and to pay the taxes reasonably determined to be due.
        The tax rules and  regulations in many countries are complex and subject
        to  interpretation.  From time to time the Company will undergo a review
        of its  historic  tax  returns  and in  connection  with  such  reviews,
        disputes  can  arise  with the  taxing  authorities  over the  Company's
        interpretation  of the  country's  income tax rules.  As at December 31,
        2004, the Company had the following disputes that, with the exception of
        Russia,  no accrual  for  additional  tax  liabilities  has been made in
        relation to the disputes listed below:

        RUSSIA

        In  July,   2003,  the  Company  received  notice  that  local  taxation
        authorities  in  Russia  were  seeking  a  reassessment  of the tax paid
        relating to the Kubaka mine by Omolon, the Company's 98.1% owned Russian
        Joint  Stock  Company  in the  amount of $8.5  million,  which  included
        penalties and interest.  The notice challenged  certain deductions taken
        by the Company and tax concessions  relating to tax returns filed by the
        Company in prior  years.  In the years  following,  the  Company and the
        Russian authorities have challenged the assessed tax position to various
        levels of court.

        In March 2005, the Supreme  Arbitration Court of the Russian  Federation
        rejected  the  Company's  Appeal.  The Company has accrued the total tax
        liabilities  in  relation  to the dispute in a charge to income in 2004.
        This reassessment relates to the Kubaka business segment (see Note 19).

        CHILE

        On September 27, 2001, the Company's 100% owned Chilean mining  company,
        Compania Minera Kinam Guanaco ("CMKG")  received a tax reassessment from
        the  Chilean  IRS.  The assets of CMKG are  included  under the  heading
        Corporate  and other in the  segmented  information  (see Note 19).  The
        reassessment,   in  the  amount  of  $6.7  million,   disallows  certain
        deductions  utilized by a third party.  The third party has  indemnified
        the  Company for up to $13.5  million in relation to this  reassessment.
        After the  Company's  unsuccessful  appeal to the Chilean Tax Court,  in
        February  2005, the Company  reached a resolution  with the Chilean IRS.
        The Company was fully indemnified by the third party.

        BRAZIL

        MSG, the Company's 50% joint venture with AngloGold Ashanti,  which owns
        the Crixas mine  received a tax  reassessment  in November 2003 from the
        Brazilian IRS. The reassessment disallowed the claiming of certain sales
        tax credits and assessed  interest and  penalties of which the Company's
        50% share  totals  $10.2  million.  The  Company  and its joint  venture
        partner  believe  that this  reassessment  will be resolved  without any
        material adverse affect on its financial position, results of operations
        or cash flows. This reassessment  relates to the Crixas business segment
        (see Note 19).


                                      127
<PAGE>

        In  September  2005,  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  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 business segment (see Note 18).

        GUARANTEE OF THIRD PARTY CONTRACTS

        Kinross has no third party  contracts  that qualify as guarantees  under
        AcG-14.

        OTHER COMMITMENTS AND CONTINGENCIES

        FINANCIAL ASSURANCE

        As part of its  ongoing  business  and  operations,  the Company and its
        affiliates  are required to provide  financial  assurance in the form of
        letters  of  credit  for  environmental  and  site  restoration   costs,
        exploration permitting, workers compensation and other general corporate
        purposes. As at December 31, 2004 there were $94.9 million (December 31,
        2003 - $118.2  million)  of letters  of credit  issued  pursuant  to the
        syndicated  credit facility further described in Note 9. The obligations
        associated with these  instruments are generally  related to performance
        requirements that the Company addresses through its operations including
        post  closure  site  restoration.  Upon  completion  of  the  underlying
        performance  requirement,  the  beneficiary of the associated  letter of
        credit  cancels and returns the letter of credit to the issuing  entity.
        Some of the instruments  associated  with long-lived  assets will remain
        outstanding until closure.  Generally,  financial assurance requirements
        associated with environmental regulations are becoming more restrictive.
        The Company  believes it is in compliance with all applicable  financial
        assurance  requirements and will be able to satisfy all future financial
        assurance requirements.

        ACQUISITION OF CROWN RESOURCES CORPORATION

        On November  20,  2003,  the Company  announced  that it had  executed a
        definitive   acquisition  agreement  with  Crown  Resources  Corporation
        ("Crown")  whereby it will acquire  Crown and its wholly owned  Buckhorn
        gold deposit located in north central  Washington State. The Company has
        agreed to issue approximately 13.6 million common shares in exchange for
        100%  of  the  issued  and   outstanding   common  shares  of  Crown.  A
        registration  statement  has been  filed  with the U.S.  Securities  and
        Exchange Commission ("SEC").  Once effective,  the shareholders of Crown
        will vote on the transaction.  This transaction was expected to close in
        2004.  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.  In June  2005,  the  Company  and Crown  further
        extended the agreement to March 31, 2006 and is dependent on the Company
        filing its financial statements by December 31, 2005.

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

25.     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
                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 2, the Company
                plans to engage in further  discussions  with Crown 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


                                      128
<PAGE>

                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)     CHANGE IN CEO
                On March 23, 2005, the Company  announced the appointment of Tye
                Burt as President and Chief Executive Officer. Mr. Burt replaced
                Robert  Buchan who had  announced  his intention to step down in
                January of 2005.  Mr. Burt  joined  Kinross  following  his most
                recent  position  as  Vice-Chairman   and  Executive   Director,
                Corporate  Development with Barrick Gold  Corporation.  Prior to
                that he spent 16 years in corporate  finance in the positions of
                Chairman of  Deutsche  Bank Canada and Global Head of Metals and
                Mining  for  Deutsche  Bank,  Head  of  Investment   Banking  in
                Vancouver  and Co-head of the Mining Group at Nesbitt  Burns and
                spent many years at Burns Fry Limited in Mergers &  Acquisitions
                and Equity Capital Markets.

        (d)     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 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.

        (e)     SETTLEMENT OF LITIGATION
                On  November  4,  2005,  the  Company   settled  the  litigation
                associated with the Alpha group regarding the Hellenic mines for
                $8  million.  The cost of this  settlement  was  included in the
                accrual for litigation in 2004.

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


                                      129
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>4
<FILENAME>tex99_3-8988.txt
<DESCRIPTION>EX-99.3
<TEXT>
<PAGE>

                                  EXHIBIT 99.3

                        CONSENT OF DELOITTE & TOUCHE LLP,
    INDEPENDENT REGISTERED CHARTERED ACCOUNTANTS FOR KINROSS GOLD CORPORATION


INDEPENDENT REGISTERED CHARTERED ACCOUNTANTS' CONSENT

We consent to the inclusion in the Form 40-F of Kinross Gold Corporation of our
report dated November 18, 2005, except as to Notes 2 and 25(f) which are as of
February 8, 2006, with respect to the consolidated balance sheets as at December
31, 2004 and 2003 and the consolidated statements of operations, cash flows and
common shareholders' equity for each of the years in the three-year period ended
December 31, 2004.

We also consent to the incorporation by reference of our above-mentioned report
into the Registration Statements on Form S-8 (Registration Statements No.
333-110208, 333-05776, 033-93926, 033-82450, 333-08936, 333-09004, 333-12662,
333-13744 and 333-13742) of Kinross Gold Corporation.


/s/ Deloitte & Touche LLP
Independent Registered Chartered Accountants
Toronto, Ontario, Canada
February 16, 2006.
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.4
<SEQUENCE>5
<FILENAME>tex99_4-8988.txt
<DESCRIPTION>EX-99.4
<TEXT>
<PAGE>

                                  EXHIBIT 99.4

                              CONSENT OF ROD COOPER
                      TO BEING NAMED AS A QUALIFIED PERSON


February 16, 2006

I hereby consent to being named and identified as a "qualified person" in
connection with the December 31, 2004 resource and reserve estimates in the
Annual Information Form for the year ended December 31, 2004 (the "AIF") and the
annual report on Form 40-F of Kinross Gold Corporation.

I also hereby consent to the incorporation by reference of the information
contained in the annual report on Form 40-F, and the Registration Statements on
Form S-8 (Registration Statement Nos. 333-110208, 333-05776, 033-93926,
033-82450, 333-08936, 333-09004, 333-12662, 333-13744 and 333-13742) of Kinross
Gold Corporation.

For the purposes of section 10.4(2) of National Instrument 44-101, I confirm
that I have read the AIF and I have no reason to believe that there are any
misrepresentations in the information contained therein that are derived from
information I have prepared.

Sincerely,

/s/ Rod Cooper
Rod Cooper, P. Eng
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.5
<SEQUENCE>6
<FILENAME>tex99_5-8988.txt
<DESCRIPTION>EX-99.5
<TEXT>
<PAGE>

                                  EXHIBIT 99.5

                      CERTIFICATION PURSUANT TO RULE 13A-14
               OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED,
                             AS ADOPTED PURSUANT TO
                 SECTION 302 OF THE SARBANES - OXLEY ACT OF 2002

        I, Tye W. Burt certify that:

1.      I have reviewed this annual report on Form 40-F of Kinross Gold
        Corporation;

2.      Based on my knowledge, this report does not contain any untrue statement
        of a material fact or omit to state a material fact necessary to make
        the statements made, in light of the circumstances under which such
        statements were made, not misleading with respect to the period covered
        by this report;

3.      Based on my knowledge, the financial statements, and other financial
        information included in this report, fairly present in all material
        respects the financial condition, results of operations and cash flows
        of the issuer as of, and for, the periods presented in this report;

4.      The issuer's other certifying officer(s) and I are responsible for
        establishing and maintaining disclosure controls and procedures (as
        defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the issuer
        and have:

        a)      Designed such disclosure controls and procedures, or caused such
        disclosure controls and procedures to be designed under our supervision,
        to ensure that material information relating to the issuer, including
        its consolidated subsidiaries, is made known to us by others within
        those entities, particularly during the period in which this report is
        being prepared;

        b)      Evaluated the effectiveness of the registrant's disclosure
        controls and procedures and presented in this report our conclusions
        about the effectiveness of the disclosure controls and procedures, as of
        the end of the period covered by this report based on such evaluation;
        and

        c)      Disclosed in this report any change in the issuer's internal
        control over financial reporting that occurred curing the period covered
        by the annual report that has materially affected, or is reasonably
        likely to materially affect, the issuer's internal control over
        financial reporting; and

5.      The issuer's other certifying officer(s) and I have disclosed, based on
        our most recent evaluation of internal control over financial reporting,
        to the issuer's auditors and the audit committee of the issuer's board
        of directors (or persons performing the equivalent functions):

        a)      All significant deficiencies and material weaknesses in the
        design or operation of internal control over financial reporting which
        are reasonably likely to adversely affect the issuer's ability to
        record, process, summarize and report financial information; and

        b)      Any fraud, whether or not material, that involves management or
        other employees who have a significant role in the issuer's internal
        control over financial reporting.


February 14, 2006                     /s/ Tye W. Burt
     (Date)                           ---------------
                                      Tye W. Burt (principal executive officer)

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.6
<SEQUENCE>7
<FILENAME>tex99_6-8988.txt
<DESCRIPTION>EX-99.6
<TEXT>
<PAGE>

                                  EXHIBIT 99.6

                      CERTIFICATION PURSUANT TO RULE 13A-14
               OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED,
                             AS ADOPTED PURSUANT TO
                 SECTION 302 OF THE SARBANES - OXLEY ACT OF 2002

        I, Lars-Eric Johansson, certify that:

1.      I have reviewed this annual report on Form 40-F of Kinross Gold
        Corporation;

2.      Based on my knowledge, this report does not contain any untrue statement
        of a material fact or omit to state a material fact necessary to make
        the statements made, in light of the circumstances under which such
        statements were made, not misleading with respect to the period covered
        by this report;

3.      Based on my knowledge, the financial statements, and other financial
        information included in this report, fairly present in all material
        respects the financial condition, results of operations and cash flows
        of the issuer as of, and for, the periods presented in this report;

4.      The issuer's other certifying officer(s) and I are responsible for
        establishing and maintaining disclosure controls and procedures (as
        defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the issuer
        and have:

        a)      Designed such disclosure controls and procedures, or caused such
        disclosure controls and procedures to be designed under our supervision,
        to ensure that material information relating to the issuer, including
        its consolidated subsidiaries, is made known to us by others within
        those entities, particularly during the period in which this report is
        being prepared;

        b)      Evaluated the effectiveness of the issuer's disclosure controls
        and procedures and presented in this report our conclusions about the
        effectiveness of the disclosure controls and procedures, as to the end
        of the period covered by this report based on such evaluation; and

        c)      Disclosed in this report any change in the issuer's internal
        control over financial reporting that occurred curing the period covered
        by the annual report that has materially affected, or is reasonably
        likely to materially affect, the issuer's internal control over
        financial reporting; and

5.      The issuer's other certifying officer(s) and I have disclosed, based on
        our most recent evaluation of internal control over financial reporting,
        to the issuer's auditors and the audit committee of the issuer's board
        of directors (or persons performing the equivalent functions):

        a)      All significant deficiencies and material weaknesses in the
        design or operation of internal control over financial reporting which
        are reasonably likely to adversely affect the issuer's ability to
        record, process, summarize and report financial information; and

        b)      Any fraud, whether or not material, that involves management or
        other employees who have a significant role in the issuer's internal
        control over financial reporting.

February 14, 2006                    /s/ Lars-Eric Johansson
    (Date)                           -----------------------
                                     Lars-Eric Johansson
                                     Chief Financial Officer (principal
                                     financial and accounting officer)

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.7
<SEQUENCE>8
<FILENAME>tex99_7-8988.txt
<DESCRIPTION>EX-99.7
<TEXT>
<PAGE>

                                  EXHIBIT 99.7


                            CERTIFICATION PURSUANT TO
                             18 U.S.C. SECTION 1350
                             AS ADOPTED PURSUANT TO
                 SECTION 906 OF THE SARBANES - OXLEY ACT OF 2002


        In connection with the annual report of Kinross Gold Corporation (the
"Company") on Form 40-F for the year ended December 31, 2004, Tye W. Burt hereby
certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:

        1.      The annual report fully complies with the requirements of
                Section 13(a) of the Securities Exchange Act of 1934; and

        2.      The information contained in the annual report fairly presents,
                in all material respects, the financial condition and results of
                operations of the Company.


February 14, 2006                    /s/ Tye W. Burt
     (Date)                          ---------------
                                     Tye W. Burt (principal executive officer)
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.8
<SEQUENCE>9
<FILENAME>tex99_8-8988.txt
<DESCRIPTION>EX-99.8
<TEXT>
<PAGE>

                                  EXHIBIT 99.8

                            CERTIFICATION PURSUANT TO
                             18 U.S.C. SECTION 1350
                             AS ADOPTED PURSUANT TO
                 SECTION 906 OF THE SARBANES - OXLEY ACT OF 2002


        In connection with the annual report of Kinross Gold Corporation (the
"Company") on Form 40-F for the year ended December 31, 2004, Lars-Eric
Johansson hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of
his knowledge:

        1.      The annual report fully complies with the requirements of
                Section 13(a) of the Securities Exchange Act of 1934; and

        2.      The information contained in the annual report fairly presents,
                in all material respects, the financial condition and results of
                operations of the Company.


February 14, 2006                          /s/ Lars-Eric Johansson
    (Date)                                 -----------------------
                                           Lars-Eric Johansson
                                           Chief Financial Officer (principal
                                           financial and accounting officer)
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
