Toronto, Ontario

Toronto, Ontario - Kinross Gold Corporation (TSE-K; NYSE-KGC) provides the following update regarding the analysis of various plans to resume underground operations at the Macassa mine located in Kirkland Lake, Ontario. On April 12, 1997 a series of rock bursts damaged the No. 3 shaft between the 5700 and 6300 foot levels. Detailed technical and financial evaluations of the various options has resulted in a plan for immediate reactivation of underground mining above the 5000 foot level.

Gold production for 1997 from Macassa is now expected to total about 55,000 ounces as compared to the original 1997 budget of 91,000 ounces, with about 43,000 ounces from underground operations and 12,000 from tailings retreatment. Macassa cash operating costs are expected to be about $350 per ounce of gold in 1997, or about $100 per ounce above the original budget. These 1997 costs include standby costs since April 12th. Insurance proceeds for physical damage and business interruption claims, to a maximum of Cdn$ 10 million, are not reflected in these estimates. As a result of this decrease in expected gold production at Macassa, Kinross now expects gold equivalent production at its eight mines to total about 510,000 ounces in 1997, down about 7% from previous expectations and down about 3% from actual 1996 production. Gold production from underground operations at Macassa is expected to increase to about 49,000 ounces in 1998 while the magnitude of the contribution from tailings retreatment in 1998 is subject to further reserve verification over the next few months. Currently, Kinross is assuming total gold production from Macassa in 1998 of approximately 66,000 ounces at a cash operating cost of about $260 per ounce.

As reported in a press release on May 1, 1997 the shaft pillar has been extended downward and laterally due to the rock bursts of April 12th. This has resulted in the number of ounces of gold in this shaft pillar increasing from 116,000 ounces at year-end 1996 to 274,000 ounces. The economic viability of ultimately mining these ounces in the shaft pillar cannot be currently demonstrated and as such these ounces will be reclassified from a mineable reserve to a resource. Consequently, Kinross has approved the expenditure of $0.4 million (Cdn$ 0.5 million) for in-mine exploration above the 5000 foot level and is evaluating additional exploration opportunities in the Kirkland Lake district with the objective of re-establishing a mineable reserve base to continue underground operations over the medium and long term. A decision to rehabilitate the No. 3 shaft below the 5700 foot level at a cost of about $3.1 million (Cdn$ 4.3 million) has been deferred pending further study.

Unfortunately, these events have resulted in the necessity for a reduction of approximately 100 employees at Macassa. Twenty two of these employees have already accepted employment with Kinross at our Hoyle Pond operations in nearby Timmins, Ontario and an early retirement program offered to appropriate Macassa employees has been well received. The potential for additional employment opportunities within and external to Kinross are being investigated. The availability of the experienced Macassa personnel working at Hoyle Pond will assist in expediting the expansion plans envisioned by the Hoyle 2000 project where annual gold output has the potential to approximately double over the next five or six years.

Since April 12th, a team of people including Macassa employees, other Kinross personnel, consultants, mining contractors, insurance representatives, government agencies, union officials and others have worked very hard on tackling the technical, financial and social issues associated with this situation at Macassa. These problems have impacted our employees, shareholders, suppliers and the community of Kirkland Lake. Kinross acknowledges the efforts of all those involved in this reactivation plan for  Macassa and appreciates the patience exhibited by those awaiting the results of this work. This plan is obviously part of a dynamic process of re-evaluation that will be on-going and reported on in the future as appropriate.

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