Toronto, Ontario

Kinross provides the following detail regarding the Company's performance during the second quarter of 1999. Although the average spot price of gold was $273 per ounce compared to $300 in 1998, cash flow provided from operations for the second quarter was $13.3 million, compared to $13.8 million in 1998. Gold equivalent production for the second quarter was 247,176 ounces at record low total cash costs of $192 per ounce.

Net loss for the three months ended June 30, 1999 was $14.7 million, five cents per share, on revenues of $77.8 million, compared with a net loss for the second quarter of 1998 of $1.9 million, two cents per share, on revenues of $64.0 million. Total cash costs were $192 per ounce of gold equivalent in the quarter, down from the first quarter of $198 per ounce. Cash flow provided from operations was $13.3 million, four cents per share, compared to $13.8 million, seven cents per share in the same period of 1998.

Net loss for the six months ended June 30, 1999 was $24.7 million, nine cents per share, on revenues of $156.5 million, compared with a net income for first six months of 1998 of $0.3 million, or a loss of two cents per share (after accounting for the convertible debenture equity component increase) on revenues of $106.6 million. Total cash costs were $195 per ounce of gold equivalent in the first six months, down from $224 per ounce of gold equivalent in the same period of 1998. Cash flow provided from operations for the first six months of 1999 was $30.6 million, ten cents per share, compared to $20.0 million, thirteen cents per share in the same period of 1998.

Included in the results of operations for the second quarter and six months ended June 30, 1999 are $5.0 million, or two cents per share of unusual charges. These charges resulted from severance obligation associated with the decision to place the Macassa mine on care and maintenance and a contract termination fee associated with the termination of the surface mining contract at the Refugio mine.

Gold equivalent production for the second quarter was 247,176 ounces, for a six-month total of 502,311 ounces. The Hoyle Pond mine will significantly increase its production in the second half of the year and continued strong performance from the Kubaka and Fort Knox mines are expected to ensure that the Company achieves its 1999 production target of one million ounces.

The Company's gold hedging program enabled the Company to realize an average price of $302 and $298 per ounce for the second quarter and six months respectively, compared with average spot prices of $273 and $280 for the second quarter and six months respectively. The Company has in place 900,000 ounces of forward sales contracts outstanding for delivery over the next six years at prices ranging from $300 per ounce to $323 per ounce.

Operating Performance 

Although production was nominally lower than planned, total cash costs were better than anticipated for the first half of 1999. The current plan calls for higher production from the Hoyle Pond mine during the second half of the year, for a year total of 1 million ounces at sustainable low total cash costs of approximately $190 per ounce of gold equivalent. For details of tonnes processed, grade and recovery refer to the tables presented later in this press release.

Fort Knox Mine - Alaska

As reported in the first quarter report, production at the Fort Knox mine was adversely affected by unusually hard ore and lower than planned ore grade. The Company is pleased to report improved production for the second quarter, as these issues were resolved successfully. Production increased by 18% over the first quarter and total cash costs continued to decline to $179 per ounce, better than planned. With the closing of the True North acquisition, the Company will now focus the exploration and permitting activities in Alaska on the nearby True North and Ryan Lode properties which will provide higher grade ore and allow the Company to increase production at the Fort Knox mine.

Hoyle Pond Mine - Ontario As previously reported, the results at Hoyle Pond have been adversely affected by a fatality late in 1998, a second fatality in April this year, a disruptive unionization drive and technical/productivity issues underground. Substantial changes were made in the second quarter in both management and procedures that has resulted in the total cash costs per ounce declining monthly throughout the quarter to a low for the year to date of $183 per ounce in June. Continued improvement is forecast for the balance of the year such that production expectations for the full year remain unchanged at approximately 146,000 ounces at a total cash cost of about $180 per ounce.

Kubaka Mine - Russia The Kubaka mine continues to exceed planned production with lower than forecasted total cash costs. Production at the Kubaka mine is significantly better than planned due to higher than expected mill feed grade, greater mill throughput and lower operating costs. Total cash costs at the Kubaka mine remained the lowest in the Company at $142 per ounce of gold equivalent for the second quarter of 1999.

Refugio Mine - Chile Production at the Refugio mine declined 8% during the second quarter, while total cash costs increased nominally to $259 per ounce of gold equivalent. The Company commenced self-mining at the Refugio mine during the second quarter, which will allow greater flexibility in mine planning and production. The Company became operator of the mine during the second quarter. In addition to the mobile fleet that was purchased in the second quarter further capital expenditures for the year involve the completion of the replacement of the tertiary crushers and the addition of one loader to replace an older rental unit. The Company is confident that substantially lower production costs will be seen in the foreseeable future.

Denton-Rawhide - Nevada Production at the Denton-Rawhide mine declined by 11% during the second quarter, but remained on plan, while total cash costs remained better than planned at $241 per ounce of gold equivalent. For the six months, production at the Denton-Rawhide Mine continues to exceed plan due to higher than planned tonnes placed on the leachpad. 

Blanket - Zimbabwe Production at the Blanket mine declined by 15% during the second quarter, while total cash costs remained on plan at $181 per ounce of gold. For the year, production is slightly lower than planned but total cash costs remain significantly below planned at $156 per ounce of gold. Production shortfalls relate to lower than planned grade from underground due to the inability to mine the high-grade reserves in the Eroica blocks. With this minor issue resolved, production estimates for the year remain unchanged.

Year 2000 Update

The review and impact analysis of the Company's operating facilities with respect to plant equipment has been completed at all sites. The Fort Knox, Hoyle Pond, Kubaka, Macassa and Blanket properties have completed remediation of their process control systems and these plant systems are now Y2K compliant. The Refugio property has completed the review and analysis of the plant and completed 75% of the remedial work required, with the remainder scheduled for completion in August 1999. The review and impact analysis of business information systems is progressing on schedule. 80% of the systems upgrades have been completed, with the remainder scheduled for completion by September 1999. Queries have been sent to 200 vendors of goods and services from various sites. To-date responses have been received from 90%, indicating they are now compliant or would be by June 1999. Y2K contingency planning will take place during the third quarter of this year. The information being received from the various electrical utilities as to their status is very promising. However, it is still the intention to focus part of contingency plans on potential electrical disruptions, as any serious power disruptions would have an impact on operations. Total project spending estimates for the year is lower than previous estimates. No serious issues have been identified by the assessments, and it is the Company's belief that there will not be any serious operational problems caused by the Y2K "bug" and that the Company has taken the necessary steps to resolve any Year 2000 issues. However, there can be no assurance that any one or more such failures would not have a material adverse effect on the Company. Actual outcomes and results could be affected by future factors including, but not limited to, availability of skilled personnel, ability to locate software problems, critical suppliers and subcontractors meeting commitments, and timely actions by suppliers.

Outlook

As at June 30, 1999, the Company has $119.7 million of cash and operating working capital of $32.6 million for total working capital of $152.3 million. This combined with sustainable low cost production, and a manageable debt repayment schedule, provides the Company with a solid platform for future growth when opportunities present themselves.

This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of Kinross Gold Corporation ("Kinross"), are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Kinross' expectations are disclosed under the heading 

"Risk Factors" and elsewhere in Kinross' documents filed from time to time with the Toronto Stock Exchange, the United States Securities and Exchange Commission and other regulatory authorities.

Cautionary Statement on Forward-Looking Information