Significant year-over-year increase in earnings and cash flow

Tasiast development plan accelerates and resources continue to grow

Toronto, Ontario - November 3, 2010 - Kinross Gold Corporation (TSX: K, NYSE: KGC) today announced its results for the third quarter ended September 30, 2010. Results for the former Red Back Mining Inc. assets are consolidated into Kinross for the period from September 17 to September 30, 2010.

(This news release contains forward-looking information that is subject to the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information located on page 9 of this news release. All dollar amounts in this news release are expressed in U.S. dollars, unless otherwise noted.)

Highlights

• Production¹ in the third quarter 2010 was 575,065 gold equivalent ounces, a 7% increase over the same period last year. Third quarter production included 20,238 ounces from the former Red Back Mining assets in West Africa.
  • Revenue for the quarter was a record $735.5 million, compared with $582.3 million in the third quarter of 2009, an increase of 26%. Approximately 11,000 ounces sold were from Red Back assets. The average realized gold price for the quarter was $1,190 per ounce sold, compared with $956 per ounce sold in Q3 2009, an increase of 24%.
• Cost of sales per gold equivalent ounce² for Kinross operations excluding the impact of the Red Back acquisition was $508, an increase of 9% compared with Q3 2009. Cost of sales including the impact of the Red Back acquisition was $517 per gold equivalent ounce. Cost of sales per gold ounce on a by-product basis including West Africa was $477.
• Kinross' attributable margin per ounce sold³ was a record $673 in Q3, a year-over-year increase of 37%.
• Adjusted operating cash flow⁴ for Kinross operations excluding the impact of the Red Back acquisition was $258.7 million, or $0.37 per share, compared with $203.0 million, or $0.29 per share, in Q3 2009, an increase of 27% in adjusted operating cash flow. Adjusted operating cash flow including the impact of the Red Back acquisition was $260.8 million, or $0.34 per share. Cash, cash equivalents and short-term investments were $1,380.8 million at September 30, 2010.
• Adjusted net earnings⁴ for Kinross operations excluding the impact of the Red Back acquisition were $121.6 million, or $0.17 per share, a substantial increase compared with $1.7 million, or $0.0 per share, in Q3 2009. Adjusted net earnings for Kinross operations including the impact of the Red Back acquisition were $123.6 million, or $0.16 per share. Reported net earnings were $346.9 million, or $0.45 per share, compared with a loss of $21.5 million, or $0.03 per share, in Q3 2009.
• On September 15, 2010, Kinross shareholders approved the acquisition of Red Back Mining Inc. and on September 17, 2010, the transaction was completed. Integration efforts are progressing as planned and Kinross has commenced an aggressive development and exploration program at Tasiast, with 23 drilling rigs expected to be active shortly.
• The Tasiast geological resource model has been updated, with inferred mineral resources now estimated to be 105.6 million tonnes at 1.5 g/t Au, containing an estimated 5.1 million gold ounces, representing an increase of 3.2 million ounces over the September 7, 2010 estimate reported by Red Back Mining.⁵
• On August 27, 2010, Kinross completed the acquisition of the high-grade Dvoinoye property in the Russian Far East, following receipt of approval from the Russian government to acquire 100% ownership of Dvoinoye, classified as a strategic deposit.
• Kinross has appointed Brant Hinze as Executive Vice-President and Chief Operating Officer, effective October 1, 2010. Mr. Hinze succeeds Tim Baker, whose retirement as COO was announced earlier this year.

CEO Commentary

Tye Burt, President and CEO, made the following comments in relation to third quarter 2010 results:

"Kinross recorded another quarter of strong financial results, with significant year-over-year increases in operating cash flow, margins, and adjusted net earnings4. We completed our transformational combination with Red Back, expanding our global portfolio and giving Kinross the best growth profile among senior producers. Exploration activity at Tasiast is accelerating, with 16 drill rigs now operational and with more to follow, even as we advance engineering and design work. We have recently updated the Tasiast mineral resource model, and added to Red Back's previous mineral resource estimate. Our work continues to confirm Kinross' view of Tasiast's tremendous potential.

"We are making significant progress advancing the other projects in our growth portfolio. We received approval from the Russian government for our Dvoinoye acquisition, becoming the first foreign-owned mining company to receive approval for 100% ownership of a mineral deposit classified as strategic. At Fruta del Norte, Lobo-Marte, and Cerro Casale, permitting and development work continue to advance on schedule."

(1)  Unless otherwise stated, production figures in this release are based on Kinross' 75% share of Kupol production and 90% of Chirano production.

(2)  Cost of sales per ounce is a non-GAAP measure and is defined as cost of sales as per the financial statements divided by the number of gold equivalent ounces sold, both reduced for Kupol sales attributable to a third-party 25% shareholder and Chirano sales to a 10% minority interest holder.

(3) Attributable margin per ounce sold is a non-GAAP measure and is defined as average realized gold price per ounce less attributable cost of sales per gold equivalent sold.

(4)  Reconciliation of non-GAAP measures is located on page 11 of this news release.

(5)  Refer to page 10 of this news release.

Please click here to download PDF of the full news release.

Please click here to download PDF of the Third Quarter Report.

Cautionary Statement on Forward-Looking Information
All statements, other than statements of historical fact, contained or incorporated by reference in this news release, but not limited to, any information as to the future financial or operating performance of Kinross, constitute ‘‘forward-looking information’’ or ‘‘forward-looking statements’’ within the meaning of certain securities laws, including the provisions of the Securities Act (Ontario) and the provisions for ‘‘safe harbour’’ under the United States Private Securities Litigation Reform Act of 1995 and are based on expectations, estimates and projections as of the date of this news release. Forward-looking statements include, without limitation, possible events, statements with respect to possible events, 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, development and mining activities, permitting timelines, 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. The words ‘‘plans’’, ‘‘expects’’ or ‘‘does not expect’’, ‘‘is expected’’, ‘‘budget’’, ‘‘scheduled’’, “envision”; ‘‘estimates’’, ‘‘forecasts’’,”guidance”; “targets”, “models”, ‘‘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’’, ‘‘should’’, ‘‘might’’, or ‘‘will be taken’’, ‘‘occur’’ or ‘‘be achieved’’ and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Kinross as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates, models and assumptions of Kinross referenced, contained or incorporated by reference in this news release, which may prove to be incorrect, include, but are not limited to, the various assumptions set forth herein and in our most recently filed Annual Information Form and our most recently filed Management’s Discussion and Analysis as well as: (1) there being no significant disruptions affecting the operations of the Company or any entity in which it now or hereafter directly or indirectly holds an investment, whether due to labour disruptions, supply disruptions, power disruptions, damage to equipment or otherwise; (2) permitting, development, operations, expansion and acquisitions at Paracatu (including, without limitation, land acquisitions for and permitting and construction of the new tailings facility) being consistent with our current expectations; (3) development of the Phase 7 pit expansion and the heap leach project at Fort Knox continuing on a basis consistent with Kinross’ current expectations; (4) the viability, permitting and development of the Fruta del Norte deposit being consistent with Kinross’ current expectations; (5) political developments in any jurisdiction in which the Company, or any entity in which it now or hereafter directly or indirectly holds an investment, operates being consistent with its current expectations including, without limitation, the implementation of Ecuador’s new mining law and related regulations and policies, and negotiation of an exploitation contract with the government, being consistent with Kinross’ current expectations; (6) permitting, construction, development and production at Cerro Casale being consistent with the new feasibility study prepared and approved by the joint venture and the Company’s current expectations; (7) the viability, permitting and development of the Lobo-Marte project, including, without limitation, the metallurgy and processing of its ore, being consistent with our current expectations; (8) the exchange rate between the Canadian dollar, Brazilian real, Chilean peso, Russian rouble, Mauritanian ouguiya, Ghanaian cedi and the U.S. dollar being approximately consistent with current levels; (9) certain price assumptions for gold and silver; (10) prices for natural gas, fuel oil, electricity and other key supplies being approximately consistent with current levels; (11) production and cost of sales forecasts for the Company, and entities in which it now or hereafter directly or indirectly holds an investment, meeting expectations; (12) the accuracy of the current mineral reserve and mineral resource estimates of the Company and any entity in which it now or hereafter directly or indirectly holds an investment; (13) labour and materials costs increasing on a basis consistent with Kinross’ current expectations; and (14) the development of the Dvoinoye and Vodorazdelnaya deposits being consistent with Kinross’ expectations; (15) the viability of the Tasiast and Chirano mines, and the development and expansion of the Tasiast and Chirano mines on a basis consistent with Kinross’ current expectations. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: fluctuations in the currency markets; fluctuations in the spot and forward price of gold or certain other commodities (such as diesel fuel and electricity); changes in interest rates or gold or silver lease rates that could impact the mark-to-market value of outstanding derivative instruments and ongoing payments/receipts under any interest rate swaps and variable rate debt obligations; risks arising from holding derivative instruments (such as credit risk, market liquidity risk and mark-to-market risk); changes in national and local government legislation, taxation, controls, policies and regulations, the security of personnel and assets, and political or economic developments in Canada, the United States, Chile, Brazil, Russia, Ecuador, Mauritania, Ghana, or other countries in which Kinross, or entities in which it now or hereafter directly or indirectly holds an investment, do business or may carry on business in the future; business opportunities that may be presented to, or pursued by, us; our ability to successfully integrate acquisitions; operating or technical difficulties in connection with mining or development activities; employee relations; the speculative nature of gold exploration and development, including the risks of obtaining necessary licenses and permits; diminishing quantities or grades of reserves; adverse changes in our credit rating; and contests over title to properties, particularly title to undeveloped properties. In addition, there are risks and hazards associated with the business of gold exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance, or the inability to obtain insurance, to cover these risks). Many of these uncertainties and contingencies can directly or indirectly affect, and could cause, Kinross’ actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Kinross. 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. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. All of the forward-looking statements made in this news release are qualified by these cautionary statements and those made in our other filings with the securities regulators of Canada and the United States including, but not limited to, the cautionary statements made in the ‘‘Risk Factors’’ section of our most recently filed Annual Information Form. These factors are not intended to represent a complete list of the factors that could affect Kinross. Kinross disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.

Key Sensitivities

Approximately 50%-60% of the Company's costs are denominated in US dollars.
A 10% change in foreign exchange could result in an approximate $7 impact in cost of sales per ounce.
A $10 change in the price of oil could result in an approximate $3 impact on cost of sales per ounce.
The impact on royalties of a $100 change in the gold price could result in an approximate $4 impact on cost of sales per ounce.

Other information

Where we say ‘‘we’’, ‘‘us’’, ‘‘our’’, the ‘‘Company’’, or ‘‘Kinross’’ in this news release, we mean Kinross Gold Corporation and/or one or more or all of its subsidiaries, as may be applicable.