Kinross Operations Report 23% Increase In Year Over Year Production

TORONTO - J. Paul Rollinson, President and CEO of Kinross Gold Corporation, said, “The Company delivered a strong first quarter with contributions from all of our sites resulting in a 23% increase in year-over-year production. Tasiast, La Coipa and Paracatu delivered strong production, margins and cash flow, including two record production months and record grades at Tasiast. Our U.S. operations delivered on plan as we continue to reinvest in our future with a focus on higher-margin opportunities.

We continue to make excellent progress advancing our pipeline of development and exploration projects. The Tasiast 24k project is on schedule to reach nameplate capacity mid-year and the Tasiast solar power plant is expected to come online by the end of the year. At Great Bear, drilling results continue to confirm mineralization with good widths and high grades including at depths of more than one kilometer. Our portfolio of operations is well positioned and on track to deliver our annual production and cost guidance. We continue to maintain our financial strength and excellent liquidity, while bolstering our investment-grade balance sheet and continuing with our return of capital program.

Mining responsibly and our strong commitment to ESG are integral to our business and are embedded in our culture and core values. We are pleased to publish our 2022 Sustainability and ESG Report which details our ESG strategy as well as another strong year of performance in this important area. Our goal is to be a partner of choice in the communities in which we operate while continuing to deliver meaningful and lasting benefits to all of our stakeholders. We remain focused on our commitment to reduce greenhouse gas emission intensity (on a per gold equivalent ounce basis) by 30% by 2030, driven by interim targets and a focus on continuous improvement and innovation.”

Kinross produced 466,022 Au eq. oz. in Q1 2023 from continuing operations, compared with 378,421 Au eq. oz. in Q1 2022. The 23% year-over-year increase was primarily attributable to the ramp up of production at La Coipa in 2022 and higher production at Paracatu, Round Mountain and Fort Knox.

Production was lower at Tasiast quarter-over-quarter and year-over-year primarily due to lower throughput as a result of the planned shutdown in February mainly for tie-ins at the Tasiast 24k project. Notwithstanding the planned shutdown, monthly production records were achieved in both January and March as the lower quarter-over-quarter throughput was partially offset by improving recoveries and record-high grades as a result of mine sequencing.

At Paracatu, production was on plan and increased year-over-year primarily due to higher throughput, grades and recoveries, and decreased quarter-over-quarter mainly due to expected lower grades and recoveries as a result of planned mine sequencing, partially offset by higher throughput. Cost of sales per ounce sold was lower year-over-year mainly due to increased production and higher quarter-over-quarter mainly due to lower production.

Production at Fort Knox was lower compared with the previous quarter mainly due to the seasonal effect of fewer ounces recovered from the heap leach pads. Year-over-year production increased largely due to higher mill production as a result of higher grades processed.

At Round Mountain, production was slightly lower than the previous quarter mainly due to fewer ounces recovered from the heap leach pads. Production increased year-over-year due to an increase in ounces recovered from the heap leach pads.

At Bald Mountain, production decreased quarter-over-quarter mainly due to fewer ounces recovered from the heap leach pads related to a decrease in tonnes placed on the heap leach pads, partially offset by higher grades. Year-over-year production decreased mainly due to fewer tonnes placed on the heap leach pads and lower grades. Cost of sales per ounce sold increased quarter-over-quarter due to lower production and year-over-year largely due to higher reagent costs and royalties. The unprecedented winter snowfall had an impact on mining and stacking activities at Bald Mountain, however the site achieved quarterly production targets and has made strong progress catching up on mining activities in April.

At La Coipa, production was lower compared with the previous quarter mainly due to the planned mill shutdown to increase mill reliability, resulting in lower throughput, partially offset by higher grades and strong recoveries. Cost of sales per ounce sold increased quarter-over-quarter mainly due to lower production. The Company continues to focus on optimizing the plant and maintaining the outperformance on recovery, and production at La Coipa remains on plan for the year. La Coipa poured first gold in February 2022 and ramped up in the second half of the year.

The Tasiast 24k project continues to progress on budget and on schedule to reach designed throughput of 24,000 t/d by mid-year and ramp-up to operate consistently at this design throughput by the end of the year. The successful execution of the mill shutdown in February put into operation a new vibrating screen at the SAG discharge, as well as an upgrade to a higher capacity SAG primary cyclone cluster. Mechanical and electrical installation works are substantially advanced on the pre-classification circuit (the remaining 24k debottlenecking scope), with pre-commissioning of subsystems having commenced in April and phased commissioning expected to continue through to the end of June. A shutdown is planned in June in connection with the 24k expansion project.

The 34MW Tasiast solar power plant continues to advance and is on schedule for completion by the end of the year. All photovoltaic modules have arrived and procurement is substantially complete with all critical equipment on site or in transit. Civil works are well advanced and mechanical assembly installation is progressing well as the installation of the first photovoltaic modules started in April.

The Company continues to make excellent progress at the Great Bear project in Red Lake, Ontario. In the first quarter, Kinross drilled approximately 38,000 meters as part of its robust exploration and infill drilling program. Kinross’ focus this year is on inferred drilling in the area half a kilometer to one kilometer below surface. This work will be complemented by exploration drilling along strike of the LP Fault zone and around the Hinge and Limb zones that have seen little exploration drilling for new mineralization beyond the known zones, with the goal of further delineating the deposit at depth as well as adding inferred resource ounces.

Assay results-to-date continue to support the view of a high-grade deposit that underpins the prospect of a large, long-life mining complex with the recent results continuing to demonstrate the high-grade nature of the mineralization. Hole BR-695, the deepest hole to date on the property, intersected a 9.6m interval at 10.5 g/t gold at a vertical depth of 1.3 kilometers. The latest results also confirm the system has broad zones of mineralization as seen in hole BR-697A that intersected a 38m interval at 5.2 g/t gold including a 4.2m interval of 32.4 g/t gold, at a vertical depth of 800m. Hole BR-735 intersected 2.6m at 73 g/t gold at a vertical depth of 100m and extends the strike length of the Viggo mineralization. In the Limb zone (Red Lake style of mineralization) hole DL-132 intersected 5.9m of 7.8 g/t gold at a vertical depth of 900m, once again demonstrating that this system also continues at depth.

The Company is also progressing studies and permitting for an advanced exploration program that would establish an underground decline to obtain a bulk sample and allow for more efficient exploration of deeper areas of the LP Fault zone, along with the nearby Hinge and Limb gold zones. Kinross is targeting a potential start of the surface construction for the advanced exploration program as early as 2024.

Baseline environmental surveys, local community socio-economic studies and engineering activities required for the permitting process for the main project are progressing well. The Company continues to work together to build a mutually beneficial relationship with the Wabauskang and Lac Seul First Nations, on whose traditional territories the project is located, and is providing support for their technical resources in the area of environmental monitoring. Kinross continues to advance technical studies and permitting activities, with plans to release the results of this work in the form of a preliminary economic assessment in 2024.

At the 70% owned Manh Choh project, activities remain on schedule and on budget, with the early works program completed successfully. The camp is now operational, supporting the construction activities underway, and is being managed by an Alaska-based firm. Long lead procurement orders have been expedited and onboarding of key construction and operational contractors continues to advance as planned for both the Manh Choh site and Fort Knox mill modifications. The public comment period for the operating permits was successfully completed and the overall permitting process remains on track. The Company continues to plan for the construction ramp-up with a steadfast focus on developing the mine while keeping the safety of our people and the environment at the forefront and continuing to build strong relationships with communities and the Native Village of Tetlin.

The Company announced on July 27, 2022, that it was proceeding with the Manh Choh project as the operator of the joint venture. Initial production from Manh Choh is expected in the second half of 2024 and is expected to add approximately 640,000 attributable Au eq. oz. to the Company’s production profile over its approximately 4.5 year life-of-mine.

Kinross’ activities in Chile are currently focused on La Coipa and potential opportunities to extend its mine life. The Lobo-Marte project continues to provide optionality as a potential large, low-cost mine upon the conclusion of mining at La Coipa. While the Company focuses its technical resources on La Coipa, it will continue to engage and build relationships with communities related to Lobo-Marte and government stakeholders.

At the Curlew Basin exploration project in Washington State, located approximately 35 kilometers north of the Company’s Kettle River mill by paved road, underground exploration drill results continue to confirm vein extensions and continuity within high priority target areas. Exploration drilling is underway and will continue throughout the remainder of the year with the goal of building on the resource.

Round Mountain Phase X and Gold Hill exploration, the Company continues to focus on progressing the higher-margin, higher-return underground opportunities at Phase X and Gold Hill. Construction of the exploration decline at Phase X started in the first quarter and underground development is progressing to start definition drilling in early 2024. The Company is also advancing studies and permitting for a potential underground mine at Phase X in parallel with the underground development to advance our path to production.

Phase X is a continuation of the world-class Round Mountain low sulfidation epithermal system (over 16Moz. produced which consists of disseminated gold hosted in a rhyolite tuff). This mineralized zone progressively deepens westward due to a combination of a gentle west-dip and down-dropping along a series of ‘Basin and Range’ faults.

At the Gold Hill exploration project, located approximately seven kilometers northeast of Round Mountain, drilling commenced early this year with four drill rigs and permitting for an underground decline is progressing. Exploration drilling is focused on extending the Jersey vein and testing continuity of the mid-Atlantic vein zone. Drilling thus far has successfully intersected the targeted veins and assays will be included in the Company’s second quarter results. Gold Hill is a low sulfidation epithermal vein system consisting of high-grade narrow quartz veins with significant strike continuity. Historic underground mining (current pit area) produced approximately 40koz with a grade of 10g/t Au.