LETTER TO SHAREHOLDERS

Kinross Gold 2012 Annual Report

I am pleased to have this opportunity to share my perspective on the past year, and my vision for Kinross going forward, in my first annual letter to shareholders as CEO.

Kinross delivered strong operational results in 2012. We exceeded our annual production guidance, and met our guidance on cost of sales per ounce for the second consecutive year. We achieved record revenue, exceeding $4 billion for the first time. Our adjusted operating cash flow was approximately $1.5 billion, and our adjusted net earnings of $879 million were our highest ever. Regrettably, we recorded a non-cash impairment charge, primarily related to our Tasiast asset, which resulted in a reported net loss for the year of approximately $2.5 billion. However, this non-cash charge did not reflect our robust operational performance. We finished the year with a strong balance sheet, and with a liquidity position of approximately $3.5 billion.

I am especially proud that our employees delivered these results during a challenging and turbulent year for Kinross and the gold industry as a whole.

Like other producers, in 2012 we faced increased pressure on capital costs, operating costs, and operating margins. These and other factors contributed to an erosion of investor confidence, and a decline in share price performance for the entire sector.

I am especially proud that our employees delivered these results during a challenging and turbulent year for Kinross and the gold industry as a whole.

When I became CEO in August 2012, we embarked on an aggressive process of change to address these challenges. Our goal is simple: to continue rebuilding investor confidence and to unlock value which recently has not been reflected in our share price.

We are initiating this change process from a position of fundamental strength. Kinross is one of the world’s leading gold producers, with significant potential to create additional value and free cash flow. We operate a suite of nine mines in four regions and a diverse range of geographies — from the High Andes to the Sahara, to the Arctic, to the Equatorial jungle. We have an experienced and highly skilled global team, a safety record that ranks among the best in the industry, a strong balance sheet, a balanced portfolio of gold growth projects, and an impressive history of co-operative community relations.

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