LETTER TO SHAREHOLDERS

Kinross Gold 2012 Annual Report

Our change process is designed to leverage those core strengths by establishing a few clear strategic principles to govern our decisions and behaviour as a mining business.

First, we will maintain a strong internal focus on operational fundamentals. Our operations are at the core of what we do, they drive our profitability and cash flow, and we need to ensure they are consistently firing on all cylinders, quarter after quarter.

Second, we will stress margin, cash flow, and quality over quantity in our business decisions. We can’t control the price of gold, but we can control our mine planning process, and ask if it makes sense to mine low-margin ounces simply to maximize production. We can change our focus from quantity to quality ounces in our mine planning, production, exploration and resource strategies.

Third, we are committed to maintaining a strong balance sheet and liquidity position, in support of our investment grade rating.

Fourth, we will be disciplined in building out our projects. We will aim to reduce capital requirements and execution risk, and deliver the best long-term return from our growth projects.

These principles underpin a new approach to running our business, which internally we have branded “The Way Forward.” We have developed a systematic framework to turn our principles into action at our operations, and to capture opportunities to improve margins and free cash flow. We launched this new strategy across our operations in the fall of last year, identifying specific areas of opportunity for value improvement.

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