Mr. J. Paul Rollinson reports

KINROSS REPORTS STRONG 2023 THIRD-QUARTER RESULTS

Kinross Gold Corp. has released its results for the third quarter ended Sept. 30, 2023.

Q3 2023 highlights from continuing operations:

• Guidance: Kinross remains on track to meet its 2023 annual guidance ranges for production, cost of sales per ounce, all-in sustaining cost and attributable capital expenditures. The company is tracking in the lower end of its 2023 production cost of sales guidance and the higher end of its capital expenditure guidance;
• Production of 585,449 gold equivalent (AuEq) ounces (oz), an 11-per-cent year-over-year increase;
• Production cost of sales of $911 per AuEq oz sold and all-in sustaining cost of $1,296 per AuEq oz sold;
• Margins of $1,018 per AuEq oz sold;
• Operating cash flow of $406.8-million and adjusted operating cash flow of $470.6-million; free cash flow of $122.9-million;
• Reported net earnings of $109.7-million, or nine cents per share, with adjusted net earnings, of $144.6-million, or 12 cents per share;
• Cash and cash equivalents of $464.9-million, and total liquidity of approximately $2.0-billion at Sept. 30, 2023;
• Kinross's board of directors declared a quarterly dividend of three cents per common share, payable on Dec. 14, 2023, to shareholders of record at the close of business on Nov. 30, 2023.

Operational and development project highlights:

• Tasiast achieved record quarterly production and sales, significantly exceeding the previous record achieved in the second quarter.
• Paracatu delivered higher production both quarter over quarter and year over year.
• La Coipa performed well and was once again the lowest-cost mine in the portfolio, delivering high-margin production.
• At Manh Choh, a ceremonial groundbreaking was held, prestripping has commenced and the project remains on track for initial production in the second half of 2024.
• At Round Mountain, Kinross has approved mining of the optimized phase S open pit, which is expected to extend production out to the end of the decade and increase life-of-mine production by approximately 750,000 AuEq oz. Phase S could provide synergies with potential future production from underground at phase X and Gold Hill.
• At Great Bear, the exploration program continues to make excellent progress and drill results continue to exceed expectations around the strong resource potential of the deposit, including a recent high-grade intercept from the Hinge zone that returned 2.8 metres of true width grading at approximately 260 grams per tonne (g/t) at a vertical depth of 870 metres. Permitting is continuing at both the provincial and federal levels.

Chief executive officer commentary

J. Paul Rollinson, president and chief executive officer, made the following comments in relation to 2023 third quarter results:

"It has been a great nine months at Kinross and we have delivered another strong quarter. Our production profile has been solid and generated significant cash flow. We continue to reduce the debt on our investment-grade balance sheet and have completed our expansion projects at Tasiast and La Coipa. We remain well positioned to meet our annual guidance, building on the robust results year to date.

"Our project pipeline continued to make excellent progress. At Great Bear, permitting is advancing well and drill results continue to exceed our expectations, demonstrating the strength of the resource at depth and in less-explored areas of the deposit, including a recent exceptional intercept from the Hinge zone. We officially broke ground at Manh Choh as the project continues to advance on schedule and on budget for initial production in the second half of next year.

"Our decision to proceed with Round Mountain phase S underscores the successful optimization work to build a lower-investment, high-return operation that we expect will add approximately 750,000 ounces to the life-of-mine production profile. The future of Round Mountain has become clear, with the approval of phase S, combined with phase W that we are currently mining, we're now expecting production at Round Mountain until the end of the decade. Longer term, we see strong potential to supplement that production with high-grade contributions from phase X and Gold Hill, which we continue to explore and study.

"Kinross is delivering on its ESG commitments. In that regard, we're excited that our 34-megawatt solar power plant at Tasiast is on schedule to deliver power by the end of the year. This, combined with other elements of our climate strategy, means Kinross is well on track to meet our goal of a 30-per-cent reduction in greenhouse gas emissions by 2030."

The following operating and financial results are based on third quarter gold equivalent production.

Production: Kinross produced 585,449 AuEq oz in Q3 2023 from continuing operations, compared with 529,155 AuEq oz in Q3 2022. The 11-per-cent year-over-year increase was primarily attributable to higher mill grades, recovery and throughput at Tasiast, higher production at La Coipa due to the ramp-up of operations in 2022, and higher production at Paracatu due to higher throughput and timing of ounces processed.

Average realized gold price: The average realized gold price from continuing operations in Q3 2023 was $1,929 per ounce, compared with $1,732 per ounce in Q3 2022.

Revenue: During the third quarter, revenue from continuing operations increased to $1,102.4-million, compared with $856.5-million during Q3 2022. The 29-per-cent increase is due to an increase in gold equivalent ounces sold and an increase in average realized gold price.

Production cost of sales: Production cost of sales from continuing operations per AuEq oz sold decreased to $911 for the quarter, compared with $941 in Q3 2022. The 12-per-cent decrease was primarily due to the ramp-up of production at La Coipa, which continued to be the lowest-cost operation in Q3 2023.

Production cost of sales from continuing operations per Au (gold) oz sold on a byproduct basis decreased to $860 in Q3 2023, compared with $919 in Q3 2022, based on gold sales of 544,199 ounces and silver sales of 2,213,044 ounces.

Margin: Kinross's margin from continuing operations per AuEq oz sold increased to $1,018 for Q3 2023, compared with the Q3 2022 margin of $791.

All-in sustaining cost: All-in sustaining cost from continuing operations per AuEq oz sold was $1,296 in Q3 2023, compared with $1,282 in Q3 2022. In Q3 2023, all-in sustaining cost from continuing operations per Au oz sold on a byproduct basis was $1,264, compared with $1,269 in Q3 2022.

Operating cash flow: Operating cash flow from continuing operations was $406.8-million for Q3 2023, compared with $173.2-million for Q3 2022. Adjusted operating cash flow from continuing operations increased to $470.6-million in Q3 2023, compared with $259.4-million for Q3 2022.

Free cash flow: Free cash flow from continuing operations in Q3 2023 was $122.9-million, compared with an outflow of $24.1-million in Q3 2022. Excluding working capital changes, free cash flow from continuing operations in Q3 2023 was $186.7-million, compared with $62.1-million in Q3 2022.

Earnings: Reported net earnings from continuing operations increased to $109.7-million, or nine cents per share for Q3 2023, compared with $65.9-million, or five cents per share, for Q3 2022. The increase in reported net earnings was mainly due to the increase in margins.

Adjusted net earnings from continuing operations were $144.6-million, or 12 cents per share, for Q3 2023, compared with $68.7-million, or five cents per share, for Q3 2022.

Capital expenditures: Capital expenditures from continuing operations increased to $283.9-million for Q3 2023, compared with $197.3-million for Q3 2022, primarily due to an increase in capital stripping at Tasiast and Fort Knox and development activities at Manh Choh.

Balance sheet

As of Sept. 30, 2023, Kinross had cash and cash equivalents of $464.9-million, compared with $478.4-million at June 30, 2023.

The company had available credit of approximately $1.5-billion and total liquidity of approximately $2.0-billion as of Sept. 30, 2023, an increase from $1.9-billion at June 30, 2023.

In the third quarter of 2023, the company issued $500-million 6.25 per cent senior notes due in 2033 and used the net proceeds to redeem the $500-million 5.95 per cent senior notes due March 15, 2024. The company also repaid $50.0-million of the outstanding balance on the revolving credit facility during the quarter and repaid the remaining balance of $50.0-million in October, 2023.

Return of capital

As part of its continuing quarterly dividend program, the company declared a dividend of three cents per common share, payable on Dec. 14, 2023, to shareholders of record as of Nov. 30, 2023.

Operating results

Mine-by-mine summaries for 2023 third quarter operating results are provided in this news release. Highlights include the following.

Tasiast had another strong quarter and achieved record quarterly production and sales. Quarter over quarter, production increased mainly due to higher throughput and cost of sales per ounce sold was slightly higher due to the timing of inventory movements. Year-over-year production increased mainly due to higher grades, recoveries and throughput as mining continued in the higher-grade section of West Branch. Cost of sales per ounce sold was lower year over year due to the increase in production and less operating waste mined as the site progressed with capital stripping of West Branch.

Paracatu delivered higher production in both comparable periods. Quarter-over-quarter production increased mainly due to the timing of processing higher-grade ounces from the southwest area of the pit, and year-over-year production increased mainly due to higher throughput and timing of ounces processed. Cost of sales per ounce sold was slightly higher quarter over quarter due to timing of inventory movements and lower year over year mainly due to the increase in production.

La Coipa performed well with an increase in production in both comparable periods mainly due to higher throughput and grades. Cost of sales per ounce sold was slightly lower compared with the previous quarter and higher year over year mainly due to increased production as the site reached higher production following its ramp-up in 2022.

At Fort Knox, quarter-over-quarter production increased due to more ounces recovered from the heap leach pads. Cost of sales per ounce sold was in line compared with the previous quarter. Year-over-year production was lower mainly due to lower mill throughput, partially offset by higher mill grade and an increase in ounces recovered from the heap leach pads. Cost of sales per ounce sold was slightly lower compared with Q3 2022 mainly due to planned mine sequencing involving less operating waste mined.

At Round Mountain, production increased compared with the previous quarter primarily due to higher-grade ore from phase W2. Quarter over quarter, cost of sales per ounce sold was slightly higher due to timing of ounces recovered from the heap leach pads, however, it was lower than expected due to increased stacking and mill grades. Year over year, production increased slightly due to higher grades and cost of sales per ounce sold increased mainly as a result of less capital development.

At Bald Mountain, production and cost of sales per ounce sold were largely in line quarter over quarter. Compared with Q3 2022, production decreased mainly due to the timing of ounces recovered from the heap leach pads. Year over year, cost of sales per ounce sold was higher mainly due to lower production, lower capital development, and higher contractor and maintenance costs.

Projects and exploration updates

Tasiast solar power plant

The Tasiast solar power plant, which has power generation capacity of 34 megawatts and a battery system of 18 megawatts, continues to advance on plan for solar power to grid by the end of the year. Integration and load scenario testing are expected to continue into early 2024 while delivering maximum allowable power. Installation of the photovoltaic panels, inverters and transformer stations are complete, and the battery system installation is well progressed and awaiting battery module delivery. Electrical works and completion of the grid connection are continuing with precommissioning testing of the panel arrays and inverters under way.

Great Bear

At the Great Bear project, the company's robust exploration program continues to make excellent progress, with approximately 48,500 metres drilled in the third quarter and the completion of feasibility level engineering for the advanced exploration decline.

Kinross's focus this year is on inferred drilling in the area half a kilometre to one kilometre below surface. In the second quarter, the company began using directional drilling, which allows multiple drill holes to branch off from a single pilot hole. The system is now being used on six of the 11 drills on site to target the LP Fault and Hinge zones, with the goal of further delineating the deposit at depth, as well as adding inferred resource ounces. This is complemented by additional exploration drilling on other areas of the property.

Drilling to date has demonstrated potential for a meaningful increase in the LP Fault underground resource and the potential of the Hinge and Limb zones to supplement the LP Fault zone with their demonstrated continuity of mineralization at depth. The company expects to declare a resource update as part of its year-end results.

Since the last update on Aug. 2, 2023, the company has received additional assay results, with a selection of the new results highlighted in an attached table.

Notable exploration results at Great Bear in the third quarter include:

• BR-696 (Bruma), 4.1 metres (m) at 15.53 g/t Au at a vertical depth of 1,150 m:
  • Including 1.4 m at 45.60 g/t Au;
• BR-778C1 (Yuma), 14.2 m at 5.63 g/t Au at a vertical depth of 1,075 m:
  • Including 4.9 m at 15.57 g/t Au;
• BR-806 (Discovery), 3.6 m at 11.20 g/t Au at a vertical depth of 600 m;
• BR-814C1A (Yauro), 8.3 m at 5.28 g/t Au at a vertical depth of 700 m;
• BR-825 (Viggo), 0.5 m at 147.0 g/t Au at a vertical depth of 580 m;
• DL-085C7 (Hinge), 2.8 m at 259.45 g/t Au at a vertical depth of 870 m.

Recent results continue to support the view of a high-grade, large, long-life mining complex. Holes BR-696 and BR-778C1 continue to demonstrate the potential for wide, high-grade mineralization at a greater-than-one-kilometre vertical depth under Bruma and Yuma, while holes BR-806 and BR-814C1A demonstrate the continuity between the new deep intercepts and the current resource. Hole BR-825 intersected 0.5 m at 147 g/t in undertested ground between Viggo and Auro, demonstrating potential that mineralization exists at depths greater than 500 m between the two zones.

With the goal of deep resource growth, recent drilling at the Hinge zone has yielded promising results. The more accurate targeting, afforded through directional drilling, has allowed for precise infill drilling of the known quartz vein hosted mineralization at approximately 900 m vertical depth. Following on the success of previously reported holes DL-132 and DL-142, hole DL-085C7 has intersected 2.8 m at 259 g/t, showing continuity of mineralization.

For the main project, Kinross continues to advance technical studies, including engineering and field testwork campaigns, with plans to release the results of this work in the form of a preliminary economic assessment in the second half of 2024. Also under way is geochemical work that includes static testing, humidity cells, column testing, tailings residue sampling and field leach barrels. An extensive field bedrock and soils geotechnical drilling and testing program was kicked off in August, building on the campaign completed late last year. Bedrock geotechnical analysis is indicating very robust rock strengths in both the open pit and underground.

The company continues to progress studies and provincial permitting for an advanced exploration program that would establish an underground decline to obtain a bulk sample and allow for definition and infill drilling in the LP Fault zone. Feasibility level engineering for advanced exploration infrastructure is now complete and the procurement process for long-lead items such as the camp, power infrastructure and water treatment plant is progressing well.

Kinross is targeting a potential start of the surface construction for the advanced exploration program in the second half of 2024, subject to receipt of permits.

Permitting for the main project is continuing at both the provincial and federal levels. Permitting efforts have been initiated with the Impact Assessment Agency of Canada to review potential project impacts within federal authority. The comprehensive baseline study program encompassing air, noise, hydrogeology, geochemistry, archeology, water quality and a number of other metrics continues to advance. These studies underpin the company's indigenous consultation process and permitting efforts.

Selected Great Bear drill results are provided in an attached table.

Manh Choh

At the 70-per-cent-owned Manh Choh project, of which Kinross is the operator, activities remain on budget and on schedule for initial production in the second half of 2024. Construction is now 90 per cent complete, with commissioning activities under way, prestripping has commenced and work is continuing to transition the project to operations.

At Fort Knox, where the Manh Choh ore will be processed, outdoor construction continues to progress with all concrete works complete. Work continues inside the mill with progress on tanks and piping and further work on additional mill modifications expected during the winter months.

A groundbreaking ceremony was held during the quarter and Kinross was pleased to welcome Chief Michael Sam, elders and delegates from the Native Village of Tetlin, as well as Alaska Governor Michael Dunleavy and other government officials.

Round Mountain

At Round Mountain, Kinross is continuing to mine phase W2 and will be proceeding with mining of the optimized phase S open pit early next year, providing production out to the end of the decade and a bridge to the potential higher-margin underground opportunities at phase X and Gold Hill, which the company continues to explore and study.

Kinross is pleased to announce that the optimization work at phase S over the last year has resulted in an improved design with a lower overall strip ratio, higher grade, similar overall ounces, and a significantly lower capital investment and cash outflow. This was achieved by stepping in the pit design in areas that had higher stripping, lower-margin ounces and identifying opportunities to add some near-surface, lower-strip ounces that come earlier in the plan, helping to reduce the cash outflow in the near term. With this optimized design and plan, at current gold prices, the company expects Round Mountain to be able to self-finance the phase S expansion, driving a significant change in the risk profile and return of this expansion for the company.

Phase S is expected to increase life-of-mine production by approximately 750,000 AuEq oz and generate an incremental internal rate of return (IRR) of 45 per cent and incremental net present value (NPV) of $170-million. Initial capital expenditures are expected to be $170-million, of which $140-million is related to prestripping. The remaining $30-million is planned for an expansion of the existing north heap leach pad and some additional tailings infrastructure. Phase S is expected to improve the cash cost at Round Mountain, particularly later in the mine life, as the mine plan reaches the higher-grade phase S ore toward the bottom of the pit. Including phase S, the company expects Round Mountain to produce approximately 215,000 AuEq oz per year from 2024 to 2028.

Phase S was included in the company's 2022 year-end estimated mineral reserves and the company expects to provide an update with the optimized phase S design at the 2023 year-end.

The combination of the optimization results and extensive technical diligence completed over the last year on phase S provides confidence in strong returns and margins while proceeding with this next phase of mine life at Round Mountain.

By providing meaningful production scale at Round Mountain out to the end of the decade, the phase S pushback could also drive cost synergies if the company proceeds with future underground mining at phase X and Gold Hill. The two underground opportunities continue to show potential for higher-margin, higher-return operations at Round Mountain, particularly when combined with production and scale from phase S.

While still mining phase S, Round Mountain could potentially develop and ramp up phase X underground, which could then concurrently be exploited with phase S in the second half of the decade. Gold Hill underground development could follow phase X, adding higher-grade mill feed to supplement production from phase X at the end of the decade and into the 2030s.

At phase X, construction of the exploration decline continues to progress well with approximately 1,000 metres developed so far, remaining on plan to start definition drilling in early 2024. Kinross has also initiated technical studies for the phase X project. Phase X is envisioned to be a bulk long-hole open stoping operation. Current intercepts suggest average stope grades of three to four g/t.

At Gold Hill, located approximately seven kilometres northeast of Round Mountain, prior drill results show potential for a higher-grade narrow vein operation, which could supplement mill feed from phase X, increasing the average processed grade and margin. Kinross plans to continue drilling at Gold Hill in Q4 2023 and into 2024 to progress exploration and studies.

Chile

Kinross's 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.

Curlew basin exploration

At the Curlew basin exploration project in Washington, underground exploration drill results documented a new vein zone, Roadrunner. The new vein zone is open and more drilling will be conducted over the coming quarters in order to delineate the extents. Underground exploration drilling in the third quarter also continued to build on the existing resource through proximal growth.

The top three significant intercepts received during the quarter include:

• Roadrunner: RR-1168, 14.2 m at 16.5 g/t Au, including 7.3 m at 25.3 g/t Au;
• ST-1179, 4.7 m at 11.7 g/t Au;
• K2N-1171, 3.9 m at 11.3 g/t Au.

Results to date continue to demonstrate the high grade and upside potential of the Curlew basin.

Company guidance

The following section of the news release represents forward-looking information and users are cautioned that actual results may vary.

The company is on track to meet its 2023 production guidance range of 2.1 million AuEq oz (plus or minus 5 per cent) and all-in sustaining cost guidance range.

The company is tracking in the lower end of its production cost of sales guidance range of $970 per AuEq oz (plus or minus 5 per cent) and the higher end of its attributable capital expenditure guidance range.

Kinross's annual production is expected to remain stable in 2024 and 2025 at 2.1 million and 2.0 million attributable AuEq oz (plus or minus 5 per cent), respectively.

Environment, social and governance (ESG) update

In accordance with the company's updated ESG strategy, Kinross has conducted a comprehensive review of its community engagement management system with the objective of supporting sites with improved clarity and ease of application. Kinross's updated social performance management system will be rolled out across sites beginning in late 2023, on plan, and will enhance local accountability with clear expectations and guidance recognizing the role that all site functions have in social performance.

Kinross completed the first steps toward developing a specific natural capital strategy to enhance the approach in this priority focus area. Natural capital is fundamentally about minimizing loss, ensuring reclamation and the restoration of valuable natural habitats through proper water, air and mining waste management, as well as wholistic mine closure. Kinross's vision for natural capital builds upon the sustainability foundation established across its operations and projects.

Kinross has also progressed on its climate strategy. The Tasiast 34-megawatt photovoltaic solar facility is one of the important steps the company is taking to address climate change through renewable energy projects. Kinross is also focused on renewable power purchase agreements, electric autonomous haulage partnerships and energy-efficient opportunities across sites. The outcome of these initiatives is that Kinross is on track to achieve its greenhouse gas reduction goal of reducing emissions intensity by 30 per cent in 2030 from its baseline.

Conference call details

In connection with this news release, Kinross will hold a conference call and audio webcast on Thursday, Nov. 9, 2023, at 8 a.m. ET, to discuss the results, followed by a question-and-answer session. To access the call, please dial one of the following numbers.

Canada and United States toll-free:  1-888-330-2446, passcode 4915537

Outside of Canada and the U.S.:  1-240-789-2732, passcode 4915537

Replay (available up to 14 days after the call)

Canada and U.S. toll-free:  1-800-770-2030, passcode 4915537

Outside of Canada and the U.S.:  1-647-362-9199, passcode 4915537

You may also access the conference call on a listen-only basis via webcast at the company's website. The audio webcast will be archived on the company's website.

This news release should be read in conjunction with Kinross's 2023 third quarter unaudited financial statements and management's discussion and analysis, available on the company's website. Kinross's 2023 third quarter unaudited financial statements and management's discussion and analysis have been filed with Canadian securities regulators (SEDAR+) and furnished with the U.S. Securities and Exchange Commission (EDGAR). Kinross shareholders may obtain a copy of the financial statements free of charge upon request to the company.

About Kinross Gold Corp.

Kinross is a Canadian-based global senior gold mining company with operations and projects in the United States, Brazil, Mauritania, Chile and Canada. Its focus is on delivering value based on the core principles of responsible mining, operational excellence, disciplined growth and balance sheet strength. Kinross maintains listings on the Toronto Stock Exchange (symbol K) and the New York Stock Exchange (symbol KGC).

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