2017 Tasiast analyst & investor tour: Developing a world-class - - PowerPoint PPT Presentation

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2017 Tasiast analyst & investor tour: Developing a world-class - - PowerPoint PPT Presentation

October 3-4 KINROSS GOLD CORPORATION 2017 Tasiast analyst & investor tour: Developing a world-class mine 1 1 www.kinross.com CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION All statements, other than statements of historical fact,


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KINROSS GOLD CORPORATION

Tasiast analyst & investor tour: Developing a world-class mine

October 3-4

2017

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CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

All statements, other than statements of historical fact, contained or incorporated by reference in or made in giving this presentation and responses to questions, including but not limited to any information as to the future performance of Kinross, constitute “forward looking statements” within the meaning of applicable securities laws, including the provisions of the Securities Act (Ontario) and the provisions for “safe harbor” 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 presentation. Forward-looking statements contained in this presentation include those statements on slides with, and statements made under, the headings “Tasiast Mill Expansion”, “Developing a World-Class Mine”, and include, without limitation, statements with respect to mine life extensions, costs and timing of development activities, future production, production costs of sales, all-in sustaining cost and capital expenditures, continuous improvement and other cost savings opportunities, as well as references to other possible events including, without limitation, possible events; opportunities; statements with respect to possible events or

  • pportunities; estimates (including, without limitation, gold / mineral resources, gold / mineral reserves and mine life) and the realization of such estimates;

future development, mining activities, production and growth, including but not limited to cost and timing; success of exploration or development of

  • perations; the results of any studies including, without limitation, feasibility studies; the future price of gold and silver; currency fluctuations; expected capital

requirements; government regulation; and environmental risks. The words “assumption”, “budget”, “encouraging”, “enhancing”, “estimate”, “expect”, “feasibility”, “focus”, “forward”, “future”, “goal”, “indicate”, “on track”, “opportunity”, “phased”, “plan”, “positive”, “potential”, “prospective”, “progressing”, “project”, “risk”, or “study”, or variations of or similar such words and phrases or statements that certain actions, events or results may, can, could, would, should, might, indicates, or will be taken, 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. Many of these uncertainties and contingencies can 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. Statements representing management’s financial and other outlook have been prepared solely for purposes of expressing their current views regarding the Company’s financial and other outlook and may not be appropriate for any other purpose. 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. All of the forward looking statements made in this presentation are qualified by these cautionary statements, and those made in our filings with the securities regulators of Canada and the U.S., including but not limited to those cautionary statements made in the “Risk Factors” section of our most recently filed Annual Information Form, the “Risk Analysis” section of our FYE 2016 and Q2 2017 Management’s Discussion and Analysis, and the “Cautionary Statement on Forward-Looking Information” in our news release dated September 18, 2017, to which readers are referred and which are incorporated by reference in this presentation, all of which qualify any and all forward‐looking statements made in this presentation. 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. Other information Where we say "we", "us", "our", the "Company", or "Kinross" in this presentation, we mean Kinross Gold Corporation and/or one or more or all of its subsidiaries, as may be applicable. The technical information about the Company’s mineral properties contained in this presentation has been prepared under the supervision of Mr. John Sims, an officer of the Company who is a “qualified person” within the meaning of National Instrument 43-101.

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WELCOME TO THE TASIAST MINE TOUR

Tom Elliott – Senior Vice-President, Investor Relations & Corporate Development

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Presenters and Q&A Panel

Mike Sylvestre Regional Vice-President, Africa Guy Bourassa Vice-President and Project Director, Tasiast Project Paul Tomory Chief Technical Officer John Sims Vice-President, Resource Geology & Brownfields Exploration (Q.P.) Tom Elliott Senior Vice-President, Investor Relations & Corporate Development

INTRODUCTIONS & AGENDA

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  • Highly prospective district with significant exploration

potential

  • World-class orebody: 8.0M oz. of proven and

probable reserves, 3.1M oz. of measured & indicated gold resources and 0.4M oz. of inferred resource estimates(i)

  • Accelerating drill program following encouraging

results & initiating Tasiast Sud pre-feasibility study

  • Improvements at the existing operation enhancing

future value

  • Achieving reductions in mining and processing

costs

  • Expect positive trend to continue
  • Expansion projects expected to transform Tasiast into a

large, low-cost producer

  • Excellent progress on Phase One
  • Proceeding with Phase Two

DEVELOPING A WORLD-CLASS MINE

TASIAST HIGHLIGHTS

(i) As at December 31, 2016. Please refer to Kinross’ Annual Mineral Reserve and Mineral Resource Statement, available on our website at www.Kinross.com.

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DEVELOPING A WORLD-CLASS MINE

TASIAST: HISTORICAL CONTEXT

Focus has been to right-size the processing capacity to capture the full value and potential

  • f Tasiast’s large mineral resource estimate

2014 2015 2016 2017 2018 2019 2020

Feasibility Study Results 38k t/d scenario Capex estimate: $1.6B Initiated studies on two-phased expansion Financially disciplined approach to expansion using existing infrastructure Two-phased expansion study results Phase One approved Capex estimate: $300M Phase Two proceeds to feasibility study Capex estimate: $620M Phase Two feasibility study results Phase Two approved Revised capex estimate: $590M Phase One expected to reach commercial production in Q2 2018 Phase Two expected to reach commercial production in Q3 2020

* Capital estimates on this slide do not include estimated capitalized stripping

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map

MAURITANIA: LOCATION

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Mauritania

Canary Islands Algeria Mali Western Sahara Morocco Senegal Tasiast Nouakchott (capital)

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GEOLOGY & EXPLORATION

John Sims - Vice-President, Resource Geology & Brownfields Exploration (Q.P.)

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  • Aouéouat greenstone belt hosts all of

the known Tasiast deposits and most

  • f current exploration prospects
  • 80 km x 8 km
  • 312 km2 mining lease
  • 3,118 km2 exploration licences
  • Aouéouat belt shares similarities with
  • ther Late Archaean terranes, such

as:

  • Yilgarn in Australia
  • Abitibi in Canada

GEOLOGY & EXPLORATION

GEOLOGY OVERVIEW

Tasiast Geology

Tasiast mine

Tasiast Sud

10 km 5 km 0 km 15 km 20 km

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GEOLOGY & EXPLORATION

TASIAST CROSS-SECTION

Felsite Sediments BIF Lithology Diorite (GDI) Dyke Plan view A’

Looking North - West Branch AA’ cross-section (12.5m window)

Resource pit outline Reserve pit outline September 2017 pit outline

A

A’ A

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GEOLOGY & EXPLORATION

TASIAST SUD

Encouraging results from C6.13 and C6.15 in the Tasiast Sud Area C6.13 C6.15 Tamaya

Sadraya C6.14

  • Tamaya: approximately 335k oz. of measured &

indicated gold resources(i) defined in 2015

  • Recent drilling in the Tasiast Sud area has focused
  • n the C6.13 and C6.15 deposits in the Tasiast Sud

area

  • Located ~10 km south of the Tasiast mine and

west of the Tamaya deposit

  • Completed 13,000 metres of drilling in H1 2017
  • Majority of material at both targets is within a

banded iron formation (similar to Piment)

  • C6.13 defined over approximately 2 km of

strike; open to the north and south

  • C6.15 defined over 3 km of strike

(i) Please refer to Kinross’ Annual Mineral Reserve and Mineral Resource Statement, available on our website at www.Kinross.com, and associated assumptions.

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GEOLOGY & EXPLORATION

TASIAST SUD: 2017/2018 DRILL PROGRAM

1km

C6.13 C6.15 Tamaya Sadraya C6.14

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Mafic Dyke Iron Formation Siltstone Greywacke Mica-Schist Felsite Amphibolite Diorite Talc Trem Schist Granodiorite

LEGEND

  • Following positive results in H1 2017, accelerated

drill program underway in H2 2017

  • Focus is on definition drilling and resource

expansion

  • Goal of potential mineral resource additions at

year-end

  • Initiated a pre-feasibility study for a Tasiast Sud

dump leach operation that combines material from Tamaya, C6.13 and C6.15

  • High grade CIL material expected to be

transported to Tasiast 30,000 t/d mill

Legend Exploration Resource definition A B C

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GEOLOGY & EXPLORATION

CROSS SECTIONS: C6.13 & C6.15

C6.13 (A) C6.15 (C)

  • C6.13 and C6.15 geology composed of:
  • Sedimentary rocks
  • Felsic rocks
  • Muscovite rich mica schist
  • Iron-Formation rock units
  • Mineralization is located at the flanks of the

fold exclusively within banded iron formation units and at their contacts with mica schist (Greywacke with high muscovite alteration)

C6.13 (B)

TOFR 100m Mica schist

1 2 4 5 7

1 2 3 4 5 6 7 15m @ 4.64 g/t Au 17m @ 11.42 g/t Au 12m @ 1.66 g/t Au 8m @ 1.05 g/t Au 33m @ 0.41 g/t Au 15m @ 1.09 g/t Au 8m @ 0.69 g/t Au

3 6

Iron Formation NW SE Greywacke Mica schist Iron Formation

1 2 3 4 5 6 7 7m @ 0.36 g/t Au 13m @ 1.04 g/t Au 8m @ 0.66 g/t Au 9m @ 0.42 g/t Au 9m @ 0.9 g/t Au 3m @ 0.38 g/t Au 6m @ 0.88 g/t Au 2m @ 1.19 g/t Au 8

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TOFR Siltstone

1 2 4 5 3 7 6

SW NE 100m

4 6 7 8 7m @ 2.68g/t Au 9m @ 2.15 g/t Au 15m @ 2.14 g/t Au 8m @ 3.03 g/t Au 5m @ 2.98 g/t Au 9m @ 4.74 g/t Au 2m @1.25 g/t Au 7m @2.34 g/t Au 4m @ 2.32 g/t Au 1 2 3 4 5 6 7 8 9

1 2 3 4 5 6 7 8 9

100m NW SE Iron Formation TOFR Mica schist

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GEOLOGY & EXPLORATION

DRILLING STATISTICS

2013 2014 2015 2016 H1 2017 Planned for H2 2017 Planned for 2018 C6.13 4,481 3,070 75 2,332 7,947 13,000 C6.14 3,500 3,700 C6.15 5,606 2,423 4,479 15,000 37,800 C6.16 2,109 3,801 75 640 3,600 Sadraya 1,999 2,687 9,400 Tamaya 6,852 7,358 14,147 774 Total 22,548 18,651 14,297 5,659 13,200 28,000 54,500 Tasiast Sud area has been a large focus of exploration and resource definition activities

Tasiast Sud drill hole data by year (metres)

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CURRENT OPERATION

Mike Sylvestre – Regional Vice-President, Africa

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TASIAST SITE LAYOUT

MINE TOUR AGENDA

Camp West Branch Pit Airstrip Power Plant Phase One tailings facility Current tailings facility ADR plant Dump leach Piment pits New crusher New stockpile New SAG mill Phase One and Two expansions Truck shop

1 2 4 3 5

N

6 7 8 9 10

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CURRENT OPERATION

OVERVIEW

MINING

  • Conventional open-pit
  • Ore currently sourced from two pits:
  • Piment
  • West Branch
  • Average mining rate: ~200k t/d

CURRENT FLEET

  • 7 CAT 6060 shovels
  • 42 CAT 793D haul trucks

PROCESSING

  • Existing CIL: averaging 8,500 t/d
  • Dump leach
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  • Conducted comprehensive reviews of crushing and

grinding circuit to identify opportunities for improvement

  • Completed upgrades to the crushing circuit to

provide smaller product size with higher fine material content

  • Increased availability of crushing and conveying

circuit through improved maintenance practices

  • Increased availability of milling circuit with

implementation of a new reline/shutdown strategy and improved maintenance practices Together, these improvements have resulted in increased throughput:

  • Averaging above 8,500 t/d (20% increase)

Strong mill throughput a result of continuous improvement efforts

CURRENT OPERATION

IMPROVED MILL PERFORMANCE

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3,000 5,000 7,000 9,000

Aug‐13 Nov‐13 Feb‐14 May‐14 Aug‐14 Nov‐14 Feb‐15 May‐15 Aug‐15 Nov‐15 Feb‐16 May‐16 Aug‐16 Nov‐16 Feb‐17 May‐17 Aug‐17

Mill now averages ~8,500 t/d and can reach as high as 9,000 t/d

Average from August 2013 to October 2015 Average from November 2015 to March 2017 ~20% increase

May, June, July and August 2016 throughput impacted by work stoppage – values represent average daily during operating days.

CURRENT OPERATION

SIGNIFICANT OPERATIONAL IMPROVEMENTS

May-August 2016 impacted by work stoppage

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CURRENT OPERATION

PRODUCTIVITY IMPROVEMENTS

Focus on productivity has resulted in lower costs

0.61 0.56 0.55 0.39 0.36 0.31 0.53 0.44 0.13 0.27

$2.18 $1.96 2015 H1 2017

Contractors & Admin

  • Outsourced some mining services

Labour

  • Increased labour productivity and reduced headcount

Drill / Blast Consumables

  • Optimized drill patterns for increased blasting

efficiencies Other Fleet

  • Improved mobile maintenance practices resulting in

better equipment performance and lower costs

  • Improved useful life, leading to decreased maintenance

supplies Fleet Consumables

  • Increase in useful tire life, and lower fuel costs

Mining Cost ($/t mined)

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21 Study estimates(ii) Study estimates(ii) $25.46 $22.84 $22.24 $15.16 $14.40

2015 2016 H1 2017 PFS FS

$2.18 $2.05 $1.96 $2.37 $2.25

2015 2016 H1 2017 PFS FS CURRENT OPERATION

OPERATING EFFICIENCIES ENHANCING PROJECT

Recent operating and processing enhancements have positively benefitted both Phase One and Phase Two expansion projects

  • Recent performance outperforming study

estimates

  • Further reduction in processing costs expected as

Phase Two increases throughput to 30,000 t/d Mining costs

($ per tonne mined)

Processing costs

($ per tonne milled)(i)

(i) Excludes processing costs associated with the dump leach. (ii) 30k t/d scenario. Estimated average for the period 2020-2030.

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Government has expressed its support for the expansion project: "We support the Kinross decision to proceed with the Tasiast Phase Two expansion and the additional investment and long-term benefits the project will bring to the country and our people." Mohamed Abdel Vetah Minister of Petroleum, Energy & Mines

CURRENT OPERATION

MAURITANIA HIGHLIGHTS

  • Democratic republic that gained independence in

1960

  • Mining-friendly jurisdiction:
  • Well-developed, competitive mining law
  • Mining is a major export industry
  • Companies operating in Mauritania include:

SNIM, First Quantum, Algold

  • Major foreign companies include:
  • BP, Total, Kosmos Energy, Tullow Oil, Société

Générale

  • Recent increase in oil and gas investment
  • Multilateral agencies such as IMF and World Bank

active in the country

  • Kinross continues to maintain good relations with

the government

Government royalty 3% Income tax rate 25% Mining Convention: Royalty & Income Tax

Kinross has successfully operated in Mauritania since 2010

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CURRENT OPERATION

CORPORATE RESPONSIBILITY AT TASIAST

Engaging with stakeholders

  • Established stakeholder engagement programs

consistent with Kinross standards and international best practice

  • Integration of CR considerations in key
  • perational functions
  • Competency-based hiring
  • Contractor Compliance Bureau
  • Local Business policy in Supply Chain

Management

  • Integrated good international ESIA practice in

design of the expansion project

  • IFC Performance Standards
  • Cyanide Code certification
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  • 90% of TMLSA employees are Mauritanians
  • Investing in training and development programs.

Since 2010, we have invested:

  • ~$10 million to support local capacity building
  • ~$20 million in training for our local employees
  • One of the best safety performance records among

Kinross sites

Building a workforce of Mauritanian nationals

CURRENT OPERATION

90% OF EMPLOYEES ARE MAURITANIAN

2016 Statistics(i)

90%

  • f workforce composed
  • f Mauritanian

nationals

$175M

  • f spending with in-

country suppliers

$52M

  • f in-country

wages

(i) Source: Kinross 2016 Corporate Responsibility Data Supplement and Communication on Progress

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Employees

  • Signed a new 3-year collective labour

agreement with unionized employees in October 2016

  • Targeting expats with strong

background in developing national personnel

  • Emphasizing a culture of safety and

environmental compliance

Mauritanization Plan

  • Reached a mutually-acceptable

Mauritanization Plan to increase the number

  • f local workers at Tasiast
  • Process is proceeding on schedule and

achieving positive outcomes

  • Identifying internal strength: implementing

accelerated development plans for high potential employees

  • Recruiting diaspora talent with strong and

relevant professional experience

  • Adapting Kinross training program to

individual development needs

CURRENT OPERATION

BUILDING POSITIVE EMPLOYEE RELATIONSHIPS

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TASIAST MILL EXPANSION: PHASE ONE

Guy Bourassa - Vice-President & Project Director, Tasiast Project

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TASIAST EXPANSION PROJECT

PHASE ONE: EXPANSION TO 12,000 T/D

PHASE ONE FLOW SHEET

  • Leverages existing mill infrastructure to increase throughput to 12,000 t/d from 8,000 t/d
  • Includes installation of an oversized 40’ SAG mill and gyratory crusher
  • Enhances processing of the harder, higher grade West Branch ore

Gyratory crusher Ore stockpile Oversized SAG mill Existing ball mills Leaching Refining New Existing

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TASIAST MILL EXPANSION

PHASE ONE PROGRESSING WELL

  • Mechanical installation progressing well:
  • SAG mill shell fully in place
  • Installation of gearless motor drive progressing
  • Apron feeders for crusher & reclaim tunnel now

in place

  • Conveyor installation progressing rapidly
  • Installation of 3 new leach tanks almost complete
  • Early commissioning progressing as planned:
  • Oxygen plant fully commissioned and supporting

production

  • New tailings facility expected to be operational

shortly

  • On schedule and on budget for full commercial

production in Q2 2018 Phase One construction approximately 70% complete Primary Crusher

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SAG MILL

PHASE ONE PROGRESSING WELL

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CYCLONE TOWERS

PHASE ONE PROGRESSING WELL

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LEACH TANKS

PHASE ONE PROGRESSING WELL

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NEW TAILINGS FACILITY

PHASE ONE PROGRESSING WELL

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TASIAST MILL EXPANSION: PHASE TWO

Paul Tomory – Chief Technical Officer

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  • Installation of an incremental 18,000 t/d of throughput capacity for a total combined

capacity of 30,000 t/d

  • Project consists of:
  • Replacing two 14’ ball mills with a new, larger 27’ ball mill
  • Expansion of power generation capacity by 35 MW
  • Adding new leaching, thickening and refining capacity
  • Additions to mining fleet
  • Upgrades to water supply infrastructure

TASIAST EXPANSION PROJECT

PHASE TWO: EXPANSION TO 30,000 T/D

PHASE TWO FLOW SHEET

Gyratory crusher Ore stockpile SAG mill New, larger ball mill Additional leaching capacity Thickening New Existing

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Phase Two expansion expected to transform Tasiast into a world-class mine with low costs and a long estimated mine life

TASIAST MILL EXPANSION

PHASE TWO FEASIBILITY STUDY RESULTS

Estimates Combined Phase One and Phase Two

Average annual production (2020-2024) 812,000 ounces Production cost of sales (2020-2024) $440 per ounce All-in sustaining cost (2020-2024) $655 per ounce Capitalized stripping (non-sustaining) (2016-H1 2020) $560 million Mine life 2029 Net present value(i)(ii) $1.43 billion

Phase Two Stand-Alone

Initial capital expenditures $590 million Internal rate of return(i)(ii) 24%

Note: figures on this slide reflect a $1,200 per ounce gold price assumption. (i) January 1, 2018 forward (ii) After tax, 5% discount rate.

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TASIAST MILL EXPANSION

FEASIBILTY STUDY SHOWS IMPROVED ECONOMICS

Incremental IRR of 24% for the Phase Two stand-alone project

Improved economics are expected as a result of: Lower estimated initial capital

  • Initial capital estimate

reduced to $590M

  • Down from PFS

estimate of $620M

Improved operating cost estimates

  • Productivity

improvements

  • Lower mining and

processing costs

  • Better input costs

Mine plan optimization

  • Higher estimated

average annual production in the first 5 years

  • Bringing forward

production shortens mine life by 1 year

  • Results in G&A and fixed

costs savings

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TASIAST MILL EXPANSION

WEST BRANCH PLANNED MINING SEQUENCE

2018 2026 2019 2019 2018 2020 2020 2020 2019 2021 2021 2022 2023 2024 2024 2027 2025 2023

A’ WB3 WB4 WB5

0 – 0.4 0.4 – 1.1 1.1 – 1.5 1.5 – 2 > 2

A’

PLAN VIEW Au Grade (g/t)

Looking North

N A

100 m

A

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TASIAST MILL EXPANSION

ADDITIONAL INFORMATION

‘20 ‘21 ‘22 ‘23 ‘24 ‘25 ‘26 ‘27 ‘28 ‘29 Total mined (Mt) 98 93 82 90 75 56 47 30 7 Strip ratio (Waste:Ore) 12.6 15.5 4.5 4.6 3.8 8.8 6.0 2.1 2.7 0.3 Grade processed (g/t) 2.1 1.5 2.9 3.0 3.0 1.4 1.9 2.0 0.9 0.8 Mill feed tonnes from stockpiles 4.4 5.3

  • 5.2

4.4 1.8 9.0 9.9

Annual estimates Life of mine estimates

Life of Mine Average Sustaining capital $65/year G&A $65/year Recovery 93%

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TASIAST MILL EXPANSION

ANNUAL PRODUCTION ESTIMATES

Production expected to average 812,000 gold ounces over the first 5 years (2020-2024)

Estimated Production (thousand ounces)

250 500 750 1,000

2016A 2017E 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 2029E

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TASIAST MILL EXPANSION

PHASE TWO CAPITAL ESTIMATE

Phase Two initial capital cost expected to be $590 million Estimated Initial Capital Cost Estimate ($M) Processing plant 137 Power supply 76 Water supply 50 Mining fleet 49 EPCM 27 Indirect, owner’s cost and taxes 120 Contingency 79 Miscellaneous 52 Total $590 Water Supply ($50M)

  • Raw water is currently supplied from brackish water

borefield located 64 km west of the mine

  • Phase Two project includes upgrades to the water supply

infrastructure:

  • New overland water pipeline
  • Pumping stations
  • Break tanks
  • Electrical infrastructure
  • The new pipeline is expected to supply sufficient water

for 30,000 t/d mill and continued dump leach

  • Permit status: licensed to extract 30,000 m3/d from the

bore fields through 2034

Power Supply ($76M)

  • Additional HFO fired power generation of ~60MW
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TASIAST MILL EXPANSION

ADVANCING PHASE TWO

  • Project owner’s team established
  • Finalizing commercial terms for EPCM

package

  • Currently advancing critical packages
  • Initial construction expected to begin

early 2018

  • Construction activities to ramp up

following Phase One commissioning Phase Two expansion expected to reach commercial production in Q3 2020

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APPENDIX

TASIAST PHASE TWO FEASIBILITY STUDY RESULTS

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Timeline Operational Metric Estimate 2020-2024 (First 5 years

  • f Phase Two
  • peration)

Total tonnes mined 438 million Strip ratio 6.4 Average CIL grade processed 2.5 grams per tonne Average annual production 812,000 ounces Average mining cost $2.05 per tonne Average processing cost $14.50 per tonne Production cost of sales $440 per ounce All-in sustaining cost $655 per ounce 2025-2029 (Remaining life

  • f mine)

Total tonnes mined 141 million tonnes Strip ratio 4.8 Average CIL grade processed 1.5 grams per tonne Average annual production 457,000 ounces Average mining and re-handle cost $2.75 per tonne Average processing cost $14.30 per tonne Production cost of sales $680 per ounce All-in sustaining cost $835 per ounce 2020-2029 (Life of project) Total tonnes mined 579 million tonnes Strip ratio 5.9 Average CIL grade processed 2.0 grams per tonne Average recovery 93% Average annual production 634,000 ounces Average mining cost $2.25 per tonne Average processing cost $14.40 per tonne Production cost of sales $530 per ounce All-in sustaining cost $720 per ounce

TASIAST EXPANSION PROJECT

SUMMARY OF FEASIBILITY STUDY RESULTS

Estimated Initial Capital Cost Operating Estimates (Phase One & Two combined)

Estimate ($ millions) Processing plant 137 Power supply 76 Water supply 50 Mining fleet 49 EPCM 27 Indirect, owner’s cost and taxes 120 Contingency 79 Miscellaneous 52 Total $590

Standalone Phase Two Estimates

Estimate Initial capital $590 million Internal rate of return 24%

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GOLD PRICE SENSITIVITY ESTIMATES

TASIAST EXPANSION PROJECT

SENSITIVITIES

$1,100 $1,200 $1,300 $1,400 IRR (Phase Two Standalone)

(calculated January 1, 2018 forward)

19% 24% 28% 31% NPV (Phase One and Two Combined)

(after-tax, 5% discount; calculated January 1, 2018 forward)

$977M $1.43B $1.83B $2.22B

OIL PRICE SENSITIVITY ESTIMATES

$45/bbl $50/bbl $55/bbl $60/bbl $65/bbl IRR (Phase Two Standalone)

(calculated January 1, 2018 forward)

24.9% 24.6% 24.2% 23.9% 23.5% NPV (Phase One and Two Combined)

(after-tax, 5% discount; calculated January 1, 2018 forward)

$1.49B $1.46B $1.43B $1.39B $1.36B

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www.kinross.com

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KINROSS GOLD CORPORATION

25 York Street, 17th Floor │Toronto, ON │ M5J 2V5 www.kinross.com