delivering disciplined growth kinross gold corporation in russia: kinross gold’s experience of...

Delivering Disciplined Growth

Kinross Gold Corporation in Russia:

Kinross Gold’s Experience of Cooperation with Indigenous Peoples of

the North and Far East of Russia

Lou Naumovski, Vice President, Moscow Representative OfficeKINROSS GOLD CORPORATION

May 27, 2011, Ottawa, Canada

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, including 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 harbour” 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 include, without limitation, possible events; opportunities; statements with respect to possible events or opportunities; estimates 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 operations; the future price of gold and silver; currency fluctuations; expected capital expenditures and requirements for additional capital; government regulation of mining operations and exploration; environmental risks; unanticipated reclamation expenses; and title disputes. The words “plans”, “expects”, “subject to”, “budget”, “estimate”, “scheduled”, “timeline”, “projected”, “pro forma”, “estimates”, “envision”, “view”, “forecasts”, “guidance”, “conceptual”, “target”, “possible”, “illustrative”, “model”, “opportunity”, “objective”, “potential”, “intends”, “anticipates” or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “can”, “could”, “would”, “should”, “might”, “indicates”, “will be taken”, “become”, “create”, “occur”, or “be achieved”, 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. 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. 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. 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 2010 Management’s Discussion and Analysis and the “Cautionary Statement on Forward-Looking Information” in our news release dated February 16, 2011, 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. Rob Henderson, an officer of the Company who is a “qualified person” within the meaning of National Instrument 43-101 (“NI 43-101”). The technical information about the White Gold mineral resource contained in this presentation has been prepared under the supervision of Mr. Wayne Barnett and Mr. Marek Nowak, who is a “qualified person” with the meaning of NI 43‐101.

2Kinross Gold CorporationMay 2011

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About Kinross

• Growing senior pure-gold producero 2.33 million gold equivalent ounces in 2010,

expected to double by 2015

• 10 operating mines

• 7,000+ employees worldwide

• Strong culture built on “The Kinross Way”

• Suite of world-class development projects

• Highly prospective exploration portfolio

• Commitment to outstanding corporate citizenship

Kinross Gold CorporationMay 2011


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Kinross in Russia

KUBAKA KUPOL

JULIETTA

KUBAKA

DVOINOE

• Kubaka operations 1997-2006• Julietta operations 2001-2008• Kupol – first pour 2008

• Open pit and underground mining methods• First mine in Russia certified compliant with

International Cyanide Management Code• All consumables trucked from Pevek over

430 km ice road during a 90 day window• About 650 people on site, 4 week rotation


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Kupol, Russia (100%)

• 750 million dollars of investments - Mine and Infrastructure construction cost (as of 2008)• More than 3,000 tpd mill with open-pit and underground• Average gold recovery rate - 95%, silver – 82%• First mine in Russia to obtain Cyanide Code Certificate• 153 holes drilled at Kupol in 2010 for 49,270 meters• Definition drilling in 2010 converted 0.4 million ounces of gold resources to gold reserves

Operating Results Production (Au eq. oz)

Cost of Sales($/oz)

Kinross interest

Q4 2010 149,504 $313 75%

FY 2010 554,008 $319 75%

2011 (Forecast) 535,000 – 555,000 $395 - $435 100%

2011 Reserves and ResourcesGrade (g/t)

Au (t) Ag (t)

89,61135

18,4233,5


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DVOINOYE, RUSSIA

• Scoping study completed January 2011

• Underground mine with an expected 8-year mine life

Expected avg. output of 900 tonnes per day (2013-2020)

• Ore to be processed at the Kupol mill

Kupol mill throughput expected to increase to 4,000 tpd

Dvoinoye feed expected to be processed 1 week a month

• Initial capital estimate: ~$300 million

• Development of portal declines in 2011

• Pre-feasibility study scheduled to be complete Q3 2011;

Feasibility study expected to be completed Q1 2012

• Targeted to commence in H2 2013

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Mining Creates Benefits in Local Communities

KINROSS GOLD/CMGC provides:

• 30 % of regional budget of Chukotka Autonomous Okrug;

• Partnership with approx. 50 companies and entrepreneurs of Chukotka;

• Over 1300 full time jobs at Kupol

• Including taxes, wages and purchase of supplies, fully one-third of total revenue is spent in the Far East, and 45% is spent within Russia

• Our community programs look to leverage this benefit footprint of the mining operation



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Indigenous Communities Are A Specific Focus For Kinross

• Ten Guiding Principles for Corporate Responsibility establish the standards which define our working relationships with all interested parties

• Within that context, we recognize the unique considerations of indigenous peoples, including:o Their unique histories, languages, cultures, knowledge,

traditions and values; o The importance of land, water, wildlife, vegetation and other

aspects of the natural environment to their cultures and livelihoods; and

o The importance of indigenous institutions in realizing indigenous peoples’ aspirations for their own development.

• Kinross Gold Corporation and its affiliates (“Kinross”) will endeavor to engage with indigenous peoples in relationships based on mutual trust in order to develop and operate Kinross mines in a manner that respects indigenous communities and makes positive contributions to their well-being:o Employment & Supplier Opportunitieso Capacity buildingo Partnership in realizing community aspirations


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Kinross employs a four-stage process to enhance local benefits

Engagement Evaluation

ActionMonitoring

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Examples of Engagement and Evaluation with Indigenous Peoples at Kupol

• Bilateral Agreement of Cooperation between CMGC and Chukotka Regional Public Organization “Association of Small-Numbered Indigenous Peoples of the North, Siberia and Far East of RF”

• Employ a specialist to deal with issues related to indigenous people;

• Open public hearings every year beginning in 2006

• Regular meetings - at the mine site, in the communities, at important civic events

• Students give annual concerts at the mine and at nearby reindeer brigade camps


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Examples of Action and Monitoring with Indigenous Peoples at Kupol

• Employment: about 60 indigenous employees at one time

• Training: on-site educational license

• Off-rotation training: program to provide IP employees with skills needed to advance

• Summer students – on-the-job practice

• Supply: 10 t local reindeer meat

• Miscellaneous support – transportation to annual gatherings, etc.

• Third party interviews of community representatives – comprehensive review in 2010


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Kupol Foundation

• Based on early consultation with stakeholders, we identified a need for community input to define prioritieso Kinross committed to finance 1 mln.

dollars to the Foundation in 2009 and 250 thou. dollars on annual basis during 8 years.

• Decisions on what to fund are made by a tender commissiono Seven of Nine commissioners are

indigenous personso At least one-third of the project

funding must go to indigenous priorities

• Strong support from administrationo Deputy Governor sits on Management

Committeeo Department Experts review projects

and provide opinion Kinross Gold CorporationMay 2011

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The Tender Commission Uses Transparent Criteria

• Relevancy of the problem: Does the project refer to social problems of the region?

• Forecasted results: Will the project have near-term tangible results for the region?

• Benefit footprint: Will the project lead to long-term positive changes in the community by resolving the relevant social issue?

• Practicality of the project: Is there a project implementation plan?

• Economic Basis: Are projects costs fully justified? Will any maintenance or operating costs be met after the allocated funds are used?


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Kupol Foundation: 2 years, 23 projects


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Our belief

• There are certain reasons that can us prevent from successful cooperationo Differences in world perception, remoteness, difference of interests

• These issues cannot be solved without mutual respecto Kinross is fortunate to have these partners

• Unilateral actions are not successful – o we must work together

• Time; Patience; Communication

• CJSC “Chukotka • Mining and Geological

• Company”

• Government • of Chukotka

• Autonomous • Okrug

• Association • of Indigenous

• People


delivering disciplined growth kinross gold corporation in russia: kinross gold’s experience of...

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