Stanislav Borodyuk, Vice-President, Head, Moscow Representative Office 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 Phase One Exceeds Expectations”, “Tasiast Expansion Update”, “Kinross Remains in Discussions with the Government of Mauritania”, “2019 Outlook”, “Project Milestones for 2019”, “Strong Balance Sheet and Financial Flexibility”, “Tasiast Project Financing Update”, “2019E Production and Costs”, “2019E Capital Expenditures”, “Solid Financial Position”, “Americas”, “Russia”, “West Africa”, “Development Projects”, “Portfolio of Development Projects”, “Round Mountain Phase W”, “Bald Mountain Vantage Complex”, “Fort Knox Gilmore”, “Chile Projects”, “Kupol Exploration Highlights”, “Another 1-Year Mine Life Extension in Russia”, “Chirano Exploration Highlights”, “Bald Mountain Exploration Highlights”, and “Kinross Value Proposition” and include without limitation statements with respect to our guidance for production, production costs of sales, all-in sustaining cost and capital expenditures, permit applications and conversions and lease renewals, continuous improvement and other cost savings opportunities, the schedule and budget for development projects, the outcome of discussions with any government (including, without limitation, the Government of Mauritania) relating to the Company’s operations, as well as references to other possible events include, without limitation, possible events; opportunities; statements with respect to possible events or opportunities; 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 of development projects; success of exploration or development of operations; the future price of gold and silver; currency fluctuations; expected capital requirements; government regulation; and environmental risks. The words “2019E”, advancing”, “assumption”, “budget”, “continue”, “estimate”, “expect”, “feasibility study”, “flexibility”, “focus”, “forecast”, “forward”, “future”, “growth”, “guidance”, “indicate”, “intend”, “liquidity”, “objective”, “on schedule”, “opportunity”, “outlook”, “plan”, “position”, “potential”, “priority”, “proceeding”, “progressing”, “project”, “risk”, “schedule”, “scoping study”, or “target”, 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, legislative 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 2018 Management’s Discussion and Analysis, and the “Cautionary Statement on Forward-Looking Information” in our news release dated February 13, 2019, 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.
2 DIVERSIFIED PORTFOLIO OF OPERATING MINES RUSSIA AMERICAS Dvoinoye Fort Knox Kupol
Bald Mountain Round Mountain 2019E GOLD EQUIVALENT WEST PRODUCTION(2,3) AFRICA Tasiast 20% 2.5M Chirano ounces 22% (+/- 5%) 58%
GLOBAL PORTFOLIO Paracatu Operating mine Americas West Africa Russia Development project
(2) Refer to endnote #2. (3) Refer to endnote #3. La Coipa 3 KINROSS RUSSIA TRACK RECORD
years 24 in Russia years 11 in Chukotka
over over Since 2008 $3,5 produced $1 billion Moz. billion in investments ˃6 of Gold in taxes & other over payments since 2008 mines constructed Moz. in record 4 500 ˃50 of Silver 3 years tonnes of ore per day 4 KINROSS GOLD Chukotka Autonomous IN RUSSIA − CHUKOTKA District
Pevek Anadyr Dvoinoye 450 км Dvoinoye 430 km ≈2,500 km Kupol
Arkhangelsk Kupol Moroshka
≈6,400 km MOSCOW Kamchatka Territory
Moscow 1,200 km 6,400 km
Republic of Sakha (Yakutia) Magadan Region
Magadan 5 MAIN ASSETS IN RUSSIA
KUPOL DVOINOYE MOROSHKA 2008 2013 2018
2018 2019 Results Guidance(3)
Production 500k 490k ˃4 500 >$ 3.5 BLN > 2300 (Au. Eq. oz.) (+/- 3%) EMPLOYEES TONNES ACQUISITION & INVESTMENT Production $600 cost of $582 OF ORE PER DAY (+/- 3%) sales(2) ($/oz.) (1) Refer to endnote #1. 66 (2) Refer to endnote #2. ANOTHER 1-YEAR MINE LIFE EXTENSION IN RUSSIA
Continuing our track record of adding reserves to offset depletion at Kupol and Dvoinoye
Cumulative Production (Au eq.) Proven and Probable Reserves (Au eq.) (4) • Estimated mill production 7.4 2.1 2018 extended to late 2023, another 6.9 2.3 2017 1-year addition 6.3 2.6 2016 5.6 3.1 2015 . Result of mine plan 4.8 3.6 2014
optimization and exploration 4.1 3.9 2013 Year additions 3.5 4.1 2012 3.0 5.1 2011 • Continue to be encouraged by 2.3 4.0 2010 potential for future resource 1.6 4.1 2009 additions through exploration 0.6 5.0 2008 Gold equivalent ounces (millions) (4) Refer to endnote #4 7 POSITIVE IMPACT OF MINING ON CHUKOTKA Average income per person (thousand rubles) Tigers Realm: Kinross Gold: Kupol Kinross Gold: Dvoinoye Polymetal: Amaam Coal Project Mayskoye mine 80 66 71 57 62 60 49 53 38 43 40 31 34 23 27 20 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 GRP dynamics (bln rubles) 80 66 67 58 62 60 46 45 39 45 44 40 31 16 21 20 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 8 10 YEARS OF PERFORMANCE: THE KUPOL FOUNDATION
2005 2008 2009
Consultations Agreement with the NGO Kupol Social with local “Association of Indigenous Peoples of Development community Chukotka” (official representative of Foundation Chukotka indigenous population)
16 Small and medium-sized $1,45m 15 initial endowment businesses Kinross Gold 153 Healthcare projects 86 Education 36 Government Association $400k Traditions of indigenous of Chukotka of Indigenous annual budget peoples Autonomous Peoples of Okrug Chukotka
9 HSE TRACK RECORD
2009 2012 2012 First mine in Russia to obtain “Super skin” PITRAM Automatic ICMI environmental certification Technology Recording System
2018 2017 2018 Caterpillar Driver Safety Filter Cake Plant Leader System (Dry Stack Tailings Facility) WWF Russia Ranking
10 KINROSS GOLD’ WHITE PAPERS
2018 Study focuses on potential socio-economic benefits of increasing the strategic “threshold” for gold deposits in Russia (jointly prepared with EY).
2014 2013 2011 11 Study on potential socio-economic benefits of increasing the strategic “threshold” in Russia Preliminary forecasts: Budget effect of the threshold reform
Direct and Threshold indirect budget FDI New jobs effect in 2018-41
Increase to 100 tonnes USD 5-19 billion USD 0.1-0.5 billion 11-43 thousand
Increase to 150 tonnes USD 9-37 billion USD 0.2-0.9 billion 14-57 thousand
Increase to 200 tonnes (base scenario) USD 12-48 billion USD 0.3-1.2 billion 15-61 thousand
Elimination of the threshold USD 34-137 billion USD 0.8-3.3 billion 27-106 thousand
1212 STATE MEASURES TO FOSTER INVESTMENT IN THE FAR EAST OF RUSSIA
DEVELOPING THE FAR EAST IS A PRIORITY FOR THE RUSSIAN GOVERNMENT
ADZ (Advanced SEZ (Special Economic Regional Investment Free Port Regime Development Zones) Zones) Projects
• 0% or reduced land, • 0% or reduced land, • Reduced profit & •0% or reduced land, mineral extraction property, profit & property, profit & property & profit taxes taxes mineral extraction transport taxes • Accelerated VAT taxes • Customs free regime • Customs free regime refund procedure • Customs free regime • Duty free and tax free • Simplified migration • Simplified migration regime for foreigners import, storage, use, • No permits or quotas regime for foreigners export and re-export for foreign employees • Simplified • Simplified • Simplified visa regime administrative system • Fast track procedure administrative system based on “one window” • Fast track procedure for for obtaining permits based on “one window” approach approach obtaining permits
13 13 MINING REGULATION & INVESTMENT INCENTIVES
15 YEARS AGO NOW
SUBSOIL LICENSING: NON-TRANSPARENT TENDERS SUBSOIL LICENSING: AUCTIONS CLAIM-STAKING PROCEDURE FOR GEOLOGICAL NO EASY ACCESS TO GEOLOGICAL EXPLORATION EXPLORATION TAX INCENTIVES: • REGIONAL INVESTMENT PROJECTS • ADVANCED GROWTH TERRITORIES NO STATE SUPPORT MECHANISMS FOR SUBSOIL USERS • FREE PORT OF VLADIVOSTOK GOVERNMENT SUPPORT IN MINE INFRASTRUCTURE DEVELOPMENT
COMPLICATED LICENSING AGREEMENT APPROVAL: LICENSING AGREEMENT APPROVAL: ONE-STAGE TWO-STAGE (FEDERAL AND REGIONAL GOVERNMENTS) (FEDERAL AGENCY FOR SUBSOIL USE, ROSNEDRA)
LACK OF CONSISTENCY IN LICENSING AGREEMENTS SINGLE TEMPLATE FOR ALL LICENSING AGREEMENTS
14 MINING JURISDICTIONS: INVESTMENT ATTRACTIVENESS INDEX*
RUSSIA MINING INVESTMENT ATTRACTIVENESS
2013 2014 2015 2016 2017 2018
27 33 44 47 64 83 83 91 104 112 109 122 Investment Attractiveness Rank Number of Jurisdictions
*www.fraserinstitute.org 14 ENDNOTES
1) Attributable production cost of sales per gold equivalent ounce sold and per gold ounce sold on a by-product basis, all-in sustaining cost per gold equivalent ounce sold and per gold ounce sold on a by-product basis, adjusted net earnings attributable to common shareholders, adjusted operating cash flow and average realized gold price are non-GAAP financial measures. For more information and reconciliations of these non-GAAP measures for the three months and twelve months ended December 31, 2018, please refer to the news release dated February 13, 2019, under the heading “Reconciliation of non-GAAP financial measures,” available on our website at www.kinross.com.
2) For more information regarding Kinross’ production, cost, overhead expense and capital expenditures outlook for 2019, please refer to the news releases dated February 13, 2019, which is available on our website at www.kinross.com. Kinross’ outlook for 2019 represents forward-looking information and users are cautioned that actual results may vary. Please refer to the Cautionary Statement on Forward- Looking Information on slide 2 of this presentation and in our news release dated February 13, 2019, available on our website at www.kinross.com.
3) Unless otherwise noted, gold equivalent production, gold equivalent ounces sold and production cost of sales figures in this presentation are based on Kinross’ 90% share of Chirano production and sales. Also unless otherwise noted, dollar per ounce ($/oz.) figures in this presentation refer to gold equivalent ounces.
4) Mineral reserves and mineral resources are estimates. For more information regarding Kinross’ 2018 mineral reserve and mineral resource estimates, please refer to our Annual Mineral Reserve and Mineral Resource Statement as at December 31, 2018 contained in our news release dated February 13, 2019, which is available on our website at www.kinross.com.
16 EXPLANATORY NOTES - EXPLORATION
Kupol Exploration Results
A total of 205 diamond drill core holes are reported from Kupol Minex and mine-area exploration activities in 2018. All diamond drill core holes reported are HQ and NQ in diameter. The majority of holes presented (176) were drilled at the Kupol Minex program is to test the Kupol vein at depth along the main strike.
Collar locations are reported in the Kupol UTM WGS 84 Grid.
Composite assay intervals reported for diamond drill core results are calculated by taking a weighted average of all gold and silver fire assay values included. No more than three consecutive meters of internal waste (<1.0 grams per tonne of Au equivalent) is accepted, and high grade samples are not capped. Select true widths are provided, estimated according to the geometry and nature of the mineralized intersection.
The reader is referred to the Kupol & Dvoinoye National Instrument 43-101 Technical Report dated March 31, 2015, available under the Company’s profile at www.sedar.com, for a full description of drilling methods, sampling procedures and QA/QC protocols.
The technical information about the Company’s drilling and exploration activities at Kupol contained in this news release has been prepared under the supervision of the Officer with the Company who is a “qualified person” within the meaning of National Instrument 43-101. The drill hole data base including collar, survey, geology and assay information were reviewed by the “qualified person” and the composite assay information independently calculated and verified for accuracy of reporting. Assay certificates for the information disclosed in this news release were verified by the Regional Director Exploration and the Site Exploration Manager but not by the Officer as the “qualified person”.
17 KINROSS GOLD CORPORATION www.kinross.com www.кинросс.рф