Name and Location
Fruta del Norte (FDN) gold project, Zamora-Chinchipe, Ecuador.

Client
Kinross Gold.

Project Description
FDN is a high-grade, intermediate sulphidation epithermal gold/silver system, hosted in andesitic volcanics.

The project is located on 95 000 ha, in the province of Zamora-Chinchipe, at the south-eastern end of the Amazon basin.

As at December 31, 2012, FDN had proven and probable reserves of 25.4-million tonnes, grading 8.21 g/t gold and 11 g/t silver, and measured and indicated resources of 4.27-million tonnes, grading 4.89 g/t gold and 10.3 g/t silver. Inferred resources are estimated at 22.09-million tonnes, grading 5.13 g/t gold and 10.4 g/t silver.

Value
The project is valued at $1.3-billion.

Duration
Not stated.

Latest Developments
Kinross Gold has announced that it will not continue with the development of the $1.3-billion FDN project, as it is unable to agree with government on certain key economic and legal terms to balance the interests of all stakeholders.

The company has informed the Ecuador government of its decision and has asked for its cooperation in ensuring an orderly transition that respects both parties’ interests.

After more than two years of negotiations on exploitation and investment protection agreements for the project, and despite pending legislative amendments to the mining and tax law regime in the country, Kinross concluded that it was not in the interests of the company and its shareholders to invest further in developing the project.

The gold miner added that, despite Ecuadorian law permitting an extension of the economic evaluation phase of the project for up to 18 months or the suspension of the start of the exploitation phase, either of which would have enabled negotiations to continue beyond the current August 1 deadline, government had indicated that it would not agree to such an extension or suspension.

Any possible sale of the project is currently subject to the prior approval of government and it has also indicated it will not support efforts by Kinross to solicit a potential new partner, or a buyer. When the current economic evaluation phase of the project expires on August 1, the La Zarza concession, which contains the entire FDN mineral resource, will revert to government.

The company will assist its employees and local stakeholders during a transition period, as it reduces its level of activity in Ecuador in the coming months.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Kinross Gold manager of external communications Louie Diaz, tel +1 416 369 6469 or email louie.diaz@kinross.com.