Kinross acquired the Lobo-Marte gold project in northern Chile on January 8, 2009 from Teck Cominco Limited and certain subsidiaries of Anglo American plc.

Close to 30,000 hectares in size, Lobo-Marte is located in the Maricunga mining district, roughly midway between Kinross' Maricunga and La Coipa mines.

Lobo-Marte allows Kinross to further increase its presence in the Maricunga district and offers potential cost savings by using existing administration and operations at neighbouring Kinross operations to help develop the project. As well, Kinross' experience in cold-weather, heap leach mining at high altitudes will be relied on.

Kinross has completed an update to its earlier pre-feasibility study on Lobo-Marte. The updated study is based on a mine life of approximately 10 years and confirms the viability of a 47,000 tonne per day open pit heap leach operation incorporating SART (Sulphidization, Acidification, Recycling and Thickening) technology. The updated study estimates an average annual production of approximately 350,000 ounces per year, with average operating costs of $11.00-11.50 per tonne. The average gold grade over the life of mine is estimated to be 1.17g/t and average recovery of 60 - 70%.

Given priorities for capital allocation, Lobo-Marte's timeline has been extended, and completion of the feasibility study is now targeted for 2013. Kinross is reviewing opportunities to optimize the project, including re-evaluating various project configurations and development scenarios, and exploring logistical efficiencies and consolidation of resources between nearby Kinross operations. Meanwhile, Kinross also plans to complete permitting, and conduct further drilling at the nearby Valy deposit.


Mineral Reserve and Resource Summary

As at December 31, 2011