KINROSS ANNOUNCES INVESTMENT IN UNDERWORLD RESOURCES INC.


Kinross Gold Corp. has subscribed for 1.2 million units of Underworld Resources Inc. pursuant to a private placement. Each unit consists of one common share and one-half of one share purchase warrant. Each full warrant allows the holder to purchase one common share at an exercise price of $1.60 during the one-year period following the closing of the private placement, subject to acceleration in certain circumstances. After giving effect to the private placement and the exercise of the warrants, Kinross will hold 1.8 million common shares which, together with the 2,718,181 common shares held by Kinross prior to the private placement, constitutes 11.1 per cent of Underworld’s outstanding common shares. The subscription price for the units is $1.25 per unit for a total purchase price of $1.5-million. The private placement is subject to approval by the TSX Venture Exchange.

The investment in Underworld is part of Kinross’s strategy to maximize exposure to new prospects and experienced explorationists at a relatively small capital investment by partnering with promising junior companies on a select basis. Underworld is a junior exploration company focused on expanding its new gold discovery in Canada’s Yukon Territory.

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