CLOSURE OF THE KINROSS DELAMAR MINESteve Smith – Environmental Manager – Reclamation Operations (ROBU)

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OPERATIONS MAP

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Tasiast

Fort KnoxKupol

Kettle River –Buckhorn

RoundMountain

Chirano

NORTH AMERICA

SOUTH AMERICA

WEST AFRICA

RUSSIA

Operations Development Projects Head Office

Dvoinoye

Lobo-Marte

Cerro Casale

Toronto

La Coipa

Maricunga

Paracatu

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DELAMAR MINE LOCATION

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DELAMAR SITE HISTORY

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●Historic Mining District 1863 to 1914●Ownership 1977-1993 – Earth Resources and NERCO●1993 – Kinross purchase NERCO property from Kennecott●Kinross production 1993-1998●Care & Maintenance 1999-2002; Closure began in 2003

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SITE CONDITIONS AT SHUT-DOWN

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●Prolonged low metal prices forced shut-down and subsequent closure●Record high precipitation during shut-down period●ARD conditions at waste rock facilities and open pits●Tailings pond also used for ARD storage

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PREPARATIONS FOR FINAL RECLAMATION AND CLOSURE●Lead regulatory agencies are the Idaho Dept. of Lands (IDL) and US BLM●Supporting agencies include IDEQ, IDWR, and US EPA.● In early 2002, Kinross established the Reclamation Operations Business Unit

(ROBU), a separate unit within the company to manage reclamation and closure sites.

●Later in 2002, Policy and Technical Groups were formed with agency and company staff to update the existing Reclamation Plan into a comprehensive Closure Plan.

●Technical Group met monthly over a two-year period to review, modify and finalize the numerous engineering plans, as well as the overall Closure Plan.

●Approved reclamation projects were authorized to begin in 2003.●By mid-2004, the guiding Closure Plan, Water Management Plan, engineering

design plans, and other support documents had been extensively reviewed, modified, and approved for implementation over a 7-year schedule.

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RECLAMATION DESIGN BASICS

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●Engineered low-permeability covers on waste rock, open pits, tailings pond●Site-wide water management; segregate impacted water from storm water●De-water tailings by treatment and land application; construct dry cover

Cover B selected

Proposed Cover Designs

Topsoil K = 1.4e-3 cm/sec

Compacted ClayK = 6.8e-7 cm/sec

F.M Haul Road FillK = 2.0e-3 cm/sec

Compacted ClayK = 6.8e-7 cm/sec

Topsoil K = 1.4e-3 cm/sec

Compacted ClayK = 6.8e-7 cm/sec

Topsoil / RockBlend

K = 1.4e-3 cm/sec

Cover A Cover B Cover C

24"

8"

18"

24"24"

8" 10"

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DeLamar OverviewMarch 2012 8

View from the North - 2006

Silver CityStone Cabin Mine

Jordan Creek

DeLamar Office

Fretwell LAT

Adit 16

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WASTE ROCK #1 CLOSURE -- 2003-2004

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●Regraded to 3:1V, low-permeability cover including storm water conveyances

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WASTE ROCK #1 CLOSURE -- 2003-2004

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●WD1 completed in 2004● Includes three buried seep collection systems to segregate storm water

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INITIAL EFFECTS OF ENGINEERED COVER

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●WASTE ROCK #1 -- MOST NOTEABLE

●Pre-reclamation (1999-2002) – ~600 to 800 af/yr

● 2005 – 377 af● 2009 – 162 af● 2010 – 166 af● 2011 – 236 af (Above average snowpack, very wet spring; contingency pond)● 2012 – 150 af● 2013 - 125 af (est)

●Still see some climatic variation

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MINE PIT CLOSURE – SOMMERCAMP PIT

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●No static groundwater encountered●Regrade to free-draining topography; backfill deeper, more reactive highwalls●Construct low-permeability cover

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MINE PIT CLOSURE -- SOMMERCAMP PIT

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●Completed in 2006●Storm water free-drains to the north

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MILL AREA DEMOLITION

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●Removed building, refinery, mills, leach tanks, thickeners, AVR plant●Due to good scrap metal prices, made a small profit●Essentially everything was salvaged

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TAILINGS POND CLOSURE -- 2003-2014

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●Very challenging circumstances; limited treat and discharge options●200-acre tailings surface●Set aggressive schedule to retain agency support●4-layer cover; foundation, compacted clay, subsoil, soil; approx 8 ft total

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TAILINGS POND CLOSURE -- 2006

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●Continued cover advance with declining water levels●Foundation instability increasing●Completed tailings embankment in 2006-2007

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TAILINGS POND CLOSURE -- 2006

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●Stability concerns increased later in the construction season●Began testing and changing over to smaller, LGP equipment●October 2006 pond sonar survey; subsurface tailings waves

Section A

Section B

Section C

Section D

Section E

Section F

Evap MCCBuilding

5980

5975

5970

5965

5960

5955

5950

5945

6020

-1.5%

5976pipeline

pipeline

1,107' length, 140' drop

pipeline

2,337' length, 140' drop

5976

5990

Berm

Ditch

~26 acres

-1.5%

6014

5976

Berm, 2

,270' long, 0

.5%

Berm

, 2,2

70' l

ong,

0.5

%

6052

5989

Diversion D

itch, 3,160' long, 2.0%

Temporary Stormw

ater

DUMP #2

REGAN PITSOMMERCAMP

DUMP #2

REGAN PITSOMMERCAMP

DUMP #2

REGAN PITSOMMERCAMP

Lime Addition SystemBuilding

REGAN PITSOMMERCAMP

5955' contour changes5950' contour changes5945' contour changes5940' contour changes

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TAILINGS POND CLOSURE -- 2007

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●Continue cover advancement●Transition to LGP and geo-grid/geo-textile reinforced haul routes●De-watering ACCELERATED due to reduced ARD flows to be stored●Storm water diversion adjacent and on reclaimed areas

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TAILINGS POND CLOSURE – LAND APP

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●Land application best (only) reasonable option for de-watering●Very closely controlled and monitoring by IDEQ●Private land lease; very positive effect on landowner

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TAILINGS POND CLOSURE -- 2008

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●Constructed water management pond●Replaces lost water treatment/storage awaiting land application season●Enlarged in 2012 to 350 acre-ft capacity

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TAILINGS POND CLOSURE -- 2010

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●Continue cover advance with typical LGP D5 and 35 ton trucks●Tailings surface essentially de-watered● Increased management required for pore water and seeps

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TAILINGS CLOSURE -- WATER ISSUES

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● Increase in accumulated pore water drainage and seeps● Increased water handling, tailings slimes handling●Prepare to begin spillway excavation

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TAILINGS POND CLOSURE -- 2011

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●Heavy snowpack and heavy spring rains●Early season de-watering challenges●Late season very successful

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TAILINGS POND CLOSURE -- 2012

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●Normal spring weather patterns●Previous year tailings drying and consolidation improve working conditions●Successful construction season

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TAILINGS POND CLOSURE -- 2013

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●Cover essentially complete, some localized areas and topsoil remaining●Spillway excavation essentially complete and functional●Variety of smaller projects in 2014 to finish earthworks

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DELAMAR CLOSURE

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●Key lesson learned (or confirmed)

●Need to focus on water inventory minimization during operation, especially as closure approaches.

●If not constrained by regulatory commitments or other requirements; then, more efficient to nearly complete tailings de-watering before cover construction.

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DELAMAR CLOSURE

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– 1990’s -- 2012