Modular

Tucson, Arizona – December 7, 2004

Modular Mining Systems, Inc., the world leader in computer-based solutions for maximizing mine productivity, has received an order to install its IntelliMine^® mine management system at Kinross Gold Corporation's Fort Knox Mine.

Fort Knox, an open pit gold mine, is located in the interior of Alaska—just south of the artic circle—approximately 42 km northeast of Fairbanks, Alaska. The area has a sub-artic climate, with long cold winters where temperatures can dip as low as -55 degrees Fahrenheit. Although summers are short, temperatures occasionally exceed 90 degrees Fahrenheit. The mine operates 24/7 in this environment, with two 12-hour rotating shifts, mining 115,000 tons of material each day. This makes it crucial for onsite systems to be ruggedized and able to withstand the demands of constant use in extreme cold, yet continue to perform reliably in the short summer season. It is also vital that the system be able to integrate and function seamlessly with pre-existing enterprise business systems, as well as be able to accommodate future expansion into advanced maintenance facilities such as MineCare^®. The IntelliMine^® system, including ruggedized low temperature equipment, fits all these requirements.

"This is the furthest north that Modular has installed and we are pleased to be able to do so with a world class operation such as Fort Knox," stated Haydn Roberts, General Manager for Modular Mining North America.

The IntelliMine^® system selected by Fort Knox includes MasterLink^®, the wireless network communications backbone; DISPATCH^®, the industry standard dispatching system designed to provide automatic, optimized haul truck assignments; and PowerView™, an SQL system that can be used to create virtually any type of Windows^®-based report on load, haul, or dump operations.

"The system's capabilities are a perfect match for Fort Knox," stated Roberts. "With this system Fort Knox has a strategic, field-proven tool to help it stay competitive in today's market place. The MasterLink backbone facilitates communication throughout the mine and provides access to real-time data; allowing personnel to respond quickly when key decisions must be made. And by utilizing Modular's DISPATCH system, Fort Knox will be able to easily integrate and optimize its haulage fleet assignments and improve productivity—all with its existing fleet."

The system will provide the following key benefits to the mine:

Field-proven system with fleet optimization algorithm for productivity improvements
Increase utilization of existing capital
Full integration with existing systems for greater efficiency in business processes
Monitor key operational parameters to enable real-time decision making
802.11 compliant wireless communications to improve communication and decision making ability
Capability to expand system as needed
ODBC compliant database for reporting

Fort Knox will employ the system throughout its operation on a variety of equipment including: 25 trucks, four shovels, and three loaders. A foreman unit will be equipped with a ruggedized laptop that includes IntelliMine^® and MasterLink^® utilities for controlling and monitoring the operation. Additionally, six wireless access nodes utilizing Cisco^® technology will be installed to increase communication capacity throughout the mine. System startup is scheduled for December 2004.

About Kinross Gold Corporation Fort Knox:

Incorporated in 1993, Kinross Gold Corporation, based in Toronto Canada, has grown from a junior gold producer to become one of the top ten largest primary gold producers in the world with approximately 1.7 million ounces of annual gold equivalent production. Kinross has varying interests in 13 mines on four continents and a robust pipeline of advanced exploration and development projects. Approximately 50% of Kinross' production is in the US and over two-thirds in North America. Holdings also include operations in South America, Russia, and Africa.

Kinross acquired the Fort Knox open pit mine, located near Fairbanks, Alaska in 1998. The Fort Knox operation consists of the main Fort Knox open pit and the True North open pit located approximately 15 km northwest of Fort Knox. Gold equivalent production for 2003 was 391,831 ounces. Management's expectation for 2004 gold production is approximately 340,000 ounces. Fort Knox is currently being mined as a conventional truck and shovel open pit mine.

About Modular Mining Systems, Inc.

Modular, headquartered in Tucson, Arizona, is the market share leader in providing powerful information management solutions to meet the needs of both open pit and underground mining operations worldwide. The company's products range from fully automated, total mine management and control systems using the latest high-precision global positioning systems for surface applications, to proven mining cycle control, monitoring, and identification systems for underground mines. Modular has sales and support offices located in all key world-mining markets. For more information on Modular, the IntelliMine^® system, or the company's new, revolutionary systems for rail management and equipment automation, visit the Modular website at http://www.modularmining.com.

Email: products@mmsi.com

Phone: 520.746.9127