Cyprus Amax Minerals Reaches Agreement to Sell Kinross Gold Stake

DENVER (PROTEXT) - Cyprus Amax Minerals Company (NYSE: CYM) today announced it has entered into an agreement to sell the Common Shares of Kinross Gold Corporation owned, directly or indirectly, by it. Pursuant to an underwriting agreement with a syndicate of underwriters led by Merrill Lynch & Co., CIBC World Markets Corp. and TD Securities (USA) Inc., the syndicate, or its affiliates, has agreed to purchase and sell to the public approximately 89 million Common Shares of Kinross Gold Corporation at Canadian $4.00 (approximately US$2.71) per Common Share, for aggregate proceeds of approximately Canadian $356 million (US$242 million). The underwriting syndicate has agreed to sell the Common Shares to the public in Canada and the United States. A Canadian preliminary short-form prospectus and a United States registration statement to qualify the offering for distribution to the public has been filed with the securities regulatory authorities in Canada and the United States. Subject to obtaining the necessary regulatory approvals and satisfaction of certain customary conditions in the underwriting agreement, closing is expected to occur on or about October 27, 1999. The Common Shares are being offered by Cyprus Amax Minerals Company and certain of its wholly-owned affiliates. Upon completion of the offering, Cyprus Amax will not own any Kinross Gold Corporation Common Shares (excluding warrants to purchase approximately 8.8 million Common Shares of Kinross Gold Corporation). Kinross Gold Corporation has agreed not to sell or issue any Common Shares or securities convertible into or exchangeable for Common Shares of Kinross Gold Corporation for a period of 90 days subsequent to the closing of this offering. Cyprus Amax expects to realize approximately US$232 million net of expenses from the transaction. This transaction will result in nearly US$200 million of tax losses to Cyprus Amax Minerals Company that will enable recoupment of prior year taxes and be carried forward for future utilization. The transaction will also be accretive to earnings due to the elimination of equity losses. A gain of approximately US$50 million will be realized for financial reporting purposes. A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted in the United States prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Copies of the prospectus in the United States can be obtained form the following sources: Merrill Lynch & Co. CIBC World Markets Corp. TD Securities (USA) Inc. 250 Vesey Street 200 Liberty St., 8th Floor 31 West 52nd St., 21st Fl. New York, NY 10281 New York, NY 10281 New York, NY 10019-6010 212-449-6500 212-667-7800 1-800-883- 6295 Cyprus Amax Minerals Company, headquartered in Englewood, Colorado, is a leading producer of copper and the world's largest producer of molybdenum. Cyprus Amax is exploring for minerals worldwide. On September 30, 1999, Cyprus Amax and Phelps Dodge entered into a definitive merger agreement under which Phelps Dodge would acquire Cyprus Amax. Actual results may vary materially from any forward-looking statement the Company makes. Refer to the Cautionary Statement and Risk Factors contained in the Company's most recent Form 10- K. To obtain a faxed copy of this or any Cyprus Amax news release, call 1-800-758-5804, ext. 224250. News releases can also be accessed via the Internet at the Cyprus Amax web site, http://www.cyprusamax.com. ots Original Text Service: Cyprus Amax Minerals Company Internet: http://www.newsaktuell.de Contact: Gerald J. Malys, Senior Vice President and Chief Financial Officer, 303-643-5060, or John Taraba, Vice President and Controller, 303-643-5244, both of Cyprus Amax Minerals Company Company News On-Call: http://www.prnewswire.com/comp/224250.html or fax, 800-758-5804, ext. 224250 Web site: http://www.cyprusamax.com Subscribers please note that material bearing the slug "PROTEXT" is not part of CTK's news service and is not to be published under the "CTK" slug. Protext is a commercial service providing distribution of press releases from clients, who are identified in the text of Protext reports and who bear full responsibility for their contents. PROTEXT