2016 FULL YEAR & Q4 FINANCIAL RESULTS CONFERENCE CALL & WEBCAST

Transcription

1 TSX: KL 2016 FULL YEAR & Q4 FINANCIAL RESULTS CONFERENCE CALL & WEBCAST March 29, 2017

2 KIRKLAND LAKE GOLD SENIOR MANAGEMENT PARTICIPANTS Tony Makuch President & Chief Executive Officer Philip Yee EVP & Chief Financial Officer Darren Hall Chief Operating Officer Doug Cater VP of Exploration, Canada John Landmark VP of Exploration, Australia Ryan King VP of Investor Relations 2

3 FORWARD LOOKING STATEMENTS Cautionary Note Regarding Forward-Looking Information This presentation contains statements which constitute forward-looking information within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of Kirkland Lake Ltd. ( Kirkland Lake ) with respect to future business activities and operating and financial performance. Forward-looking information is often identified by the words may, would, could, should, will, intend, plan, anticipate, believe, estimate, expect or similar expressions and include information regarding: (i) expectations for the ability of the combined company to successfully achieve business objectives, including integrating the companies or the effects of unexpected costs, liabilities or delays, (iii) the potential benefits and synergies of the combined company, (iv) future production, cash costs, free cash flows, and operations, and (v) expectations for other economic, business, and/or competitive factors. Investors are cautioned that forward-looking information is not based on historical facts but instead reflect management s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although Kirkland Lake believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the combined company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: the ability of Kirkland Lake to successfully integrate their respective operations and employees and realize synergies and cost savings at the times, and to the extent, anticipated; the potential impact on exploration activities; the potential impact of the announcement or consummation of the transaction on relationships, including with regulatory bodies, employees, suppliers, customers and competitors; the re-rating potential of the combined company; changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws; compliance with extensive government regulation; and the diversion of management time on the integration of the two companies. This forward-looking information may be affected by risks and uncertainties in the business of Kirkland Lake market conditions. This information is qualified in its entirety by cautionary statements and risk factor disclosure contained in filings made by Kirkland Lake Inc. ( KLG ) and Newmarket Inc. ( Newmarket ), with the Canadian securities regulators, including KLG s and Newmarket s respective annual information forms, financial statements and related MD&A for the financial year ended December 31, 2015 and their interim financial reports and related MD&A for the period ended September 30, 2016filed with the securities regulatory authorities in certain provinces of Canada and available at Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although Kirkland Lake and Newmarket have attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Kirkland Lake does not intend, and do not assume any obligation, to update this forward-looking information except as otherwise required by applicable law. Use of Non-GAAP Measures This Presentation refers to average realized price, operating costs, all-in sustaining costs per ounce of gold sold, free cash flow and cash costs of production because certain readers may use this information to assess the Company s performance and also to determine the Company s ability to generate cash flow. This data is furnished to provide additional information and are non-gaap measures and do not have any standardized meaning prescribed by International Financial Reporting Standards ( IFRS ). These measures should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS and are not necessarily indicative of operating costs presented under IFRS. Refer to each Company s most recent MD&A for a reconciliation of these measures.

4 2016 Q4 & YEAR END CEO HIGHLIGHTS TONY MAKUCH, CHIEF EXECUTIVE OFFICER TSX: KL

5 2016 RECORD FULL YEAR & Q4 REVENUE $500.0 $450.0 Based on: sales of 329,489 oz Average realized price of $1,234/ oz $400.0 $350.0 $300.0 $250.0 $200.0 $150.0 $100.0 $50.0 $406.7 Based on: sales of 111,690 oz Average realized price of $1,202/ oz $134.2 $ Revenue (million) 2016 Q4 Revenue (million) Strong Financial Position: Cash balance of $234.9 million 5

6 2016 LOW FULL YEAR & Q4 COSTS BEAT GUIDANCE 2016 Full Year Highlights 1 Low Operating Costs and AISC: Total production costs of $198.4 million resulted in operating cost per ounce 2 and AISC per ounce 2 of $571 and $923 respectively; below the lower range of 2016 operating cost guidance of $600 - $650 per ounce and AISC guidance of $1,000 - $1,050 per ounce Fourth Quarter Highlights 1 Low Operating Costs and AISC: Total production costs of $66.2 million resulted in operating cost per ounce of $533 and AISC per ounce of $ F ull Year Consolidated Costs 2016 Q4 Consolidated Costs Below guidance of $1,000 - $1,050 $1,000 $900 $800 $700 $600 $500 $400 Below guidance of $600 - $650 $571 $923 $1,000 $900 $800 $700 $600 $500 $400 $533 $883 $300 Operating Cost per Ounce (US$) AISC per Ounce (US$) $300 Operating Cost per Ounce (US$) AISC per Ounce (US$) (1) Full Year 2016 results include the results of Kirkland Lake Inc. ("former Kirkland Lake") operations for the full year; the results of the Newmarket operations for December 2016, being the period following the completion of the merger between the former Kirkland Lake and Newmarket ; and the results of the St Andrew operations for the period starting on January 27, 2016, being the period following the completion of the acquisition of St Andrew by former Kirkland Lake. Fourth Quarter 2016 costs include the results of former Kirkland Lake and St Andrew for the full quarter and Newmarket for December (2) See Non-GAAP Measures sections in forward looking statements 6

7 2016 FULL YEAR & Q4 STRONG ADJSUTED EARNINGS & SIGNFICANT CASH FLOW 2016 Adjusted & Net Earnings Q4 Adjusted & Net Earnings $80.0 $70.0 $60.0 $50.0 $40.0 $30.0 $20.0 $10.0 $0.0 US$0.35 (C$0.46) per share $42.1 Net Earnings (million) US$0.62 (C$0.82) per share $75.3 Adjusted Net Earnings (million) $40.0 $35.0 $30.0 $25.0 $20.0 $15.0 $10.0 $5.0 $0.0 $0.02 (C$0.03) per share $3.1 Net Earnings (million) $0.19 (C$0.25) per share $27.9 Adjusted Net Earnings (million) 2016 Full Year Highlights Generation of Significant Free Cash Flow: Operating cash flow of $180.9 million or $1.49 per share. Free cash flow of $107.2 million or $0.88 per share. 7

8 2016 FULL YEAR & Q4 RECORD PRODUCTION 2016 Full Year Highlights Record Production: Consolidated operations achieved attributable gold production of 314,495 ounces, including 18,657 ounces from operations in Australia for the one month ended December 31, 2016, surpassing previously announced 2016 production guidance Fourth Quarter Highlights Record Production: Total attributable gold production of 106,609 ounces, led by the Macassa Mine, totaling 52,318 ounces, based on a record mine grade of g/t Au and record mill recovery of 97.6%. For the one month ended December 31, 2016, Fosterville produced 13,196 ounces of gold based on record monthly mined grade of 11 g/t Au and recovery of 91.7%. 600, ,751 oz Pro Forma G old Production By Country 550, , , , , , , , , ,000 Pro Forma Consolidated 350, , , , , , ,838 oz Canadian Operations 239,724 oz Australian Operations Canadian gold operations exceeded 2016 guidance of 270k 290k ounces Australian operations exceeded 2016 production guidance of 225k 235k ounces 1.Pro forma information operating results from: (i) the former Newmarket Inc. ( Newmarket ) assets for the entire 12-month period ended December 31, 2016 including the period from January 1, 2016 to November 29, 2016 prior to the merger with Kirkland Lake Inc. ( KLG ) on November 30, 2016 (See Newmarket Press Release dated November 3, 2016); and (ii) the Holt Mine Complex for the entire 12-month period ended December 31, 2016, including the period of January 1, 2016 to January 25, 2016 prior to the acquisition of St Andrew fields Ltd. ( SAS ) by KLG on January 26, 2016 (See KLG press release dated May 12, 2016). 8

9 2016 FULL YEAR & Q4 HIGHLIGHTS Completed Acquisition of St Andrew fields Ltd. and Business Combination with Newmarket Inc. resulting in the creation of a mid-tier gold company, targeting 2017 gold production of 500, ,000 ounces. Increased 2016 Mineral Reserves at Flagship Mines: Macassa Mineral Reserves increased by 37% to 2,010,000 ounces of gold, accompanied by a 7% increase in average grade to 20.8 g/t Au. Fosterville Mineral Reserves increased by 66% to 643,000 ounces of gold, accompanied by a 27% increase in average grade to 9.2 g/t Au. Decreased Royalties: Buy-back of 1% net smelter return ( NSR ) royalty on the Company s land holdings in the Kirkland Lake camp, reducing the royalty rate on gold revenue from Macassa from 2.5% to 1.5%. Recent Corporate Development - Company announces dividend policy with a focus deliver shareholder value. 9

10 2017 OUTLOOK CANADIAN OPERATIONS AUSTRALIAN OPERATIONS (U.S.)$ Macassa Mine Holt Mine Taylor Mine Fosterville Mine Cosmo Mine Consolidated Production (oz) 180, ,000 65,000 70,000 55,000 60, , ,000 60,000 65, , ,000 Operating Costs per Ounce 1,2 $552 $568 $672 $723 $551 $601 $467 $484 $941 $1020 $625- $675 AISC per Ounce 1,2 $950- $1,000 Sustaining Capital & growth capital ($ million) $180- $200 Exploration Expenditure ($ million) $45- $55 Royalty cost ($ million) $16- $20 G & A ($ million) $14 1) See Non-GAAP Measures sections in forward looking statements; 2) Operating Cash Costs per ounce and AISC per ounce reflect an average USD to CAD exchange rate of 1.28 and a USD to AUD exchange rate of See Press Release dated February 27, 2017 filed on the SEDAR profile of the Company. 10

11 2016 Q4 & YEAR END FINANCIAL RESULTS PHILIP YEE, CHIEF FINANCIAL OFFICER TSX: KL

12 STRONG FINANCIAL POSITION STRONG BALANCE SHEET(as at December 31, 2016) 1, 2 CAPITAL STRUCTURE & OWNERSHIP (as at December 31, 2016) Cash US$235 million Issued & Outstanding 203 million Convertible Debentures US$89 million Insider Ownership (Eric Sprott) ~10% KGI.DB: 6% C$15.00 conversion price C$56.8MM mature June 2017 KGI.DB.A: 7.5% C$13.70 conversion price C$62.0MM mature Dec 2017 Net Cash US$146 million Change in reporting currently to US$ for December 31, 2016 year end financial results No gold hedging in place Fosterville Mine, Australia Macassa Mine, Ontario 1 Preliminary Cash position is as at December 31, 2016 press release, see release for additional details 2 Non-GAAP measures, refer to slide 2 Cautionary Language, Canadian: US Dollar exchange $

13 FINANCIAL RESULTS (In thousands of dollars, except per share amounts) THREE MONTHS ENDED DECEMBER 31, 2016 TWO MONTHS ENDED DECEMBER 31, 2015 YEAR ENDED DECEMBER 31, 2016 EIGHT MONTHS ENDED DECEMBER 2015 produced (oz) 106,609 27, , ,597 sold (oz) 111,690 25, , ,094 Average realized price ($/ oz sold) $1,202 $1,102 $1,234 $1,145 Revenue $134,225 $27,860 $406,664 $115,796 Production costs $66,152 $15,399 $198,369 $64,730 Net earnings before tax $11,194 $1,888 $73,263 $12,802 Net earnings $3,076 $609 $42,107 $5,731 Earnings per share basic $0.02 $0.01 $0.35 $0.07 Earnings per share diluted $0.02 $0.01 $0.34 $0.07 Adjusted Earnings $27,909 $609 $75,282 $5,731 Adjusted Earnings per share basic $0.19 $0.01 $0.62 $0.07 Cash flow from operations $65,014 $11,388 $180,927 $39,358 13

14 2016 Q4 & YEAR END OPERATING RESULTS DARREN HALL, CHIEF OPERATING OFFICER TSX: KL

15 YEAR-END 2016 RESERVES & RESOURCES HIGHLIGHTS Macassa Mine Mineral Reserves increased from December 31, 2014 by 37% to 2,010,000 ounces of gold, after two years of depletion totalling 336,000 ounces. Mineral Reserve grade increased by 7% to 20.8 g/t Au from the previous grade of 19.3 g/t Au. Fosterville Mine Mineral Reserves increased from December 31, 2015 by 66% to 643,000 ounces of gold, after depletion of 151,755 ounces. Mineral Reserve grade increased 27% to 9.2 g/t Au from 7.3 g/t Au. Excluding Carbon-In-Leach ( CIL ) Residues, after depletion, Fosterville s Mineral Reserves increased over 100% to 490,000 ounces at an average grade of 9.8 g/t Au (1,560,000 tonnes). Total Canadian Mineral Reserves increased by 20% between 2014 and 2016 to 2,750,000 ounces of gold. Total Australian Mineral Reserves increased by 24% from December 31, 2015 to 952,000 ounces of gold, mainly attributable to the 66% increase in Proven and Probable Mineral Reserves at Fosterville underpinned by down-plunge extensions of the high-grade, visible gold-bearing Lower Phoenix Zone and the discovery of visible gold-bearing Harrier Zone. 15

16 Grade (g/t) Production (oz) MACASSA MINE 2016 Q4 & Full Year Highlights 1 The Macassa Mine attained record 2016 production of 175,167 oz based on record mine and mill tonnage, record grade performance, and improved metallurgical recovery rates. Record Q4 run of mine grade averaged 21.6 g/t Au (16.3 g/t blended). Q4 mill recovery of 97.6% Operating costs of $527/oz & AISC of $902/oz. Development: 5600 level and 5700 level in the lower SMC continue to be advanced in preparation for production in The Macassa Mine is one of Canada s highest grade gold mines, with grade improving at depth, located in Kirkland Lake, Ontario ,318 55, ,000 Production Costs US$/oz 1,2,3 AISC OCC , , , ,000 40,000 35,000 $970 $1,003 $612 $644 $959 $546 $834 $ Q1-16 Q2-16 Q3-16 Q ,000 SY 2015 Q Q Q Refer to appendix for NI Disclosure 2. SY refers to Stub Year 2015 referencing April 30, 2015 to December months 3..See Kirkland Lake Press release dated Feb 27, 2017 for additional detail reporting preliminary Q operating and AISC 16

17 Grade (g/t) Production (oz) TAYLOR MINE 2016 Q4 & Full Year Highlights Production of 40,746 oz average mill grade of 7.0 g/t Au. The Holt Mill processed 188,767 tonnes of ore at an average recovery rate of 96.5% from the Taylor Mine operating costs of $438/oz & AISC of $709/oz. During the second half of 2017, the Company intends to ramp up production by increasing daily mine throughput by way of incorporating additional mining faces. Mining is currently taking place in the WPZ Deposit 1004 Zone. The Taylor Mine is high-grade cornerstone asset for the company, located approx.70 km west of the Holt Mill , , ,630 10, ,000 11,000 10,000 9,000 8,000 Production Costs US$/oz 1 AISC OCC $732 $ ,000 6,000 $379 $ ,000 Q1-16 Q2-16 Q3-16 Q4-16 Q3-16 Q Refer to appendix for NI Disclosure 17

18 Grade (g/t) Production (oz) HOLT MINE 2016 Q4 & Full Year Highlights production of 53,234 oz average mill grade of 4.5 g/t Au mill recovery of 94.5%. Q operating costs of $542/oz & AISC of $1,055/oz. Mining occurred predominantly from Zone 4 and Zone 6. Units costs over the course of 2016 have decreased as a result of a reduction in the reliance of contractors, replaced with new staff. The Holt Mine is a reliable producer with a long history of reserve replacement , , , , ,000 15,000 13,000 11,000 9,000 7,000 Production Costs US$/oz AISC OCC $1,075 $1,055 $550 $542 2 Q1-16 Q2-16 Q3-16 Q4-16 5,000 Q3-16 Q Refer to appendix for NI Disclosure 18

19 Grade (g/t) Production (oz) FOSTERVILLE MINE 2016 Q4 & Full Year Highlights 1 The Fosterville Mine attained record 2016 pro forma production of 151,755 oz based on record grade and record recovery. Record Q4 grade averaged 8.5 g/t Au (Record mined grade of g/t Au in the month of December). Q4 mill recovery of 92.4% - recently installed gravity circuit performing well operating costs of $420/oz & AISC of $641/oz for the one month ended December 31, 2016 since completion of business combination of Newmarket Inc. The focus of development activities is predominantly on the Harrier South and Lower Phoenix systems, each yielding significant high-grade intercepts containing visible gold. Production Costs US$/oz 1 AISC OCC $723 $741 $765 $641 $473 $440 $471 $420 Q1 16 Q2 16 Q3 16 Q , ,245 36,967 44, ,000 40, ,138 35, Q1-16 Q2-16 Q3-16 Q ,000 25,000 20,000 The Fosterville Mine is the largest gold producer in the state of Victoria, Australia. 1.See Kirkland Lake Press release dated Feb 27, 2017 for additional detail, costs presented for Q4 16 only represent the one month since the transaction with Newmarket ending December 31, 2016 reporting preliminary Q operating and AISC and refer to appendix for NI Disclosure. 19

20 Recovery (%) Production (oz) COSMO MINE 2016 Q4 & Full Year Highlights 2016 pro forma gold production of 55,765 oz Q4 mill recovery of 94.5% Development continued to access new mining areas around the newly discovered Redbelly and Taipan Lodes, as well as assist with development of new exploration drill drive to test down plunge extensions of the Sliver Lode. New Lantern Deposit discovered at Cosmo Mine, adjacent to existing infrastructure , ,340 15,442 13,307 18,000 16,000 14, , ,000 10, ,000 6, , Q1-16 Q2-16 Q3-16 Q4-16 2,000 0 The Cosmo Mine is located 160km south of the City of Darwin. Ore from the mine is processed at the underutilized Union Reefs Mill, which currently has approx. 50% excess capacity. 20

21 2016 EXPLORATION UPDATE DOUG CATER, VP OF EXPLORATION, CANADA TSX: KL

22 MACASSA MINE: REGIONAL EXPLORATION ACROSS A PROLIFIC TREND SMC Significant expansion potential down dip, along strike Previously released surface exploration results to the east returned values of 29.5 g/t gold over 0.3m (AB-15-92) and 28.1 g/t gold over 0.6m.(AB ) Recent Highlight results along the easterly strike of the SMC include: g/t gold over 3.8 metres, g/t gold over 3.2 metres and g/t gold over 1.6 metres See KLG press releases dated January 19, 2016 and November 7, 2016 filed on the sedar profile of KLG on 22

23 TAYLOR GOLD MINE: UPSIDE POTENTIAL Multi-rig diamond 1.5km drilling underway Recent drill results announced new discoveries and extensions at the Taylor Mine Complex g/t Au over 3.2 m new WPZ Deposit style mineralization approximately 300 m to the west 9.50 g/t Au over 4.5 m identifies up-dip extension of the WPZ Deposit 1004 Zone 3.29 g/t Au over 9.6 m and 4.59 g/t Au over 5.8 m on surface, identifies new mineralization 800 m east of the Shaft Deposit 10.3 g/t Au over 3.2 m 9.5 g/t Au over 4.5 m 13.9 g/t Au over 1.5 m (12.7 g/t Au over 1.5 cut) 39.6 g/t Au over 1.1 m (14.6 g/t Au over 1.1 m cut) 3.29 g/t Au over 9.6 m and 4.59 g/t Au over 5.8 m Longitudinal View Looking North 23

24 2016 EXPLORATION UPDATE JOHN LANDMARK, VP OF EXPLORATION, AUSTRALIA TSX: KL

25 8050mN FOSTERVILLE GOLD MINE: CONTINUED DRILLING SUCCESS 22.1 g/t Au over 3.3m First recorded visible gold from Harrier Harrier Harrier Decline 12.5 g/t Au over 2.4m 16.6 g/t Au over 3.05m g/t Au over 3.4m g/t Au over 3.6m 46.2 g/t Au over 6.6m (VG) 129 g/t Au over 6.2m (VG) Drill Targets g/t Au over 4.3m (VG) 6.2 g/t Au over 1.9m 4.4 g/t Au over 6.1m g/t Au over 4.5m Harrier Drill Drive 73.2 g/t Au over 7.8m 386 g/t Au over 3.4m 16.4 g/t Au over 16.5m 75.7 g/t Au over 5.4m 194 g/t Au over 3.1m 550 g/t Au over 3.5m 13.4 g/t Au over 3.8m 645 g/t Au over 3.4m Lower Phoenix 11.1 g/t Au over 4.9m 12.8 g/t Au over 8.5m 501 g/t Au over 4.5m 283 g/t Au over 2.8m 112 g/t Au over 11.9m 1,429 g/t Au over 4.97m 7.3 g/t Au over 13.9m 9.2 g/t Au over 11.8m 6.5 g/t Au over 25m 9.3 g/t Au over 3.3m Consistently intersecting high-grade gold in multiple zones: Harrier, Lower Phoenix, Lower Phoenix South and Lower Phoenix North with grade increasing at depth on all zones Key intercepts Lower Phoenix South & North: g/t gold over 4.5m, 13.4g/t gold over 3.8m, 12.5 g/t gold over 2.4m, & 7.3 g/t gold over 13.9m High-Grade Visible (VG) intercepts at Harrier Zone; 64.8 g/t gold over 4.3m, 46.2 g/t gold over 6.6m Record high-grade drill intercept on the Lower Phoenix foot wall announced Jan 17, 2017 including 1,429 g/t gold over 4.97m Mineral Resources, Reserves and mining as at December 31, 2015 All intercepts presented are estimated true width 25

26 COSMO MINE: NEW DISCOVERY OF LANTERN GOLD DEPOSIT 26

27 FOCUSED EXECUTION & VALUE CREATION KL is focused on maintaining positive and growing free cash flow margins while keeping a disciplined approach to capital allocation to ensure profitable sustainable gold production Low cost, Robust Margins Strong free cash flow generation and committed leadership team to deliver targets Diversified Production 2017E Production of ~525,000 oz Solid Operating Platform in Tier 1 Mining Jurisdictions DELIVER SUPERIOR SHAREHOLDER VALUE Strong Balance Sheet Cash balance of ~US$235 million at December 31, 2016 District Scale Exploration Potential High quality projects with significant exploration upside 27

28 TSX: KL APPENDIX Notes, additional disclosure and other information March 2017

29 APPENDIX: CONSOLIDATED MINERAL RESERVES BY ASSET AS OF DEC 31, 2016 Tonnes (000 s) PROVEN PROBABLE PROVEN & PROBABLE Grade (g/t ) Ounces Tonnes (000 s) Grade (g/t ) Ounces Tonnes (000 s) Grade (g/t ) Macassa , ,670 3, ,010 Taylor Holt 1, , , Holloway Hislop Total Canadian Assets 2, , ,220 7, ,750 Ounces Fosterville , , Northern Territory , , Stawell , , Total Australian Assets , , Total Reserves 3, , ,940 15, ,700 Notes CIM definitions (2014) were followed in the calculation of Mineral Reserves Mineral Reserves were estimated using a long-term gold price of US$1,200/oz (C$1,500/oz; A$1,500/oz) Cut-off grades for Canadian Assets were calculated for each stope, including the costs of: mining, milling, General and Administration, royalties and capital expenditures and other modifying factors (e.g. dilution, mining extraction, mill recovery. Cut-off grades for Australian Assets from 0.4 g/t Au to 2.7 g/t Au, depending upon width, mining method and ground conditions; Dilution and mining recovery factors varied by property Mineral Reserves estimates for the Canadian Assets were prepared under the supervision of P. Rocque, P. Eng. Mineral Reserves estimates for the Fosterville property were prepared under the supervision of Ion Hann, FAusIMM. Fosterville CIL Residues are stated as Proven contained ounces. Mill recovery of 25% are planned, based on operating performance. Mineral Reserves estimates for the Northern Territory property were prepared under the supervision of Jason Keily, FAusIMM (CP). Mineral Reserves estimates for the Stawell property were prepared under the supervision of Ian Holland, FAusIMM. Totals may not add exactly due to rounding 29

30 APPENDIX: CANADIAN ASSETS MINERAL RESOURCES AS OF DEC 31, 2016 Tonnes (000 s) MEASURED INDICATED MEASURED & INDICATED INFERRED Grade (g/t) Ounces Tonnes (000 s) Grade (g/t) Ounces Tonnes (000 s) Grade (g/t) Ounces Tonnes (000 s) Grade (g/t) Ounces Macassa , , ,320 1, Taylor , , , Holt 3, , , , ,320 Holloway , , , Hislop , , Aquarius , , Canamax Ludgate , Totals 5, ,120 32, ,040 37, ,160 17, ,300 Notes 1) CIMM definitions (2014) were followed in the calculation of Mineral Resource 2) Mineral Resources are reported Exclusive of Mineral Reserves 3) Mineral Resource estimates were prepared under the supervision of D. Cater, P. Geo. Vice President Exploration Canada 4) Canadian Assets consist of Macassa, Holt, Taylor, Holloway, Canamax, Ludgate, Hislop, Aquarius 5) Mineral Resources are estimated using a long-term gold price of US$1,200/oz (C$1,500/oz) 6) Mineral Resources were estimated using a 8.57 g/t cut-off grade for Macassa, a 2.9 g/t cut-off grade for Holt, and a 2.6 g/t cut-off grade for Taylor, a 3.9 g/t cut-off grade (Holloway), a 2.5 g/t cut-off grade for Canamax and Ludgate, a 2.2 g/t cut-off grade for Hislop and 0 g/t cut-off grade for Aquarius 7) Totals may not add up due to rounding 30

31 APPENDIX: AUSTRALIAN ASSETS MINERAL RESOURCES AS OF DEC 31, 2016 Tonnes (000 s) MEASURED INDICATED MEASURED & INDICATED INFERRED Grade (g/t) Ounces Tonnes (000 s) Grade (g/t) Ounces Tonnes (000 s) Grade (g/t) Ounces Tonnes (000 s) Fosterville 2, , ,360 15, ,790 5, Northern Territory 2, , ,840 30, ,180 15, ,110 Stawell , , , Grade (g/t) Ounces Totals 5, , ,440 49, ,220 21, ,000 Notes 1) CIM definitions (2014) were followed in the estimation of Mineral Resource. 2) Mineral Resources are estimated using a long-term gold price of US$1,200/oz (A$1,500/oz) 3) Mineral Resources for the Australian assets are reported Inclusive of Mineral Reserves. 4) Mineral Resources at Fosterville were estimated using cut-off grades of 0.7 g/t Au for oxide and 1.0 g/t Au for sulfide mineralization to potentially open-pitable depths of approximately 100m, below which a cut-off grade of 3.0 g/t Au was used. 5) Carbon-In-Leach Residues at Fosterville is stated as contained ounces 25% recovery is expected based on operating performances. 6) Mineral Resources in the Northern Territory were estimated using a cut-off grade of 0.5 g/t Au for potentially open-pitable mineralization and cut-offs of 1.5 to 2.0g/t Au for underground mineralization. 7) Mineral Resources at the Stawell property were estimated using a 0.35g/t Au cut-off grade for potentially open-pitable mineralization and a range of cut-offs (2.0 to 2.3 g/t Au) for underground mineralization. 8) Mineral Resource estimates for the Fosterville property were prepared under the supervision of Troy Fuller, MAIG. 9) Mineral Resource estimates for the Northern Territory properties, excluding the Maud Creek Deposit, were prepared under the supervision of Mark Edwards, FAusIMM (CP). 10) Mineral Resource estimates for the Maud Creek property in the Northern Territory, was prepared by Danny Kentwell, FAusIMM. 11) Mineral Resource estimates for the Stawell property were prepared under the supervision of John Winterbottom, MAIG. 12) Totals may not add up due to rounding. 31

32 APPENDIX: NON-IFRS AND ADDITIONAL INFORMATION Non GAAP Measures Operating cash cost per ounce sold, all-in sustaining costs per ounce sold, average realized gold price per ounce and working capital are Non-GAAP measures. In the gold mining industry, these are common performance measures but do not have any standardized meaning, and are considered Non-GAAP measures. The Company believes that, in addition to conventional measures prepared in accordance with International Financial Reporting Standards ("IFRS" or "GAAP"), certain investors use such Non-GAAP measures to evaluate the Company's performance and ability to generate cash flow. Accordingly, they are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. A reconciliation of operating cost per ounce and AISC per ounce to total operating costs for the most recent reporting period, the three and twelve months ended December 31, 2016 and the eight months ended December 31, 2015, is set out on the Company's MD&A for the period ended December 31, 2016 filed on SEDAR at and at Operating Cash Cost per Ounce Sold Operating cash costs include mine site operating costs such as mining, processing and administration, but exclude royalty expenses, depreciation and depletion, share based payment expenses and reclamation costs. Operating cost per ounce is based on ounces sold and is calculated by dividing operating cash costs by gold ounces sold. All-In Sustaining Costs per Ounce Sold While there is no standardized meaning across the industry for this measure, the Company's definition conforms to the definition of all-in sustaining costs as set out by the World Council in its guidance note dated June 27, The Company defines AISC as the sum of operating cash costs, royalty expenses, sustaining capital, corporate expenses, sustaining exploration expenses, and reclamation cost accretion related to current operations. Corporate expenses include general and administrative expenses, net of transaction related costs, severance expenses for management changes and interest income and certain other income. AISC excludes growth capital, reclamation cost accretion not related to current operations, interest expense, debt repayment and taxes. The costs included in the calculation of all-in sustaining costs are divided by gold ounces sold. Average Realized Price per Ounce Sold Average realized price per ounce sold is a Non-GAAP measure. In the gold mining industry, average realized price per ounce sold is a common performance measures but does not have any standardized meaning. The most directly comparable measure prepared in accordance with GAAP is revenue from gold sales. Average realized price per ounce sold should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. The measure is intended to assist readers in evaluating the total revenues realized in a period from current operations. Free Cash Flow and Free Cash Flow per share In the gold mining industry, free cash flow and free cash per share are common performance measures with no standardized meaning. Free cash flow is calculated by deducting capital cash spending (capital expenditures for the period, net of expenditures paid through finance leases) from cash flows from operations; free cash flow per share is calculated by dividing free cash flow for the period by the weighted average number of outstanding shares for that period. The Company discloses free cash flow and free cash flow per share as it believes the measures provide valuable assistance to investors and analysts in evaluating the Company s ability to generate cash flow. The most directly comparable measure prepared in accordance with GAAP is cash flows generated from operations. Adjusted Net Earnings (Loss) and Adjusted Net Earnings (Loss) per Share Adjusted net earnings (loss) and adjusted net earnings (loss) per share are used by management and investors to measure the underlying operating performance of the Company. Presenting these measures from period to period helps management and investors evaluate earnings trends more readily in comparison with results from prior periods. Adjusted net earnings (loss) is defined as net earnings (loss) adjusted to exclude specific items that are significant, but not reflective of the underlying operations of the Company, including transaction costs, executive severance payments, and severance costs associated with transitioning the Stawell Mine and Holloway Mine to care and maintenance. Adjusted basic net earnings (loss) per share is calculated using the weighted average number of shares outstanding under the basic method of loss per share as determined under IFRS. Working Capital In the gold mining industry, working capital is a common performance measures but does not have any standardized meaning. The most directly comparable measure prepared in accordance with GAAP is current assets and current liabilities. Working capital is calculated by deducting current liabilities from current assets. Working capital should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. The measure is intended to assist readers in evaluating Company s liquidity. 32