STRONG PERFORMANCE DRIVEN BY OPERATIONAL EXCELLENCE, ORGANIC GROWTH & SHAREHOLDER RETURNS

Transcription

1 Scotiabank Mining Conference November 27, 2018 KLGOLD.COM TSX: KL NYSE: KL ASX: KLA STRONG PERFORMANCE DRIVEN BY

2 FORWARD-LOOKING STATEMENTS INFORMATION 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 Gold with respect to future business activities and operating 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) the amount of future production over any period; (ii) assumptions relating to revenues, operating cash flow and other revenue metrics set out in the Company's disclosure materials; and (iii) future exploration plans (iv) the temporary suspension of operations at the Cosmo Mine and the anticipated effects thereof. Investors are cautioned that forward-looking information is not based on historical facts but instead reflect KL Gold s 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 Gold 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 Gold to successfully integrate the operations and employees of its Canadian and Australian operations, and realize synergies and cost savings, and to the extent, anticipated; the potential impact on exploration activities; the potential impact on relationships, including with regulatory bodies, employees, suppliers, customers and competitors; the re-rating potential following the consummation of the merger; changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws; and compliance with extensive government regulation. This forward-looking information may be affected by risks and uncertainties in the business of Kirkland Lake Gold and market conditions. This information is qualified in its entirety by cautionary statements and risk factor disclosure contained in filings made by Kirkland Lake Gold, including Kirkland Lake Gold s annual information form, financial statements and related MD&A for the year ended December 31, 2017 and their interim financial reports and related MD&A for the quarters ended March 31, 2018, June 30, 2018, and September 30, 2018 filed 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 Gold has 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 Gold does not intend, and do not assume any obligation, to update this forward-looking information except as otherwise required by applicable law. All dollar amounts in this presentation are expressed in U.S. Dollars unless otherwise noted. Use of Non-IFRS Measures This Presentation refers to average realized price, operating costs, operating costs per ounce sold, all-in sustaining cost ( AISC ) per ounce of gold sold, free cash flow, sustaining capital expenditures and growth capital expenditure 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 and meet its expenditure requirements. This data is furnished to provide additional information and are non-ifrs 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. The most comparable IFRS Measure for operating cash costs, operating cash costs per ounce sold and AISC per ounce sold is production costs as presented in the Consolidated Statements of Operations and Comprehensive Income, while total additions and construction in progress are the most comparable measures for sustaining and growth capital expenditures. Operating cash costs, operating cash cost per ounce sold and All-in sustaining costs ( AISC ) per ounce sold in the Company s 2018 guidance reflect an average US$ to C$ exchange rate of 1.29 and a US$ to A$ exchange rate of 1.34 (as at October 30, 2018). Operating cash costs, operating cash cost per ounce sold and AISC per ounce sold for YTD 2018 reflect an average US$ to C$ exchange rate of and a US$ to A$ exchange rate of Operating cash costs, operating cash costs per ounce and AISC per ounce sold for 2017 reflect an average USD to CAD exchange rate of and a USD to AUD exchange rate of See Kirkland Lake Gold News release dated Feb. 21,

3 FORWARD KL: FACTORS LOOKING DRIVING STATEMENTS SUCCESS KL: DRIVERS OF OUTPERFORMANCE 1. High-grade mines delivering organic growth 2. Achieving operating and financial excellence 3. Committed to exploration 4. Superior shareholders returns 3

4 KL: TWO HIGH-GRADE, OF THE WORLD S LOW-COST HIGHEST-GRADE GOLD MINES GOLD MINES IN LEADING MINING JURISDICTIONS 2 Key Drivers of Performance 82% of YTD 2018 Production Fosterville Macassa Consolidated 1 P&P Mineral Reserves (kozs) 1,700 2,030 4,640 P&P Reserve Grade (g/t Au) YTD Production (ounces) 231, , ,484 YTD 2018 Op. Cash Costs ($/Oz Sold) 2, ) Includes the Holt/Holloway and Taylor mines (excludes Northern Territory, which is on care and maintenance) 2) YTD refers to results for the first nine months of 2018 (January 1, 2018 to September 30, ) See Non-IFRS Measures sections in forward looking statements 4

5 TARGETING A MILLION OUNCES PER OF GOLD YEARPER 1 YEAR Fosterville to reach >400 kozs by 2020 Macassa to double production with completion of #4 Shaft Production from Taylor of 50.8 kozs in 2017 Holt produced 66.7 kozs in 2017 Additional Opportunities Resume operations in Northern Territory: targeting ~100 kozs per year Potential to grow production at Holt/Holloway * Forecast (2018 Guidance) Consolidated Production (kozs) ~1, (F) 5-7 YEAR TARGET KL: Targeting A Million Ounces/Year Holt Macassa Taylor Fosterville 1) Includes examples offorward-looking statements (seeslide2) 5

6 OPERATING EXCELLENCE * Forecast (2018 Guidance) Consolidated Production (kozs) (F) $492.5 kozs in YTD ) See Non-IFRS Measures section in forward looking statements (Slide 2) as well as in the MD&A for the three and nine months ended September 30, 2018 starting on page , Operating Cash Cost/oz Sold (F) $397/oz in YTD AISC/oz Sold (F) $738/oz in YTD

7 OPERATING EXCELLENCE Consolidated production and op. cash cost guidance improved $ millions unless otherwise stated Initial 2018 Guidance (January 17, 2018) Improved 2018 Guidance (October 30, 2018) YTD 2018 Actuals Macassa and Fosterville 2018 guidance improved 2018 Guidance As of Jan 17/18 Fosterville Gold production (kozs) Op. cash costs/oz ($/oz) $270 $290 Macassa Gold production (kozs) Op. cash costs/oz ($/oz) $475 $ Guidance As at Oct 30/ $230 $ $450 $470 Capital expenditures weighted to second half of 2018, continued focus on exploration Production (kozs) Operating cash costs ($/oz) 2 $425 $450 $385 $410 $397 AISC ($/oz) 2 $750 $800 $735 $760 $738 Sustaining capital expenditures 2 $150 $170 $150 $170 $127.6 Growth capital expenditures 2 $85 $95 $110 $115 $48.9 Fosterville Exploration (incl. capitalized) $75 $90 $90 $69.5 (1) Consolidated 2018production includes 47ounces processed from theholloway Mine asof theytd2018. (2) SeeNon-IFRS Measures section inforward looking statements (Slide 2)aswell asinthemd&aforthethree and nine months ended September 30,2018starting onpage 35. 7

8 STRONG FINANCIAL EARNW EXCELLENCE 83% increase in net earnings (YTD 2018 vs YTD 2017), $341 million of FCF since beginning of Earnings from Continuing Operations ($ Millions) YTD 2018 Net Earnings ($ Millions) 1 $ % $157.3 $0.76/share $160 $110 83% $167.4 $0.79/share $70 $46.7 $0.39/share $60 $91.4 $0.44/share $ $10 YTD 2017 YTD 2018 $200 $180 $160 $140 $120 $100 $80 $60 $ Free Cash Flow ($ Millions) 1 $ % $ ) SeeNon-IFRS Measures section inforward looking statements (Slide 2)aswell asinthemd&aforthethree and nine months ended September 30,2018starting onpage 35. $126.8 $163.1 $180 $160 $140 $120 $100 $80 $60 $40 YTD 2018 Free Cash Flow ($ Millions) 1 29% YTD 2017 YTD

9 KL: STRONG COMMITMENT TO EXPLORATION, DRIVEN BY SUCCESS KL: Target exploration expenditures in 2018 of $90M, $48M in Exploration Spending/Ounce (Based on Production Guidance) KL Peer Group 2 Average 2017 Discovery Cost (Average cost to identify new ounce of reserves and resources) KL Peer Group 2 1) Source: Company reports. Based on 2018 guidance (mid-range used in cases where ranges are provided) 2) Peer group includes Agnico Eagle, AngloGold, Barrick, Goldcorp, Kinross, Newmont and Yamana 3) Calculated by dividing total 2017 exploration expenditures by number of Mineral Reserve and Mineral Resource ounces added in December 31, 2018 estimates (KL: Total 2017 exploration expenditures of $48 million, Mineral Reserve additions of 1.8 million ounces, Mineral Resource additions of 4.4 million ounces). See Disclosure provided in the Appendix of this presentation. 9

10 FOCUSED KL: SUPERIOR ON CRREHOLDERS SHAREHOLDER RETURNS Share price on TSX: +47% (1 year), +34% (YTD 2018) 1 #1 on S&P/TSX Composite Index in 2017 with 174.5% share price increase 2 Strong earnings and cash flow Solid financial position KL outperforming peers YTD 2018 Price Performance GDX GDXJ Deploying cash to drive growth Shares repurchase program Quarterly dividend introduced in July 2017, increased twice to C$0.03/share KL (TSX) 1: 47% increase (1-year) 34% increase (YTD 2018) 1) As at November 23, ) Ranked first on S&P/TSX Composite Index in 2017 for companies on the Index for the entire year. 10

11 FOSTERVIL400ON FOSTERVILLE: KOZS/YEAR TRACK FOR BY OVER KOZS PER YEAR 2018 production1: Q3: 90,618 ozs (113, g/t) YTD: 231,923 ozs (358, g/t) Operating cash costs ( OCC ) & AISC/oz sold1 Q3: OCC $189/oz, AISC $416/oz YTD: OCC $231/oz, AISC $498/oz Guidance improved Production: kozs (Initial guidance: kozs) Op. cash costs: $230 $250/oz (Initial guidance: $270 $290) Growing mineral reserves2 Mineral reserve growth of 247%, to 1.70M 23.1 g/t Swan Zone Mineral reserves 1.16M 61.2 g/t Projects to reach >400 kozs/year advancing Ventilation, past fill, water treatment plant, mill upgrades * Forecast (2018 Guidance) 1) 2) See the Company s MD&A for the three months and nine months ended September 30, 2018 and the three and twelve months ended D ecember 31, 2017 for more information on Fosterville s operating performance. (See Slide 2 for information regarding Non-IFRS measures) See slides entitled Footnotes to Mineral Reserve and Mineral Resource Estimates and NI Disclosures provided in the Appendix of this presentation 11

12 FORWARD FOSTERVILLE: LOOKING MULTIPLE STATEMENTS HIGH-PRIORITY TARGETS FOSTERVILLE MINE 9 KMS STRIKE O DWYER S SOUTH ROBBIN S HILL HARRIER SYSTEM HARRIER SOUTH High-potential target Drilling commenced Q SWAN Growing reserves Identifying new targets PHOENIX SYSTEM ROBBIN S HILL High-potential target 3 surface drills active QUARTZ VEINS WITH VISIBLE GOLD QUARTZ VEINS WITH VISIBLE GOLD QUARTZ VEINS WITH VISIBLE GOLD 12

13 FOSTERVILLE: TARGETING MINERAL RESERVE INCREASE AT SWAN ZONE Swan Zone Mineral Reserves g/t 1 M&I Mineral Resources g/t Inferred Mineral Resources g/t Swan: Targeting Significant Mineral Reserve Increase Key Intercepts: g/t Au over 7.45 m (ETW 6.0 m) 155 g/t Au over 11.9 m (ETW 9.9 m) 423 g/t Au over 3.55 m (ETW 3.2 m) 215 g/t Au over 7.2 m (ETW 5.9m) 353 g/t Au over 4.0 m (ETW 3.4 m) 1) (1) Mineral Resources reported exclusive of Mineral Reserves as set out in the Company s Fosterville Technical Report dated April 2, 2018, effective December 31, 2017, prepared by Troy Fuller, MAIG and Ion Hann, FAusIMM filed on the Company s SEDAR profile at 2) See Company News Release dated September 19, 2018 for a more complete list of drill results. 13

14 FOSTERVILLE: Q IN-MINE DRILLING PLAN 14

15 FORWARD ROBBIN S HILL: LOOKING VISIBLE-GOLD STATEMENTS BEARING MINERALIZATION INTERSECTED Robbin s Hill Drilling Visible gold occurrences on Curie structure Potential for mineralization at depth O Dwyer s Trend parallel structure to Fosterville Trend ROBBIN S HILL MINED OPEN PIT Franklin Curie 15

16 FOSTERVILLE: LARGE ORE DEPOSIT EXPLORATION ( LODE ) LODE program proposed in aggressive 2-year exploration of EL3539 Approx. 76,000 metres of drilling planned in 2018 Exploration to also include surface soil sampling, gravity geophysical surveys, 3-D seismic surveys & reconnaissance Mining lease (MIN5404:~17km 2 ) contains ~10km strike length of Mineral Resources ~7km on Fosterville Trend, and ~3km on the O Dwyer s Trend Surrounding exploration leases encompass ~1900km 2 and ~60km potential gold-structures on 7 interpreted fault lines 5 of the 7 lines contain known gold occurrences with historic resources and/or historic workings. FGM processing plant within 30km of prospective targets 16

17 MACASSA: FIVE NEW MILLION SHAFT TO OUNCES DRIVE GROWTH OF GOLD PRODUCTION 2018 production 1 : Q3: 55,582 ozs (92, g/t) YTD: 170,190 ozs (268, g/t) Operating cash costs ( OCC ) & AISC/oz sold 1 Q3: OCC $439/oz, AISC $722/oz YTD: OCC $449/oz, AISC $739/oz Guidance improved 2 Production: kozs (Initial guidance: kozs) Op. cash costs: $450 $470/oz (Initial guidance: $475 $500) Strong growth in Mineral Resources M&I resources increased 58% to 2, g/t Inferred resources increased 48% to 1, g/t #4 shaft project to ramp up over remainder of 2018 Shaft collaring completed Concrete for headframe completed late October Q work focused on hoist construction, internal steel for headframe Full-face sinking to commence in Q * Forecast (2018 Guidance) 1) See the Company s MD&A for the three months and nine months ended September 30, 2018 and the three and twelve months ended December 31, 2017 for more information on Macassa s operating performance. (See Slide 2 for information regarding Non-IFRS measures) 2) See slides entitled Footnotes to Mineral Reserve and Mineral Resource Estimates and NI Disclosures provided in the Appendix of this presentation 17

18 FORWARD MACASSA #4 LOOKING SHAFT PROJECT STATEMENTS Benefits: 1. De-risks operation 2. Supports more effective exploration 3. Improves working conditions 4. Doubles production (>400 kozs/year) 5. Lowers unit costs 1) Referstototal haulage capacity (ieoreandwaste) Macassa #4 Shaft 4,000 tpd 1, 21.5-foot diameter concrete-lined shaft Phase 1: 5,450 foot depth, $240M capital estimate Phase 1 completion Q2 2022, production commences Phase 2: Approx. 7,000 foot, $80M capital estimate Phase 2 capital estimate: $80M Concrete Headframe completed October

19 MACASSA: EXPLORATION TARGETING GROWTH TARGETS IN MINERAL RESERVES Potential for significant growth in Mineral Reserves Potential for further growth in Mineral Resources with continued expansion of SMC SMC Macassa 1 Tonnes (000's) December 31, 2017 December 31, 2016 Grade (g/t) Ounces (000 s) Tonnes (000's) Grade (g/t) Gold Ounces (000 s) P&P Reserves 3, ,030 3, ,010 M&I Resources 3, ,090 2, ,320 Inferred Resources 1, ,370 1,

20 KLGOLD.COM TSX: KL NYSE: KL ASX: KLA STRONG PERFORMANCE DRIVEN BY

21 KL: HIGH-GRADE, GROWING HIGH-GRADE LOW-COST GOLD PRODUCTION MINES IN CANADA & AUSTRALIA Two of World s Highest -Grade Gold Mines Growing to ~1.0 Mozs/year Fosterville Macassa Consolidated P&P Mineral Reserves (kozs) 1,700 2,030 4, Consolidated Production (kozs) ~1,000 P&P Reserve Grade (g/t Au) YTD Production (kozs) YTD Op. Cash Costs ($/Oz Sold) (F) 5-7 YEARS Operational Excellence 2 Financial Excellence 2 1, Op. Cash Cost/Oz AISC/Oz (F) 1) YTD refers to results for the first nine months of 2018 (January 1, 2018 to September 30, ) See Non-IFRS Measures sections in forward looking statements (F) Refers to Forecast $738/oz in YTD 2018 $397/oz in YTD 2018 $91.4 $0.44/share $150 $100 $50 $0 YTD 2018 Net Earnings 1 ($ Millions) $167.4 $0.79/share YTD 2017 YTD 2018 $160 $120 $80 $40 YTD 2018 Free Cash Flow 1 ($ Millions) $126.8 $163.1 YTD 2017 YTD

22 Gold Grade (g/t) Gold Production (ozs) US$/Oz Sold Gold Grade (g/t) Gold Production (ozs) US$/Oz Sold Q2 FOSTERVILLE 2018: TWO & HIGH-GRADE MACASSA: MINES HIGH-GRADE, PERFORMING LOW-COST VERY WELL MINES Fosterville 90, ,157 77, ,535 63, Q Q Q Q Q Macassa ,038 51,608 48, ,571 55, ,000 90,000 85,000 80,000 75,000 70,000 65,000 60,000 55,000 50,000 45,000 40,000 35,000 30,000 65,000 60,000 55,000 50,000 45,000 40,000 Fosterville 700 AISC Op. Cash Costs 600 $574 $576 $ $471 $ $ $287 $226 $ $ Q Q Q Q Q , Macassa AISC Op. Cash Costs $956 $842 $818 $722 $687 $522 $541 $499 $414 $ , Q Q Q Q Q ,000 0 Q Q Q Q Q

23 FOSTERVILLE: CYGNET ZONE AND LP SOUTH FOOTWALL MINERALIZATION 23

24 FOSTERVILLE: LOWER PHOENIX SOUTH MINERALIZATION 24

25 NORTHERN TERRITORY: POTENTIAL NEW SOURCE OF PRODUCTION Two exploration drifts being developed from Cosmo ramp into Lantern Deposit Substantial depth extension at Union Reefs suggests potential for additional economic deposits UNION REEFS Targeting 100 kozs/year, AISC below $950/oz in Northern Territory 1 COSMO MINE LADY ALICE PROSPECT CROSSCOURSE Union Reefs key intersections (April 30, 2018): 95.0 g/t Au over 1.1 m (ETW 1.0 m) (Crosscourse) 22.2 g/t Au over 1.0 m (ETW 0.7 m) (Crosscourse) 25.6 g/t Au over 0.85 m (ETW 0.5 m) (Crosscourse) 10.8 g/t Au over 3.0 m (ETW 1.9 m) (Prospect) 20.5 g/t Au over 0.95 m (ETW 0.7 m) (Prospect) 15.6 g/t Au over 0.90 m (ETW 0.5 m) (Prospect) 7.3 g/t Au over 1.7 m (ETW 1.2 m) (Lady Alice) UNION REEFS MILL 25

26 MACASSA: NEW DRILL RESULTS SUPPORT FUTURE RESOURCE/RESERVE MACASSA: GROWTH 1 RECENT DRILL RESULTS SUPPORT FUTURE RESOURCE GROWTH High-grade intersections in close proximity to #4 Shaft location July 2018 press release: High-grade intersections outside current resources, demonstrate potential for resource growth April 2018 press release: High-grade intersection within Inferred resource shapes, supports future resource conversion NEW SOUTH ZONE SOUTH MINE COMPLEX High-grade intersections outside existing resources highlight potential for future resource growth High-potential area within SMC includes high grades and greater than normal widths 26

27 MACASSA: ALTERATIONS AND PATTERNS 27

28 TAYLOR: EXTENDING MINERALIZATION TO DEPTH AND ALONG STRIKE Production g/t for 50.8 kozs in g/t for 39.3 kozs for YTD 2018 Unit costs to improve Cash costs $610/oz, AISC $972/oz in 2017 Cash costs $767/oz, AISC $1,076/oz for YTD guidance: Production: kozs Cash costs: $750 $775/oz New gold zone below WP Deposit extended 150 metres to depth High-grade mineralization intersected 1.1 km, 1.3 km and 2.9 km east of Shaft Deposit 1) See the Company s MD&A for the three and nine months ended September 30, 2018 for more information on Taylor s operating performance. (See Slide 2 for information regarding Non-IFRS measures) 28

29 HOLT MINE COMPLEX Gold Production (kozs) YTD 2017 YTD 2018 Two mines and milling facility Holt: g/t for 66.7 kozs in g/t for 30.4 kozs in YTD 2018 Holloway: on care and maintenance since Dec ,000tpd processing capacity Conventional CIL milling facility 3 mill grinding circuit Mill feed from Holt and Taylor mines Royalty structure impacts economic attractiveness of both Holt and Holloway No exploration drilling ongoing or planned Gold Production (kozs) Holt Mine Overview Stats YTD 2017 YTD Gold Grade (g/t) Cash Costs (US$/oz) 2 $623 $ AISC (US$/oz) $1,044 $1,043 $1,047 1,115 1) See the Company s MD&A for the three and nine months ended September 30, 2018 for more information on Holt s operating performance. (See Slide 2 for information regarding Non-IFRS measures) 29

30 BOARD OF DIRECTORS Board of Directors Eric Sprott Anthony Makuch Barry Olson Pamela Klessig Jeffrey Parr Raymond Threlkeld Jonathan Gill Arnold Klassen Chairman of the Board President & CEO Independent Independent Independent Independent Independent Independent 30

31 YTD 2018 FINANCIAL AND OPERATING OVERVIEW (in thousands of dollars, except per share amounts) Three months ended September 30, 2018 Three months ended September 30, 2017 (Restated) (1) Nine months ended September 30, 2018 Nine months ended September 30, 2017 (Restated) (1) Revenue $222,701 $176,709 $635,591 $535,131 Production costs 64,851 66, , ,032 Earnings before income taxes 82,977 65, , ,991 Loss from discontinued operations (1,725) (7,750 ) Net earnings $55,885 $43,742 $167,408 $91,446 Basic earnings per share from continuing operations $0.27 $0.22 $0.79 $0.48 Diluted earnings per share from continuing operations $0.26 $0.21 $0.79 $0.47 Total basic earnings per share $0.27 $0.21 $0.79 $0.44 Total diluted earnings per share $0.26 $0.20 $0.79 $0.44 Net cash provided by operating activities of continuing operations $128,383 $72,360 $338,932 $217,705 Cash investment in mine development and PPE $76,190 $35,298 $175,878 $90,894 (1) These figures are restated due to the sale of Stawell in December (2) Non-IFRS - the definition and reconciliation of these Non-IFRS measures are included starting on page 35 of the Q MD&A. Three months ended September 30, 2018 Three months ended September 30, 2017 (Restated) (1) Nine months ended September 30, 2018 Nine months ended September 30, 2017 (Restated) (1) Tonnes milled 435, ,251 1,259,142 1,519,196 Grade (g/t Au) Recovery (%) 96.9 % 95.6% 96.5 % 95.5 % Gold produced (oz) 180, , , ,822 Gold Sold (oz) 184, , , ,017 Average realized price ($/oz sold) (2) $1,204 $1,282 $1,275 $1,255 Operating cash costs per ounce ($/oz sold) (2) $351 $482 $397 $508 AISC ($/oz sold) (2) $645 $845 $738 $811 Adjusted net earnings from continuing operations (2) $60,576 $35,366 $176,578 $92,020 Adjusted net earnings per share from continuing operations (2) $0.29 $0.17 $0.84 $

32 BALANCE SHEET SEPTEMBER 30, 2018 ($ THOUSANDS) As at Note September 30, 2018 December 31, 2017 Assets Current assets Cash $257,205 $231,596 Accounts receivable 9 21,999 15,668 Inventories 10 36,914 41,432 Prepaid expenses 7,889 7,122 Non-current assets $324,007 $295,818 Other long-term assets , ,480 Restricted cash 12 21,974 22,193 Mining interests and plant and equipment 13 1,081,012 1,049,309 Liabilities Current liabilities $1,599,695 $1,485,800 Accounts payable and accrued liabilities $108,177 $84,746 Share based liabilities 14 3,308 1,898 Finance leases 13,787 16,358 Income tax payable 21,820 8,337 Provisions 15,279 19,133 Non-current liabilities $162,371 $130,472 Share based liabilities Provisions 38,712 41,652 Finance leases 13,189 22,217 Deferred tax liabilities 176, ,645 Shareholders' equity $391,038 $328,204 Share capital $922,933 $951,184 Reserves 35,252 33,122 Accumulated other comprehensive (loss) income (41,088) 36,078 Retained earnings 291, ,212 1,208,657 1,157,596 $1,599,695 $1,485,800 32

33 MINERAL RESERVE ESTIMATES DECEMBER 31, 2017 Tonnes (000's) December 31, 2017 December 31, 2016 Grade (g/t) Gold Ozs (000 s) Depleted Oz 2017 (000 s) Tonnes (000's) Grade (g/t) Gold Ozs (000 s) Macassa 3, , , ,010 Taylor 1, Holt 3, , Hislop (1) Holloway (1) Total CDN Operations 7, , , ,750 Fosterville 2, , , Northern Territory (1) 2, , Total AUS Operations 5, , , Total 13, , , ,420 (1) The Hislop mine is a formerly producing open-pit mine acquired as part of the St Andrew Goldfields acquisition in January Hislop has not been operated by the Company since the acquisition. The Holloway mine was placed on care and maintenance effective December 31, The Cosmo mine and Union Reefs mill in the Northern Territory were placed on care and maintenance effective June 30, The following table compares the Mineral Reserve estimate for Fosterville mine as at December 31, 2017 to the June 30, 2017 mid-year estimate (see Company News Release dated July 27, 2017). Tonnes (000's) December 31, 2017 June 30, 2017 Grade (g/t) Gold Ozs (000 s) Depleted Oz H (000 s) Tonnes (000's) Grade (g/t) Gold Ozs (000 s) Fosterville 2, , , ,030 33

34 MEASURED & INDICATED MINERAL RESOURCES DECEMBER 31, 2017 Measured & Indicated 1 December 31, 2017 December 31, 2016 Tonnes (000's) Grade (g/t) Gold Ozs (000 s) Tonnes (000's) Grade (g/t) Gold Ozs (000 s) Macassa 3, ,090 2, ,320 Taylor 1, , Holt 6, , Aquarius 22, , Holloway 1, , Hislop 1, , Ludgate Canamax Total CDN Operations 37, ,720 37, ,160 December 31, 2017 December 31, 2016 Inclusive of Reserves Fosterville 15, ,190 14, ,640 Northern Territory 26, ,940 30, ,180 42, ,140 45, ,820 December 31, 2017 June 30, 2017 Exclusive of Reserves Fosterville 13, ,150 13, ,940 Northern Territory 24, ,810 Unavailable 38, ,960 Unavailable 34

35 INFERRED MINERAL RESOURCES DECEMBER 31, 2017 Inferred December 31, 2017 December 31, 2016 Tonnes (000's) Grade (g/t) Gold Ozs (000 s) Tonnes (000's) Grade (g/t) Gold Ozs (000 s) Macassa 1, ,370 1, Taylor 2, , Holt 8, ,220 8, ,320 Holloway 2, , Hislop Ludgate 1, , Card Canamax Runway Total CDN Operations 18, ,810 17, ,290 Fosterville (1) 8, ,900 5, Northern Territory 16, ,280 15, ,110 Total AUS Operations 24, ,180 20, ,900 35

36 FOOTNOTES FOR MINERAL RESERVE AND MINERAL RESOURCE ESTIMATES Detailed footnotes related to Mineral Reserve Estimates (dated December 31, 2017) (1) CIM definitions (2014) were followed in the calculation of Mineral Reserves. (2) Mineral Reserves were estimated using a long-term gold price of US$1,280/oz (C$1,600/oz; A$1,600/oz). (3) 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. (4) Cut-off grades for Australian Assets from 0.4 g/t Au to 3.0 g/t Au, depending upon width, mining method and ground conditions; dilution and mining recovery factors varied by property. (5) Mineral Reserves estimates for the Canadian Assets were prepared under the supervision of P. Rocque, P. Eng. (6) Mineral Reserves estimates for the Fosterville property were prepared under the supervision of Ion Hann, FAusIMM. (7) Mineral Reserves estimates for the Northern Territory property were prepared under the supervision ofrussell Cole, FAusIMM. (8) Mineral Reserves for Fosterville relate to Underground Mineral Reserves and do not include 649,000 tonnes at an average of 7.7 g/t for 160,000 ounces of Carbon-In- Leach Residues 25% recovery is expected based on operating performances. (9) Totals may not add exactly due to rounding. Detailed footnotes related to Mineral Resource Estimates for Canadian Assets (dated December 31, 2017) (1) CIM definitions (2014) were followed in the calculation of Mineral Resource. (2) Mineral Resources are reported Exclusive ofmineral Reserves. Mineral Resources were calculated according to KL Gold s Mineral Resource Estimation guidelines. (3) Mineral Resource estimates were prepared under the supervision ofd. Cater, P. Geo. Vice President Exploration Canada. (4) Mineral Resources are estimated using a long-term gold price of US$1,280/oz (C$1,600/oz). (5) Mineral Resources were estimated using a 8.6 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, Card, Runway and Ludgate, a 2.2 g/t cut-off grade for Hislop and 0 g/t cut-off grade for Aquarius. (6) Totals may not add up due to rounding. Detailed footnotes related to Mineral Resource Estimates for Australian Assets (dated December 31, 2017) (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$1,280/oz (A$1,600/oz) (3) Mineral Resources for the Australian assets are reported exclusive and inclusive of Mineral Reserves to allow for meaningful comparison to prior periods. (4) Mineral Resources at Fosterville were estimated using cut-off grades 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) Mineral Resources in the Northern Territory were estimated using a cut-off grade of 0.5 g/t Au for potentially open pit mineralization and cut-offs of 1.0 to 2.0g/t Au for underground mineralization. (6) Mineral Resource estimates for the Fosterville property were prepared under the supervision of Troy Fuller, MAIG. (7) Mineral Resource estimates for the Northern Territory properties were prepared under the supervision of Mark Edwards, FAusIMM (CP). (8) Totals may not add up due to rounding. 36

37 NI DISCLOSURES Kirkland Lake Gold Qualified Person and QA/QC All production information and other scientific and technical information in this presentation with respect to Kirkland Lake Gold and its assets were prepared in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument Standards of Disclosure for Mineral Projects ( NI ) and were prepared, reviewed, verified and compiled by Kirkland Lake Gold s mining staff under the supervision of, Pierre Rocque P. Eng., Kirkland Lake Gold s Vice President, Canadian Operations or Ian Holland, Vice President, FAusIMM, Australian Operations. The exploration programs across Kirkland Lake Gold s land holdings in Kirkland Lake were prepared, reviewed, verified and compiled by Kirkland Lake Gold s geological staff under the supervision of Doug Cater, P.Geo., the Company s Vice President of Exploration, Canadian Operations or John Landmark, Vice President, Exploration, Australian. All reserve and resource estimates for the Kirkland Lake Gold Properties as at December 31, 2017 have been audited and verified, and the technical disclosure has been approved. The QP s for the mineral reserves and resources outlined under the PDFZ Properties are Doug Cater, P. Geo, and, Pierre Rocque P. Eng., the Vice President of Technical Services respectively. Sample preparation, analytical techniques, laboratories used and quality assurance-quality control protocols used during the exploration drilling programs are done consistent with industry standards and independent certified assay labs. REFER TO KIRKLAND LAKE GOLD ANNUAL INFORMATION FORM DATED APRIL 2, 2018, AVAILABLE ON SEDAR ( FOR COMPLETE NI NOTES AND DISCLOSURE PERTAINING TO THE RESOURCE AND RESERVE STATEMENTS QUOTED HEREIN. All updated NI TECHNICAL REPORTS IN SUPPORT OF THE COMPANY S NEWS RELEASE ISSUED ON FEBRUARY 20, 2018, ENTITLED KIRKLAND LAKEK GOLD REPORTS STRONG GROWTH IN MINERAL RESERVES AND MINERAL RESOURCES, WHICH WAS FILED ON SEDAR AT AND IS AVAILABLE ON THE COMPANY S WEBSITE. Qualified Persons Pierre Rocque, P.Eng., Vice President, Technical Services is a "qualified person" as defined in National Instrument and has reviewed and approved disclosure of the Mineral Reserves technical information and data for all Kirkland Lake Gold assets included in the Company s news releases and presentations. Simon Hitchman, FAusIMM (CP), MAIG, Principal Geologist, Troy Fuller, MAIG, Geology Manger and Ion Hann, FAusIM, Mining Manager, are qualified person as such term is defined in National Instrument and has reviewed and approved the technical information and data from the Australian Assets included in the Company s news released and presentations. Doug Cater, P. Geo Vice President, Exploration, Canada is a "qualified person" as defined in National Instrument and has reviewed and approved disclosure of the Mineral Resources technical information and data for the Canadian Assets included in the Company s news releases and presentations. Cautionary Note to U.S. Investors - Mineral Reserve and Resource Estimates All resource and reserve estimates included in this news release or documents referenced in this news release have been prepared in accordance with Canadian National Instrument Standards of Disclosure for Mineral Projects ("NI ") and the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") - CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the "CIM Standards"). NI is a rule developed by the Canadian Securities Administrators, which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. The terms "mineral reserve", "proven mineral reserve" and "probable mineral reserve" are Canadian mining terms as defined in accordance with NI and the CIM Standards. These definitions differ materially from the definitions in SEC Industry Guide 7 ("SEC Industry Guide 7") under the United States Securities Act of 1933, as amended, and the Exchange Act. In addition, the terms "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" are defined in and required to be disclosed by NI and the CIM Standards; however, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the U.S. Securities and Exchange Commission (the "SEC"). Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into reserves. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in very limited circumstances. Investors are cautioned not to assume that all or any part of a mineral resource exists, will ever be converted into a mineral reserve or is or will ever be economically or legally mineable or recovered. 37