EUROPEAN GOLD FORUM. April 17 19, On the Road to a Million Ounces of Gold Per Year OPERATIONAL EXCELLENCE ORGANIC GROWTH SHAREHOLDER RETURNS

Transcription

1 TSX: KL NYSE: KL ASX: KLA EUROPEAN GOLD FORUM April 17 19, 2018 OPERATIONAL EXCELLENCE ORGANIC GROWTH SHAREHOLDER RETURNS On the Road to a Million Ounces of Gold Per Year

2 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 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, June 30 and September 30, 2017 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, 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-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. Macassa 2

3 HIGH-GRADE, LOW-COST GOLD MINES IN LEADING MINING JURISDICTIONS 2 Key Drivers of Performance 77% of 2017 Production Fosterville Macassa Consolidated 1 P&P Mineral Reserves (kozs) 1,700 2,030 4,640 P&P Reserve Grade (g/t Au) Production (ounces) 263, , , Op. Cash Costs ($/Oz Sold) 2, ) Consolidated mineral reserves include reserves at Fosterville, Macassa, Taylor, Holt, as well as mines currently not in operation, including Holloway and Hislop in Canada and the Northern Territory in Australia 2) See Non-IFRS Measures sections in forward looking statements 3) Operating Cash Costs per ounce reflect an average USD to CAD exchange rate of 1.30 and a USD to AUD exchange rate of See Kirkland Lake Gold News release dated February 21,

4 3 PILLARS OF VALUE CREATION 1. OPERATIONAL EXCELLENCE 2. DISCIPLINED ORGANIC GROWTH Fosterville 3. FOCUS ON SHAREHOLDER RETURNS Macassa 4

5 1. OPERATIONAL EXCELLENCE Beat 2017 production guidance Improved guidance three times Record quarter in Q4 2017: 166,579 ozs Achieved improved unit cost guidance Cash costs $481/oz (initial guidance: $625 $67) AISC 1 of $812/oz (initial guidance: $950 $1,000) Sound financial management $157M of earnings from continuing ops in 2017 $178M in free cash flow in 2017 $232M in cash 2 at Dec. 31/17 No debt debentures repaid or converted to equity Focused on profitable mining Two high-cost mines on care and maintenance Stawell mine sold Dec. 21/17 1) Refers to all-in sustaining costs 2) Refers to cash and cash equivalents 2017 PERFORMANCE VERSUS GUIDANCE $ millions unless otherwise stated Nine-Month 2017 Results (ex. production) Performance Guidance Production (kozs) Operating cash costs ($/oz) 2,3 $481 $475 $500 AISC ($/oz) 2,3 $812 $800 $825 Operating cash costs 2 $285 $270 $280 Capital expenditures $165 $160 $180 Exploration $48 $45 $55 Royalty cost $21 $22 $25 G & A $22 $20 1) 2017 production includes: Fosterville 263,845 ozs (FY) & 79,157 ozs (Q4); Macassa 194,237 ozs (FY) & 51,608 ozs (Q4); Holt 66,677 ozs (FY) & 19,263 ozs (Q4), Taylor 50,764 ozs (FY) & 16,538 ozs (Q4); Cosmo 20,595 ozs (FY) & nil (Q4), Holloway 287 ozs (FY) & 13 ozs (Q4) 2) Operating Cash Costs per ounce and AISC per ounce are examples of Non-IFRS measures. Please see the Non-IFRS Measures section in forward looking statements on Slide 2. In addition, please see Kirkland Lake Gold s News Release dated February 21, 2018 and full-year and Q MD&A for additional reporting details related to Operating Cash Costs per ounce and AISC per ounce results 3) Operating Cash Costs per ounce and AISC per ounce guidance for 2018 reflects an average USD to CAD exchange rate of 1.30 and a USD to AUD exchange rate of Operating Cash Costs per ounce and AISC per ounce results in 2017 reflect an average USD to CAD exchange rate of 1.30 and USD to AUD exchange rate of See Kirkland Lake Gold News release dated February 21,

6 STRONG EARNINGS AND CASH FLOW IN 2017 & Q Substantially higher earnings and free cash flow in 2017 & Q largely reflects increased sales and revenue, as well as improved unit costs $160 $140 $120 $100 $80 $60 $40 $ Earnings from Continuing Operations ($ Millions) $46.7 $0.39/share $70 $157.3 $60 $0.76/share 237% $50 756% $ $80 $30 $20 $10 $0 Q Earnings from Continuing Operations ($ Millions) $7.7 $0.05/share $65.9 $0.32/share Q Q $200 $180 $160 $140 $120 $100 $80 $ Free Cash Flow ($ Millions) 1 $ % $178.0 $70 $60 $50 $40 $30 $45.3 Q Free Cash Flow ($ Millions) 1 42% 64.5 $ ) See Non-GAAP Measures sections in forward looking statements $20 Q Q

7 2018: HIGHER PRODUCTION, LOWER UNIT COSTS, INVESTING FOR GROWTH 1 Production growth to approx. 620 koz Macassa: kozs; Taylor: kozs; Holt: kozs; Fosterville: kozs Improved unit costs Op. cash costs <$500/oz, AISC <$800/oz Investing for future growth Sustaining: Supports production over multiple years Growth: Macassa shaft, near-term growth at Fosterville Increasing commitment to exploration in 2018 Guidance $75 $90M ($60 $75M in Australia) Q1/18 production ahead of plan: kozs Record production at Macassa: 54.0 kozs Sold results at Fosterville: 63.8 kozs Production at Holt and Taylor of 16.7 kozs & 13.1 kozs, respectively Cash increased $43.8M or 19% in Q1/18, to $275.4M at Mar. 31/18 1) Includes examples of forward-looking statements $ millions unless otherwise stated 2018 Guidance Production (kozs) +620 Operating cash costs ($/oz) 1,2 $425 $450 AISC ($/oz) 1,2 $750 $800 Operating cash costs 1 $260 $270 Sustaining capital expenditures $150 $170 Growth capital expenditures $85 $95 Exploration $75 $90 Royalty cost $22 $27 G & A $20 $22 Fosterville 1) Operating Cash Costs, Operating Cash Costs per ounce and AISC per ounce are examples of Non-IFRS measures. Please see the Non-IFRS Measures section in forward looking statements on Slide 2. In addition, please see Kirkland Lake Gold s News Release dated February 21, 2018 and full-year and Q MD&A for additional reporting details related Macassa to Operating Cash Costs per ounce and AISC per ounce results (AISC refers to all-in sustaining costs) 2) Operating Cash Costs per ounce and AISC per ounce guidance reflects an average USD to CAD exchange rate of 1.30 and a USD to AUD exchange rate of

8 STRONG GROWTH IN MINERAL RESERVES 1 36% increase in consolidated Mineral Reserves 4.64M 11.1 g/t 247% increase in Fosterville Mineral Reserves from Dec. 31/ M 23.1 g/t Fosterville Swan Zone Mineral Reserve more than doubles from June 30/ M 61.2 g/t Mineral Reserves at Macassa replaced after depletion of 190 kozs 2.03M 21.0 g/t Operation 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 Fosterville 2, , , Holt 3, , Taylor 1, KL Consolidated 13, , , ,420 1) Refer to Appendix for NI disclosure 8

9 GROWING BASE OF MINERAL RESOURCES 1 M&I 2 Mineral Resources at Fosterville reach 2.15M 4.8 g/t 59% increase to 4.19M 8.4 g/t inclusive of Mineral Reserves Fosterville Inferred Mineral Resources increase 48% 1.90M 7.1 g/t Macassa M&I and Inferred Mineral Resources grow 59% & 48% M&I: 2.09M 17.1 g/t; Inferred: 1.37M 22.2 g/t Operation Tonnes (000's) December 31, 2017 December 31, 2016 Grade (g/t) Gold Ozs (000 s) M&I (Exclusive of Mineral Reserves) Tonnes (000's) Grade (g/t) Gold Ozs (000 s) Macassa 3, ,090 2, ,320 Fosterville 3 13, ,150 N/A Holt 6, , Taylor 1, , Inferred (Exclusive of Mineral Reserves) Macassa 1, ,370 1, Fosterville 8, ,900 5, Holt 8, ,220 8, ,320 Taylor 2, , ) Refer to Appendix for NI disclosure 2) M&I refers to Measured & Indicated 3) M&I Mineral Resources for Fosterville were calculated inclusive of Mineral Reserves prior to June 30, 2017 and are not available exclusive of Mineral Reserve prior to that date 9

10 2. DISCIPLINED ORGANIC GROWTH Targeting a million ounces/year in 5 7 years 1 Fosterville to reach >400 kozs by 2020 with full production at Swan Zone Macassa to achieve >400 kozs in 5 to 7 years with new shaft Targeting growth at Taylor (60 70 kozs targeted in 2018) Holt produced koz Upside potential from resumption of operations at Cosmo Achieving significant exploration success Fosterville: Swan Zone discovery (1, g/t), multiple in-mine and district targets Cosmo: Significant expansion of Lantern Deposit recently announced Macassa SMC extended 259 m to east New mineralization discovered 1.8 km east of Taylor Aggressive investment in exploration Exploration expenditures $75 $90M in 2018 * Forecast (2018 Guidance) 1) Includes examples of forward-looking statements 10

11 FOSTERVILLE: TARGETING >400 KOZS/YEAR BY 2020 Record production in g/t for 263,845 ozs Solid start to g/t for 63,843 ozs Production to increase in H2/18 Low-cost producer 1 Cash costs $264/oz, AISC $491/oz in 2017 Growing mineral reserves 2 One-year growth in Mineral Reserves of 247%, to 1.70M 23.1 g/t Swan Zone Mineral Reserves more than doubled from June 17 to 1.16M 61.2 g/t * Forecast (2018 Guidance) 2018 guidance: Production: kozs Cash costs: $270 $290/oz 3 1) See the Company s MD&A for the three and nine months ended September 30, 2017 dated November 2, 2017 for more information on Fosterville s operating performance. (See Slide 2 for information regarding Non-IFRS measures) 2) Refer to Appendix for NI disclosure 3) Operating Cash Costs per ounce guidance reflects an average USD to AUD exchange rate of

12 FOSTERVILLE: THE EMERGENCE OF A HIGH-GRADE GOLD MINE Fosterville 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 2, ,700 1, M&I Resources 2 13, ,150 13, ,940 Inferred Resources 8, ,900 5, ) M&I Mineral Resources are presented exclusive of Mineral Reserves 2) M&I Mineral Resources are presented for December 31, 2017 and June 30, 2017, the first period for which M&I Mineral Resources were presented exclusive of Mineral Reserves for the Australian operations 12

13 SWAN ZONE A GROWING HIGH-GRADE ZONE 13

14 FOSTERVILLE: EXTENSIVE NEAR-MINE DRILLING PLANNED IN 2018 Focus on accelerating conversion in three production horizons Lower Phoenix (Swan), Lower Phoenix North and Harrier South Significant step-out drilling along plunge at Swan Zone (mineral reserve of 1, g/t) 2018 program consists of approx. 85,000 metres of in-mine drilling Contact of Eagle and Swan

15 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 Fault Line, and ~3km on the O Dwyer s Fault Line. Surrounding exploration leases encompass ~1400km 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 15

16 MACASSA: TARGETING >400 KOZS/YEAR IN 5 TO 7 YEARS Record production in g/t for 194,237 ozs Q4/17 production of 51,608 ozs, 2 nd best quarter ever ( g/t) Record quarter in Q1/ g/t for 54.0 ozs Low-cost producer 1 Cash costs $523/oz, AISC $845/oz in 2017 * Forecast (2018 Guidance) 2018 guidance: Production: kozs Cash costs: $475 $500/oz 3 Large base of mineral reserves/mineral resources 2 (as at Dec. 31, 2016) Replaced Mineral Reserves after depletion in 2017 Growth of 58% in M&I Resources, 48% in Inferred 1) See the Company s MD&A for the year and three months ended December 31, 2017 for more information on Macassa s operating performance. (See Slide 2 for information regarding Non-IFRS measures) 2) Refer to Appendix for NI disclosure 3) Operating Cash Costs per ounce 2018 guidance reflects an average USD to CAD exchange rate of

17 MACASSA: 58% INCREASE IN M&I MINERAL RESOURCES 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, ) Measured & Indicated Mineral Resources are presented exclusive of Mineral Reserves 17

18 MACASSA: NEW SHAFT TO PROVIDE MULTIPLE BENEFITS Benefits: 1. De-risks operation. 2. Supports more effective exploration. 3. improves working conditions. 4. leads to increased production & lower unit costs Macassa #4 Shaft 21.5-foot diameter concrete-lined shaft with 4,000 tonne-per-day hoisting capacity 5,450-foot depth (Phase 1) Phase 1 completion Q2 2022, production commences Phase 1 capital estimate: $240M Extension to approx. 7,000 foot depth contemplated (Phase 2) Phase 2 capital estimate: $80M 18

19 3. FOCUSED ON SHAREHOLDER RETURNS One-year price increase: 112% KL top performing stock on S&P/TSX Comp. Index in 2017 with 174.5% share price increase (on full-year basis) Repurchased 5.4M shares for C$76.5M Introduced dividend in July, increased to C$0.02/share in January 2018 Used cash to eliminate debt, reduce royalties, make strategic investments Global market presence listed on TSX (symbol: KL), NYSE (symbol: KL) and ASX (symbol: KLA) KL outperforming peers S&P/TSX Global Gold Index Close on Wednesday, April 11, 2018 TSX: C$21.77 NYSE: $17.31 ASX: A$

20 TSX: KL NYSE: KL ASX: KLA EUROPEAN GOLD FORUM April 17 19, 2018 OPERATIONAL EXCELLENCE ORGANIC GROWTH SHAREHOLDER RETURNS On the Road to a Million Ounces of Gold Per Year

21 TSX: KL NYSE: KL ASX: KLA APPENDIX Notes, additional disclosure and other information

22 NORTHERN TERRITORY: WORKING TO RESUME OPERATIONS Lantern adjacent to existing Cosmo mine (on care and maintenance) Lantern mineralization identified >500 m strike, 1,200 downplunge Highest gold grade ever reported at Cosmo intersected 250 m north of Lantern Deposit 4,750 g/t Au over 0.31 m U/G exploration development program for Lantern Two drifts 320 m apart 2018 drilling to target Lantern, Prospect, Maud Creek, others Working towards resumption of operations 22

23 MACASSA: #4 SHAFT LOCATION #4 Shaft: Close proximity to SMC & Main Break Contact of Eagle and Swan #4 Shaft location Current production shaft June m extension Current stope production 23

24 MACASSA: #4 SHAFT TO PROVIDE MULTIPLE BENEFITS Macassa #4 Shaft Four Compartments 1. Men and material cage 52 person capacity, 3.5-yard scoops 2. Auxiliary cage two decks, 6 people 3. Two production skips 22-tonne capacity to support 4,000 tonnes per day (total haulage)

25 MACASSA ALTERATION AND PATTERNS 25

26 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 26

27 MACASSA 2017 & Q OPERATING RESULTS Operating results Three Months Ended December 31, 2017 Three Months Ended December 31, 2016 Year Ended December 31, Year Ended December 31, Total Ore Milled (t) 119, , , ,633 Run of Mine (t) 119,129 74, , ,353 Low Grade (t) - 27,543 22,011 65,280 Average Grade (g/t) Run of Mine tonnes Low Grade tonnes Gold Oz Contained 53,331 53, , ,309 Recovery (%) 96.8% 97.6% 97.1% 97.1% Gold Oz Produced 51,608 52, , ,167 Development metres - operating 1,351 1,153 3,983 5,104 Development metres - capital 908 1,578 5,326 5,282 Operating cash costs per ounce sold $541 $421 $523 $527 AISC per ounce sold $956 $817 $845 $877 Total capital expenditures (in thousands) $21,919 $17,072 $61,279 $51,287 27

28 HOLT 2017 & Q OPERATING RESULTS Operating results Three Months Ended December 31, 2017 Three Months Ended December 31, 2016 Year Ended December 31, 2017 Year Ended December 31, 2016 (1) Total Ore Milled (t) 127, , , ,972 Average Grade (g/t) Gold Oz Contained 20,297 16,684 70,363 56,334 Recovery (%) 94.9% 94.5% 94.8% 94.5% Gold Oz Produced 19,263 15,761 66,677 53,234 Development metres - operating ,918 2,198 Development metres - capital 629 1,186 3,247 4,134 Operating cash costs per ounce sold $624 $542 $685 $623 AISC per ounce sold $1,031 $1,038 $1,043 $1,044 Total capital expenditures (in thousands) $4,099 $5,682 $13,980 $16,846 1) Results for 2016 are from January 26, 2016 to the end of the year 28

29 TAYLOR 2017 & Q OPERATING RESULTS Operating results Three Months Ended December 31, 2017 Three Months Ended December 31, 2016 Year Ended December 31, 2017 Year Ended December 31, 2016 (1) Total Ore Milled (t) 89,297 48, , ,767 Run of Mine (t) 89,297 45, , ,997 Low Grade (t) - 2,436-9,770 Average Grade (g/t) Run of Mine tonnes Low Grade tonnes Gold Oz Contained 17,194 10,288 52,787 41,474 Recovery (%) 96.2% 96.1% 96.2% 96.5 Gold Oz Produced 16,538 10,048 50,764 40,746 Development metres - operating 1, ,955 2,014 Development metres - capital ,510 2,966 Operating cash costs per ounce sold $574 $446 $610 $438 AISC per ounce sold $1,187 $795 $972 $692 Total capital expenditures (in thousands) $9,459 $3,384 $18,387 $10,036 1) Results for 2016 are from January 26, 2016 to the end of the year 29

30 FOSTERVILLE 2017 & Q OPERATING RESULTS Operating results Three Months Ended December 31, 2017 Year Ended December 31, 2017 One Month Ended December 31, 2016 (1) Total Ore Milled (t) 118, ,476 56,754 Average Grade (g/t) Gold Oz Contained 88, ,355 14,392 Recovery (%) 96.3% 95.0% 91.7% Gold Oz Produced 79, ,845 13,196 Development metres - operating 610 2, Development metres - capital 1,866 5, Operating cash costs per ounce sold $226 $264 $420 AISC per ounce sold $471 $491 $621 Total capital expenditures (in thousands) $22,955 $64,054 $3,401 1) Results for 2016 are for one month from November 30, 2016 to the end of the year. 30

31 NORTHERN TERRITORY 2017 & Q OPERATING RESULTS 1,2 Operating results Three Months Ended December 31, 2017 Year Ended December 31, 2017 One Month Ended December 31, 2016 (1) Total Ore Milled (t) 259,729 51,590 Average Grade (g/t) Gold Oz Contained 21,671 4,902 Recovery (%) 95.0% 94.0% Gold Oz Produced 20,595 4,609 Development metres - operating Development metres - capital Operating cash costs per ounce sold $ $1,661 $1,048 AISC per ounce sold $ $1,996 $1,153 Total capital expenditures (in thousands) $213 $6,823 $650 (1) Results for 2016 are for one month from November 30, 2016 to the end of the year (2) Cosmo mine was placed on care and maintenance effective June 30,

32 2017 & Q FINANCIAL & OPERATING RESULTS Three Months Ended Three Months Ended Year Ended Year Ended (in thousands of dollars, except per share amounts) December 31, 2017 December 31, 2016 December 31, December 31, Revenue $212,364 $130,901 $747,495 $403,340 Production costs $68,283 $60,625 $288,315 $192,842 Earnings before income taxes $54,799 $17,698 $196,079 $79,767 Loss from discontinued operations ($24,904) ($4,627) ($24,904) ($4,627) Net earnings $40,980 $3,076 $132,426 $42,107 Basic earnings per share from continuing operations $0.32 $0.05 $0.76 $0.39 Basic earnings per share $0.20 $0.02 $0.64 $0.35 Diluted earnings per share $0.20 $0.02 $0.63 $0.34 Cash flow from operations $103,351 $68,456 $309,812 $186,981 Cash investment on mine development and PPE 38,832 $23,111 $131,840 $73,051 Three Months Ended Three Months Ended Year Ended Year Ended December 31, 2017 December 31, 2016 December 31, December 31, Tonnes milled 454, ,601 1,974,093 1,271,670 Grade (g/t Au) Recovery (%) 96.3% 93.6% 95.7% 95.1% Gold produced (oz) 166, , , ,653 Gold Sold (oz) 165, , , ,687 Production costs $68,283 $60,625 $288,315 $192,842 Averaged realized price ($/oz sold) $1,282 $1,202 $1,261 $1,234 Operating cash costs per ounce sold ($/oz sold) $571 AISC ($/oz sold) $930 Adjusted net earnings $71,153 $22,806 $149,133 $67,851 Adjusted basic earnings per share (1) $0.34 $0.16 $0.72 $

33 BALANCE SHEET: DECEMBER 31, 2017 As at Assets Note December 31, 2017 December 31, 2016 Current assets Cash $231,596 $234,898 Accounts receivable 14 15,668 7,481 Inventories 15 41,432 40,926 Prepaid expenses 10,922 6, , ,886 Non-current assets Other long-term assets ,680 6,187 Restricted cash 17 22,193 20,042 Mining interests and plant and equipment 18 1,049, ,044 Deferred tax assets 13 6,535 $1,485,800 $1,298,694 Liabilities Current liabilities Accounts payable and accrued liabilities 19 $84,746 $72,076 Share based liabilities 21 1,898 Convertible debentures 22 84,961 Finance leases 20 16,358 12,877 Income tax payable 13 8,337 3,747 Deferred premium on flow through shares 24(a) 2,943 Provisions 23 19,133 20,975 $130,472 $197,579 Non-current liabilities Share based liabilities Finance leases 20 22,217 15,157 Provisions 23 41,652 40,994 Deferred tax liabilities , ,614 $328,204 $392,780 Shareholders' equity Share capital 24(a) 951, ,389 Equity portion of convertible debentures 22 15,674 Reserves 24(b) 33,122 49,997 Accumulated other comprehensive income 36,078 (71,585) Retained earnings 137,212 11,439 1,157, ,914 $1,485,800 $1,298,694 33

34 Q PRODUCTION RESULTS Q Q Q Fosterville Ore Milled (tonnes) 123, , ,877 Grade (g/t Au) Recovery (%) Gold Production (ozs) 63,843 46,083 79,157 Macassa Ore Milled (tonnes) 86,661 91, ,129 Grade (g/t Au) Recovery (%) Gold Production (ozs) 54,038 48,723 51,608 Holt Ore Milled (tonnes) 122, , ,494 Grade (g/t Au) Recovery (%) Gold Production (ozs) 16,675 15,319 19,263 Taylor Ore Milled (tonnes) 84,464 63,289 89,297 Grade (g/t Au) Recovery (%) Gold Production (ozs) 13,055 10,942 16,541 Operations on Care & Maintenance 1 Cosmo Gold Production (ozs) n/a 9,092 n/a Holloway Gold Production (ozs) Gold Production (excluding operations on care and maintenance or sold in 2017) 147, , ,566 Total Consolidated Production (ozs) 2 147, , ,579 (1) The Company s Cosmo mine in Australia was placed on care and maintenance effective June 30, 2017 (see News Release dated May 4, 2017). The Company s Holloway mine in Canada was transitioned to care and maintenance effective December 31, 2016 (see News Release dated December 12, 2016). (2) Production numbers may not add to total due to rounding 34

35 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 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 35

36 MEASURED & INDICATED MINERAL RESOURCES DEC. 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 1) Measured & Indicated Mineral Resources are presented exclusive of Mineral Reserves unless otherwise specified. 36

37 INFERRED MINERAL RESOURCES DEC. 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 (1) Inferred Mineral Resources at Fosterville as at June 30, 2017 included 5,560,000 tonnes at an average grade of 5.8 g/t for 1,040,000 ounces. 37

38 FOOTNOTES RELATED TO MINERAL RESERVE 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 of Russell 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 of Mineral 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 openpitable 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. 38

39 NI DISCLOSURE 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 MARCH 30, 2017, 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 RELEASES ISSUED ON MARCH 30, 2017, ENTITLED KIRKLAND LAKE GOLD INCREASES MINERAL RESERVES AT FLAGSHIP MACASSA MINE BY 37% AND FOSTERVILLE MINE BY 66% WHICH WAS FILED ON MARCH 30, 2017 ON SEDAR AT Qualified Persons Pierre Rocque, P.Eng., Vice President, Canadian Operations 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 in this News Release. 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 this News Release. 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 this News Release. 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. 39