KLGOLD.COM TSX: KL OTCQX: KLGDF May 2017 INVESTOR PRESENTATION TIER ONE GOLD PRODUCTION | DISTRICT SCALE EXPLORATION | VALUATION UPSIDE 1
KLGOLD.COM FORWARD LOOKING STATEMENTS TSX:KL 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”, “ex pec t” 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 fi rst quarter ended March 31, 2017 and their interim financial reports and related MD&A for the period ended March 31, 2017 filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com . 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-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.
KLGOLD.COM INVESTMENT THESIS TSX:KL • Revised 2017 guidance to 530k – 570k 1 ounces from 5 gold mines in Canada & Australia Operating Platform in • Consolidated Q1/17 production of 130k oz (Macassa 48,723 oz & Fosterville 46,083 oz) 2 Tier 1 Mining Jurisdictions • Macassa Mineral Reserve increased 37% to 2.0 million oz grading 20.8 g/t Au 3 • Fosterville Mineral Reserve increased 66% to 643,000 oz grading 9.2 g/t Au 3 • Cash Position US$280 million 4 Strong Balance Sheet Revised Consolidated 2017 operating cost guidance US$475/oz – US$525/ oz 1,5 and • & Low Cost Production AISC US$850/oz – US$900/ oz 1,5 • Initiation of quarterly dividend of C$0.01 per share 6 1 • Significant discovery and expansion potential in established gold camps with +20 drill District Scale rigs in operation across Canada & Australia Exploration Potential • 2017 growth exploration budget of US$45 - $55 million Strong Value Proposition 7 8.2 $3,866 5.6 $2,809 Enterprise value 2017 Price to to ounce of 2017 Cash flow production TSX:KL Peer Average TSX:KL Peer Average 1.Refer to Slide 2 “Forward Looking Information” 2017 estimated production guidance 530,000 – 570,000 ounces and cost guidance . 2. See Kirkland Lake Gold News Release dated April 12, 2017 for additional details. 3. Refer to appendix for NI 43-101 Disclosure and News Release dated March 28, 2017 for additional year-end 2016 Mineral Reserve and Resource details 4.Cash position as at March 31, 2017 5. See Non-GAAP Measures sections in forward looking statements; Operating Cash Costs per ounce and AISC per ounce reflect an average USD to CAD exchange rate of 1.35 and a USD to AUD exchange rate of 1.325, for additional detail see Kirkland Lake Gold Press release dated March 29, 2017 for additional detail 6. 3 Payable on July 14, 2017 to shareholders of record on June 30, 2017 7. Source: Company filings, FactSet and available equity research at May 19, 2017. Production and Cash Flow are broker consensus averages exclude TSX:KL
KLGOLD.COM TSX:KL OPERATING PLATFORM IN TIER 1 MINING JURISDICTIONS 2017 Outlook 600,000 2016 Pro Forma Gold Production 550,000 500,000 On track to meet 450,000 2017 guidance of 350,000 Consolidated 2016 1 operating • 530,000 – 570,000 oz 400,000 295,838 oz cost per ounce 2 of $571 , below 350,000 300,000 the the guidance of US$600-$650 300,000 239,724 oz Consolidated AISC per ounce 2 of 250,000 • (Guidance of 270k – 290k oz) 250,000 $923 in 2016 below the guidance 130,425 oz 200,000 200,000 of US$1,000-1,050 (Guidance of 225k – 235k oz) 150,000 150,000 100,000 50,000 100,000 0 1 1 Canadian Operations Australian Operations Consolidated Q1/17 Production 1.Pro forma information operating results from: (i) the former Newmarket Gold 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 Gold 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 Goldfields Ltd. (“SAS”) by KLG on January 26, 2016 (See KLG press release dated May 12, 2016). See Press Releases dated Janua ry 9, 2017 and February 27, 2017 filed on the SEDAR profile of the Company 4
KLGOLD.COM STRONG FINANCIAL POSITION TSX:KL STRONG BALANCE SHEET 1 CAPITAL STRUCTURE & OWNERSHIP Cash US$280 million Issued & Outstanding (at Mar 31/17) 206 million Convertible Debentures 2(at Mar 31/17) US$89 million Market Capitalization (TSX) $ 2.1 billion (May 19, 2017) KGI.DB: 6% C$15.00 Conv. Price C$56.8M mature June 2017 KGI.DB.A: 7.5% C$13.70 Conv. Price C$62.0M mature Dec 2017 Daily Avg. Volume – 30 day 1.9 million shares (May 19, 2017) Net Cash US$191 million Insider Ownership ~10% (Eric Sprott) INITIATION OF DIVIDEND POLICY NORMAL COURSE ISSUER BID Company can purchase up to 10% of current issued and outstanding shares in Quarterly dividend of C$0.01 per common share public float (15.2 mil shares) Payable on July 14, 2017 to shareholders of record on June 30, 2017 Fosterville Gold Mine, Australia Macassa Gold Mine, Canada 1 Cash position as at March 31, 2017, see News Release dated April 12, 2017 2 Refer to MD&A for the three months ended March 31, 2017 5
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