03 kl town council presentation kirkland lake-02-feb16-final

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TSX:KGI 1 klgold.com

TSX:KGI

Kirkland Lake Town Council Presentation | February 2,2016

Presenter: George Ogilvie, President & CEO

GROWTH & VALUE

Creating an Ontario

Focused Intermediate

Gold Producer



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TSX:KGI 2 klgold.com TSX:KGI klgold.com 2

Forward Looking Statements

Cautionary Note Regarding Forward Looking Statements.

This presentation contains statements which constitute ”forward-looking statements”, including statements regarding the plans, intentions, beliefs

and current expectations of the Company with respect to the future business activities and operating performance of the Company. The words

“may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to the

Company, are intended to identify such forward-looking statements. Forward-looking statements used in this Presentation include, but may

not be limited to; statements regarding the Company’s combined production guidance for 2016, and guidance from the Macassa Mine

Complex for the financial years ended 2017 and 2018 the exploration programs and the results and timing thereof, the integration of the

East Timmins Operations resulting from the SAS acquisition, and the timing thereof.

In respect of the forward-looking information concerning the anticipated completion of the proposed Transaction and the anticipated timing thereof,

Kirkland Lake has provided them in reliance on certain assumptions that it believes are reasonable at this time, including assumptions as to the time

required to prepare and mail shareholder meeting materials, including the required information circular; the ability of the parties to receive, in a

timely manner, the necessary regulatory, court, shareholder and other third party approvals; and the ability of the parties to satisfy, in a timely

manner, the other conditions to the closing of the Transaction. These dates may change for a number of reasons, including unforeseen delays in

preparing meeting materials, inability to secure necessary shareholder, regulatory, court or other third party approvals in the time assumed or the

need for additional time to satisfy the other conditions to the completion of the Transaction. Accordingly, readers should not place undue reliance on

the forward-looking information contained in this news release concerning these times.

With respect to the forward looking information of Kirkland Lake and/or St Andrew, concerning the future gold production of Kirkland Lake and St

Andrew, future cash costs of production, the gold resources and reserves of Kirkland Lake and St Andrew, and the development of the Kirkland

Lake and St Andrew properties are subject to various key assumptions described in each party’s respective Annual Information Forms and

Technical Reports referred to herein and as filed on the SEDAR profiles of both companies at www.sedar.com.

Investors are cautioned that forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date

the statements are made such as, without limitation, opinion, assumptions and estimates of management regarding the Company’s business, its ability to increase

its production capacity and decrease its production cost. Such opinions, assumptions and estimates, are inherently subject to a variety of risks and uncertainties

and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These

factors are discussed in length in the Company's annual Management's Discussion and Analysis and Annual Information Form for the year ended April 30, 2015.

and the Company’s Management's Discussion and Analysis for the interim period ended July 31, 2015 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 statements prove incorrect,

actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the

Company 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. The Company does not intend, and does not assume any obligation, to update these

forward-looking statements except as otherwise required by applicable law.



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A Rewarding Platform

for our Shareholders

KL GOLD BUSINESS

CASE



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Creating A New Mid-Tier Gold Producer

STRONG LEADERSHIP

ROBUST PRODUCTION AND ASSET DIVERSIFICATION FROM 4 MINES

INCREASED FINANCIAL FLEXIBILITY AND SOLID BALANCE SHEET

EXPLORATION POTENTIOAL IN TWO HISTORIC CAMPS WITHIN THE ABITIBI

SUSTAINABLE, PROFITABLE

MID-TIER GOLD PRODUCER

• Strong leadership from an experienced board of directors

and management team with proven results

• Ontario Focused Gold Producer targeting between

260-310Koz’s in 2016*

• Asset diversification with 4 mins and 2 mills

• Healthy balance sheet with >$100 million in cash*

• Combined strong future cash flow generation

• Operational and corporate cost saving synergies

• Consolidation of large land holdings in the heart of two

Ontario gold camps

• Enhanced market profile with extensive coverage

universe and increased trading liquidity

• Combined Entity has Stronger Market Positioning

• Benefits with all Canadian assets leveraged to the

Canadian dollar gold price

* $120 million in debt (convertible debentures)



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Diversified Assets In A Prolific, Mining Friendly Region

East Timmins Properties

2015E Production 107 koz Au

Q3 2015 AISC US$934/oz Au

Holt Mill 3,000 tpd (75% utilized)

Resources & Reserves*

Holt Mine 591 kozs (4.8 g/t Au)

Taylor Mine 156 kozs (6.3 g/t Au)

Holloway Mine 40 kozs (5.4 g/t Au)

Total P&P

(including Hislop Mine) 0.8 Mozs (5.3 g/t Au)

Measured & Indicated

(Property Wide) 2.7 Mozs (2.4 g/t Au)

Inferred


Macassa Mine Complex

SY 2015E Production 103 koz Au

Q2 SY2015 AISC US$989/oz Au

Macassa Mill 2,000 tpd (50% utilized)

Reserves & Resources*

Total P&P Reserves

(Macassa Mine Complex) 1.5 Mozs (19.2 g/t Au)

Measured & Indicated


Inferred (Property Wide) 1.7 Mozs (19.2 g/t Au)

*Resources are exclusive of Reserves. See Company websites for NI 43-101 disclosure

(www.kllgold.com; www.sasgoldmines.com)

Assets in close proximity

within an 80km radius,

accessed by provincial

highways.

QUÉBEC



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One of the Highest Grade Gold Mines In The World Select Group of Producing Assets with +1Moz’s in Reserves

Mine Operator Location Gold Grade Reserves Reserve Update

g/t Au Date

Macassa Mine Complex Kirkland Lake Gold Canada (Ontario) 19.2 1.5 Moz Dec/2014

Turquoise Ridge Barrick USA (Nevada) 16.9 4.5 Moz Dec/2014

Gosowong Newcrest Indonesia 12.0 1.2 Moz Dec/2014

Moab Khotsong AngloGold Ashanti South Africa 10.0 6.1 Moz Dec/2014

Mponeng AngloGold Ashanti South Africa 10.0 14.6 Moz Dec/2014

Red Lake Goldcorp Canada 10.0 2.1 Moz Dec/2014

Kupol/Dvoinoye Kinross Russia 8.5 2.1 Moz Dec/2014

TauTona AngloGold Ashanti South Africa 8.0 1.4 Moz Dec/2014

19.2

16.9

12.0 10.0 9.9 9.6 8.5 8.0

0.0

5.0

10.0

15.0

20.0

25.0

Macassa MineComplex

Turquoise Ridge Gosowong Red Lake Moab Khotsong Mponeng Kupol/Dvoinoye Tau Tona

Gra

de g

/t

Reserve Grades

Company Source – This is a select group of Companies that illustrate producing mines only with mineral reserves in excess of 1Moz’s (gold only, no equivalent Au ounces shown)



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-

50,000

100,000

150,000

200,000

250,000

14 15 SY15 16 17 18

Go

ld O

un

ce

s

OzRecovered

Guidance

Linear (OzRecovered)

April 30th Fiscal Year End Calendar Year End 8 Month Stub Year

Growing Production Profile

The Stub Year (SY) 8 month period runs from May 1 – December 31, 2015. Recovered 102,597 ounces at a head

grade of 0.42 opt (14.1 g/t), recoveries of 97.1% and achieved an average throughput of 1,016 tpd.

2016, 2017 and 2018 guidance based on stated head grade and average throughput of 1,130, 1,140 and 1,145 stpd

respectively.

0.38/ 13.0 0.37/ 12.7 0.43/ 14.7 0.44/ 15.1 0.45/ 15.4 0.46/ 15.8 Guided Head Grades (OPT/ GPT)

0.33/ 11.3 0.43/ 14.7 0.42/ 14.4 - - - Actual Head Grades Achieved (OPT/ GPT)



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East Timmins Assets

120 km strike length

Holt, Holloway, Taylor Producing Assets

Hislop Care & Maintenance

Ludgate, Aquarius Exploration Targets with existing resources

Garrison Creek Exploration Target

Source: St Andrew website (www.sasgoldmines.com)



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East Timmins Operations

Holt Mine

• ~1,200 tpd operation

• Reserves of 591 koz’s at 4.75 g/t

• ~ 7 year mine life based on current level of reserves

• Exploration potential further to the west and down-dip of main zone

Taylor Mine

• ~600 tpd operation

• Declared commercial production in November 2015


• ~ 4-5 year mine life based on current level of reserves

• Exploration potential at depth and along strike

Holloway Mine

• ~700 tpd operation


• ~ 2 year mine life based on current level of reserves

• Exploration potential further to the east and down-plunge of main zone



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Investing In Our Future

• Initial results from our regional program do not appear to be Main Break related (Phase 1)

• Geophysics anomalies identified and follow-up targeting exercise completed as part of Phase 1a

• Phase 1a program has 2 remaining holes in progress.

• Phase 2 will target the Main Break at depth and consist of infill drilling.



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Financial and Market Position

CASH C$93.8 million 1

DEBT C$119 million 3

convertible debentures

(principal amount owing)

KGI.DB: 6% coupon/ $15.00 strike

C$56.9MM mature Jun/2017

KGI.DB.A: 7.5% coupon/ $13.70 strike

C$62.1MM mature Dec/2017

NCIB allows KGI to purchase up to 10% of each issue within a 12 month

period commencing April 3, 2015, and can be renewed annually 3

ROYALTY 2.5% NSR Franco Nevada Corporation

Option to buyback 1% by October 31, 2016, at a cost of

US$36MM less any money paid against the 1%

52 Week Performance 2

HIGH C$6.88

LOW C$2.79

Current Share Price C$4.99 (Jan 29)

CAPITAL STRUCTURE 2

ISSUED SHARES 114.3 million

Stock Options ~5.5 million

FULLY DILUTED ~119.8 million

MARKET CAP ~570 million

1 As at December 31, 2015 and is not reflective of pro-forma cash position; 3 As of January 18, 2016, see press release dated April 1, 2015 for details on the NCIB 2 As at February 1, 2016

$1,507

$1,037

~$550 $488 $471 $423 $406

$233 $140

New Gold Alamos Pro Forma Lake Shore Primero Kirkland Lake Klondex Richmont St Andrew

Market Capitalization Amongst Peers (C$mm)



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2016 Outlook and Expectations

Initial Guidance

Consolidated 2016 Production 260,000 – 310,000 ounces

Cash Costs Per Ounce US$600-$690

All-In Sustaining Costs Per Ounce ~US$950

2016 News Flow

Stub Year 2015 YE Earnings March 10

Q1/2016 Consolidated Production April 11

Updated Guidance April (on or before April 15)

Investor Day (Toronto) April (date to be confirmed)

Q1/2016 Consolidated Earnings May 16



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Our Commitment to our

Stakeholders

AN INTEGRAL PART

OF THE COMMUNITY



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Key Economic Features

Contributed ~6% of

Ontario’s Gold

Production in F2014

Generated $173MM

in Revenue in F2014

99% of Jobs are

Located in Northern

Ontario

Employs over 950

People

Source: PWC Report, January 2015

KL GOLD



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Employer to a Number of Regions

64% 11%

9%

5%

4%

3% 3%

KIRKLAND LAKE GOLD EMPLOYEES

KIRKLAND LAKE

TIMISKAMING

ENGLEHART

SUDBURY

QUEBEC

OTHER

TIMMINS

NORTH BAY




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Direct and Indirect Impact of Business

KL Gold contributed ~$350M to Ontario’s

GDP in F2015

Indirect Contribution

Direct Contribution




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Dollar Spend in F2015 (May 1, 2014 – April 30, 2015)

Kirkland Lake (and area - within 50km) $ 15.5MM

Timmins, New Liskeard, Val D'or $ 6.8MM

Sudbury/North Bay Area $ 12.3MM

~$35MM to Suppliers

and Contractors

Source: Company Source



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Support to Essential Services and Community at Large

Company recently provided financial support to the KL &

District Hospital Foundation.

Has also been a longtime supporter of many community

groups and events.

Check Presentation Ceremony

January 5, 2016



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Kirkland Lake Vision Statement

“Build a sustainable mining company

that is recognized as a safe and

responsible intermediate gold producer

with quality assets, in safe jurisdictions.”

“We will provide exceptional stakeholder value

by delivering operational and exploration

excellence through empowering our people to

act as owners.”



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APPENDIX

Notes, additional disclosure

and other information



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Experienced Team

Eric Sprott 2 Non-executive Chairman Barry Cooper, B.Sc., MBA 1 Non-executive Director

Michael Churchill, MBA 4 Non-executive Director Pamela Klessig, P.Geo Non-executive Director

Barry Olson, M.Sc. 1 Non-executive Director Jeffrey Parr, CPA-CA, BA, MBA 1 Non-executive Director

Dawn Whittaker, LLB Non-executive Director George Ogilvie, P.Eng

George Ogilvie, P.Eng. President & Chief Executive Officer

Perry Ing, CPA-CA, CPA (Ill), CFA 3 Chief Financial Officer

Chris Stewart, P.Eng VP Operations

Jennifer Wagner, LL.B. Corporate Legal Counsel

Suzette N Ramcharan, CPIR Director, Investor Relations

Kevin Fearn, BA, CHRP, CHRL Director, Human Resources

Board of Directors

Senior Management

1 Appointed October 2014; 2 Appointed February 2015; 3 Appointed November 2015, 4 Appointed January 25, 2016



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5025 Level

P+P 28,000 Tons @ 0.48 oz/ton 14,000 Oz’s

M+I 74,000 Tons @ 0.42 oz/ton 32,000 Oz’s

5300 Level

P+P 561,000 Tons @ 0.47 oz/ton 261,000 Oz’s M+I 245,0000 Tons @ 0.43 oz/ton 107,000 Oz’s

5400 Level


5600 Level


5700 Level


South Mine Complex

Access from 5400L

and 5600L allows

delineation drilling of

resources, especially

below 5600L

Remains Open at

Depth and Across

Strike OPEN

*Drawing not to scale

5800 to 6600 Level

P+P 50,000 Tons @ 0.83 oz/ton 41,000 Oz’s

M+I 551,000 Tons @ 0.91 oz/ton 499,000 Oz’s

OPEN

OPEN

16.5 g/t

16.1 g/t

20.9 g/t

26.4 g/t

35.3 g/t

28.5 g/t



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Exploration Potential In A Historic Camp

Currently mining and

exploring on one of the

five mine targets.

Current Underground

and Surface Drilling

Targets: Three main

areas currently being

explored from surface

and underground.

Regional Program:

Regional exploration to

test eastwards along

strike.



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www.klgold.com

Suzette N Ramcharan, CPIR

Director of Investor Relations

+1-647-361-0200

Mobile: +1-647-284-5315

[email protected]

TSX:KGI

mailto:[email protected]