A Leading Senior Gold Producer: Growing Free Cash Flow, Reserves and - PowerPoint PPT Presentation

A Leading Senior Gold Producer: Growing Free Cash Flow, Reserves and Production November 25, 2019

CONFERENCE CALL PARTICIPANTS Anthony (Tony) Makuch Michael (Mick) McMullen President & CEO President & CEO Kirkland Lake Gold Ltd. Detour Gold Corporation KLGOLD. COM TSX: KL NYSE: KL ASX: KLA 2

CAUTIONARY LANGUAGE Cautionary Note Regarding Forward-Looking Information The information in this presentation has been prepared as at November 25, 2019. This presentation contains “forward looking statements” and "forward-looking information" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of Kirkland Lake Gold Ltd (“Kirkland Lake Gold”) and Detour Gold Corporation (“Detour 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) Kirkland Lake Gold’s planned acquisition of Detour Gold and the expected terms, timing and closing of the proposed transaction, including receipt of require approvals and satisfaction of other customary closing conditions; (ii) expected benefits of the proposed transaction and the ability of the combined company to successfully achieve business objectives, including integrating the companies or the effects of unexpected costs, liabilities or delays; (iii) estimates of future production; (iv) estimated future free cash flow; (v) estimates of future mineral reserves and reserve life index of Kirkland Lake Gold; (vi) estimates of future costs applicable to All-In Sustaining Costs; (vii) expectations regarding future exploration and the develop, growth and potential of Kirkland Lake Gold’s and Detour’s operations; (viii) expectations of future dividends and returns to shareholders; (ix) expectations of future balance sheet strength and credit ratings; (x) estimated pro forma capitalization; (xi) estimates of future synergies; (xi) availability of the exemption under Section 3(a)(10) of the U.S. Securities Act to the securities issuable in the Transaction and (xii) expectations for other economic, business, and/or competitive factors. Investors are cautioned that forward-looking information is not based on historical facts but instead reflect Kirkland Lake Gold's and Detour Gold’s respective 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 and Detour Gold believe 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 future development and growth potential of Kirkland Lake Gold’s and Detour Gold’s operations; the future exploration activities planned at Kirkland Lake Gold’s and Detour Gold’s operations and anticipated effects thereof; the inherent uncertainty associated with financial or other projections; the prompt and effective integration of Kirkland Lake Gold’s and Detour Gold’s businesses and the ability to achieve the anticipated synergies; the risk associated with Kirkland Lake Gold’s and Detour Gold’s ability to obtain the approval of the proposed transaction by their shareholders required to consummate the proposed transaction and the timing of the closing of the proposed transaction, including the risk that the conditions to the transaction are not satisfied on a timely basis or at all and the failure of the transaction to close for any other reason; the risk that a consent or authorization that may be required for the proposed transaction is not obtained or is obtained subject to conditions that are not anticipated; the outcome of any legal proceedings that may be instituted against the parties and others related to the arrangement agreement; unanticipated difficulties or expenditures relating to the transaction, the response of business partners and retention as a result of the announcement and pendency of the transaction; the diversion of management time on transaction-related issues; 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 Detour 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 and Detour Gold, including their respective annual information forms, financial statements and related MD&A for the financial year ended December 31, 2018, which are 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 and Detour Gold have attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Kirkland Lake Gold and Detour Gold do not intend, and do not assume any obligation, to update this forward-looking information except as otherwise required by applicable law. Future Oriented Financial Information This Presentation contains Future Oriented Financial Information and financial outlooks (collectively, “FOFI”) within the meaning of applicable Canadian securities laws. The FOFI has been prepared by management of Kirkland Lake Gold and Detour Gold as at November 25, 2019 to demonstrate the potential benefits of the Transaction to shareholders. The FOFI has been prepared based on a number of assumptions that management of Kirkland Lake Gold and Detour Gold believe are reasonable. However, because this information is highly subjective and subject to numerous risks, including the risks discussed under the heading “Cautionary Note Regarding Forward-Looking Information", it should not be relied on as necessarily indicative of future results. Kirkland Lake Gold and Detour Gold do not intend, and do not assume any obligation, to update this forward-looking information except as otherwise required by applicable law. Use of Non-IFRS Measures This Presentation refers to all-in sustaining cost (“AISC”) per ounce of gold sold, free cash flow, and EBITDA because certain readers may use this information, together with measures determined in accordance with International Financial Reporting Standards (“IFRS”), to better assess the proposed transaction. This data is furnished to provide additional information and are non-IFRS measures and do not have any standardized meaning prescribed by IFRS and therefore they may not be comparable to similar measures employed by other companies. 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 of Kirkland Lake Gold’s and Detour Gold’s most recent MD&A for a reconciliation of these measures. Qualified Persons Kirkland Lake Gold Qualified Person The scientific and technical content of this presentation with respect to Kirkland Lake Gold and its assets was reviewed, approved and verified by Natasha Vaz, Vice President, Technical Services, a Qualified Person as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101 ”) . Detour Gold Qualified Person The scientific and technical content of this presentation with respect to Detour Gold and its assets was reviewed, verified and approved by David Londono, Mine General Manager, a Qualified Person as defined by NI 43-101. KLGOLD. COM TSX: KL NYSE: KL ASX: KLA 3