Click to edit Master title style TSX:KGI • Click to edit Master • Click to edit Master text styles text styles – Second level – Second level GROWTH & VALUE • Third level • Third level – Fourth level – Fourth level » Fifth level » Fifth level Creating an Ontario Focused Intermediate Gold Producer European Gold Forum | April 20, 2016 Park Hyatt Zurich Presenter: Perry Ing, CPA-CA, CPA (Ill), CFA | CFO 1 klgold.com TSX:KGI
Forward Looking Statements Click to edit Master title style Cautionary Note Regarding Forward Looking Statements. Statements made in the Company’s handouts and as part of the corporate presentation contain 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 • Click to edit Master • Click to edit Master to identify such forward-looking statements. Forward-looking statements used in handouts and as part of the corporate presentation include, but may not be limited to; statements regarding the Company’s guidance metrics for 2016 including, gold production, head grade, cash operating costs, AISC, capital expenditures, revenue, cash flow from operations and free text styles text styles cash flow generation; the exploration programs and associated budgets with respect to the Kirkland Lake Camp and East Timmins Assets and the results and timing thereof, the medium to long-term strategy and potential of the Company to – Second level – Second level continue to grow by way of organic growth and/or through various strategic transactions, including mergers and acquisitions. • Third level • Third level With respect to the forward looking information of Kirkland Lake and/or St Andrew Goldfields Ltd., concerning gold resources and reserves of the Kirkland Lake properties and the East Timmins assets, and the development of the Kirkland Lake properties and the East Timmins assets are – Fourth level – Fourth level 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. » Fifth level » Fifth level 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 December 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. 2 2 klgold.com TSX:KGI TSX:KGI klgold.com
A New Mid-Tier Gold Producer Click to edit Master title style • Ontario focused gold producer targeting between STRONG 270-290 Koz’s in 2016 LEADERSHIP • Click to edit Master • Click to edit Master • Healthy balance sheet with $130 million in cash in text styles text styles excess of the convertible debentures that come ROBUST PRODUCTION AND ASSET due in 2017. DIVERSIFICATION FROM 4 MINES – Second level – Second level • • Third level Combined strong future cash flow generation. • Third level – Fourth level – Fourth level INCREASED FINANCIAL FLEXIBILITY • AND SOLID BALANCE SHEET Consolidation of large land holdings in the heart of » Fifth level » Fifth level two Ontario gold camps • Robust level of reserves and resources with 2.3 EXPLORATION POTENTIAL IN TWO HISTORIC CAMPS WITHIN THE Moz’s of P&P reserves, 4.7 Moz’s of M&I ABITIBI resources plus an additional 3.9 Moz’s of inferred resources.* SUSTAINABLE, PROFITABLE MID-TIER GOLD • Benefits with all Canadian assets leveraged to the PRODUCER Canadian dollar gold price See Appendix for more disclosure on MRMR statement which is as of December 31, 2014. 3 klgold.com TSX:KGI
2016 Guidance Metrics Click to edit Master title style Guidance Metrics 2016 Guidance 270,000 – 290,000 Gold Production 1 (ounces) • Click to edit Master • Click to edit Master Head Grade (g/t) 7.7 g/t Au text styles text styles Cash Operating Cash Costs (C$/Oz) $800 - $850 (US$600-US$650 3 ) – Second level – Second level $1,300 - $1,350 (US$1,000 – US$1,050 3 ) All-In Sustaining Costs 2 (C$/Oz of gold sold) • Third level • Third level Total Capital Expenditures – Fourth level – Fourth level $120 Million (New & Sustaining Capital, Property, Plant & Equipment) » Fifth level » Fifth level Guidance Q1/16 Production On track to meet 2016 Production Guidance 270 – 290 kozs 69,654 ozs 1 Production includes East Timmins for the first 25 days of January (7,189 ozs), as the acquisition of St Andrew Goldfields Ltd., did not close until January 26, 2016. 2 AISC costs per ounce sold is a non-GAAP performance measures. While it is a common performance measures in the mining industry it does not have any standardized meaning. The Company provides a reconciliation of its non-GAAP performance measures in its most recent Management Discussion & Analysis (“MD&A”), for the period ended December 31, 2015. 3 USD:CAD exchange rate of 1.3 4 klgold.com TSX:KGI
Diversified Assets In A Prolific, Mining Friendly Region Click to edit Master title style East Timmins Operations (“ETO”) Q1/16 Production 1 28.4 koz Au Q3 2015 AISC* US$934/oz Au Holt Mill 3,000 tpd (75% utilized) • Click to edit Master • Click to edit Master Resources & Reserves* Total P&P 0.8 Mozs (5.3 g/t Au) text styles (including Hislop Mine) text styles Holt Mine 591 kozs (4.8 g/t Au) Taylor Mine 156 kozs (6.3 g/t Au) – Second level – Second level Holloway Mine 40 kozs (5.4 g/t Au) Measured & Indicated • Third level • Third level 2.7 Mozs (2.4 g/t Au) (Property Wide) Inferred – Fourth level 2.2 Mozs (4.5 g/t Au) – Fourth level (Property Wide) » Fifth level » Fifth level QUÉBEC Macassa Mine Complex Q1/16 Production 41.1 koz Au Assets in close proximity SY 2015 AISC 2 US$977/oz Au within an 80km radius, Macassa Mill 2,000 tpd (50% utilized) accessed by provincial Reserves & Resources* highways. Total P&P Reserves 1.5 Mozs (19.2 g/t Au) (Macassa Mine Complex) Measured & Indicated 2.0 Mozs (16.8 g/t Au) (Property Wide) Inferred (Property Wide) 1.7 Mozs (19.2 g/t Au) 1 Q1 Production from East Timmins Operations includes 7,189 ounces from ETO from *Resources are exclusive of Reserves. See Company websites for NI 43-101 disclosure January 1 to January 25, 2016. (www.kllgold.com; www.sasgoldmines.com) 2 AISC is a non-GAAP measure, see SY2015 MDA for reconciliation of non-GAAP measures 5 klgold.com TSX:KGI
Click to edit Master title style • Click to edit Master • Click to edit Master text styles text styles – Second level – Second level A Corner Stone • Third level • Third level High-Grade Asset – Fourth level – Fourth level » Fifth level » Fifth level MACASSA MINE COMPLEX 6 klgold.com TSX:KGI
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