Click to edit Master title style • Click to edit Master • Click to edit Master text styles text styles – Second level – Second level VALUE & GROWTH • Third level • Third level FOCUSED ON GOLD – Fourth level – Fourth level » Fifth level » Fifth level Denver Gold Forum | September 19, 2016 Corporate Presentation Presenter: Perry Ing, CFO TSX:KLG 1 klgold.com
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 • Click to edit Master • Click to edit Master 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 text styles text styles guidance metrics for 2016 including, gold production, head grade, cash operating costs, AISC, and capital expenditures; the exploration programs and associated budgets with respect to the Kirkland Lake Camp and East – Second level – Second level Timmins Assets and the results and timing thereof, the medium to long-term strategy and potential of the Company to continue to grow by way of organic growth and/or through various strategic transactions, including mergers and acquisitions; increased throughput at the Holt and Taylor mines, and Company’s ability to further • Third level • Third level reduce costs through various efficiency projects across the operations and the timing thereof. – Fourth level – Fourth level With respect to the forward-looking information of Kirkland Lake Gold, concerning gold resources and reserves of the Kirkland Lake properties and the PDFZ properties, the development of such properties are subject to various key assumptions described in the Annual Information Forms and » Fifth level » Fifth level Technical Reports of both Kirkland Lake Gold and St Andrew Goldfields Ltd. referred to herein and as filed on the SEDAR profiles of both companies at www.sedar.com and on the Company’s website at www.klgold.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 for the interim period ended June 30, 2016, 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. TSX:KLG 2 klgold.com
Investment Highlights Click to edit Master title style *Example of forward-looking information 2016 Production of 270- 290k Oz’s • Click to edit Master • Click to edit Master 2.3M Oz’s of P&P + text styles text styles 3.4M Oz’s of M&I + Cash Costs <US$650 – Second level – Second level 3.2M Oz’s of Inferred AISC <US$1,050 • Third level • Third level Holt Mine Holloway Mine – Fourth level – Fourth level » Fifth level » Fifth level ~C$184M in Cash Taylor Mine Holt Mill C$24M Exploration Generated C$57.3M in Free Cash Flow YTD Program for 2016 Macassa Mine Complex 1 see Reserve and Resource Statements in Appendix of this presentation; 2 As at August 31, 2016 (see press release dated September 13, 2016) TSX:KLG 3 klgold.com
Diversified Assets In A Prolific, Mining Friendly Region Click to edit Master title style Holt Mine Complex Macassa Mine Complex H1/16 Production 1 50.6k Ozs Au 79.9k Ozs Au H1/16 Production QUÉBEC 5.1 g/t Au H1/16 Head Grade 13.6 g/t Au H1/16 Head Grade 3,000 tpd (75% utilized) Holt Mill 2,000 tpd (50% utilized) Macassa Mill • Click to edit Master • Click to edit Master Resources & Reserves* (operating assets only) Reserves & Resources* (operating assets only) Total P&P 0.8M Ozs (5.1 g/t Au) Total P&P Reserves 1.5M Ozs (19.2 g/t Au) text styles (Macassa Mine Complex) text styles Holt Mine 591k Ozs (4.8 g/t Au) Measured & Indicated 1.8M Ozs (17.4 g/t Au) Taylor Mine 156k Ozs (6.3 g/t Au) (Property Wide) – Second level Holloway Mine 40k Ozs (5.4 g/t Au) – Second level 1.1M Ozs (20.1 g/t Au) Inferred (Property Wide) Measured & Indicated 1.4M Ozs (4.1 g/t Au) • Third level Inferred 1.8M Ozs (4.6 g/t Au) • Third level – Fourth level – Fourth level » Fifth level » Fifth level 1 Q1 Production from East Timmins Operations excludes 7,189 ounces from ETO from January 1 to January 25, 2016. 2 AISC is a non-GAAP measure, see Q1/16 MDA for reconciliation of non-GAAP measures *Resources are exclusive of Reserves. See Company websites for NI 43-101 disclosure (www.kllgold.com; www.sasgoldmines.com) TSX:KLG 4 klgold.com
Financial Position Click to edit Master title style CAPITAL STRUCTURE 2 C$ 184 million CASH 1 Cash & cash equivalents ISSUED SHARES 117.4 million • Click to edit Master • Click to edit Master Stock Options ~3.5 million C$119 million DEBT text styles text styles convertible debentures FULLY DILUTED ~120.9 million – Second level – Second level $15.00 conversion price KGI.DB : 6% C$56.9MM mature Jun/2017 MARKET • Third level C$1.3 billion • Third level KGI.DB.A : 7.5% $13.70 conversion price CAPITALIZATION 2 C$62.1MM mature Dec/2017 – Fourth level – Fourth level » Fifth level » Fifth level H1/2016 Financial Highlights ROYALTY 2.5% NSR Franco Nevada Corporation BUYBACK $57.3M $227.9M Option to buyback 1% by October 31, 2016, at a cost of Free Cash Flow 3 US$36MM less any money paid against the 1% (Approx. Revenue US$30MM) $170.6M Operating Cash Flow 1 Cash balance as of August 31, 2016 (see press release dated September 13, 2016); 2 As at August 1, 2016; 3 Non-GAAP Measure, refer to MDA dated June 30, 2016 TSX:KLG 5 klgold.com
Share Structure and Relative Share Price Performance Click to edit Master title style 250 Kirkland Lake GDX ETF (C$) Spot Gold (C$) 124% 225 • Click to edit Master • Click to edit Master 200 98% text styles text styles 175 – Second level – Second level 150 • Third level • Third level 125 18% – Fourth level – Fourth level 100 » Fifth level » Fifth level 75 50 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Major Shareholders (~40%) 2 52 Week Performance 2 Van Eck Associates Corporation (~13%) Abramson Family (~5%) • • • Fidelity Investments (~7%) • Oppenheimer Funds Inc. (~3%) C$12.39 HIGH • Resolute Funds (~7%) • Sprott Asset Management (~3%) • Eric Sprott (~6%) C$4.51 LOW Sentry Select (~5%) • C$11.45 Current Share Price 1 As at September 9, 2016: 2 As at August 19, 2016 TSX:KLG 6 klgold.com
YTD Operational Performance Click to edit Master title style MACASSA MINE HOLT MINE COMPLEX COMPLEX • Click to edit Master • Click to edit Master 188,762 327,631 Tonnes Milled text styles text styles 13.6 5.0 Head Grade (g/t) – Second level – Second level 97.3% 94.4% Recovery • Third level • Third level – Fourth level – Fourth level 79,983 50,630 Ounces Produced » Fifth level » Fifth level $335 $136 Cost per Tonne (C$/tonne) 1 $784 $669 Cash Costs (US$/Oz) 1 1 Production excludes 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 Cost per tonne and cash costs per ounce sold are non-GAAP performance measures. While they are 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 TSX:KLG 7 klgold.com
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