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 JTVIR Conference | March 31, 2016 Presenter: George Ogilvie, P.Eng | President & CEO 1 klgold.com TSX:KGI
Forward Looking Statements Click to edit Master title style 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 • Click to edit Master • Click to edit Master 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. text styles text styles 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 – Second level – Second level 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 • Third level • Third level 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. – Fourth level – Fourth level 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 » Fifth level » Fifth level 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 October 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
Creating A New Mid-Tier Gold Producer Click to edit Master title style • Strong leadership from an experienced board of directors and management team with proven results STRONG • Ontario Focused Gold Producer targeting between LEADERSHIP • Click to edit Master • Click to edit Master 260- 310Koz’s in 2016 • Asset diversification with 4 mines and 2 mills text styles text styles • Healthy balance sheet with >$100 million in cash* ROBUST PRODUCTION AND ASSET DIVERSIFICATION FROM 4 MINES – Second level – Second level • Combined strong future cash flow generation • Third level • Third level • Operational and corporate cost saving synergies – Fourth level – Fourth level • INCREASED FINANCIAL FLEXIBILITY Consolidation of large land holdings in the heart of two AND SOLID BALANCE SHEET Ontario gold camps » Fifth level » Fifth level • Robust level of reserves and resources with 2.3 Moz’s of P&P reserves, 4.7 Moz’s of M&I resources plus an EXPLORATION POTENTIAL IN TWO additional 3.9 Moz’s of inferred resources. HISTORIC CAMPS WITHIN THE ABITIBI • Enhanced market profile with extensive coverage universe and increased trading liquidity SUSTAINABLE, • Combined entity has stronger market positioning PROFITABLE MID-TIER GOLD • PRODUCER Benefits with all Canadian assets leveraged to the Canadian dollar gold price * $120 million in debt (convertible debentures) 3 klgold.com TSX:KGI
Experienced Team Click to edit Master title style Board of Directors Eric Sprott 2 Barry Cooper, B.Sc., MBA 1 Non-executive Chairman Non-executive Director Michael Churchill, MBA 4 Pamela Klessig, P.Geo. Non-executive Director Non-executive Director • Click to edit Master • Click to edit Master Barry Olson, M.Sc. 1 Jeffrey Parr, CPA-CA, BA, MBA 1 Non-executive Director Non-executive Director text styles text styles Dawn Whittaker, LLB George Ogilvie, P.Eng. Non-executive Director Director – Second level – Second level Senior Management • Third level • Third level George Ogilvie, P.Eng. President & Chief Executive Officer – Fourth level – Fourth level Perry Ing, CPA-CA, CPA (Ill), CFA 3 Chief Financial Officer » Fifth level » Fifth level Chris Stewart, P.Eng. VP Operations Doug Cater, P.Geo. 5 VP Exploration Keyvan Salehi, P.Eng., MBA 5 VP Corporate Development Jennifer Wagner, LL.B. Legal Counsel Suzette N Ramcharan, CPIR Director, Investor Relations Kevin Fearn, BA, CHRP, CHRL Director, Human Resources 1 Appointed October 2014; 2 Appointed February 2015; 3 Appointed November 2015, 4 Appointed January 25, 2016, 5 Appointed February 1, 2015 4 klgold.com TSX:KGI
KGI Relative Share Price Performance Click to edit Master title style Kirkland Lake (TSX:KGI) Gold Price (US$ / oz) 300% • Click to edit Master 275% • Click to edit Master 153% 250% text styles text styles 225% – Second level – Second level 200% • Third level • Third level 175% – Fourth level – Fourth level 150% » Fifth level » Fifth level 125% 3% 100% 75% 50% 25% 0% Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 5 klgold.com TSX:KGI
Financial Position Click to edit Master title style CAPITAL STRUCTURE 2 CASH C$109.5 million 1 ISSUED SHARES 114.3 million • Click to edit Master • Click to edit Master ~4.5 million C$119 million 3 Stock Options DEBT convertible debentures FULLY DILUTED ~118.8 million text styles text styles (principal amount owing) MARKET CAP ~860 million KGI.DB : 6% coupon/ $15.00 strike – Second level – Second level C$56.9MM mature Jun/2017 52 Week Performance March 25, 2016 • Third level • Third level KGI.DB.A : 7.5% coupon/ $13.70 strike C$9.53 HIGH C$62.1MM mature Dec/2017 – Fourth level – Fourth level C$4.49 LOW NCIB allows KGI to purchase up to 10% of each issue within a 12 » Fifth level » Fifth level C$8.52 Current Share Price month period commencing April 3, 2015, and can be renewed annually 3 Major Shareholders (~40%) 2 Resolute Funds (~7%) 2.5% NSR Eric Sprott (~7%) ROYALTY Columbia Asset Management LLC (~5%) Franco Nevada Corporation Abramson Family (~5%) Van Eck Associates Corporation (~4%) Harry Dobson (~3%) Option to buyback 1% by October 31, 2016, at a cost of Sprott Asset Management (~3%) US$36MM less any money paid against the 1% Sentry Select (~3%) 3 As of January 18, 2016, see press release dated April 1, 2015 for details on the NCIB 1 As at February 19, 2016: 2 As at March 1, 2016 6 klgold.com TSX:KGI
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