09 kgi-q3 update-11mar15

A PROFITABLE FUTURE

Fiscal 2015_Q3 Update March 11, 2015

A RICH HISTORY

TSX/AIM:KGI

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 guidance for fiscal 2015 including ounces

produced and grade assumptions, cash operating cost per ounce and AICC, sustaining capital, revenue,

operating cash flow and free cash flow generation; the ability to bring more higher grade stopes online from

the 5400 level and access to the 5600 level and the timing thereof; the exploration programs and the results

and timing thereof; and production and grade guidance for fiscal 2016 and 2017. 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, 2014. and the

Company’s Management's Discussion and Analysis for the interim period ended January 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/AIM:KGI www.klgold.com 2

Investment Highlights

Located in Ontario, one of the safest and lowest risk mining jurisdictions globally

Attractive NI43-101 high grade reserve and resource profile with a long mine life

Growing annual production, declining cost base and improving unit costs

Company returning to profitability and free cash flow

Significant exploration potential with organic growth

Potential upside with a higher gold price and a weaker Canadian dollar

www.klgold.com 3 TSX/AIM:KGI

Experienced and Diverse Board of Directors and Management Team

Diverse Board of Directors

Eric Sprott, Chairman of the Board (Non-executive Director)

Dawn Whittaker, LLB (Non-executive Director)

Pamela Klessig, P.Geo (Non-executive Director)

John Thomson, CA

George Ogilvie, P.Eng

Barry Cooper, B.Sc., MBA (Non-executive Director)

Jeffrey Parr, CA, BA, MBA (Non-executive Director)

Barry Olson, M.Sc. (Non-executive Director)


Synergistic Management Team GEORGE OGILVIE, P. Eng.

President & CEO, Director

• 25 years management, operating, and

technical expertise in the mining industry

with over 9 years of operating experience

in deep, narrow-vein gold mines (Anglo

Gold, South Africa)

• Former CEO of Rambler Metals and

Mining

JOHN THOMSON, CA

Executive VP and CFO,

Director

• More than 25 years experience in

various senior level finance positions

with companies such as PepsiCo

• Chartered Accountant who studied at

INSEAD

CHRIS STEWART, P. Eng.

VP Operations

• More than 20 years of operating

experience in Northern Ontario in various

senior-level positions. Prior to joining

KGI, was CEO of Liberty Mines Inc.

• Mining Engineering degree from Queen’s

University

Worked together

at Dynatec for

~3.5 years

Worked together at

Rambler for ~ 7 years


Financial Position

CASH C$76.6 million1

DEBT C$120 million convertible debentures

KGI.DB: 6% coupon/ $15.00 strike

C$54.5MM mature Jun/2017

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

C$65.5MM mature Dec/2017

ROYALTY 2.5% NSR Franco Nevada Corporation

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

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

52 Week Performance2

HIGH C$6.19

LOW C$2.51


1As at February 18, 2015 – Upon Close of Bought Deal Financing (see Appendix for more details on Financing). 2 As at March 11, 2015

CAPITAL STRUCTURE 2

ISSUED SHARES 80,016,617

Stock Options 4,244,800

Convertible Debentures 8,869,829

FULLY DILUTED 93,017,046

MARKET CAP ~408 Million2

Major Shareholders (~50%) 2

Resolute Funds (11%)

Eric Sprott (10%)

Columbia Wanger Asset Management LLC (8%)

Equinox Partners (7%)

Van Eck Associates Corporation (5%)

Harry Dobson (4%)

ABC Funds (4%)

60%

70%

80%

90%

100%

110%

120%

130%

140%

150%

Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15

Kirkland Lake (TSX:KGI) Gold Price (C$ / oz)

KGI Share Price vs Gold Price

15%

(1%)

Strategic Review

Concluded

Flow Through

Financing

Q1/15 Results

Drilling

Results

Q2/15 Production

Results

MRMR Update

Q4/14 Results

BOD

Appointment

& Financing


Q2/15 Results

3 Year Production

Guidance

Q1/15

Production

Drilling

Results

Q3/15 Production

Results

Drilling

Results

Close $35MM

Financing

Kirkland Lake Background

The Kirkland Lake gold camp

has been producing gold for

over 100 years.

Almost 25 Moz’s has been

produced to date, from seven

mines.

Based on grade, it is one of the

richest gold camps in the world.


KGI owns five former producing high grade mines with historical

production of ~22 Moz’s of gold at an average head grade of

0.44 opt (15.1 grams per tonne).

One of the Highest Grade Gold Mines In The World

Mine Operator Location Gold Grade Reserves MRMR

g/t Au Date

Macassa Mine Complex Kirkland Lake Gold Canada (Ontario) (0.50 opt) 17.1 1.4 Moz Dec/2013

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

Pogo Gold Sumitomo Corp. USA 12.5 4.9Moz Dec/2013

Gosowong Newcrest Indonesia 12.0 1,235 Dec/2014

Moab Khotsong AngloGold Ashanti South Africa 10.0 6,126 Dec/2013

Mponeng AngloGold Ashanti South Africa 10.0 14,569 Dec/2013

Red Lake Gold GoldCorp Canada 10.0 2,553 Dec/2014

TauTona AngloGold Ashanti South Africa 9.1 1,389 Dec/2013

Kupol/Dvoinoye Kinross Russia 8.5 2,081 Dec/2014

17.1 16.9

12.5 12.0 10.0 10.0 10.0 9.1 8.5

0.0

5.0

10.0

15.0

20.0

Gra

de g

/t

Reserve Grades


Company Source – This is a selective group of producing mines only with mineral reserves in excess of 1Moz’s (gold only)

Reserves & Resources (Resources are Exclusive of Reserves)

See Appendix for more disclosure on MRMR statement which is as of December 31 ,2013.

Based on current level of Reserves and 70% conversion of Resources

(@ 200,000 oz p.a), KGI has a 14 year Mine Life


Mine Wide Complex

Mineral Reserves (P&P)

1.4 Moz’s 2.8M tons @ 17.1 g/t

(0.50 opt)

Mineral Resources (M&I)

2.1 Moz’s 4.2 M tons @ 16.8 g/t

(0.49 opt)

Mineral Resources (Inferred)

1.1 Moz’s 2.1 M tons @ 18.5 g/t

(0.54 opt)

SMC

0.8 Moz’s 1.5 M tons @ 18.5 g/t

(0.54 opt)

1.0 Moz’s 1.5 M tons @ 23.7 g/t

(0.69 opt)

0.8 Moz’s 1.2 M tons @ 23.0 g/t

(0.67 opt)

Breakout of SMC only

South Mine Complex

• 5400L has reserve grade @ 0.57 opt (19.5 gpt)

• 5600L has reserve grade @ 0.70 opt (23.9 gpt)

• Production from 5400L and 5600L allows delineation drilling of resources, especially below 5600L

• Remains Open at Depth and Across Strike

5025 Level

P+P 89,000 Tons @ 0.44 oz/ton 39,000 Oz’s

M+I 57,000 Tons @ 0.30 oz/ton 22,000 Oz’s

5300 Level

P+P 620,000 Tons @ 0.47 oz/ton 290,000 Oz’s

M+I 220,000 Tons @ 0.30 oz/ton 86,000 Oz’s

5400 Level

P+P 481,000 Tons @ 0.57 oz/ton 274,000 Oz’s

M+I 170,000 Tons @ 0.41 oz/ton 71,000 Oz’s

5600 Level

P+P 290,000 Tons @ 0.70 oz/ton 209,000 Oz’s

M+I 220,000 Tons @ 0.55 oz/ton 122,000 Oz’s

5700 to 6600 Level

M+I 768,000 Tons @ 0.91 oz/ton

703,000 Oz’s

Original Two

Mining Horizons

Third Level

Started

May 2014

Currently in Development

for FY 2016 OPEN

#3 S

HA

FT

#2 W

INZ

E


5025L

5300L

5400L

6600L

5600L

4750L

Development Legend

Completed

F2015 Development

F2016 Development

OPEN OPEN

Q3 F2015 Production Update

Q1 F2015

38,543

93,880

0.45

Q2 F2015

38,335

92,146

0.41

Q3 F2015

39,722

91,148

0.44

YTD F2015

116,600

277,174

0.43

Guidance

F2015

153 – 157

Koz’s*

0.37

Ounces

Sold

Tons

Milled

Head Grade

(opt)

• Third stope (5412) brought into production on 5400 level during Q3

• 2 Electric Hydraulic Jumbo’s fully operational

• Main ramp towards the 5600 level progressing well and is on schedule


* Production guidance revised upwards from 140,000 – 155,000 ounces to 153,000 – 157,000 ounces on March 11, 2015

Monthly Production Profile

• Cut-off Grades Raised from 0.18 opt to 0.22 opt.

• Stopped Mining “Incremental Tons”

• Implemented Strict Ore/ Waste Segregation UG

• Increasing UG Delineation Drilling in SMC

• Employing more UG Geologists

• Assay Lab is Manned 24/7

• Restructuring Organization

• Implementing Leadership Training

• Looking to Upgrade MIS


0.34

0.31 0.30

0.26

0.29

0.45

0.39

0.34

0.37

0.34

0.47

0.51

0.39

0.43

0.41

0.47

0.44 0.42

-

0.10

0.20

0.30

0.40

0.50

0

5,000

10,000

15,000

20,000

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

Oz Recovered

Head Grade

F2015

F2015 YTD Average 0.43 opt

Hea

d G

rad

e (

Ou

nc

es

Pe

r To

n)

Go

ld P

rod

ucti

on

(O

un

ce

s)

0.37

0.40

0.37

0.32

0.41

0.37

0.31

0.33

0.37 0.39

0.41

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

-

50,000

100,000

150,000

200,000

250,000

07 08 09 10 11 12 13 14 15 16 17

Go

ld O

un

ce

s

Oz Recovered Guidance Head Grade Linear (Oz Recovered)

Fiscal Year

Previous Guidance

Annual Production Profile

Expectation Gap

• Guided Grades for F2015-F2017 are Based on Historic Achievements

• Fiscal YTD Actual Head Grade is 0.43 opt


Hea

d G

rad

e (

Ou

nc

es

Pe

r To

n)

= 200 employees

Q3 Results

Q3/15 Vs Q3/14

YTD Results

F2015 Vs F2014

CO

ST

S

Cash Cost Per Ton $328

US$281

-5%

-13%

$340

US$302

0%

-7%

Cash Operating Cost Per

Ounce

$766

US$656

-30%

-36%

$813

US$728

-26%

-32%

All In Cash Costs $1,249

US$1,070

-35%

-40%

$1,289

US$1,153

-38%

-42%

SA

LES

Gold Sales 39,722 +18% 116,600 +23%

Average Sales Price $1,371 0% $1,389 0%

Revenues $54.5MM +18% $161.9MM +24%

CA

SH

FLO

W

Cash Flow from Operations $23.7MM +85% $57.3MM +59%

Free Cash Flow $11.6MM NA $22.8MM NA

Q3 & YTD F2015 Financial Highlights

- All US$ equivalents are converted at the average CAD to USD exchange rate during the reporting period.

- See Pg. 23 for fiscal 2015 guidance on certain financial metrics provided above and Pg.24 in the appendix for further financial results.


0.26

0.29 0.45

0.39 0.34

0.37 0.34

0.47 0.51

0.39 0.43

0.41 0.47 0.44

0.42

-

0.10

0.20

0.30

0.40

0.50

0.60

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

NOV DEC JAN FEB MAR APR MAY2014

JUN JUL AUG SEP OCT NOV DEC JAN

AICC per ounce Produced - 15 month trend

Production Capital Development PP&E Corporate Exploration Royalties Head Grade

AICC Achieved Over Past 15 Months All amounts stated are in Canadian dollars

• 16% Reduction in Labour Force and Cancelled Incentive Programs (e.g. home loan assistance and travel)

• Major Capital Projects (PP&E) Completed in January 2014


Co

st

in C

$ p

er

Ou

nce P

rod

uced

H

ead

Gra

de (O

un

ces P

er T

on

)

F2014 F2015

$1,073 $1,119

$836

$1,244

$720 $614

$947 $924 $809

$684

$931

$728

$1,250

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

$2,200

FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN Q4E

Production Capital Development PP&E Corporate Exploration Royalties

AICC Projection for F2015 All amounts stated are in Canadian dollars

• Projection Based on Assumptions of 1,150 tpd, 0.37 opt and 96% Mill Recovery

• KGI now has three consecutive quarters of Free Cash Flow generation

• AICC excludes any mining and income tax (of which the Company only pays a nominal amount in mining taxes)


F2015

Co

st

in C

$ p

er

Ou

nce P

rod

uced

F2015_YTD Average Sales Price C$1,389

F2015_YTD AICC C$1,289

Capital Expenditures

• Project Capital was Completed in January 2014

• C$9M in Capital Development of 5400L and SMC Main Decline to 5600L Spent in FY15

• F2015 Capex reduced by $5MM to $53MM after Q2, and down to $43MM after Q3

0

10

20

30

40

50

60

70

80

90

100

2010 2011 2012 2013 2014 2015E 2016E 2017E

C$ M

illi

on

s

Mineral Properties PP&EESTIMATED

9.7

22.4 30.9 45.8 46.9 55.0 43.0 51.0 51.0

28.9

24.5 44.0

29.6

6.8

7.0 7.0


SMC Underground Drilling


UG DRILLING • SMC continues to be expanded

• Multi-ounce intersections

• 3 drills turning underground

• Open in multiple directions

53-2493 (NSZ)

1.85 opt/ 11.6 feet (63.43 gpt/ 3.5 metres)

53-2597 (NSZ)

0.36 opt/14.7 feet (12.34 gpt/ 4.5 metres)

53-2595 (NFZ)

3.55 opt/ 11.4 feet (121.72 gpt/ 3.5 metres)

‘04 Break Underground Drilling


Selected Highlights

DH 34-666 2.53 opt/ 2.4 feet

(86.75 g/t over 0.7 metres)

DH 34-668 0.80 opt/ 4.4 feet

(27.43 g/t over 1.3 metres)

See press release dated February 23, 2015

Near Surface Exploration Target

SURFACE DRILLING • Near surface mineralization is within 2 Km’s of mill

• Mill has excess capacity of +/- 1,000 tpd

• Mineralization from 100’ to 1,000’ below surface

• Open across strike and at depth

• M&I 310,000 tons @0.34opt (11.7gpt) 104,000 oz.

• Infer. 131,000 tons @0.36opt (12.3gpt) 48,000 oz.

• 3 drills drilling to expand resource and infill drill


Outlook for F2015

Guidance Metric YTD 2015

Actual

Revised

Guidance

$800 – 850/ Oz Cash Operating Cost Per Ounce $813

US$723 No Change

$1,250 - 1,350/ Oz AICC Per Ounce Produced $1,289

US$1,144 No Change

$53 million* Sustaining CAPEX $36 million $50 million

$200 million Revenue $162 million $218 - $222 million

$50 - 60 million Cash Flow from Operations $57 million $70 - $75 million

$15 - 20 million Free Cash Flow Generation $22 million $30 - $35 million

All amounts stated are in Canadian dollars


* Capital was revised from $58 million to $53 million on October 31, 2014, and revised to $50 million on January 31, 2015

APPENDIX

Notes, additional disclosure and other information


Analyst Coverage

Firm Analyst

Dundee Securities Joe Fazzini

CIBC World Markets Cosmos Chiu

Macquarie Capital Markets Michael Siperco

National Bank Financial Raj Ray

BMO Capital Markets Brian Quast

Clarus Securities Jamie Spratt

PI Financial Philip Ker

Firm Analyst

M Partners Derek Macpherson

Pareto Securities John McClintock

Mirabaud Securities Richard Morgan

Panmure Gordon & Co Alison Turner

Investec Bank Hunter Hillcoat

Very Independent Research John Tumazos

KIRKLAND LAKE GOLD IS FOLLOWED BY THE ANALYSTS LISTED ABOVE. THIS LIST IS PROVIDED FOR INFORMATION PURPOSES ONLY AND IS

SUBJECT TO CHANGE AS COVERAGE IS ADDED OR DROPPED BY A FIRM.

OPINIONS, ESTIMATES OR FORECASTS REGARDING KIRKLAND LAKE GOLD'S PERFORMANCE THAT ARE MADE BY THESE ANALYSTS ARE THEIRS

ALONE AND DO NOT REPRESENT THE OPINIONS, ESTIMATES OR FORECASTS OF KIRKLAND LAKE GOLD OR ITS MANAGEMENT.

KIRKLAND LAKE GOLD DOES NOT IMPLY ITS ENDORSEMENT OF, OR CONCURRENCE WITH, SUCH INFORMATION, CONCLUSIONS OR

RECOMMENDATIONS AND TAKES NO RESPONSIBILITY FOR MONITORING, SUPPLEMENTING OR CORRECTING ANY INFORMATION OR FORECASTS

PROVIDED BY THE ANALYSTS.


F2014 & Q3 F2015 Financial Results

Financial FY2015

YTD

FY2014

YTD Y/Y

Change Q3/15 Q2/15 Q3/14

Q3/15

vs.

Q2/15

Q3/15

vs.

Q3/14

Gold Sales

(ounces) 116,600 94,502 +23% 39,722 38,335 33,719 +4% +18%

Average Price Sold

(per ounce)

$1,389

US$1,243

$1,385

US$1,348

0%

- 6%

$1,371

US$1,175

$1,395

US$1,262

$1,369

US$1,280

-2%

-7%

0%

-8%

Revenue (000’s) 161,953 84,737 +24% 54,471 53,479 46,165 +2% +18%

Cash Operating

Cost per Ton

Produced

$340

US$302

$340

US$324

0%

-7%

$328

US$281

$350

US$317

$347

US$324

-6%

-11%

-5%

-13%

Cash Operating

Cost per Ounce

Produced

$813

US$723

$1,109

US$1,073

-26%

-32%

$766

US$656

$889

US$804

$1,094

US$1,023

-14%

-18%

-30%

-36%

All-in Cash Cost

(“AICC”) per Ounce

Produced

$1,289

US$1,144

$2,102

US$2,033

-38%

-42%

$1,249

US$1,070

$1,374

US$1,243

$1,923

US$1,797

-9%

-14%

-35%

-40%

All amounts stated are in Canadian dollars unless otherwise stated


- All US$ equivalents are converted at the average CAD to USD exchange rate during the reporting period.

- See Pg. 23 for fiscal 2015 guidance on certain financial metrics provided above

C$35MM Bought Deal Offering


Shares

Issued

Price

Gross

Proceeds

C$30MM Offering 6,900,000 $4.35 $30MM

Over-allotment* 1,035,000 $4.35 $ 5MM

Total 7,935,000 $4.35 $35MM

Notes: - Over-allotment was exercised in full upon closing - Proceeds will be used to strengthen the balance sheet and for general

corporate purposes.

Reserves & Resources (Resources are Exclusive of Reserves)

RESERVES AND RESOURCES MINE WIDE COMPLEX

CATEGORY (31st DEC 2013)

TONS GRADE

(opt)

GRADE

(gpt) OUNCES

Proven 941,000 0.43 14.7 401,000

Probable 1,843,000 0.53 18.2 984,000

Total P+P 2,784,000 0.50 17.1 1,385,000

Measured 1,133,000 0.39 13.4 436,000

Indicated 3,019,000 0.54 18.5 1,619,000

Total M+I 4,152,000 0.49 16.8 2,055,000

Inferred 2,092,000 0.54 18.5 1,133,000

As at December 31, 2013 See Kirkland Lake news release dated April 28 2014, a copy of which has been filed on SEDAR for further particulars and full NI 43-101 disclosure including QP statement.

Based on current level of Reserves and 70% conversion of Resources (@ 200,000 oz p.a)

Macassa has a 14 year Mine Life

RESERVES AND RESOURCES SOUTH MINE COMPLEX (“SMC”)

CATEGORY (31st DEC 2013)

TONS GRADE

(opt)

GRADE

(gpt) OUNCES

Proven 328,000 0.45 15.4 147,000

Probable 1,163,000 0.57 19.5 665,000

Total P+P 1,492,000 0.54 18.5 812,000

Measured 24,000 0.30 10.3 7,000

Indicated 1,440,000 0.70 24.0 1,005,000

Total M+I 1,464,000 0.69 23.7 1,012,000

Inferred 1,205,000 0.67 23.0 808,000


New Mine Plan With Positive Results

Old Plan Focussed on QUANTITY and TONS New Plan Focuses on QUALITY and GRADE

SIGNIFICANT

INCREASE IN

GRADE

REDUCTION

IN COSTS

CASH

FLOW

POSITIVE

• Not Dependant on a High Gold Price

• Requires Less Manpower

• Fewer Stopes

• Strict Ore/Waste Management and Dilution Control

Additional benefits of new mine plan are SIMPLIFIED PLANNING

and ability to FINANCE AT COMPANY’s DISCRETION


Expansion Capital

• Hoisting system capable of hoisting 3,600 tpd

• Mary-Anne Compartment installed in Shaft providing service cage

• Mill upgraded to handle 2,200 tpd

• Underground infrastructure and battery equipment in place for SMC


WWW.KLGOLD.COM

Suzette N Ramcharan, CPIR

Director of Investor Relations

+1-416-840-7884

Mobile: +1-647-284-5315

[email protected]

Tim Blythe / Halimah Hussain

(Blytheweigh)

Investor Relations / PR

+44-207-138-3204

[email protected]/

[email protected]

TSX /AIM: KGI

mailto:[email protected]



09 kgi-q3 update-11mar15

Business

forwardlooking statements

grade assumptions

actual results

production cost

cash operating cost

grade guidance

companys business

companys guidance