Kirkland Lake Gold Reports Strong Earnings and Cash Flow in Q2 2018, Improves 2018 Production and Cost Guidance

TORONTO, Aug. 01, 2018 (GLOBE NEWSWIRE) — Kirkland Lake Gold Ltd. (KL) (“Kirkland Lake Gold” or the “Company”) today announced the Company’s financial and operating results for the second quarter (“Q2 2018”) and first six months (“YTD 2018”) of 2018. Q2 2018 results include strong earnings growth, record cash flow from operations(1) and a significant increase in the Company’s cash position. The Company also announced improvements to full-year 2018 consolidated guidance, with production for the year now targeted at over 635,000 ounces with operating cash costs per ounce sold expected to average $400 — $425. Full-year guidance for the Fosterville and Macassa mines was also improved. The Company’s full financial statements and management discussion & analysis are available on SEDAR at www.sedar.com and on the Company’s website at www.klgold.com. All dollar amounts are in U.S. dollars, unless otherwise noted.

Key highlights of Q2 2018 results include:

   -- Strong growth in net earnings: Net earnings totaled $61.5 million ($0.29
      per basic share "/share"), 78% increase from $34.6 million ($0.17/share)
      in Q2 2017 and 23% higher than $50.0 million ($0.24/share) in Q1 2018.

   -- Adjusted net earnings: Adjusted net earnings totaled $63.4 million
      ($0.30/share) versus $39.3 million ($0.19/share) in Q2 2017 and $52.6
      million ($0.25/share).

   -- Record quarterly cash flow from operations: Record cash flow from
      operating activities1 of $120.9 million, 56% higher than $77.5 million in
      Q2 2017 and 35% increase from $89.6 million in Q1 2018.

   -- Substantial free cash flow: Free cash flow1,2 growth to $60.7 million,
      18% increase from $51.2 million in Q2 2017 and 21% higher than $50.2
      million in Q2 2018.

   -- Record quarterly EBITDA:1,2,3 Record EBITDA of $123.7 million, 30% higher
      than 95.1 million in Q2 2017 and 17% increase from previous quarterly
      record of $105.9 million in Q1 2018.

   -- Strong cash position: Cash increased $43.1 million or 16% to $318.4
      million at June 30, 2018 from $275.3 million at March 31, 2018, and $86.8
      million or 37% from $231.6 million at the end of 2017.

   -- Low unit costs:  Production costs totaled $66.5 million in Q2 2018.
       Operating cash costs per ounce sold2 averaged $404, 16% improvement from
      $482 in Q2 2017 and 10% better than $447 in Q1 2018. All-in sustaining
      cost ("AISC") per ounce sold2 averaged $757 compared to $729 in Q2 2017
      and $833 in Q1 2018.

   -- Production ahead of plan: Production totaled 164,685 ounces, 3% increase
      from 160,305 ounces in Q2 2017 and 12% higher than 147,644 ounces in Q1
      2018.

   -- Capital expenditures: Sustaining capital expenditures2 totaled $44.1
      million ($86.2 million for YTD 2018), while growth capital expenditures
      totaled $11.1 million ($15.7 million for YTD 2018), excluding capitalized
      exploration expenditures.  Work related to key projects to ramp up in
      second half of 2018.

   -- Exploration expenditures: Exploration expenditures totaled $25.3 million
      ($43.9 million for YTD 2018), including capitalized exploration
      expenditures, with recent results including the continued intersection of
      high-grade mineralization outside existing Mineral Resources at Macassa,
      as well as additional high-grade, visible-gold bearing intersections at
      the Swan Zone at Fosterville in support of further growth Swan Zone
      Mineral Reserves.

   -- Quarterly dividend increased on May 2, 2018 to $0.03/share effective the
      second quarter 2018 quarterly dividend payment, paid on July 13, 2018 (Q1
      2018 quarterly dividend of $0.02/share paid on April 13, 2018).