Kirkland Lake Gold Inc.

Kirkland Lake Gold Inc.

December 03, 2007 20:14 ET

Kirkland Lake Gold Inc.: Second Quarter Results, Fiscal 2008

KIRKLAND LAKE, ONTARIO--(Marketwire - Dec. 3, 2007) -

Kirkland Lake Gold Inc. (the 'Company') (TSX:KGI)(AIM:KGI) announces the results for its second fiscal quarter of 2008.

Operational Highlights

- 35,908 tons of rock were hoisted from underground operations, of which 23,579 tons were milled as ore producing 11,460 ounces of gold (2007: hoisted tons: 55,370, milled tons: 39,462, and 13,344 ounces).

- Ore grade to the mill was 0.499 ounces of gold per ton (opt) for the quarter compared to the second quarter of fiscal 2007, and was 43% higher (Q2/07: 0.348 opt). The increase in head grade was anticipated due to increased mining in the higher-grade reserves of both the South Mine Complex and the existing mine. This quarter saw the second highest head grade to the mill since the Company re-established operations in 2002 (the highest was 2005:Q4 - 0.534 opt head grade).

- 2,298 feet (2007: 2,022 feet) of lateral and vertical operating stope development was completed, an increase of 14%. Stope development within the New South Zones has proceeded on four of the newly discovered structures providing enhanced information important for mine design of the new zones.

- Ore tonnage generated from the South Mine Complex accounted for 3,251 tons grading 1.10 opt for nearly 14% of the quarterly milled tonnage compared to the first quarter of fiscal 2008 when production from this zone was 5,518 ore tons or 16% of milled tons (2007:Q2 - 137 ore tons, 0.3% of milled tons).

- Exploration drilling during the quarter continued to expand the New South Complex of gold zones. A newly designated zone, called the Barchetta, was intersected while testing for the Lower D North and assayed 5.62 opt uncut (1.75 opt cut) over a core length of 9.8 feet. During the quarter definition drilling commenced on the New South Zone which confirmed grade and continuity with drill hole 53-574 returning 9.1 opt uncut (2.54 opt cut) over a core length of 36 feet, which included an assay of 92.23 opt over an intersection of 2.3 feet.

"Tonnage mined from the new mine during the quarter was 1.10 opt, driving the gold grade for September to 0.86 opt, a monthly record for camp history," commented Harry Dobson, Company Chairman. "One day's feed in September was 755 tons of 1.6 opt material producing 1,206 ounces of gold and giving a glimpse of the future when the new mine is in steady commercial production."

"High turnover of miners at the beginning of the quarter hurt production at the old mine," explained Brian Hinchcliffe, Company President. "Mitigating against the tough market conditions for miners, the Company accelerated its training program for miner trainees and internal promotion efforts and are planning to end this quarter in the strongest labour position we have been in since start up three years ago."

Financial Highlights

Financial Highlights 3 months 3 months 6 months 6 months
All amounts in 000s of ended ended ended ended
Canadian Dollars, except October October October October
shares and per share 31 31 31 31
figures 2007 2006 2007 2006

Gold Sales (ounces) 10,142 13,665 26,017 25,796
Average Price (per
ounce) $ 726 $ 688 $ 717 $ 690

Revenue 7,362 9,398 18,662 17,915
Operating Expenses 8,069 9,179 17,950 18,446
Exploration Expenditure 1,292 1,163 2,079 3,145
Net Income (loss) (2,393) (1,367) 2,357 (4,662)
Per share (basic and
diluted) (0.04) (0.03) (0.04) (0.09)
Cash at end of period 34,766 16,667 - -
Total Assets 94,454 68,497 - -
Total Liabilities 9,445 8,073 - -
Working Capital 35,132 15,645 - -
Weighted average number of
shares outstanding 52,309,397 52,952,736 52,248,452 52,659,555

Cash at the end of the period was $34,766,104 (2007: $16,667,074) as a consequence of share placement and flow through financing initiatives which have taken place in the last year.

Qualified Person

The scientific and technical results of the Company's exploration programs and operations disclosed in this MD&A have been reviewed, verified (including sampling, analytical and test data) and compiled by the Company's geological staff (which includes a 'qualified person', Stewart Carmichael P.Geo., the Company's Chief Exploration Geologist, for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators). He also supervised the preparation of the information that forms the basis of the technical disclosure in this MD&A.

Quality Assurance & Control

The Company has implemented a quality assurance and control (QA/QC) program to ensure sampling and analysis of all exploration work is conducted in accordance with the best possible practices. The drill core is sawn in half with half of the core samples shipped to the Swastika Laboratories in Swastika, Ontario or to the Macassa mine laboratory for analysis. The other half of the core is retained for future assay verification. Other QA/QC includes the insertion of blanks, and the regular re-assaying of pulps/rejects at alternate certified labs (Polymet, Accurassay). Gold analysis is conducted by fire assay using atomic absorption or gravimetric finish. The laboratory re-assays at least 10% of all samples and additional checks may be run on anomalous values.

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