Fiscal 2013 Q1 Operational and Financial Results

KIRKLAND LAKE, ONTARIO--(Marketwire - Sept. 13, 2012) - Kirkland Lake Gold Inc. (the Company) (TSX:KGI)(AIM:KGI), an operating and exploration gold company, today announces financial and operational results for the first quarter of its fiscal year 2013 (May, June, and July 2012).

Mr. Harry Dobson, Chairman commented, "The site team is to be commended for taking on the production challenges in the first quarter caused by the forest fires in Northern Ontario in May which impacted both operations and project expansion work. Production plans for the remaining three quarters in the fiscal year include moving to larger skip sizes and reflect the site team's determination to make up for the loss of production in the first quarter and to maintain guidance for this fiscal year to the range of between 180,000 - 200,000 ounces. The site team is also continuing to target May 2013 for completion of the expansion project and to reach their production target of 2200 tons of ore per day. The expansion project kicked off in January 2009 and was originally targeted for completion in December 2013. While there remains a lot to be done, the finish line is in sight, to emerge as a long-life, profitable, intermediate gold mining Company."

KEY HIGHLIGHTS OF THE QUARTER

• Net loss before income taxes for the quarter ended July 31, 2012 was $0.3 million, which compares to net income before taxes of $9.0 million for Q1 of fiscal 2012 and $4.1 million for the previous quarter (Q4 of fiscal 2012). Costs incurred during the eleven day power and production outage in May and lower revenues due to lower grades in the quarter contributed to the loss in the quarter.
  
  
• Cash flows generated from operating activities were $2.4 million for the quarter compared to $11.4 million for the previous quarter and $6.2 million in Q1 of fiscal 2012.
  
  
• Operating costs for the quarter were $316 per ton of ore ($1,276 per ounce of gold). Total cash production costs for the quarter were $317 per ton of ore ($1,280 per ounce of gold). Costs per ton and per ounce in this quarter increased due to the power outage where costs were incurred without offsetting production.
  
  
• The Company is planning to replace the ten ton skips in the existing shaft conveyance arrangement with newly designed 12.5 ton skips in December 2012. This is in addition to other previously announced upgrades. Slight modifications to the shaft loading chairs will be required at the same time. Commissioning of the service cage compartment is scheduled to begin in October.
  
  
• During the quarter, 70,201 tons of ore were produced at a head grade of 0.26 ounces of gold per ton (opt) and a gold recovery rate of 95.2% to produce 17,396 ounces of gold. Ounces sold in the quarter were 19,964 ounces. Recovered ounces decreased over the previous quarter due to lower ore grades, primarily in the SMC; and also due to lower ore tonnages produced, as a result of the eleven day forest fire power outage in May. The ability to utilize waste fill more effectively in the lower grade Main Break area of the mine resulted in some overproduction of ore from this area, which also slightly impacted quarterly head grades.
  
  
• The early trials of the prototype battery scoop underground have been very positive, and this program is currently running well ahead of requirements at this time.
  
  
• The number of ore mining workplaces active in the production cycle at quarter end was 35, with 15 additional ore mining workplaces being actively developed. Another 13 workplaces are available for development or production, but are not currently producing. Some of these are higher grade faces in the SMC that are being held to allow nearby lower grade workplaces to catch up in the mine sequence to maintain ground stability by reducing the seismic risk. Some low grade faces in both the SMC and the Main Break areas are also being mined very aggressively at the same time because they can take development waste as fill. With hoisting capacity for waste currently limited, aggressive mining of these faces allows critical expansion related development to continue.
  
  
• The Company workforce totalled 944 employees at quarter end, up from 907 employees at year end. By completion of the Mine Expansion Project, employee numbers will approach 1,200. The Company is not experiencing any difficulty in meeting its workforce requirements at this time.
  
  
• On July 19, 2012 the Company completed a $57.5 million ($54.1 million net of expenses) private placement of convertible debentures. The funds will be used as part of the expansion program which includes the acquisition of joint venture properties from Queenston Mining Inc. (Queenston).
  
  
• After meeting all operating costs, spending $14.3 million on infrastructure and $4.3 million on exploration, total cash resources (including short-term investments) as at July 31, 2012 were $73.3 million. As at September 12, 2012, this number had decreased to $47.7 million of which 84% was held as Government of Canada Treasury Bills. The significant change in the cash balance is primarily due to the $20.0 million payment made to Queenston on August 30, 2012 to complete the acquisition of the joint venture properties.
  
  
• Subsequent to quarter-end on August 30, 2012, the Company completed the purchase of Queenston's 50% interest in the seven joint venture properties the two companies owned in the Kirkland Lake camp. A further $20.0 million was paid on closing of this transaction bringing the total paid to date to $30.0 million. Subject to the satisfactory property title registrations being completed, the final payment of $30.0 million is due to be paid on December 3, 2012.
  
  

About the Company

Kirkland Lake Gold Inc. is an operating and exploration gold company located in Kirkland Lake, ON in the Southern Abitibi gold belt. Its goal is to create a self-sustaining and long lived intermediate gold mining company based in the historic Kirkland Lake Gold Camp. The Company plans to do this by increasing production to 250,000 - 300,000 ounces per year in several stages, and by decreasing production costs by realizing the economies of scale associated with that higher production rate.

Cautionary Note Regarding Forward Looking Statements

This Press Release 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", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, are intended to identify such forward-looking statements. 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, and 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 include the Company's expectations in connection with the projects and exploration programs being met, the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating gold prices, currency exchange rates (such as the Canadian dollar versus the United States Dollar), possible variations in ore grade or recovery rates, changes in accounting policies, changes in the Company's corporate mineral resources, changes in project parameters as plans continue to be refined, changes in project development, construction, production and commissioning time frames, risks related to joint venture operations, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life,, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, and limitations on insurance, as well as those risk factors discussed or referred to in the Company's annual Management's Discussion and Analysis and Annual Information Form for the year ended April 30, 2012 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 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.