Kirkland Lake Gold Announces Normal Course Issuer Bid for Convertible Debentures

TORONTO, ONTARIO--(Marketwired - April 1, 2015) - Kirkland Lake Gold Inc. ("Kirkland Lake Gold" or the "Company") (TSX:KGI) (AIM:KGI), an operating and exploration gold company with operations in Ontario, Canada, announces today that it has received acceptance from the Toronto Stock Exchange (the "TSX") with respect to a Normal Course Issuer Bid (the "Bid") to purchase:

1. up to $5,750,000 6% convertible unsecured subordinated debentures (the "6% Debentures") (KGI.DB)
2. up to $6,900,000 7.5% convertible unsecured subordinated debentures (the "7.5% Debentures") (KGI.DB.A)

representing 10% of the public float issued and outstanding of each of the 6% Debentures and 7.5% Debentures as at March 30, 2015.

Purchases of the 6% Debentures and 7.5% Debentures pursuant to the NCIB may be made through the facilities of the TSX commencing on April 3, 2015 and ending on April 2, 2016, or such earlier time as the Bid is completed or terminated at the option of the Company. The Company will pay the market price at the time of acquisition for any securities purchased through the facilities of the TSX. All securities purchased by the Company under the NCIB will be cancelled.

As of the date hereof, there are $57,500,000 principal amount of the 6% Debentures and $69,000,000 principal amount of the 7.5% Convertible Unsecured Debentures.

The average daily trading volumes for the six month period ended February 28, 2015 were a) $38,991.94 of the 6% Debentures; and b) $69,330.65 of the 7.5% Debentures.

Under the NCIB, the maximum number of securities that the Company may purchase on a daily basis, other than block purchase exemptions, were a) $9,748 of the 6% Debentures; and b) $17,333 of the 7.5% Debentures. The actual number of Debentures purchased for cancellation and the timing of such purchases will be determined by the Company.

By repurchasing the Debentures, the Company will reduce interest payments, resulting in cash savings for the Company in the long term, and will also minimize potential future dilution of the Company's shares.

About the Company

Kirkland Lake Gold Inc.'s corporate goal is to create a self-sustaining and long-lived intermediate gold mining company based in the historic Kirkland Lake gold camp, as well as to explore opportunities for growth in other safe mining jurisdictions. The Company plans to do this by mining to the reserve grade, generating profits and free cash flow with a view to maximising value for the shareholders. The Company will also look to take advantage of its increased infrastructure capacity in the appropriate gold price environment. At the same time, the Company is committed to maintaining a significant exploration program aimed at developing and maintaining a property wide reserve and resource base sufficient to sustain a mine life of more than ten years.

Over the last several years the Company has invested significant capital to improve the infrastructure of the business including upgrading the production hoist, skips, mill, underground mobile equipment and capital development. From initial discovery to present day there have been over 24 million ounces of gold mined from the Kirkland Lake gold camp while the current reserve and resource provides for potentially 14 years of mining with exploration upside.

Neither the Toronto Stock Exchange nor the AIM Market of the London Stock Exchange has reviewed or accepts responsibility for the adequacy or accuracy of this news release.

Cautionary Note Regarding Forward Looking Statements

This news 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", "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 news release include, but may not be limited to, statements regarding the Company's intention to purchase for cancellation a portion of its outstanding Debentures, and the timing thereof. Investors are cautioned that forward-looking statements are based on the opinions, assumptions and estimates of management which management considers reasonable at the date the statements are made such as, without limitation, opinions, assumptions and estimates of management regarding the Company's business, its ability to increase its production capacity and decrease its production costs. 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 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), variations in ore grade or recovery rates, changes in accounting policies, changes in the Company's mineral reserves and resources, changes in project parameters as plans continue to be refined, changes in project development, construction, production and commissioning time frames, 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 weather, 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 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.