Kirkland Lake Gold Inc.

Kirkland Lake Gold Inc.

September 15, 2009 02:00 ET

Kirkland Lake Gold Reports an Operations Update & Financial Results Fiscal Q1 2009

KIRKLAND LAKE, ONTARIO--(Marketwire - Sept. 15, 2009) - Kirkland Lake Gold Inc. ('Kirkland Lake' or the 'Company') (TSX:KGI)(AIM:KGI), an operating and exploration gold mining company located in Ontario, Canada, has announced and operations update and its first quarter results for the three months ended July 31st, 2009.

Financial highlights for fiscal Q1 2010

- Gold revenues achieved were $22.5 million, a 24% increase compared to last quarter (Q4 2009: $18.2 million) and a 183% increase compared to fiscal Q1 2009 (Q1 2009: $8.0m) as a result of more ounces being sold.

- Income for the quarter ended July 31, 2009 of $1,617,859 or $0.03 per share, which compares with a net income of $2,349,177 or $0.04 per share for the previous quarter and a loss of $3,353,500 or $0.06 per share for the same quarter in fiscal 2009.

- Cash flows generated from operations were $7,001,299 for the quarter, which compared to cash flows of $1,853,960 in the previous quarter.

- Cash resources (including short-term investments) as at July 31, 2009 were $28.6 million and as at September 14, 2009 increased to $59.6 million which is expected to be sufficient to fund the Company's planned exploration and development activities for the next 12-18 months.

Operational highlights for fiscal 2009

- Gold production for the quarter was 17,135 ounces (oz), 16% lower than in the previous quarter (20,411 oz) due to a paste fill blockage that occurred on June 23, 2009 and mining of less high grade ore than expected.

- Drilling of a new four inch paste borehole to 3400 level has now been completed and the contractor is now starting to drill a second back up hole. These two new holes should be easier to maintain and operate than the old twelve inch hole.

- During the quarter approximately 44,000 feet of exploration drilling was completed. Exploration results during the quarter included intersections on the New South Zone of the SMC. Drill hole 53-1279 assayed 23.75 ounces per ton of gold (opt) uncut (3.60 opt cut) over a true width of 14 feet and included 192.50 opt over a true width 1.3 feet. Drill hole 53-1277 assayed 0.90 opt uncut (0.63 opt cut) over a true width of 26.3 feet and drill hole 53-1223 assayed 3.35 opt uncut (2.25 opt cut) over a true width 7.7 feet including 14.52 opt over a true width of 1.1 feet.

Harry Dobson, Kirkland Lake's Chairman, commented;

"Kirkland Lake has had a strong first quarter generating cash flows from operations of $7.0 million due to new productivity improvements and an increase in ounces sold. The set back due to the borehole blockage has effectively reduced our annual forecast by up to one quarter."

"We are also pleased with the successful C$37 million private placement that took place on August 19, 2009 and believe this demonstrates the confidence investors have in the Company."


Financial Highlights Three months ended,
(All amounts in 000s ------------------------------------
of Canadian Dollars, except July 31, April 30, July 31,
shares and per share figures) 2009 2009 2008

Gold Sales (ounces) 20,994 16,067 8,813
Average Price (per ounce) $ 1,072 $ 1,133 $ 902

Revenue 22,499 18,210 7,952
Operating Expenses 19,216 14,289 10,062
Exploration Expenditure 1,092 1,043 814
Net Income (loss) 1,617 2,349 (3,354)
Per share (basic and diluted) 0.03 0.04 (0.06)
Cash Flow from (used) operating
activities 7,001 1,854 (1,081)
Cash Flow from financing activities 210 13,051 0
Cash Flow (used) for investing
activities 4,203 (16,296) (2,402)
Net increase (decrease) in cash 11,413 (1,393) (3,482)
Cash at end of period 13,220 1,806 12,120
Short-term investments 15,143 23,638 15,475
Total cash resources 28,363 25,444 27,595

Total Assets 103,233 100,896 88,819
Total Liabilities 14,122 14,127 10,368
Working Capital 25,856 26,358 25,670

Weighted average number of shares
outstanding 58,557,132 56,349,826 55,703,312
Dividends per share NIL NIL NIL

About Kirkland Lake Gold Inc.

Kirkland Lake Gold Inc. is an operating and exploration gold mining company located in Ontario, Canada. Kirkland Lake Gold Inc. purchased the Macassa Mine and the 1,500 ton per day mill along with four former producing gold properties - Kirkland Lake, Teck-Hughes, Lake Shore and Wright Hargreaves - in December 2001. These properties, which have historically produced some 22 million ounces of gold, extend over seven kilometres between the Macassa Mine on the west and Wright Hargreaves on the east and, for the first time, are being developed and explored under one owner. This camp is located in the Southern Abitibi Greenstone Belt of Kirkland Lake, Ontario, Canada. The Company's corporate goal is to expand its gold reserves and reduce its operating costs to become a profitable gold producer.

The results of the Company's diamond drilling program 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). Mr. Carmichael also supervised the preparation of the information that forms the basis of the technical disclosure regarding the exploration results in this release.

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 one half of the core samples shipped to the Swastika Laboratories in Swastika, Ontario, Polymet Resources Inc. in Cobalt, Ontario. 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 and rejects at alternate certified labs. 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.

The Company's common shares trade on the TSX (Toronto Stock Exchange) and on the AIM (Alternative Investment Market) of the London Stock Exchange.

The Company's senior management and Board of Directors have extensive experience in the natural resource and mining sectors that include exploration, mining and marketing, as well as experience in the legal and corporate finance areas.

Cautionary Note Regarding Forward Looking Statements

This Press Release may contain statements which constitute 'forward-looking, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers 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, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company's future business activities may differ materially from those in the forward-looking statements as a result of various factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian securities regulatory authorities, including the Company's Annual Information Form and quarterly and annual Management's Discussion & Analysis, which may be viewed on SEDAR at 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.

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

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