Kirkland Lake Gold Reports Fiscal 2015 Third Quarter Results With YTD Free Cash Flow Generation of $22 Million

TORONTO, ONTARIO--(Marketwired - March 11, 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, today announces financial results for the third quarter of fiscal 2015 ("Q3/15"), which include the three and nine months ended January 31, 2015. All figures in this release are in Canadian dollars unless stated otherwise.

Highlights⁽²⁾

• Achieved a head grade of 0.44 ounces per ton ("opt"), or 15.1 grams per tonne ("g/t") in Q3/15; 0.43 opt or 14.7 g/t for the nine months of fiscal 2015 ("YTD").
• Sold 39,722 ounces of gold at an average realized price per ounce of $1,371 (US$1,175) in Q3/15; YTD sold 116,600 ounces at an average realized price per ounce of $1,389 (US$1,243).
• Cash Operating Costs per Ounce of Gold Produced⁽¹⁾ of $766 (US$656); and $813 (US$728) YTD.
• All-In Cash Cost per Ounce of Gold Produced⁽¹⁾ ("AICC") of $1,249 (US$1,070); YTD AICC of $1,289 (US$1,153).
• Income before income taxes of $7.3 million in Q3/15; $17.2 million YTD.
• Net and comprehensive income of $4.2 million or $0.06 per share during the quarter; $11.9 million or $0.17 per share ($0.16 per diluted share) YTD.
• Generated cash flow from operations during the quarter of $23.7 million; $57.3 million YTD.
• Generated free cash flow⁽¹⁾ of $11.6 million during the quarter; $22.8 million YTD.
• Cash as at January 31, 2015 was $44.0 million. After closing the bought deal equity financing ("Financing"), on February 18, 2015, the cash balance was $76.6 million.

Mr. George Ogilvie, Chief Executive Officer of the Company commented, "We are very pleased to see three consecutive quarters of positive results from the operations, generating positive free cash flow and ensuring we will achieve our stated guidance.

"We have made tremendous progress following the turnaround a year and a half ago and we are committed to strive for continuous improvements to strengthen the Company and create a return on investment for our shareholders. During the quarter, we announced the appointment of Eric Sprott as Chairman of the Board of Directors, and entered into a $35 million financing. I believe the success of the financing and Mr. Sprott's joining of the board are key signs that there is renewed faith in our abilities to execute and succeed."

Click on the link for a video interview with George Ogilvie, discussing the Q3 results.

http://webcasting.brrmedia.co.uk/broadcast/136240?popup=true

(1)

The Company has included non-GAAP performance measures: average sales price per ounce sold, cash cost per ton produced, cash cost per ounce produced, AICC per gold ounce produced and free cash flow throughout this announcement. This is a common performance measure in the mining industry but does not have any standardized meaning under IFRS. Refer to Appendix B of the MD&A for a reconciliation of these measures to reported production expenses.

(2)

All US dollar equivalents are converted at the average CAD to USD exchange rate during the reporting period.

Financial and Operational Metrics

Q3/15	Q2/15	Q3/14	Q3/15 vs Q2/15		Q3/15 vs Q3/14		Production	FY2015 YTD	FY2014 YTD	Y o Y
994*	1,002	1,064	-1	%	-7	%	Tons per day ("tpd")	1,005	1,092	-8	%
91,418	92,146	97,917	-1	%	-7	%	Tons Produced	277,444	301,375	-8	%
0.44	0.41	0.33	7	%	33	%	Head Grade	0.43	0.33	34	%
39,158	36,292	31,022	8	%	26	%	Ounces Produced	115,978	92,588	25	%
1,014	1,022	1,215	-1	%	-17	%	Headcount (manpower)	1,014	1,215	-17	%
In CAD$
Q3/15	Q2/15	Q3/14	Q3/15 vs Q2/15		Q3/15 vs Q3/14		Financial	FY2015 YTD	FY2014 YTD	Y o Y
39,722	38,335	33,719	4	%	18	%	Gold Sales (ounces)	116,600	94,502	23	%
1,371	1,395	1,369	-2	%	0	%	Average Price(1) ($) (per ounce)	1,389	1,385	0	%
54,471	53,479	46,165	2	%	18	%	Revenue (000's)	161,953	130,902	24	%
328	350	347	-6	%	-5	%	Cash Operating Cost per Ton Produced(1)	340	340	-	%
766	889	1,094	-14	%	-30	%	Cash Operating Cost per Ounce Produced(1)	813	1,106	-26	%
1,249	1,374	1,923	-9	%	-35	%	AICC(1)	1,289	2,054	-38	%
In US$ Equivalent
1,175	1,262	1,280	-7	%	-8	%	Average Price(1) ($) (per ounce)	1,243	1,324	-6	%
281	317	324	-11	%	-13	%	Cash Operating Cost per Ton Produced(1)	304	324	-7	%
656	804	1,023	-18	%	-36	%	Cash Operating Cost per Ounce Produced(1)	728	1,056	-32	%
1,070	1,243	1,797	-14	%	-40	%	AICC(1)	1,153	1,964	-42	%

* The production rate (tpd) achieved during the quarter does not take into account closures during the annual December holidays. The 1,030 tpd figure is the average production rate achieved for each day of operation during the quarter.

Operations

Development work during Q3/15 progressed as planned with one jumbo advancing the main ramp development towards the 5600 level and the other jumbo focused on stope development. In addition, a third stope on the 5400 level within the South Mine Complex ("SMC") entered into production in early December. The Company is anticipating it will have a total of five stopes in production on the 5400 level by the end of this fiscal year (April 30, 2015), which will ensure more consistent ore production from the 5400 level as we move into fiscal 2016, where the average reserve grade is 0.57 opt (19.5 g/t).

The average production rate achieved for Q3/15 was 1,030 tpd, a 3% increase over the previous quarter. However, during the month of January there was a significant increase to 1,220 tpd with 37,800 ore tons delivered to the mill. This increase resulted from better than anticipated worker productivity and higher stope availability throughout the mine due to improved transitioning in the mining cycle from ore production to paste filling back to ore production cycles.

The head grade achieved during the quarter of 0.44 opt (15.1 g/t), is an increase of 9% over the previous quarter, with a milling recovery of 96.6%.

Exploration

During the quarter, the Company provided an update for underground drilling which extended the New South Zone (associated with the SMC) by 180 feet (54.9 metres) down dip from previous intersections and intersected a new high grade parallel footwall zone (see news release dated January 20, 2015, accessible at www.klgold.com). The Company expects to update its company-wide resource and reserve estimates before fiscal year end.

(1)

The Company has included non-GAAP performance measures: average sales price per ounce sold, cash cost per ton produced, cash cost per ounce produced, AICC per gold ounce produced and free cash flow throughout this announcement. This is a common performance measure in the mining industry but does not have any standardized meaning under IFRS. Refer to Appendix B of the MD&A for a reconciliation of these measures to reported production expenses.

Fiscal 2015 Outlook

The Company continues to make good progress and as such is revising its production guidance from 140,000 - 155,000 ounces to 153,000 - 157,000 ounces of gold. The Company is also revising some of its financial guidance metrics for the current fiscal year as outlined below.

F2015 Guidance CAD$	Metric	YTD F2015 Actual	Revised Guidance
$800 - 850	Cash operating cost per ounce	$813/oz	No Change
$1,250 - 1,350	AICC per ounce produced	$1,289/oz	No Change
$58.0 million	Sustaining capital expense (CAPEX)	$34.5 million	$50 million
$200.0 million	Revenue	$162.0 million	$218 - $222 million
$50.0 - 60.0 million	Cash flow from operations	$57.0 million	$70 - $75 million
$15.0 - 20.0 million	Free cash flow generation	$22.4 million	$30 - $35 million

Conference Call Details

The Company will hold a conference call to discuss the third quarter results on March 11, 2015, at 11:00am EDT (3:00pm BST). You are invited to participate via teleconference using the details below. A replay of the call will be posted on the Company's website (www.klgold.com).

Participant Dial-In Numbers

Toll-Free North America: +1 (877) 291-4570; Local and International: +1 (647) 788-4919

Local from Switzerland: (0-800) 835-354; Local from the United Kingdom: (0-800) 051-7107

Conference ID: 1445227

Replay Dial-In Numbers

Local and International: +1 (416) 621-4642

Toll Free North America: +1 (800) 585-8367

Conference ID: 1445227

Replay Available Until: March 25, 2015 at 11:59PM ET

The following abbreviations are used to describe the periods under review throughout this release.

Abbreviation	Period		Abbreviation	Period
F2015	May 1, 2014 - April 30, 2015		F2014	May 1, 2013 - April 30, 2014
YTD F2015	May 1, 2014 - January 31, 2015		YTD F2014	May 1, 2013 - January 31, 2014
Q3/15	November 1, 2015 - January 31, 2015		Q3/14	November 1, 2014 - January 31, 2014
Q2/15	July 1, 2014 - October 31, 2014		Q2/14	July 1, 2013 - October 31, 2013
Q1/15	May 1, 2014 - June 30, 2014		Q1/14	May 1, 2013 - June 30, 2013

For a description of additional risk factors affecting the Company and 'Forward Looking Information', see the Company's Annual Information Form filed with certain securities regulatory authorities in Canada and available on SEDAR at www.sedar.com in Appendix 4 in the AIF. For 'Forward Looking Information', as presented in the Management Discussion and Analysis ("MD&A") for the period ended January 31, 2015, see Appendix D in the MD&A for a description of other factors that may cause actual results to differ from those anticipated.

Financial Highlights	Reporting Period (Fiscal 2015)
(All amounts in 000's of Canadian Dollars, except gold price per ounce, shares and per share figures)	Q3/15		Q2/15		Q3/14		YTD F2015		YTD F2014
Gold Sales (ounces)	39,722		38,335		33,719		116,600		94,502
Average Gold Price (per ounce)	1,371		1,395		1,369		1,389		1,385
Revenue	54,471		53,479		46,164		161,953		130,902
Production Expenses	41,747		43,254		46,987		126,237		123,900
Exploration Expenditure	1,492		1,617		1,521		4,315		6,478
Other Expenses	3,933		4,225		3,810		14,157		12,570
Income (Loss) before Income Taxes	7,299		4,383		(6,153	)	17,244		(13,094	)
Net and Comprehensive Income (Loss)	4,248		2,684		(4,221	)	11,912		(5,675	)
Per share (basic and diluted)	0.06		0.04		(0.06	)	0.17 / 0.16		(0.14	)
Cash Flow from operations	23,711		16,552		3,553		57,337		23,768
Cash Flow (used in) from financing activities	(8,428	)	(4,663	)	(8,369	)	(16,805	)	(3,642	)
Cash Flow (used in) investing activities	(12,092	)	(10,684	)	(19,152	)	(34,531	)	(44,279	)
Net increase (decrease) in cash	2,627		1,205		(24,629	)	5,125		(24,814	)
Total cash resources	44,019		41,392		51,670		44,019		51,670
Other Current Assets	24,145		24,057		21,036		24,145		21,036
Current Liabilities	31,878		34,047		43,415		31,878		43,415
Working Capital	36,286		31,402		29,291		36,286		29,291
Total Assets	423,537		417,483		410,914		423,537		410,914
Total Liabilities	164,572		161,626		172,267		164,572		172,267
Basic weighted average number of shares outstanding	72,080,581		72,046,482		70,150,912		71,639,992		70,150,912
Dividends per share	NIL		NIL		NIL		NIL		NIL

Qualified Persons

Production and processing at KL Gold's milling facility are under the supervision of Mr. Chris Stewart, P.Eng., Vice President of Operations and the exploration program is under the supervision of Mr. Stewart Carmichael, P.Geo., Manager of Exploration. Messrs. Stewart and Carmichael are 'qualified persons' for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators, and have reviewed and approved this news release.

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 guidance for fiscal 2015 which includes production estimates in respect of ounces produced, operating cost per ounce and all-in cash costs; anticipated revenue, cash flow from operations and free cash flow generation. 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.