Kirkland Lake Gold Inc.
TSX : KGI
AIM : KGI

Kirkland Lake Gold Inc.

July 16, 2008 02:00 ET

Substantial Increases in Reserves and Resources of South Mine Complex; Exploration Drilling Budget to Increase by 40%

KIRKLAND LAKE, ONTARIO--(Marketwire - July 16, 2008) - Kirkland Lake Gold Inc. (the "Company")(TSX:KGI)(AIM:KGI) is pleased to present its new year-end (April 30, 2008) gold reserve and resource estimates for its operations in Kirkland Lake, Ontario on both the historic Main Break and the recently discovered South Mine Complex. The South Mine Complex consists of 15 or more mineralized zones, five of which have been defined over strike lengths in excess of 1,000 feet.

Since the April 2007 reserve estimates for the South Mine Complex (SMC), the Company concentrated it exploration efforts on the SMC and has realized substantial increases in all categories of reserves and resources. These increases are attributable to drifting, definition diamond drilling as well as exploration diamond drilling from both the new 5000 and 5300 level cross cuts which have now accessed some of the zones comprising the SMC.

"The exploration team has added more than 900 thousand ounces of high grade gold reserves and resources since our last property wide presentation of reserves and resource two years ago," said Company President, Brian Hinchliffe. "When you are competing against the execution of large capex programs in the SMC and gold production from the Main Break, the team did a great job keeping five drills going for most of the year and are planning to add two more drills this fiscal year!"

Resources & Reserves Increase



PROPERTY WIDE RESERVES & RESOURCES
(Including the South Mine Complex)

----------------------------------------------------------------------------
As at April 30, 2006 As at April 30, 2008
-------------------- -------------------- %
Tons Grade Ounces Tons Grade Ounces Change
opt opt (in total
ounces)
----------------------------------------------------------------------------
Reserves:
----------------------------------------------------------------------------
Proven 1,164,000 0.44 509,000 1,200,000 0.44 528,000
-------------------------------------------------------------------- +23%
Probable 1,147,000 0.50 574,000 1,303,000 0.62 804,000
----------------------------------------------------------------------------
Resources:
----------------------------------------------------------------------------
Measured 911,000 0.36 331,000 979,000 0.38 376,000
-------------------------------------------------------------------- +44%
Indicated 1,055,000 0.35 369,000 1,471,000 0.43 632,000
----------------------------------------------------------------------------
Inferred 1,054,000 0.50 523,000 1,345,000 0.61 822,000 +57%
----------------------------------------------------------------------------


SOUTH MINE COMPLEX RESERVES & RESOURCES

----------------------------------------------------------------------------
As at April 30, 2007 As at April 30, 2008
-------------------- -------------------- %
Tons Grade Ounces Tons Grade Ounces Change
opt opt (in total
ounces)
----------------------------------------------------------------------------
Reserves:
----------------------------------------------------------------------------
Proven 52,000 0.73 38,000 93,000 0.79 73,000
------------------------------------------------------------------- +52%
Probable 433,000 0.74 320,000 603,000 0.78 470,000
----------------------------------------------------------------------------
Resources:
----------------------------------------------------------------------------
Measured 2,000 0.24 500 8,000 0.45 4,000
------------------------------------------------------------------- +63%
Indicated(i) 211,000 0.68 144,000 352,000 0.66 232,000
----------------------------------------------------------------------------
Inferred(i) 620,000 0.85 526,000 707,000 0.79 558,000 +6%
----------------------------------------------------------------------------
(i)Includes 50% of resources estimated in the South Claims Joint Venture
Property


SOUTH CLAIMS JOINT VENTURE PROPERTY
(To be Shared Equally With Queenston Mining Inc.)

----------------------------------------------------------------------------
As at April 30, 2007 As at April 30, 2008
-------------------- -------------------- %
Tons Grade Ounces Tons Grade Ounces Change
opt opt (in total
ounces)
----------------------------------------------------------------------------
Reserves:
----------------------------------------------------------------------------
Proven 0 - - 0 - -
------------------------------------------------------------------- -
Probable 0 - - 0 - -
----------------------------------------------------------------------------
Resources: -
----------------------------------------------------------------------------
Measured 0 - - 0 - -
------------------------------------------------------------------- -
Indicated 0 - - 43,000 1.11 48,000
----------------------------------------------------------------------------
Inferred 0 - - 73,000 1.24 91,000 -
----------------------------------------------------------------------------


The above reserve and resource estimates have been audited and verified by the Company's independent reserve and resource engineer, Glenn R. Clark, P. Eng., of Glenn R. Clark & Associates Limited. He is a 'qualified person' under National Instrument 43-101, Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators. A report detailing the fiscal 2008 reserve and resource estimates will be filed on SEDAR (www.sedar.com) within 30 days of this press release. See 'Notes for Reserves' below for key assumptions, parameters and methods used to estimate the foregoing reserves and resources.

Highlights of the Current Reserve and Resource Estimates

The highlights of the current reserve and resource estimates include:

- Proven and probable reserves for the SMC increased by 52% over the past fiscal year and now stand at 696,000 tons at a grade of 0.79 ounces of gold per ton (opt) or 543,000 contained ounces. Measured and indicated resources increased by 63% and now stand at 360,000 tons at a grade of 0.66 opt or 236,000 contained ounces. Inferred resources increased by 6% to 707,000 tons at a grade of 0.79 opt or 558,000 contained ounces.

- Since last reported for the fiscal year 2006, proven and probable reserves for the entire mine have increased by 23% and now stand at 2,503,000 tons at a grade of 0.53 opt or 1,332,000 contained ounces (2006: 2,311,000 tons at 0.47 opt containing 1,083,000 ounces). Measured and indicated resources increased by 63% and now stand at 2,450,000 tons at a grade of 0.41 opt or 1,008,000 contained ounces (2006: 1,966,000 tons at 0.35 opt containing 700,000 ounces). Inferred resources increased by 5% to 1,345,000 tons at a grade of 0.61 opt or 822,000 contained ounces. The higher grading SMC is now beginning to impact the overall mine-wide grade, in particular the probable ore which increased in grade from 0.50 opt (FY 2006) to 0.62 opt (FY 2008).

- The average cost per ounce found (based on direct drilling costs) for the fiscal year 2008 is C$4.10 (2007: C$3.20). The cost differential is attributable to an increase in the contract price for drilling as well as slightly longer holes required to define resources and reserves.

Exploration Plans for Fiscal 2009

The exploration plans for fiscal 2009 include:

- The fiscal 2009 exploration budget has been set at $6.3 million dollars and will include $1.7 million dollars of development to provide access for drilling on the SMC and $3.2 million dollars for diamond drilling.

- Exploration drilling of the SMC and other exploration targets, which will include up to seven drills, will be outlined in a forthcoming press release.

Notes for Reserves:

1. The reserves and resources are estimated using the polygonal method.

2. All intersections are calculated out to a 5.0 foot minimum horizontal mining width for structures dipping greater than 45 degrees. The minimum mining height for structures dipping less than 45 degrees is 6.5 feet.

3. Dilution is added to reserves at varying rates depending on mining method, and the width of the ore. The average dilution of the reserves at April 2008 is 33.7% at 0.02 ounces of gold per ton. Long-hole stopes are diluted by 32-50%, mostly 50%. Cut and fill stopes 5-7 feet wide are diluted 15-50%. Most of the narrower stopes are diluted by 50%. Cut-and-fill stopes that are greater than 7 feet wide are diluted 10-15%.

4. All higher grades are cut to 3.50 ounces of gold per ton. Based on a statistical analysis completed by Scott Wilson Roscoe Postle Associates Inc. in 2007, the Company has implemented various higher grade cutting factors for four zones in the South Mine Complex. These four zones are the New South Zone (7.2 oz gold/ton), Lower D North (9.3 oz gold/ton), Lower D North Footwall (4.8 oz gold/ton), and the #7 and #7 HW Zones (6.4 oz gold/ton). The cut-off is 0.25-0.30 ounces of gold per ton over the horizontal or vertical mining width. Cut-off grades of 0.25 oz/ton gold and 0.35 oz/ton gold are used for reserve and resource calculations, depending on the location, and economics of the block. Generally, a cut-off of 0.31 opt is required on a whole-block basis to achieve profitability. It is possible to have sub-blocks within an ore reserve block that assay less than any cut-off which have been incorporated for mining or geotechnical reasons. Ore blocks that grade between 0.20 opt and the cut-off have been classified as resource.

5. The area of influence of the proven and measured categories are 30 feet from development chip samples, probable and indicated categories are 50 feet of radius from a known sample point (drill holes) and inferred is another 50 feet of influence.

6. A 94% tonnage recovery is used. Continuity of the veins appears very good.

7. The assumptions used include $582.00 U.S. per ounce of gold, and an exchange rate of $1.13 Canadian equals U.S. $1.00 ($656.00 Canadian per ounce equals 3 year average).

8. The Company is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing or other issue that may materially affect its estimate of mineral resources.

9. Mineral resources which are not mineral reserves do not have demonstrated economic viability.

About the Company

The Company 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 Abitibi Southern Greenstone Belt of Kirkland Lake, Ontario, Canada.

Other Reserve Reports

The Company's Macassa Mine Property is the subject of reserve reports prepared by:

- Glenn R. Clark, P. Eng., entitled Review of Resources and Reserves of Macassa Mine, Kirkland Lake, Ontario dated July 18, 2006.

- Glenn R. Clark, P.Eng., entitled Review of Resources and Reserves of the New South Mine Complex, Macassa Mine, Kirkland Lake, Ontario dated August 25, 2007.

Both of these technical reports have been filed on SEDAR (www.sedar.com).

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 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.

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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