Mr. Anthony Makuch reports

KIRKLAND LAKE GOLD BEATS 2016 UNIT COST GUIDANCE; PROVIDES 2017 COST OUTLOOK

Kirkland Lake Gold Ltd. has released preliminary operating costs and all-in sustaining costs (AISC) for the full year and the fourth quarter of 2016. The numbers contained in this document are unaudited and subject to finalization. Final numbers for these measures will be available when the company releases its 2016 audited financial and operational results on March 29, 2017. All dollar amounts in this news release are expressed in U.S. dollars, unless otherwise noted.

Full-year 2016 highlights

• Total operating costs of $188-million resulted in preliminary operating cost per ounce and AISC per ounce estimated at $575 and $920, respectively; below the lower range of 2016 operating cost guidance of $600 to $650 per ounce and AISC guidance of $1,000 to $1,050 per ounce;
• Gold sales of 329,489 ounces at an average realized price of $1,235 per ounce.

Fourth quarter 2016 highlights

• Total operating costs of $60.0-million resulted in preliminary operating cost per ounce estimated at $535 and AISC per ounce of $875;
• Record performance at the Macassa mine complex and Fosterville gold mine; operating cost per ounce estimated at $415 and $420, respectively, and AISC at $820 and $645, respectively;
• Gold sales of 111,690 ounces at an average realized price of $1,205 per ounce.

Tony Makuch, president and chief executive officer of Kirkland Lake Gold, stated: "[Two thousand sixteen] was a transformational year for Kirkland Lake Gold. Three highly complementary mining companies with a shared vision merged to create a new diversified mid-tier gold producer. During the fourth quarter and since completing the business combination with Newmarket Gold, we realized record low operating costs from both the Macassa and Fosterville gold mines of $415 per ounce and $420 per ounce, respectively. These are remarkable achievements, highlighting Kirkland Lake Gold's ability to provide investors with significant free cash flow generation from our cornerstone assets. In addition, I am very pleased to report record production and 2016 operating costs and AISC considerably below guidance, a testament to the world-class potential of our flagship operations with grade improving at depth.

"Looking ahead, we are on track to report updated mineral reserves and resources estimates during this quarter and are excited about the prospects of our aggressive 2017 exploration drilling program of $45-million to $55-million. The 2017 guidance reflects our disciplined approach for achievable and sustainable results. Our goal is to deliver on our production and cost guidance and create value for our shareholders."

Operating cost per ounce in 2016 is estimated at $575, below the lower range of the company's guidance of $600 to $650. AISC per ounce in 2016 is estimated at $920, below the lower range of the guidance of $1,000 to 1,050. Total operating costs in 2016 are estimated at $188.0-million and include the results for December, 2016, of the acquired Newmarket Gold Inc. and 11-month results of St. Andrew Goldfields Ltd., acquired by the company on Jan. 26, 2016. Preliminary operating cost per ounce and AISC per ounce in the fourth quarter are estimated at $535 and $875, respectively, based on operating costs of approximately $60.0-million.

The attached table sets out the company's production guidance, previously announced on Jan. 9, 2017, and cost guidance for 2017.

                                              2017 DETAILED GUIDANCE
  
                                   Canadian operations           Australian operations        Consolidated   
                            Macassa         Holt      Taylor   Fosterville         Cosmo    
                         
Gold production          180,000 to    65,000 to   55,000 to    140,000 to     60,000 to        500,000 to
(ounces)                    185,000       70,000      60,000       145,000        65,000           525,000 

Operating costs             $552 to      $672 to     $551 to       $467 to       $941 to           $625 to    
per ounce*                     $568         $723        $601          $484        $1,020              $675

AISC per ounce*                                                                             $950 to $1,000
  
Operating costs
($ millions)                                                                                  $310 to $320   

Royalty costs 
($ millions)                                                                                    $16 to $20    

Sustaining and 
growth capital 
($ millions)                                                                                  $180 to $200   
 
Exploration 
expenditures 
($ millions)                                                                                    $45 to $55    

Corporate general 
and administrative 
expenses ($ millions)                                                                                  $14

* Operating cash costs per ounce and AISC per ounce reflect an average 
U.S.-dollar-to-Canadian-dollar exchange rate of 1.28 and a 
U.S.-dollar-to-Australian-dollar exchange rate of 1.28.

2016 year-end and fourth quarter financial results and conference call details

Full financial results for the three and 12 months ended Dec. 31, 2016, will be released on Wednesday, March 29, 2017, before market open.

A conference call to discuss the results will be held by senior management on Wednesday March 29, 2017, at 11 a.m. ET (8 a.m. PT). The call will be webcast and accessed at the Kirkland Lake Gold website in the investor section under "events."

2016 year-end and fourth quarter conference call details

Date:  Wednesday, March 29, 2017

Conference ID:  49352992

Time:  11 a.m. ET (8 a.m. PT)

Toll-free number:   1-877-201-0168

International number:  1-647-788-4901

Qualified persons

Pierre Rocque, PEng, vice-president, technical services, is a qualified person as defined in National Instrument 43-101 and has reviewed and approved disclosure of the technical information and data in this news release.

About Kirkland Lake Gold Ltd.

Kirkland Lake Gold is a mid-tier gold producer targeting over 500,000 ounces in Tier 1 mining jurisdictions of Canada and Australia. The production profile of the company is anchored from two high-grade, low-cost operations, including the Macassa mine complex located in Northeastern Ontario and the Fosterville gold mine located in the state of Victoria, Australia.

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