Mr. Brian Hinchcliffe reports

KIRKLAND LAKE GOLD TO PURCHASE QUEENSTON MINING'S 50% STAKE IN JOINT VENTURE PROPERTIES IN KIRKLAND LAKE GOLD CAMP

Kirkland Lake Gold Inc. has signed an agreement to acquire Queenston's 50-per-cent interest in the seven joint venture properties the two companies own in the Kirkland Lake camp. The acquisition price is $60-million, to be paid in instalments during calendar 2012, plus a potential production royalty.

Harry Dobson, chairman, commented: "We are pleased to have reached a flexible agreement with Queenston that allows exploration on the South claims to start immediately and, long term, helps advance the company towards its goal of developing a five-million-plus-ounce high-grade mineral inventory. This acquisition also strengthens the case for the recently announced acceleration of our phase III expansion to 2,220 tons of ore per day in fiscal 2014. Lastly, the company's purchase obligations will be met through a combination of its cash position, cash flow and various funding alternatives."

Stew Carmichael, exploration manager for the company, commented: "For the last six years the company's underground exploration focus has been on extending the South mine complex (SMC) where we have enjoyed success outlining high-grade gold in a large percentage of holes drilled on the South claims, HM, and Amalgamated Kirkland claims. In the short term, we plan to immediately begin exploration drilling from both underground and surface on these properties. Long-term exploration plans will include extending the Macassa minus-5,300-foot level east and establishment of drill bays for future exploration."

The purchase price of $60-million, to be paid in three tranches, of which $10-million was paid upon signing of the agreement, and, following the completion of a number of administrative matters, including the severing of the North Amalgamated Kirkland property from the balance of Queenston's Amalgamated Kirkland property, a further $20-million will be paid at a closing scheduled for Aug. 30, 2012. The final $30-million payment will be on Dec. 3, 2012. In addition, there will be further payments if and when the gold produced from these properties exceeds 1.3 million ounces. For the first one million ounces produced above this threshold, the company will pay to Queenston $15 an ounce. For any gold produced above 2.3 million ounces the company will pay $20 an ounce.

In 2005 the company drilled an exploration hole in a previously untested area south of the historic mineralized area known as the Main Break on its 100-per-cent-owned Macassa property that assayed 90 feet of 2.4 ounces of gold (core length). Subsequent successful exploration drilling indicated a trend of the mineralization toward the south onto a property owned by a third party. The company and Queenston jointly acquired this property, termed the South claims, and formed a joint venture to further explore this trend, which resulted in the SMC gold zones being extended onto this joint venture ground. More recently, the trend was further extended by underground drilling from the Macassa mine onto the north portion of Queenston's Amalgamated Kirkland property (see the company's and Queenston's news releases dated Aug. 24, 2010 and Feb. 28, 2012). Other smaller properties were also acquired by the company and Queenston on a joint venture basis.

The properties being purchased consist of the South, HM and East claims and the North Amalgamated Kirkland and the Kirkland Hudson properties, all of which are adjacent to the company's land position. The acquisition also includes the Kirkland Lake West and the Gracie West properties to the west, which are thought to contain the west extension of the Main Break. On completion of the purchase, the company will have increased its 100-per-cent land ownership to 10 kilometres of strike length in the camp.

Based on drilling through December, 2010, the associated table shows the resources that have been estimated on the South claims.

TABLE OF MINERAL RESOURCES ON THE SOUTH CLAIMS JV PROPERTY
                 AS AT JAN. 1, 2011

Resource category    Tons   Ounces per ton   Ounces
                  (tonnes)            (g/t)        

Indicated         101,000             1.41  143,000
                  (92,000)           (48.3)
Inferred          113,000             1.35  153,000
                 (103,000)           (46.3)

These resource estimates were also included as part of a broader report prepared for the company by Glenn Clark, PEng, dated April 4, 2011, entitled Review of resources and reserves of Macassa mine, Kirkland Lake, Ontario at Jan. 1, 2011. This report is available on SEDAR.

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