Mr. Tony Makuch reports

KIRKLAND LAKE GOLD EXTENDS HIGH-GRADE MINERALIZATION AT DEPTH ON THE LOWER PHOENIX GOLD SYSTEM AND REPORTS A RECORD HIGH-GRADE DRILL RESULT FROM THE FOSTERVILLE GOLD MINE

Kirkland Lake Gold Ltd. has drilled extensions of high-grade mineralization at depth and new high-grade intercepts, including a record high-grade drill result in hole UDH1817 from underground drilling at its Fosterville gold mine in Australia.

Underground resource definition drilling has continued to target downplunge extensions of the Lower Phoenix and Harrier South gold systems to assess the potential of mineral reserve expansion. Recent drill results returned from 20 underground holes totalling 6,471 metres into extensions of the Lower Phoenix gold system include the highest-grade drill intercept ever recorded at Fosterville. Results continue to demonstrate the continuity of exceptional high-grade visible gold mineralization on both the newly discovered west-dipping Lower Phoenix footwall and Eagle structures in the Lower Phoenix gold system.

A drill program of seven holes totalling 2,670 metres in the Harrier South gold system has reaffirmed the mineral reserve conversion potential of this area. Recent drill results continue to support the potential to expand Fosterville's mineral resources and reserves and confirm continuity of high-grade gold mineralization downplunge on the Harrier South gold system.

Underground drilling highlights at Fosterville gold mine

• Drilling into the newly discovered west-dipping Lower Phoenix footwall structure intersected record high-grade gold mineralization of 1,429 grams per tonne gold(1) over 15.15 metres (estimated true width (ETW): 4.97 m) in hole UDH1817 (including 21,490 g/t Au(1) over 0.6 m (ETW: 0.24 m)). Additional high-grade results returned on this structure include 356 g/t Au(1) over 7.2 m (ETW: 6.01 m) in hole UDH1943 (including 1,339 g/t Au(1) over 1.85 m (ETW: 1.69 m)) and 83.9 g/t Au(1) over 3.5 m (ETW: 3.18 m) in hole UDH1941 (including 234 g/t Au(1) over 0.65 m (ETW: 0.46 m)). This structure has now been defined over a strike extent of 200 m and vertical extent of 160 m.
• Eagle fault underground definition drilling continues to return high-grade mineralization and has now been defined over a strike length of 790 m and vertical extent of 450 m, with the return of key drill intercepts including 15.97 g/t Au(1) over 11.35 m (ETW: 6.47 m) in hole UDH1890A (including 195 g/t Au(1) over 0.45 m (ETW: 0.24 m)) and 9.71 g/t Au over 4.5 m (ETW: 1.99 m) in hole UDH1940.
• Drilling on the Harrier Base structure continues to return high-grade mineralization. Key intercepts include 15.84 g/t Au over 1.65 m (ETW: 1.6 m) in hole UDH1908 and 8.58 g/t Au over 3.05 m (ETW: three m) in hole UDH1871A. These results increase the level of confidence in a high-grade zone of mineralization which has the potential to provide an independent mining front from the Lower Phoenix South.

Tony Makuch, president and chief executive officer, Kirkland Lake Gold, commented: "We are very pleased to report continued positive results from our drilling programs on the Lower Phoenix and Harrier South gold systems at our Fosterville gold mine. Two thousand sixteen proved to be a significant year for the Fosterville operation delivering record production of 151,755 ounces of gold with a record mill grade and recovery of 7.55 g/t Au and 90.1 per cent, respectively. The mining of high-grade visible-gold-bearing structures in the Lower Phoenix gold system has largely contributed to the record production result.

"Recent downplunge drilling of these structures has returned exceptional results, including the highest result ever returned from the Fosterville mine of 1,429 g/t Au over 15.15 m (ETW: 4.97 m), including 21,490 g/t Au over 0.6 m (ETW: 0.24 m), in hole UDH1817. We have been able to successfully demonstrate that high-grade mineralization extends at depth on both the Lower Phoenix footwall and Eagle structures ahead of the current mining area, and, excitingly, both of these high-grade structures remain open downplunge. In addition, we continue to see strong drill results in the Harrier gold system, which we believe demonstrate the potential for a high-grade independent mining front to the Lower Phoenix South mining area.

"We continue to invest strongly in Fosterville with nine rigs in operation, focused on our objective of extending mine life and realizing the full potential of the asset. We look forward to providing an update to our mineral resources and mineral reserves estimates in first quarter 2017 for both the Canadian and Australian operations."

Underground definition programs at Fosterville gold mine -- 2016

Lower Phoenix gold system underground resource definition drilling program

Since the Nov. 8, 2016, Newmarket news release, drilling from four diamond drill rigs has continued to focus on resource definition and understanding of multiple gold targets including the Lower Phoenix footwall (LPFW) and Eagle faults. Reported drill results from 20 holes (6,471 m) are from intercepts through the Lower Phoenix footwall and Eagle resource target areas outside of the Dec. 31, 2015, measured and indicated mineral resources. Mining production continues on the upplunge areas of the Lower Phoenix gold system structures, including the high-grade Eagle fault, which has largely contributed to Fosterville's 2016 record gold mill grade of 7.55 g/t.

All drill assay intercepts are provided in a table available on the company's website.

Lower Phoenix footwall structures

A total of 12 drill holes intercepted significant gold mineralization associated with Lower Phoenix footwall structures. The most significant mineralization contains visible gold and occurs in the newly discovered west-dipping lode as reported in the Nov. 8, 2016, Newmarket news release, where new drilling results include a record drill intercept at Fosterville 1,429 g/t Au(1) over 15.15 m (ETW: 4.97 m) in hole UDH1817 (including 21,490 g/t Au(1) over 0.6 m (ETW: 0.24 m)). Additional intercepts confirming the continuity of high-grade mineralization on this structure include 356 g/t Au(1) over 7.2 m (ETW: 6.01 m) in hole UDH1943 (including 1,339 g/t Au(1) over 1.85 m (ETW: 1.69 m)), 83.9 g/t Au(1) over 3.5 m (ETW: 3.18 m) in hole UDH1941 (including 234 g/t Au(1) over 0.65 m (ETW: 0.46 m)), 25.03 g/t Au(1) over 4.35 m (ETW: 3.48 m) in hole UDH1949 (including 52.2 g/t Au(1) over 1.95 m (ETW: 1.34 m)), 21.14 g/t Au over 4.7 m (ETW: 3.56 m) in hole UDH1945 (including 85.9 g/t Au over 0.65m (ETW: 0.4 m)) and 15.39 g/t Au over 5.75 m (ETW: 3.93 m) in hole UDH1944.

These intercepts are located approximately 20 to 140 m vertically below and 20 to 150 m laterally along strike from current mineral reserves. The defined size of this high-grade mineralized structure is now 200 m in strike length and 160 m in vertical extent. The mineralized zone appears to adjoin the high-grade Eagle structure at its lower edge and is untested downplunge. Continued drilling from the hangingwall drill platforms during 2017 will continue to advance the understanding of size and scale of this attractive resource growth target.

Eagle fault

The high-grade Eagle fault system has now been defined over a strike length of 790 m and vertical extent of 450 m. Recent drilling continues to return significant high-grade gold intercepts and supports the view that the Eagle fault system remains open for expansion downplunge. Recent drill results into the Eagle fault below 4,020 mRL include 15.97 g/t Au(1) over 11.35 m (ETW: 6.47 m) in hole UDH1890A (including 195 g/t Au(1) over 0.45 m (ETW: 0.24 m)) and 11.36 g/t Au(1) over 1.9 m (ETW: 1.51 m) in hole UDH1865. These results continue to confirm the continuity and high-grade tenor of the Eagle Fault downplunge and clearly demonstrate mineral reserve growth potential on this structure.

Recent definition drilling into the east-dipping Eagle fault structure from the Central decline and Phoenix 4190 drill drive has also continued to define a series of east-dipping splay faults which host significant gold mineralization. Holes UDH1940 and UDH1901 intercepted these splay structures returning results of 9.71 g/t Au over 4.5 m (ETW: 1.99 m) and 9.32 g/t Au over 1.9 m (ETW: 1.86 m), respectively. These intercepts are located within 40 vertical m of Dec. 31, 2015, mineral reserves. The Eagle zone remains untested and open at depth below 3,940 mRL and south of 6,360 mN and drilling is planned to target beyond this extent during 2017.

Harrier South gold system underground resource definition drilling program

Since the Nov. 8, 2016, Newmarket news release, drilling from two diamond rigs has continued to focus on resource definition and understanding of multiple gold targets, including the Harrier Base fault in the Harrier South gold system. Reported drill results from seven holes (2,670 m) are from intercepts though the Harrier Base resource target area and are outside of the Dec. 31, 2015, measured and indicated mineral resources.

All drill assay intercepts are provided in Table 1 and drill collars in Table 2.

Harrier Base structure

Drill results returned on the Harrier Base structure contain high-grade intercepts including 15.84 g/t Au over 1.65 m (ETW: 1.6 m) in hole UDH1908, 8.58 g/t Au over 3.05 m (ETW: three m) in hole UDH1871A and 8.91 g/t Au over 1.95 m (ETW: 1.6 m) in hole UDH1863.

Results from holes UDH1871A and UDH1870 lie within a previously identified zone of high-grade, visible gold mineralization between 4,750 mN to 4,900 mN and 4,280 mRL to 4,350 mRL, which includes previously reported results of 129 g/t Au(1) over 6.95 m (ETW: 6.2 m) in hole UDH1868 (including 877 g/t Au(1) over one m (ETW: 0.9 m)), 14.57 g/t Au(1) over 6.8 m (ETW: 5.9 m) in hole UDH1869 and 10.69 g/t Au over eight m (ETW: 6.4 m) in hole UDH1830 (including 15.73 g/t Au over 5.05 m (ETW: four m)) as discussed in the Nov. 8, 2016, Newmarket news release. Planned drilling for 2017 will test the downplunge extensions of this identified high-grade zone to 4,650 mN, approximately 100 m beyond the current extent of drilling. Holes UDH1861 to UDH1863, UDH1908 and UDH1911 intercept the Harrier Base structure immediately north of this high-grade zone and have demonstrated widths and grade amenable to mining.

Qualified persons

Troy Fuller, MAIG, geology manager, Fosterville gold mine, is a qualified person as such term is defined in National Instrument 43-101, and has reviewed and approved the technical information and data included in this news release.

Quality assurance/quality control information is provided at the bottom of a table available on the company's website.

(1) Visible gold present in drill intercept, all drill results are presented in a table available on the company's website.

About Kirkland Lake Gold

Kirkland Lake Gold is a mid-tier gold producer targeting plus-500,000 ounces in 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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