Mr. Anthony Makuch reports

KIRKLAND LAKE GOLD REPORTS STRONG FOURTH QUARTER AND FULL-YEAR 2020 PRODUCTION, COMPANY REPURCHASES 20 MILLION SHARES

Kirkland Lake Gold Ltd. has provided its production results for the fourth quarter and full year of 2020. Q4 2020 production totalled 369,434 ounces, a 32-per-cent increase from the fourth quarter of 2019 and 9 per cent higher than the previous quarter. All three of the company's cornerstone assets achieved their highest quarterly production levels of the year in Q4 2020. For FY 2020, the company produced 1,369,652 ounces, a 41-per-cent increase from 2019 (FY 2019) and in line with full-year 2020 guidance of 1.35 million to 1.4 million ounces. All dollar amounts are expressed in U.S. dollars, unless otherwise noted. Per-share amounts are based on a total of 268,097,877 shares outstanding at Dec. 31, 2020.

$847.6-million returned to shareholders in 2020

A total of $847.6-million of cash was returned to shareholders through share repurchases and dividend payments in FY 2020 ($280.1-million in Q4 2020), representing $3.16 per share outstanding and $619 per ounce of FY 2020 production. A total of $731.6-million ($974.6-million (Canadian)) of cash was used to repurchase 18,925,900 shares during the year through the company's normal course issuer bid (NCIB), of which 5,727,500 shares were repurchased during Q4 2020 for $245.9-million ($319.4-million (Canadian)). With additional repurchases of 1,074,100 shares during the first week of January, 2021, for $46.3-million ($58.8-million (Canadian)), the company has now achieved its goal of repurchasing 20.0 million shares over a 12- to 24-month period, which was announced in February, 2020, following the completion of the Detour Gold Corp. acquisition. Dividend payments in 2020 totalled $116.0-million, including $34.2-million being used in Q4 2020 for a dividend payment of 12.5 U.S. cents per share on Oct. 14, 2020, to shareholders of record on Sept. 30, 2020. The company increased the quarterly dividend twice in 2020, doubling it to 12.5 U.S. cents per share effective the Q1 2020 payment, with an additional 50-per-cent increase, to 18.75 U.S. cents per share, introduced effective the Q4 2020 payment, to be paid on Jan. 14, 2021, to shareholders of record on Dec. 31, 2020.

Significant financial strength maintained

At Dec. 31, 2020, the company had cash of $848-million (with no debt), an increase of $141-million or 20 per cent from $707-million at Dec. 31, 2019. Cash at Dec. 31, 2020, was unchanged from the previous quarter-end, mainly reflecting the significant capital returned to shareholders during Q4 2020.

Highlights of Q4 2020 and FY 2020 production results

• Consolidated production in Q4 2020 of 369,434 ounces, 32-per-cent increase from 279,742 ounces in Q4 2019 and 9 per cent higher than 339,584 ounces in Q3 2020 (1,369,652 ounces for FY 2020 versus 974,615 ounces for FY 2019;
• Gold poured of 373,284 ounces versus 279,054 ounces in Q4 2019 and 325,811 ounces in Q3 2020 (FY 2020 gold poured of 1,364,601 ounces compared with 978,455 ounces for FY 2019);
• Gold sales totalling 371,009 ounces at an average realized price of $1,875 per ounce compared with gold sales of 278,438 ounces ($1,481 per ounce) in Q4 2019 and 331,959 ounces ($1,907 per ounce) in Q3 2020 (FY 2020 gold sales of 1,388,944 ounces ($1,772 per ounce) versus gold sales of 979,733 ounces ($1,405 per ounce) for FY 2019);
• Production from Detour Lake mine of 153,143 ounces, 9-per-cent increase from 140,067 ounces in Q3 2020 (production from date of acquisition on Jan. 31, 2020, to Dec. 31, 2020, totalled 516,757 ounces);
• Strong production at Fosterville totalling 164,008 ounces compared with record quarterly production of 191,894 ounces in Q4 2019 and 161,489 ounces the previous quarter (record production of 640,467 ounces in FY 2020 versus 619,366 ounces a year earlier);
• Production at Macassa totalling 52,283 ounces versus 56,379 ounces in Q4 2019 and 38,028 ounces in Q3 2020 (FY 2020 production of 183,038 ounces versus 241,297 ounces for FY 2019; production in FY 2020 was impacted by reduced operations and health and safety protocols related to COVID-19, as well as reduced work force productivity and equipment availability resulting from excessive heat in the mine during the third quarter of the year).

Tony Makuch, president and chief executive officer of Kirkland Lake Gold, commented: "Our most significant achievement in 2020 was our extensive response to the COVID-19 pandemic, which clearly demonstrated that, at Kirkland Lake Gold, nothing is more important than the health and safety of our people and the responsible operation of our business. Looking at our operating performance, in many respects our team had its best year ever in 2020. Faced with unprecedented challenges, we generated solid results, with production of 1,369,652 ounces achieving our full-year 2020 guidance. Our strong performance was driven by Fosterville, which generated record production of 640,467 ounces, including better-than-expected results during Q4 2020. Detour Lake and Macassa were significantly impacted by COVID-19, including being placed on reduced operations at the end of the first quarter. Both operations bounced back later in the year, achieving their best quarter of production in Q4 2020. Looking at Detour Lake, we are extremely pleased with our acquisition of the mine on Jan. 31, 2020, which was clearly a case of the right deal at the right time. Detour Lake is a tremendous asset with substantial upside that is already making a significant contribution to our operating and financial results. In 2021, the mine is poised for strong production growth and improved unit costs, with there being considerable potential for additional growth as we continue to have success with our extensive exploration program.

"Turning to exploration, we achieved very encouraging drill results at all three of our cornerstone assets, which support our view that Detour Lake, Macassa and Fosterville are not just three very profitable operations, they are also three of the most exciting exploration stories in the industry. We also made excellent progress with our key growth projects, including our No. 4 shaft project at Macassa which was advancing ahead of schedule at year-end, with target completion in late 2022. At Fosterville, a twin exploration drive being developed to Robbin's Hill advanced over 3,200 metres, with underground drilling from the drive to commence late this year. We also commenced several key projects at Detour Lake during 2020 in support of the significant production growth we are targeting in the years ahead, with these projects focused on mill enhancements, tailing capacity expansion and construction of new site infrastructure.

"Finally, one of our key strategic priorities is returning capital to shareholders and, in this critical area of value creation, 2020 was an extremely successful year. In total, we returned $847.6-million to shareholders during the year, including $731.6-million through share repurchases and $116.0-million in dividend payments. In February of 2020, we announced a target to repurchase 20.0 million shares through our NCIB within a 12- to 24-month period as part of completing the Detour Gold acquisition and, as of Jan. 8, 2021, we have achieved that goal. We also increased our dividend twice in 2020, growing the quarterly dividend from six cents per share when 2020 began to 18.75 cents per share effective the Q4 2020 dividend (75 cents per share annualized). With three cornerstone assets like Detour Lake, Macassa and Fosterville, we expect to continue to generate strong earnings and cash flows, which will support our ongoing efforts to return substantial amounts of capital to shareholders going forward."

Key developments in FY 2020

Pro-active and effective response to COVID-19 pandemic

• Implemented extensive health and safety protocols to protect workers from COVID-19, including suspension of all non-essential work, remote work where possible and protocols in support of social distancing, medical testing and cleaning and sanitizing;
• COVID-19 protocols are expected to remained in effect for the foreseeable future;
• As part of the COVID-19 response, reduced operations were introduced at Detour Lake (March 23) and Macassa (April 2) with operations suspended at Holt complex (April 2);
• Gradual recall of workers commenced at Detour Lake and Macassa in early May with work forces returning to pre-COVID-19 levels by June 30, 2020.

Significant achievements in environment, social and governance (ESG) performance

• Adopted World Gold Council's responsible gold mining principles; completed year one external assurance;
• Finalized policies and standards on human rights, supplier code of conduct and grievance resolution;
• Verified that all active tailings facilities meet or exceed all MAC (Mining Association of Canada)/CDA (Canadian Dam Association) and ANCOLD (Australian National Committee on Large Dams) guidelines;
• Received Tom Peters memorial mine reclamation award in recognition of Detour Lake mine's progressive reclamation program aimed at reclaiming 10 hectares of land per year commencing in 2019;
• Achieved greenhouse gas (GHG) emissions well below industry averages, with Macassa continuing to have among the lowest GHG intensity rates in the industry;
• Macassa purchased industry's first 50-tonne battery-powered underground haul truck in 2020, with delivery scheduled for Q1 2021;
• Launched $20-million donation program to support local health care agencies and community support groups in areas where the company operates; $1.0-million (Australian) donated to support Australian bush fire relief and prevention.

Acquisition of Detour Gold Corp.

• Acquired Detour Gold on Jan. 31, 2020, adding a large-scale, open-pit gold mine (Detour Lake mine) in Northern Ontario with a large base of mineral reserves and significant potential for growth through exploration success;
• Detour Lake is poised for significantly stronger results in 2021 with production targeted to grow to 680,000 to 720,000 ounces at all-in sustaining costs better than $900 per ounce sold.

Drilling results demonstrate substantial exploration upside at all three cornerstone assets

• Detour Lake: broad zones of mineralization intersected in the Saddle zone between the Main and West pits with high grades at depth supporting potential underground mining operations. Results provide increasing evidence that a much larger and higher-grade deposit exists than is currently included in mineral reserves;
• Macassa: drilling continued to expand the South Mine complex (SMC), intersected exceptional grades near the contact of the SMC and Amalgamated break, expanded mineralization along the Amalgamated break and identified a new high-grade corridor along the Main break close to the No. 4 shaft (currently under development);
• Fosterville: drilling returned higher than expected grades from infill drilling in the Swan zone, confirmed the scale of mineralized systems at Robbin's Hill, Cygnet and Harrier, and demonstrated the potential for discovering new high-grade zones.

Significant progress with key growth capital projects

• No. 4 shaft project (Macassa): sinking advanced approximately 3,040 feet during 2020, reaching 4,240 feet by year-end; project advancing ahead of schedule on track for completion in late 2022, with production at Macassa to grow to 400,000 to 425,000 ounces in 2023;
• Robbin's Hill exploration decline at Fosterville: twin exploration drive advanced 3,292 metres in 2020; drive to support underground drilling at Robbin's Hill and other targets with drilling to commence in Q4 2021 and completion of the drive targeted for mid-2022;
• Multiple projects at Detour Lake: multiple projects undertaken in support of future production growth, including investments in mill improvements, expansion of tailings capacity, construction of an assay lab and improvements to other site infrastructure.

Operations suspended at non-core assets

• Holt complex: operations suspended effective April 2 and extended until further notice on July 16; strategic alliance agreement announced with Newmont Canada FN Holdings ULC in August through which the companies committed to work together to identify regional exploration opportunities around the Holt complex and Newmont's properties in Timmins, Ont.; Kirkland Lake Gold received $75-million from Newmont with Newmont acquiring an option on mining and mineral rights related to the Holt mine property;
• Northern territory: test mining and milling, as well as all exploration drilling, suspended in March, 2020; Three-year, $60-million to $65-million rehabilitation program was launched in Q3 2020, intended to address environmental issues caused by prior owners with objective of restoring approximately 360 hectares to grazing land quality, removing waste rock dumps and filling open pits.

Significant proceeds from sale of strategic investments

• During fiscal year 2020, $174.4-million ($230.1-million (Canadian) was received from the sale of strategic investments, including $107.7-million ($143.2-million (Canadian) from the sale of 32.6 million shares of Osisko Mining Inc. in Q3 2020; $38.9-million ($50.7-million (Canadian) from the sale of 20,605,100 shares and 9,225,000 warrants of Novo Resources Corp., most of which was sold in Q4 2020, and $27.8-million ($36.2-million (Canadian) related to the sale of 35,656,084 shares of De Grey Mining Ltd. in Q4 2020.

                                       Q4 AND FY 2020 PRODUCTION
  
 
Production results                         Q4 2020      Q4 2019      Q3 2020      FY 2020      FY 2019

Fosterville
Ore milled (tonnes)                        183,635      121,998      167,533      593,343      492,874
Grade (g/t Au)                                28.1         49.3         30.3         33.9         39.6
Recovery (%)                                  98.9         99.2         99.0         98.9         98.8
Gold production (oz)                       164,008      191,893      161,489      640,467      619,366
Macassa
Ore milled (tonnes)                         74,353       87,573       78,526      312,758      324,077
Grade (g/t Au)                                22.4         20.5         15.4         18.6         23.6
Recovery (%)                                  97.7         97.8         97.8         97.7         97.9
Gold production (oz)                        52,283       56,379       38,028     183,0382       41,297
Detour Lake (1)
Ore milled (tonnes)                      5,829,230            -    5,898,694   21,091,938            -
Grade (g/t Au)                                0.89            -         0.81         0.83            -
Recovery (%)                                  91.8            -         90.7         91.3            -
Gold production (oz)                       153,143            -      140,067      516,757            -
Holt complex (2)
Ore Milled (tonnes)                              -      252,801            -      215,318      853,528
Grade (g/t Au)                                   -          4.1            -          4.5          4.4
Recovery (%)                                     -         94.1            -         93.6         94.7
Gold production (oz)                             -       31,469            -       29,391      113,952
Total consolidated production (oz) (3)     369,434      279,742      339,584    1,369,652      974,615
Total consolidated gold sales (oz)         371,009      278,438      331,959    1,388,944      979,733

(1) The Detour Lake mine was acquired on Jan. 31, 2020. FY 2020 production represents output from that 
    date to Dec. 31, 2020.

(2) The Holloway mine, a component of Holt complex, was placed on care and maintenance in March, 2020, 
    with no plans for a resumption of operations. The remainder of the Holt complex was placed on 
    temporary suspension effective April 2, 2020, as part of the company's COVID-19 response. In July, 
    2020, the company announced that operations at the Holt complex would remain suspended until further 
    notice.

(3) Production numbers may not add to totals due to rounding.                                                                                                                                                                                                                                                                                                                                                  

        PERFORMANCE AGAINST FULL-YEAR 2020 PRODUCTION GUIDANCE (AS AT NOV. 5, 2020)
  
                          Macassa   Holt complex   Detour Lake   Fosterville   Consolidated 

2020 guidance (000s oz)   210-220             29       520-540       590-610    1,350-1,400
FY 2020 production (oz)   183,038         29,391       516,757       640,467      1,369,652  

After withdrawing guidance for 2020 on April 2, 2020, due to uncertainties related to the COVID-19 pandemic, the company issued new guidance on June 30, 2020 (see "Performance against full-year 2020 production guidance (as at Nov. 5, 2020)" table), which remained unchanged throughout the balance of the year. FY 2020 consolidated production totalled 1,369,652 ounces, in line with reissued guidance and a 41-per-cent increase from FY 2019. The increase from the previous year mainly reflected the addition of Detour Lake mine, which was acquired on Jan. 31, 2020, as well as the impact of record production at Fosterville. These factors more than offset a significant reduction in production at Holt complex, where operations were suspended effective April 2, 2020, as well as lower production at Macassa, largely reflecting the impact of reduced operations and protocols related to COVID-19 and reduced work force productivity and equipment availability resulting from excessive heat in the mine during Q3 2020.

Review of operations

Fosterville

The Fosterville mine produced 164,008 ounces in Q4 2020 based on processing 183,635 tonnes at an average grade of 28.1 grams per tonne and average mill recoveries of 98.9 per cent. Q4 2020 production compared with record production of 191,893 ounces in Q4 2019, when the mine processed 121,998 tonnes at an average grade of 49.3 g/t and average recoveries of 99.2 per cent. Q4 2020 production compared with production of 161,489 ounces the previous quarter when the mine processed 167,533 tonnes at an average grade of 30.3 g/t and at average recoveries of 99.0 per cent. The change from Q4 2019 reflected a lower average grade, which more than offset the impact of increased tonnes processed, resulting from higher mining rates in both Lower Phoenix and Harrier as the mine benefited from recent investments in improved ventilation and paste fill. The reduction in the average grade reflected mine sequencing in the Swan zone as well as a lower proportion of total mined tonnes coming from the Swan zone versus other, lower grade areas. The increase in production from the previous quarter resulted from increased tonnes processed in Q4 2020.

Production at Fosterville for FY 2020 was a record 640,467 ounces, 21,101 ounces or 3 per cent higher than the 619,366 ounces produced in FY 2019. FY 2020 production resulted from processing 593,343 tonnes at an average grade of 33.9 g/t and average recoveries of 98.9 per cent. The increase from FY 2019 was mainly due to a 20-per-cent increase in tonnes processed, which more than offset a 14-per-cent reduction in the average grade. The 640,467 ounces of production for FY 2020 exceeded full-year 2020 production guidance of 590,000 to 610,000 ounces mainly due to higher than planned tonnes processed and average grades during the second half of 2020.

Macassa

Production at Macassa in Q4 2020 totalled 52,283 ounces compared with production of 56,379 ounces in Q4 2019 and 38,028 ounces the previous quarter. Production in Q4 2020 resulted from processing 74,353 tonnes at an average grade of 22.4 grams per tonne and average recoveries of 97.7 per cent, which compared with 87,573 tonnes processed in Q4 2019 at an average grade of 20.5 g/t and average recoveries of 97.8 per cent and 78,526 tonnes at an average grade of 15.4 g/t and average recoveries of 97.8 per cent in Q3 2020. The change in production from Q4 2019 largely reflected lower tonnes processed which was only partially offset by an improvement in the average grade, mainly due to mine sequencing in the SMC. The 37-per-cent increase in production compared with the previous quarter was due to a 45-per-cent improvement in the average grade reflecting a greater proportion of higher-grade stopes in the SMC being mined during the final quarter of the year. During Q3 2020, mine production was affected by limited operating development being completed during reduced operations, the impact of continuing health and safety protocols, including those related to COVID-19, and reduced equipment availability, mainly due to extremely high temperatures in the mine. These factors resulted in reduced mining rates and a focus on the most accessible areas, which were largely the lower grade stopes planned for the quarter.

Production at Macassa in FY 2020 totalled 183,038 ounces, which resulted from processing 312,758 tonnes at an average grade of 18.6 g/t and at average recoveries of 97.7 per cent. FY 2020 production compared with production of 241,297 ounces for FY 2019, which resulted from processing 324,077 tonnes at an average grade of 23.6 g/t and at average recoveries of 97.9 per cent. FY 2020 production did not achieve the reissued full-year 2020 guidance of 210,000 to 220,000 ounces reflecting both lower than expected processing rates and average grades largely due to the impact of continuing health and safety protocols related to COVID-19 and reduced work force productivity and equipment availability resulting from excessive heat in the mine in Q3 2020.

Detour Lake

Production at Detour Lake in Q4 2020 totalled 153,143 ounces, which involved processing 5,829,230 tonnes at an average grade of 0.89 g/t and average recoveries of 91.8 per cent. Production in Q4 2020 compared with production in Q3 2020 of 140,067 ounces, which resulted from processing 5,898,694 tonnes at an average grade of 0.81 g/t and average recoveries of 90.7 per cent. The increase in production quarter over quarter resulted from a higher average grade due to mine sequencing with production concentrated in higher grade areas than during the previous quarter.

Production at Detour Lake for the 11 months ended Dec. 31, 2020, totalled 516,757 ounces, which resulted from processing 21,091,938 tonnes at an average grade of 0.83 g/t with average recoveries of 91.3 per cent. The 516,757 ounces of production in FY 2020 were below the reissued full-year 2020 guidance range of 520,000 to 540,000 ounces, reflecting slightly lower than planned average grades during the second half of 2020.

Holt complex

The assets included in the Holt complex (Holt, Holloway and Taylor mines, and Holt mill) were designated as non-core on Feb. 19, 2020, with the company planning to assess options for maximizing the value of these assets. In March, 2020, the Holloway mine was transitioned to care and maintenance. Effective April 2, 2020, operations were suspended at the remainder of the Holt complex as part of the company's COVID-19 response and while the company conducted a strategic review of these assets. In July, 2020, the company announced that the suspension of operations at Holt complex would be extended until further notice. As a result, there was no production from Holt complex in Q4 2020.

For FY 2020, production from the Holt complex totalled 29,391 ounces, almost all of which was produced during the first quarter of the year. The company has no plans for a future resumption of operations at Holt complex at the present time.

Qualified person

Natasha Vaz, PEng, senior vice-president, technical services and innovation, 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 senior gold producer operating in Canada and Australia that is targeting 1.3 million to 1.4 million ounces of production in 2021. The production profile of the company is anchored by three high-quality operations, including the Macassa mine and Detour Lake mine, both located in Northern Ontario, and the Fosterville mine located in the state of Victoria, Australia. Kirkland Lake Gold's solid base of quality assets is complemented by district-scale exploration potential, supported by a strong financial position with extensive management expertise.

We seek Safe Harbor.