Mr. Tony Makuch reports

KIRKLAND LAKE GOLD REPORTS RECORD QUARTERLY PRODUCTION AT FOSTERVILLE AND MACASSA

Kirkland Lake Gold Ltd. had gold production of 231,879 ounces in the first quarter of 2019, an increase of 57 per cent from 147,644 ounces in Q1 2018, with the increase driven by record quarterly production at both Fosterville and Macassa. The company ended Q1 2019 well positioned to achieve its improved fiscal 2019 production guidance of 920,000 to one million ounces of gold, with production at Fosterville expected to be weighted to the second half of 2019 as development advances to depth into the high-grade Swan zone. All dollar amounts are expressed in U.S. dollars, unless otherwise noted.

During Q1 2019, the company continued to build financial strength, with cash increasing by $78-million, or 23 per cent, to $410-million at March 31, 2019, compared with $332-million at Dec. 31, 2018.

Highlights of Q1 2019 production results:

• Consolidated Q1 2019 gold production of 231,879 ounces, compared with 147,644 ounces of production in Q1 2018 and 231,217 ounces in the fourth quarter of 2018;
• Gold poured in Q1 2019 totalled 230,250 ounces, with total gold sold of 232,929 ounces;
• Record gold production at Fosterville of 128,445 ounces, more than double the 63,843 ounces produced in Q1 2018 and a 3-per-cent increase from the previous quarterly record of 124,307 ounces in the previous quarter (strong production growth from Q1 2018 resulted from significantly higher average grades, mainly due to the advancement of the mine sequence in the Swan zone during Q1 2019);
• Record gold production at Macassa totalled 72,776 ounces, an increase of 35 per cent from 54,038 ounces in Q1 2018 and 4 per cent higher than the previous quarterly record of 69,936 ounces in Q4 2018 (record quarterly production in Q1 2019 reflected significant grade outperformance in the South mine complex (SMC) from stopes in or around the 5700 level);
• Gold production at Holt and Taylor of 17,225 ounces and 12,377 ounces, respectively, compared with 16,675 ounces and 13,055 ounces, respectively, in Q1 2018 and 16,774 ounces and 19,305 ounces, respectively, in the previous quarter.

Other key developments during Q1 2019 include:

• Dec. 31, 2018, mineral reserve estimates released:
  • Consolidated mineral reserves increased 24 per cent to 5.75 million ounces of 15.8 grams per tonne gold (total additions of 1.86 million ounces before depletion of 750,000 ounces).
  • Fosterville mineral reserves increased by 1.02 million ounces, or 60 per cent, to 2.72 million ounces of 31 grams per tonne gold, with the Swan zone mineral reserve doubling to 2.34 million ounces of 49.6 grams per tonne gold (total additions of 1,386,000 ounces before depletion of 366,000 ounces).
  • Macassa mineral reserves at Dec. 31, 2018, increased by 11 per cent to 2.25 million ounces of 21.9 grams per tonne gold (total additions of 464,000 ounces before depletion of 244,000 ounces).
• Significant improvements to production and unit cost guidance announced:
  • Three-year gold production guidance increased to 920,000 to one million ounces for 2019, 930,000 to 1.01 million ounces for 2020 and 995,000 to 1,055,000 ounces for 2021; Fosterville's gold production guidance for 2019 and 2020 improved to 550,000 to 610,000 ounces, with 2021 guidance remaining unchanged at 570,000 to 610,000 ounces.
  • Operating cash cost per gold ounce sold guidance for 2019 improved to $300 to $320 from $360 to $380 previously, with all-in sustaining costs per ounce sold guidance improved to $520 to $560 from $630 to $680 previously.
• Strong growth in earnings and cash flow for fiscal 2018 reported:
  • Net earnings in 2018 totalled $273.9-million ($1.30 per basic share), a 107-per-cent increase from 2018.
  • Net cash flow from operating activities of continuing operations totalled $543.1-million, a 73-per-cent increase from 2017, while free cash flow increased by 40 per cent to $249.5-million in 2018.
• Continued focus on shareholder returns:
  • A quarterly dividend payment of four cents per share was paid on Jan. 11, 2019.

Tony Makuch, president and chief executive officer of Kirkland Lake Gold, commented: "Both Fosterville and Macassa achieved record production in Q1 2019, largely reflecting strong grade performance as well as higher levels of mill throughput at Fosterville. At Fosterville, we continued to advance development and production from the Swan zone, with stope production advancing on multiple levels. As we develop deeper into the zone, we are targeting higher levels of production from Swan, particularly in the second half of the year. At Macassa, production on the 5600 and 5700 levels continues to generate better-than-planned grades. Production over the balance of the year will remain largely focused on these areas. We ended the first quarter well positioned to achieve our improved full-year 2019 production guidance of 920,000 to one million ounces.

"Turning to our financial performance, we have consistently been an industry leader in per-share profitability and expect this trend to continue when we report our Q1 2019 financial results on May 7. We also continued to generate substantial amounts of cash flow during the quarter, with our cash position increasing by $78-million, or 23 per cent, to $410-million at March 31, 2019. Our rapidly growing financial strength is a key differentiator for Kirkland Lake Gold and provides us with a great deal of flexibility in terms of financing our growth and examining additional opportunities for value creation, including returning capital to shareholders."

                     Q1 2019 PRODUCTION RESULTS

                                         Q1 2019    Q1 2018    Q4 2018
Fosterville                                              
Ore milled (tonnes)                      140,184    123,669     98,797
Grade (g/t Au)                              29.0       16.8       39.7
Recovery (%)                                98.3       95.7       98.6
Gold production (oz)                     128,445     63,843    124,307
Macassa                                                  
Ore milled (tonnes)                       77,990     86,661     85,523
Grade (g/t Au)                              29.6       19.9       25.9
Recovery (%)                                98.2       97.6       98.0
Gold production (oz)                      72,776     54,038     69,936
Holt                                                     
Ore milled (tonnes)                      117,876    122,280    118,347
Grade (g/t Au)                               4.8        4.5        4.7
Recovery (%)                                95.6       94.8       94.3
Gold production (oz)                      17,225     16,675     16,774
Taylor                                                   
Ore milled (tonnes)                       75,085     84,464    103,793
Grade (g/t Au)                               5.4        5.0        6.1
Recovery (%)                                95.6       95.5       95.0
Gold production (oz)                      12,377     13,055     19,305
Holloway                                                 
Gold production                            1,056         33        895
Total consolidated production (oz)       231,879    147,644    231,217
Total consolidated gold sales (oz)       232,929    147,763    225,692

                      PERFORMANCE AGAINST FISCAL 2019 PRODUCTION GUIDANCE

                              Macassa       Holt     Taylor   Holloway   Fosterville   Consolidated

2019 guidance (000s oz)    230 to 240   70 to 75   50 to 55         20    550 to 610   920 to 1,000 
Q1 2019 production (oz)        72,776     17,225     12,377      1,056       128,445        231,879   

Q1 2019 gold production totalled 231,879, an increase of 57 per cent from 147,644 ounces in Q1 2018. The main contributor to the strong growth, compared with the same period in 2018, was record production at Fosterville and Macassa, mainly due to significant improvements in average grades, as well as the impact of higher processing volumes at Fosterville. The company's Holloway mine, which resumed commercial operations as at Feb. 21, 2019, contributed 1,056 ounces of gold production in Q1 2019, compared with 33 ounces in Q1 2018 and 895 ounces in Q4 2018. Production at Holloway is expected to ramp up over the balance of the year. No production was recorded from the company's Northern Territory assets, which are currently on care and maintenance, in Q1 2019, or during either of the prior periods.

Review of operating mines

Fosterville

The Fosterville mine produced a record 128,445 gold ounces in Q1 2019, based on processing 140,184 tonnes at an average grade of 29 grams per tonne and average mill recovery of 98.3 per cent. Q1 2019 production more than doubled from 63,843 ounces in Q1 2018, when the mine processed 137,788 tonnes at an average grade of 11.1 grams per tonne and at an average recovery of 93.7 per cent. The increase in production, compared with the same period in 2018, resulted from a 73-per-cent increase in the average grade, reflecting the commencement of production from the high-grade Swan zone during the second half of 2018. Q1 2019 gold production compared with production of 124,307 ounces in the previous quarter, when the mine recorded its highest-ever average quarterly grade. A total of 98,797 tonnes were processed in Q4 2018 at an average grade of 39.7 grams per tonne gold and at an average recovery of 98.6 per cent. The quarter-over-quarter change in production mainly reflected a 42-per-cent increase in total tonnes processed, reflecting the advancement of the mine sequence in the Lower Phoenix system, including the Swan zone, and a drawdown in the surface stockpile over the quarter.

Macassa

The Macassa mine achieved record quarterly gold production in Q1 2019 of 72,776 ounces, based on processing 77,990 tonnes at an average grade of 29.6 grams per tonne and an average recovery of 98.2 per cent. Q1 2019 production increased by 35 per cent from 54,038 ounces in Q1 2018, which resulted from processing 86,661 tonnes at an average grade of 19.9 grams per tonne and an average mill recovery of 97.6 per cent. The increase from Q1 2018 was primarily related to a 49-per-cent improvement in the average grade, largely reflecting the impact of favourable grade reconciliations in stopes around the 5700 level of the SMC. Q1 2019 production increased by 4 per cent from 69,936 ounces in Q4 2018, with a higher average grade more than offsetting the impact of a lower volume of tonnes processed in Q1 2019. Q4 2018 production resulted from processing a total of 85,523 tonnes at an average grade of 25.9 grams per tonne and at an average recovery of 98 per cent.

Holt

During Q1 2019, the Holt mine produced 17,225 gold ounces, based on processing 117,876 tonnes at an average grade of 4.8 grams per tonne and at an average recovery of 95.6 per cent. Q1 2019 production compared with production of 16,675 ounces in Q1 2018, when a total of 122,280 tonnes were processed at an average grade of 4.5 grams per tonne at an average recovery of 94.8 per cent, and 16,774 ounces the previous quarter, when 118,347 tonnes were processed at an average grade of 4.7 grams per tonne and at an average recovery of 94.3 per cent. The change in production from both prior periods mainly reflected improvements in the average grade and average recovery rate, which more than offset the impact of a small reduction in tonnes processed.

Taylor

Gold production from the Taylor mine during Q1 2019 totalled 12,377 ounces, based on processing 75,085 tonnes at an average grade of 5.4 grams per tonne and at an average recovery of 95.6 per cent. Q1 2019 production compared with 13,055 ounces in Q1 2018, when 84,464 tonnes were processes at an average grade of five grams per tonne and at an average recovery of 95.5 per cent, and record production of 19,305 ounces in Q4 2018, when 103,793 tonnes were processed at an average grade of 6.1 grams per tonne and an average recovery of 95 per cent. The change in production from Q1 2018 reflected reduced tonnes processed, which was partially offset by the impact of higher average grades during Q1 2019. The change from the previous quarter reflected both lower tonnes processed and reduced average grades, with lower grades largely related to mine sequencing.

Holloway

On Feb. 21, 2019, the company announced plans to resume operations at the Holloway mine following the completion of a revised royalty with Franco Nevada Corp. A total of 1,056 gold ounces were produced at Holloway and processed at Holt during Q1 2019, which resulted from processing 7,826 tonnes at an average grade of 4.4 grams per tonne and an average recovery of 95.4 per cent. Production at Holloway is expected to ramp up during 2019 and total approximately 20,000 ounces for the full year.

Qualified persons

Henry Heidrich, PEng, director of technical services, and Ian Holland, FAusIMM, vice-president of Australian operations, are qualified persons under National Instrument 43-101. Mr. Heidrich and Mr. Holland have reviewed and approved disclosure of the technical information and data in this news release.

Technical reports

Scientific and technical disclosures supporting the Dec. 31, 2018, mineral reserve estimates are provided in the technical reports entitled, "Updated NI 43-101 Technical Report Fosterville Gold Mine in the State of Victoria, Australia," and "Macassa Property, Ontario, Canada, Updated NI 43-101 Technical Report." The reports are effective Dec. 31, 2018, dated April 1, 2019, and available on SEDAR and at the company's website.

About Kirkland Lake Gold Ltd.

Kirkland Lake Gold is a growing gold producer operating in Canada and Australia that produced 723,701 ounces in 2018 and is on track to achieve significant production growth over the next three years, including target production of 920,000 to one million ounces in 2019, 930,000 to 1.01 million ounces in 2020 and 995,000 to 1,055,000 ounces in 2021. The production profile of the company is anchored by two high-grade, low-cost operations, including the Macassa mine, 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 and operational expertise.

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