Kirkland Lake Announces Further High-Grade Drill Results on the Lower Phoenix and Harrier Gold Systems at the Fosterville Mine

TORONTO, ONTARIO -- (Marketwired) -- 05/03/17 -- Kirkland Lake Gold Ltd. ("Kirkland Lake Gold" or the "Company") (TSX:KL)(OTCQX:KLGDF) is pleased to report continued high-grade drill results from underground drilling at Fosterville Mine in Australia. Underground definition drilling continues to infill and target down-plunge extensions of the Lower Phoenix and Harrier South gold systems to increase Mineral Resource confidence and assess the potential of further Mineral Reserve expansion (see Figure 1).

Recent drill results returned from 59 underground holes totaling 14,070 meters ("m") into extensions of the Lower Phoenix gold system continue to return some of the highest gold grades seen at Fosterville. Results continue to demonstrate the continuity of exceptional high-grade mineralization with visible gold on both the newly discovered west dipping Lower Phoenix Footwall and Eagle Structures in the Lower Phoenix gold system.

Similarly, a drill program consisting of 20 holes, totaling 7,791m in the Harrier South gold system reaffirms the increasing grade tenor of the Harrier Mineral Reserve at depth.

Underground Drilling Highlights at Fosterville Mine

• Lower Phoenix Footwall mineralization continues to demonstrate high-grade continuity with the return of the following infill definition drill intercepts:
  • 381 g/t Au ⁽¹⁾ over 2.8m (Estimated True Width "ETW" 2.5m), including 1,062 g/t Au ⁽¹⁾ over 1.0m (ETW 0.9m) in hole UDH1982
  • 345 g/t Au ⁽¹⁾ over 7.0m (ETW 6.4m), including 4,550 g/t Au ⁽¹⁾ over 0.5m (ETW 0.4m) in hole UDH1991
  • 645 g/t Au ⁽¹⁾ over 1.3m (ETW 1.1m) in hole UDH1978
    
    
• Eagle high-grade mineralization continues to demonstrate high-grade continuity with the return of the following infill definition drill intercepts:
  • 404 g/t Au ⁽¹⁾ over 16.0m (ETW 7.5m), including 12,039 g/t Au ⁽¹⁾ over 0.4m (ETW 0.2m) in hole UDH1970
  • 274 g/t Au ⁽¹⁾ over 9.7m (ETW 9.2m), including 498 g/t Au ⁽¹⁾ over 1.3m (ETW 1.1m) in hole UDH1946B
  • 399 g/t Au ⁽¹⁾ over 3.6m (ETW 1.0m), including 2,036 g/t Au ⁽¹⁾ over 0.7m (ETW 0.2m) in hole UDH1865A
  • 69 g/t Au ⁽¹⁾ over 30.7m (ETW 29.3m) in hole UDH1946
    
    
• Drilling on the Harrier Base Structure continues to return high-grade mineralization including:
  • 25.6 g/t Au ⁽¹⁾ over 3.85m (ETW 3.7m) in hole UDH1987
  • 10.1 g/t Au over 10.55m (ETW 10.1m) in hole UDH1913
    
    
• Infill drilling into Harrier Base mineralization continues to demonstrate high-grade continuity

Mr. Tony Makuch, President and Chief Executive Officer, Kirkland Lake Gold commented: "The Fosterville Mine continues to provide exceptional results from drilling programs on the Lower Phoenix and Harrier South gold systems, with many intercepts returning significantly higher grades than our December 2016 average underground Mineral Reserve of 9.8 g/t Au."

"We are excited about the grade upside potential of the Fosterville deposit. Recent infill drilling into the Lower Phoenix Footwall and Harrier Base structures have increased both geological and grade confidence in these zones and has reaffirmed an increasing grade profile with depth. In addition, continued strong drill results combined with positive grade reconciliation of mining the Eagle structure has provided the Company greater insight into the high-grade nature of the ore body. Mining in this area has largely contributed to the recent strong first quarter operating results, producing a record 46,083 ounces of gold, driven by a record run of mine grade of 12.3 g/t Au."

"We are optimistic that significant Mineral Resource and Mineral Reserve growth can be realized by both expansion of these mineralized structures through additional drilling and reassessment of existing data sets based on increasing levels of confidence and reconciliation data."

2017 Underground Definition Programs at Fosterville Gold Mine

Lower Phoenix Gold System Underground Resource Definition Drilling Program

Since the January 17, 2017 Kirkland Lake Gold News Release, drilling from 3 Diamond drill rigs have 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 59 holes (14,070m) are from intercepts through the Lower Phoenix Footwall and Eagle resource target areas. Mining production continues on the upper-plunge areas of the Lower Phoenix gold system structures including the high-grade Eagle Fault, which has largely contributed to Fosterville's record run of mine grade of 12.3 g/t during Q1 2017.

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

Lower Phoenix Footwall Structure

Infill drilling into the newly discovered west dipping Lower Phoenix Footwall Structure continues to return extremely high-grade results including of 381 g/t Au⁽¹⁾over 2.8m (Estimated True Width "ETW" 2.5m), (Including 1,062 g/t Au⁽¹⁾over 1.0m [ETW 0.9m]) in hole UDH1982, 345 g/t Au⁽¹⁾over 7.0m (ETW 6.4m), (Including 4,550 g/t Au⁽¹⁾over 0.5m [ETW 0.4]) in hole UDH1991, and 645 g/t Au⁽¹⁾over 1.3m (ETW 1.1m) in hole UDH1978 and 187 g/t Au⁽¹⁾over 4.0m (ETW 3.6m) in hole UDH1946 (see Figure 2). These results strongly support drill results in the January 17, 2017 Kirkland Lake Gold News Release which included the Fosterville Mine record drill intercept of 1,429 g/t Au⁽¹⁾over 15.15m (Estimated True Width "ETW" 4.97m) in hole UDH1817 (Including21,490 g/t Au⁽¹⁾over 0.6m [ETW 0.24m]). The repeatability of high-grade results on this structure, at close drill spacing provides increased confidence that there is a coherent, extremely high-grade lode of mineralization. Additional high-grade results have been returned on this structure including 14.7 g/t Au over 11.1m (ETW 9.1m) in hole UDH2023 and 15.2 g/t Au⁽¹⁾over 10.3m (ETW 7.7m) in hole UDH1992 outside December 2016 Measured and Indicated Mineral Resources. This structure has now been defined over a strike extent of 210m and vertical extent of 180m. The mineralized zone appears to adjoin the high-grade Eagle structure at its lower edge and is untested down-plunge. Continued drilling from the hangingwall drill platforms during 2017 will continue to advance the understanding and scale of this attractive resource growth target.

Eagle Structure

Recent drilling continues to return significant high-grade gold intercepts containing significant amounts of visible gold. Recent drill results into the Eagle Fault include 404 g/t Au⁽¹⁾over 16.0m (ETW 7.5m), (Including 12,039 g/t Au⁽¹⁾over 0.4m [ETW 0.2m]) in hole UDH1970, 274 g/t Au⁽¹⁾over 9.7m (ETW 9.2m), (Including 498 g/t Au⁽¹⁾over 1.3m [ETW 1.1m]) in hole UDH1946B and 399 g/t Au⁽¹⁾over 3.6m (ETW 1.0m), (Including 2,036 g/t Au⁽¹⁾over 0.7m[ETW 0.2m]) in hole UDH1865A (Figure 3). These results continue to confirm the continuity and high-grade tenor of the Eagle Fault.

Q1 run of mine grade of 12.3 g/t Au provides confirmation of the high-grade nature of the Eagle Fault which is particularly endowed with visible gold mineralization at its intersection with the Lower Phoenix and East Dipping Faults. Reconciled production data significantly outperformed grade estimates in this zone during the quarter with two stoping blocks (over 6,500t each) reconciling grades above 40 g/t Au.

The Eagle fault remains open down plunge south of 6350mN and drilling during 2017 will continue to focus on extension and infill definition of this highly mineralized structure.

Harrier South Gold System Underground Resource Definition Drilling Program

Since the January 17, 2017 Kirkland Lake Gold News Release, drilling from 1 Diamond rig 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 20 holes (7,791.1m) are from intercepts though the Harrier Base resource target area.

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

Harrier Base Structure

Drilling on the Harrier Base Structure continues to return high-grade mineralization. Key intercepts include 25.6 g/t Au⁽¹⁾over 3.9m (ETW 3.7m) in hole UDH1987, 15.5 g/t Au⁽¹⁾over 2.4m (ETW 2.3m), (Including 80.6 g/t Au⁽¹⁾over 0.3m [ETW 0.3m]) in hole UDH1984, 11.9 g/t Auover 6.8m (ETW 6.8m), (Including 54.1 g/t Auover 0.6m [ETW 0.5m]) in hole UDH1921 and 10.1 g/t Au over 10.6m (ETW 10.1m) in hole UDH1913 (Figure 4). Decline development has recently commenced to access high-grade Harrier Base mineralization, which forms part of the December 2016 Mineral Reserve estimate, with the aim to add an alternative production source to the Lower Phoenix mineralized zone during 2018.

Planned drilling for 2017 will test the down plunge extensions of the Harrier Base structure to 4650mN, approximately 100m beyond the current extent of drilling.

To view a PDF of the tables and figures as referenced in this News Release, visit the links below:

http://media3.marketwire.com/docs/newmarket_gold_May01_tables1-2.pdf - tables

http://file.marketwire.com/release/1093548_Figures1-4.pdf - figures

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.

QAQC information is provided at the bottom of Table 1.

About Kirkland Lake Gold Ltd.

Kirkland Lake Gold Ltd. is a mid-tier gold producer targeting 500,000 to 525,000 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 located in Northeastern 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.

For further information on Kirkland Lake Gold and to receive news releases by email, visit the website www.klgold.com.

Cautionary Note Regarding Forward-Looking Information

This press release contains statements which constitute "forward-looking information" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of KL Gold with respect to future business activities and operating performance. Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and include information regarding: (i) the potential to expand mineral resources and mineral reserves at the Fosterville Gold Mine; (ii) the potential for a high grade independent mining front to the Lower Phoenix South mining area;

Investors are cautioned that forward-looking information is not based on historical facts but instead reflect KL Gold's management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although Kirkland Lake Gold believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the combined company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: the ability of Kirkland Lake Gold to successfully integrate the operations and employees of its Canadian and Australian operations, and realize synergies and cost savings, and to the extent, anticipated; the potential impact on exploration activities; the potential impact on relationships, including with regulatory bodies, employees, suppliers, customers and competitors; the re-rating potential following the consummation of the merger; changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws; and compliance with extensive government regulation. This forward-looking information may be affected by risks and uncertainties in the business of Kirkland Lake Gold and market conditions. This information is qualified in its entirety by cautionary statements and risk factor disclosure contained in filings made by Kirkland Lake Gold, including Kirkland Lake Gold's annual information form, financial statements and related MD&A for the fourth quarter and full year ended December 31, 2016 and their interim financial reports and related MD&A for the period ended December 31, 2016 filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com .

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although KL Gold has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. KL Gold does not intend, and do not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.

Drilling and Assay QAQC

Kirkland Lake Gold has in place quality-control systems to ensure best practice in drilling, sampling and analysis of drill core. All Diamond drill hole collars (Table 2) are accurately surveyed using a Leica Total Stations instrument and down-hole deviations are measured by electronic multi-shot cameras.

Sampling consisted of Diamond drill core that was either half core sampled or full core sampled. Half core samples were cut longitudinally in half with a Diamond saw; one-half of the drill-core was sent for assay and the other half retained for reference. Whole core samples were sent for assay with the pulp retained for reference. Drill core sample intervals vary between 0.3 and 1.2m in length and were determined from logging of sulphide and visible gold.

Samples containing visible gold or considered likely to contain visible gold were separated from sulphide gold samples and dispatched independently for assaying. At the laboratory "visible gold" jobs were processed through a single pulverizer and material barren of gold was crushed before and after each sample to minimize the potential for gold to contaminate successive samples.

Assay results are based on 25-gram charge fire assays. Mean grades are calculated using a variable lower grade cut-off (generally 2 g/t Au) and maximum 2m internal dilution. No upper gold grade cut is applied to the data. However, during future resource work the requirement for assay top cutting will be assessed.

Drill samples were assayed at On Site Laboratories, an independent laboratory in Bendigo, Victoria. The facility is registered ISO 9001:2008 (CERT-C33510).

Table 2: Underground Diamond Drill Hole Collar Locations, Fosterville Gold Mine.

Kirkland Lake Gold Ltd.
Anthony Makuch
President, Chief Executive Officer & Director
+1 416-840-7884
tmakuch@klgold.com
Kirkland Lake Gold Ltd.
Ryan King
Vice President, Investor Relations
+1 778-372-5611
rking@klgold.com

Source: Kirkland Lake Gold Ltd.