TORONTO, ONTARIO -- (Marketwired) -- 07/09/15 -- Kirkland Lake Gold Inc. ("Kirkland Lake Gold" or the "Company") (TSX:KGI)(AIM:KGI), an operating and exploration gold company with operations in Ontario, Canada, today announces financial results for the fourth quarter and year ended fiscal 2015 ("Q4/15" and "F2015", respectively). All figures in this release are in Canadian dollars unless stated otherwise.

Highlights2

• Achieved a head grade of 0.42 ounces per ton ("opt"), or 14.4 grams per tonne ("g/t") in Q4/15; 0.43 opt or 14.7 g/t for F2015.
• Produced 37,979 ounces of gold in Q4/15 and a total of 153,957 ounces at F2015.
• Sold 39,109 ounces of gold at an average sales price per ounce of $1,481(US$1,186) in Q4/15; F2015 sold 155,709 ounces at an average sales price per ounce of $1,412(US$1,228).
• Cash Operating Costs per Ounce of Gold Produced1 of $885(US$709); and $831(US$723) YTD.
• All-In Cash Cost per Ounce of Gold Produced1 ("AICC") of $1,445(US$1,157); F2015 AICC of $1,327(US$1,152).
• Income before taxes of $8.3 million in Q4/15; $25.5 million F2015.
• Net and comprehensive income of $7.9 million or $0.11 per share during the quarter; $19.8 million or $0.27 per share in F2015.
• Generated cash flow from operations during the quarter of $20.7 million; $78.2 million YTD.
• Generated free cash flow1 of $7.8 million during the quarter; $30.7 million F2015.
• Completed a successful bought deal public offering for total gross proceeds of $35 million.
• Cash as at April 30, 2015 was $80.3 million.

Mr. John Thomson, Chief Financial Officer of the Company commented, "We are pleased with the improved financial performance and in particular, reporting a fourth consecutive quarter of profitability, positive cash flow from operations and free cash flow. We have also met and in certain instances exceeded our original guidance parameters for the year."

Mr. George Ogilvie, Chief Executive Officer of the Company also commented, "We are very proud of our accomplishments during fiscal 2015. Our business has made positive strides forward over the course of the last 12 months, and each and every one of our employees needs to be commended for the commitment they have shown in turning our business around. However, there are still challenges ahead that will require time and effort before the business is fully functioning at an optimum level. I am however, confident that we are on the right track and that the management team we have assembled, in conjunction with our motivated workforce, is qualified and capable of addressing these challenges."

Click on the link for a video interview with George Ogilvie, discussing the F2015 results.
http://brrmedia.co.uk/event/139311?popup=true

Financial and Operational Metrics

Operations

During the fourth quarter, development at the South Mine Complex ("SMC") continued as planned. Infrastructure work including the haulage truck chute excavations and main refuge station progressed on schedule and the main ramp development continued to be advanced towards the 5600 level.

In addition, a fourth stope was brought into production on the 5400 level. With more stopes available on the 5400 level, the average head grade has trended upwards and has averaged 0.43 opt (14.7 g/t) for F2015, with recoveries of 96.5%. The Company anticipates having the fifth and sixth stopes in production from the 5400 level by the end of August. As more stopes come into production on the 5400 level and the 5600 level next year, the average head grades should continue to increase.

The average production rate achieved for FQ4 and F2015 was 1,040 tpd and 1,022 tpd, respectively. The Company plans to increase production over the next twelve months as additional equipment is expected in the second quarter. This new equipment includes two new 20 ton battery haulage trucks (the first truck is expected to arrive by the end of August with the second truck expected in Q1 2016) and three battery scooptrams expected to before the end of the first half of 2016. With these new units added to the fleet production crews will be able to take advantage of new headings coming online within the lower SMC zone. It is expected that production will ramp up throughout the year and that the first and second quarter will be in line with the levels achieved in F2015. With the new additions to the fleet, the production rate should trend upwards towards the 1,140 tpd level by mid-2016.

Exploration

During the quarter, the Company provided results from an underground drilling program on the '04 Break, to the east of Shaft 3 at the Mine Complex. Drilling returned significant intersections on elevations that were highest to date in the history of the Macassa Mine, and within a large unexplored area of the mine. Follow up drilling is planned during F2016 (see press release dated February 23, 2015, accessible at www.klgold.com).

The Company intends to provide an update on its exploration programs which include underground drilling on the SMC and the '04 Break, surface drilling on the near surface target, and plan to embark upon a regional exploration program during calendar 2015. This regional program will consist of initially $1.5 million in surface drilling to test the four contiguous properties to the east.

F2015 Key Performance Indicators1

After Q3/15 the Company was on track to meet and or exceed the stated guidance parameters and as such, revised ("R" indicates revised guidance), a number of the guidance figures as noted below.

Change in Year End

As previously announced the Company will change its year end from April 30, to December 31, effective January 1, 2016 (see press release dated May 19, 2015). As such the eight month period from April 30, 2015 to December 31, 2015, (the "Stub Year") will include two full quarters of reporting (May 1, 2015 to July 31, 2015 and August 1, 2015 to October 31, 2015). Results of the Stub Year will be released in March 2016.

Outlook

Production guidance for the Stub Year will be between 90,000 - 110,000 ounces as production guidance for the former twelve month period ending April 30, 2016, was between 150,000 to 170,000 ounces at an average grade of 0.43 opt (14.7 g/t) and an average production rate of 1,070 tpd.

Conference Call Details

The Company will hold a conference call to discuss its FQ4 and F2015 year-end results at 11:00am EDT (4:00pm BST). You are invited to participate via teleconference using the details below. A replay of the call will be posted on the Company's website (www.klgold.com).

1 The Company has included non-GAAP performance measures: average sales price per ounce sold, cash cost per ton produced, cash cost per ounce produced, AICC per gold ounce produced and free cash flow throughout this announcement. This is a common performance measure in the mining industry but does not have any standardized meaning under IFRS. Refer to Appendix B of the MD&A for a reconciliation of these measures to reported production expenses.

The following abbreviations are used to describe the periods under review throughout this release.

For a description of additional risk factors affecting the Company and 'Forward Looking Information', see the Company's Annual Information Form filed with certain securities regulatory authorities in Canada and available on SEDAR at www.sedar.com. For 'Forward Looking Information', as presented in the Management Discussion and Analysis ("MD&A") for the period ended April 30, 2015, see Appendix E in the MD&A for a description of other factors that may cause actual results to differ from those anticipated.

Qualified Persons

Production and processing at the Company's mining and milling facility are under the supervision of Mr. Chris Stewart, P.Eng., Vice President of Operations; and the exploration program is under the supervision of Mr. Stewart Carmichael, P.Geo., Manager of Exploration. Messrs. Stewart and Carmichael are 'qualified persons' for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators, and have reviewed and approved this news release.

About the Company

Kirkland Lake Gold Inc.'s corporate goal is to create a self-sustaining and long-lived intermediate gold mining company based in the historic Kirkland Lake gold camp, as well as to explore opportunities for growth in other safe mining jurisdictions. The Company plans to do this by mining to the reserve grade, generating profits and free cash flow with a view to maximising value for the shareholders. The Company will also look to take advantage of its increased infrastructure capacity in the appropriate gold price environment. At the same time, the Company is committed to maintaining a significant exploration program aimed at developing and maintaining a property wide reserve and resource base sufficient to sustain a mine life of more than ten years.

Over the last several years the Company has invested significant capital to improve the infrastructure of the business including upgrading the production hoist, skips, mill, underground mobile equipment and capital development. From initial discovery to present day there have been over 24 million ounces of gold mined from the Kirkland Lake gold camp while the current reserve and resource provides for potentially 14 years of mining with exploration upside.

Neither the Toronto Stock Exchange nor the AIM Market of the London Stock Exchange has reviewed or accepts responsibility for the adequacy or accuracy of this news release.

Cautionary Note Regarding Forward Looking Statements

This news release contains statements which constitute "forward-looking statements", including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to the future business activities and operating performance of the Company. The words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, are intended to identify such forward-looking statements. Forward-looking statements used in this news release include, but may not be limited to: statements regarding the Company's change in year end, its development and exploration plans and production guidance for Stub Year 2015. Investors are cautioned that forward-looking statements are based on the opinions, assumptions and estimates of management which management considers reasonable at the date the statements are made such as, without limitation, opinions, assumptions and estimates of management regarding the Company's business, its ability to increase its production capacity and decrease its production costs. Such opinions, assumptions and estimates, are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements.

These factors include the Company's expectations in connection with the projects and exploration programs being met, the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating gold prices, currency exchange rates (such as the Canadian dollar versus the United States Dollar), variations in ore grade or recovery rates, changes in accounting policies, changes in the Company's mineral reserves and resources, changes in project parameters as plans continue to be refined, changes in project development, construction, production and commissioning time frames, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life, seasonality and weather, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, and limitations on insurance, as well as those risk factors discussed or referred to in the Company's Management's Discussion and Analysis and Annual Information Form for the year ended April 30, 2014 and the Company's Management's Discussion and Analysis for the interim period ended January 31, 2015 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 statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company 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. The Company does not intend, and does not assume any obligation, to update these forward-looking statements except as otherwise required by applicable law.

Source: Kirkland Lake Gold Inc.