Kirkland Lake Gold Inc.

Profile

Kirkland Lake Gold’s corporate goal is to create a self sustaining and long lived intermediate Gold Mining Company based in the historic Kirkland Lake Gold Camp. The Company plans to do this by increasing production to 210,000 to 250,000 ounces per year in several stages, and by decreasing production costs by realizing the economies of scale associated with that higher production rate. 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 of five million ounces.

Kirkland Lake Gold Inc. is an operating and exploration gold company located in Kirkland Lake, ON in the Southern Abitibi gold belt. In 2001, the Company acquired 13,000 acres of five contiguous formerly producing gold mines, which had historically produced 21 million ounces of gold grading 15.1 grams per ton (0.44 ounces per ton) primarily from the Main/’04 Break system (see accompanying figure). The current focus is on expanding gold production from the Main/'04 Break, and a new discovery area, the South Mine Complex (SMC).

Gold production recommenced in 2005 from the Main/’04 Break via the existing #3 shaft at the Macassa Mine. The Company also launched a major exploration program that discovered additional gold structures to the south, the SMC. Discovered with a hole that intersected 90 feet of 2.3 ounces of gold, the SMC has since grown to (as at December 31, 2010) 1.34 million ounces in the P+P and M+I categories grading 24.0 grams per ton or 0.70 ounces per ton with another 723,000 ounces in the inferred category grading 27 grams per ton or 0.79 ounces per ton, (see accompanying figure). The SMC remains a focus for ongoing exploration programs, as it remains open in all directions and at depth. In FY 2012, the exploration budget was increased to $15.8 million, including some new exploration at the 5,300 foot level, two thousand feet to the west of the known limits of the SMC, where high grade drill intersection results were released in February 2011, and surface exploration programs on the Eastern end of the Property.

In January 2009, the Company initiated projects aimed at increasing the production rate to 180,000 to 200,000 ounces per year by January 2012 (late third quarter, Fiscal Year 2012). Production reached 81,860 ounces as a result of this work in Fiscal Year 2011 (May 2010 to April 2011). The Company has since announced a revised Expansion Project Plan targeting 110,000 to 130,000 ounces in Fiscal Year 2012, 180,000 – 200,000 ounces in Fiscal Year 2013, and a further production rate increase to 210,000 – 250,000 ounces in Fiscal Year’s 2014 -2016. The mine’s total reserve and resource base is 2.79 million ounces in the P+P and M+I categories grading 17.8 grams per ton, or 0.52 ounces per ton, with an additional 1.74 million ounces grading 20.6 grams per ton or 0.60 ounces per ton in the inferred category (see accompanying figure) representing an exceptional exploration target, which, if upgraded, would further support the ongoing mine and production expansions. As the Company expands its production, employment has grown from over 200 people to over 700 people Project to date, and employment is expected to be over 950 people once the Expansion Projects are completed.