Kirkland Lake Gold : Pursues Arbitration With Respect to Purchase of Fosterville Royalty PDF format download (opens in new window)

Kirkland Lake Gold Pursues Arbitration With Respect to Purchase of Fosterville Royalty

6/27/2018

TORONTO, June 27, 2018 (GLOBE NEWSWIRE) -- Kirkland Lake Gold Ltd. ("Kirkland Lake Gold" or the "Company")

(TSX:KL) (NYSE:KL) (ASX:KLA) today announced that Fosterville Gold Mine Pty Ltd. ("FGM"), a wholly-owned subsidiary of the Company, has initiated arbitration against AuRico Metals Australian Royalty Corporation ("AMARC") and AuRico Metals Inc. ("AMI"), wholly-owned subsidiaries of Centerra Gold Inc. ("Centerra"). The Notice of Arbitration was delivered by FGM in accordance with the terms of the royalty agreement between FGM and AMARC (the "Royalty Agreement") to enforce certain rights of FGM set out in the Royalty Agreement, including its right of �rst o�er and its right of �rst refusal in the event of a sale of the 2% royalty included in the Royalty Agreement.

On June 27, 2018, Centerra announced that it had completed the sale of AMI's royalty portfolio, which included the sale of all of the common shares of AMARC, to Triple Flag Mining Finance Bermuda Ltd. The Company and FGM had previously provided notice to Centerra, AMI, and AMARC that any such sale would be contrary to the Royalty Agreement unless FGM was a�orded an opportunity to exercise its right of �rst o�er or right of �rst refusal.

About Kirkland Lake Gold Ltd.

Kirkland Lake Gold Ltd. is a mid-tier gold producer that in 2018 is targeting over 620,000 ounces of gold production from mines in Canada and Australia. The production pro�le 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 �nancial position with extensive management and operational expertise.

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 Kirkland Lake Gold with respect to future business activities and operating performance. Forward-looking information is often identi�ed by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and, in this press release, include information relating to the Notice of Arbitration.

Investors are cautioned that forward-looking information is not based on historical facts but instead re�ect the Company'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 re�ected 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 e�ects on future results, performance or achievements of the Company. Among the key factors that could cause actual results to di�er materially from those projected in the forward-looking information are the following: the future development of the Canadian and Australian operations; the potential anticipated annual increase in production; future exploration activities; changes in general economic, business and political conditions, including changes in the �nancial markets; changes in applicable laws; and compliance with extensive government regulation. This forward-looking information may be a�ected by risks and uncertainties in the business of Kirkland Lake Gold and market conditions. This information is quali�ed in its entirety by cautionary statements and risk factor disclosure contained in �lings made by Kirkland Lake Gold, including Kirkland Lake Gold's annual information form dated December 31, 2017 and the annual consolidated �nancial statements and related MD&A for the period ended March 31, 2018, which are �led with the securities regulatory authorities in certain provinces of Canada and available atwww.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 Kirkland Lake Gold has attempted to identify important risks, uncertainties and factors which could cause actual results to di�er materially, there may be others that cause results not to be as anticipated, estimated or intended. Kirkland Lake Gold does not intend, and do not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.

For more information, please contact:

Anthony Makuch, President, Chief Executive O�cer & Director 2

Phone: +1 416-840-7884

E-mail:tmakuch@klgold.com

Mark Utting, Vice President, Investor Relations Phone: +1 416-840-7884

E-mail:mutting@klgold.com Website :www.klgold.com

Source: Kirkland Lake Gold Ltd.