TSX:KL NYSE:KL ASX:KLA Canadian Operations Sustainability Report JANUARY TO DECEMBER 2017 PMS: 662 C PMS: Cool Gray 7 C PMS: 7407 C PMS: 135 C C:100 M:87 Y:0 K:20 C:20 M:14 Y:12 K:40 C:6 M:36 Y:79 K:12 C:0 M:21 Y:76 K:0 R:24 G:54 B:131 R:135 G:138 B:143 R:210 G:152 B:71 R:255 G:203 B:88 HEX: #163683 HEX: #878a8f HEX: #d29847 HEX: #ffcb58 Canadians Operations Sustainability Report | January to December 2017 | Kirkland Lake Gold Ltd About This Report ABOUT THIS REPORT Kirkland Lake Gold (the “Company” or “KL”) operates four gold mines: Macassa, Holt and Taylor in Canada, and Fosterville in Australia. The Company’s Canadian-based mines operate under the laws of the Province of Ontario and the federal laws of Canada, and in particular the Mining Act of Ontario and the Regulations promulgated thereunder. This report is for the calendar year 2017 and all monetary amounts noted in the report are presented in Canadian Dollars (CAD), unless otherwise indicated. This report is available at www.klgold.com TSX:KL NYSE:KL ASX:KLA Canadians Operations Sustainability Report | January to December 2017 | Kirkland Lake Gold Ltd Contents PMS: 662 C PMS: Cool Gray 7 C PMS: 7407 C PMS: 135 C C:100 M:87 Y:0 K:20 C:20 M:14 Y:12 K:40 C:6 M:36 Y:79 K:12 C:0 M:21 Y:76 K:0 R:24 G:54 B:131 R:135 G:138 B:143 R:210 G:152 B:71 R:255 G:203 B:88 2017HEX: #163683 HEX: #878a8f HEX: #d29847 HEX: #ffcb58 SUSTAINABILITY REPORT 1.0 Introduction 01 1.1 Overview of Kirkland Lake Gold Canadian Operations 01 1.1.1 Macassa 02 1.1.2 Holt 03 1.1.3 Taylor 04 2.0 Economic Benefits 05 2.0 Environmental Management 06 2.1 Overview of Environmental Management 06 2.2 Environmental Risks and Mitigation 06 2.3 Activities and Monitoring 08 2.3.1 Air Quality 08 2.3.2 Noise 09 2.3.3 Water Quality 10 2.3.4 Waste Management 11 2.3.5 Biodiversity 12 2.3.6 Cultural Heritage 13 2.3.7 Visual Amenity 13 3.0 Progressive Rehabilitation 14 4.0 Community Engagement 15 4.1 Grievances and Complaints 15 5.0 Compliance Record 16 TSX:KL NYSE:KL ASX:KLA Introduction - Kirkland Lake Gold Sustainability Report | January to December 2017 | Kirkland Lake Gold Ltd 01 1.1 1.0 Overview of Kirkland Lake Gold Canadian Operations INTRODUCTION Kirkland Lake Gold Canadian Operations consists of three operating mines (shown in Figure 1), as well as two sites on care and maintenance (Holloway and Hislop) and one closed site (Aquarius) all located in the province of Ontario. The Canadian Operations produced 311,678 ounces of gold in 2017. The majority of the ounces were produced at the Macassa Mine, supported by Holt and Taylor. Production breakdown is shown in Table 1. Table 1. Canadian Operating Data for 2017 (Year ended December 31, 2017) Gold Produced Ore Processed Grade (oz) (tonnes) (g/t) Macassa 194,237 409,065 15.2 Holt 66,677 462,987 4.7 Taylor 50,764 292,003 5.6 Total CDN Operations 311,678 1,164,055 Figure 1. Canada Operations Canada Operations 1 Macassa Mine 2 Holt Mine 3 Taylor Mine 3 2 1 TSX:KL NYSE:KL ASX:KLA Introduction - Kirkland Lake Gold Sustainability Report | January to December 2017 | Kirkland Lake Gold Ltd 02 1.1.1 The Macassa Mine, located in the Town of Kirkland Lake, Ontario started operations Macassa in 1933 and remains one of the highest grade gold mines in the world. Macassa re- commenced operations in 2002, and with the discovery of the South Mine Complex “SMC”, has been able to increase its level of production significantly over the past five years, reaching 194,237 ounces in 2017. The SMC has been driving grade improvement at Macassa, with results from ongoing exploration drilling continuing to extend the SMC mineralization and adding to the Mine’s Mineral Resources in support of increasing Mineral Reserves, growing production and extending mine life. The mine is located in an area with well-developed infrastructure, including a provincial highway, a railway system and a private airport. High-grade ore is processed at the Macassa Mill, which currently has available capacity and is located in close proximity to the mine. TSX:KL NYSE:KL ASX:KLA Introduction - Kirkland Lake Gold Sustainability Report | January to December 2017 | Kirkland Lake Gold Ltd 03 1.1.2 Kirkland Lake Gold completed the acquisition of St. Andrew Goldfields Ltd. in Holt January of 2016, which included the Holt & Holloway and mines and a milling facility on the Holt property. The Holt Mine was originally built and operated by Barrick in the late 1980’s. The mine has a long history of reserve replacement. The Holt & Holloway property is located in northeastern Ontario, adjacent to the Quebec border. The property package includes an irregularly shaped, east-west elongate assemblage of claims, patents, and mining leases that straddles Ontario Provincial Highway 101 east for 40 km, beginning 32 km east of Matheson and extending to the Quebec border. The main assets, the adjacent Holt and Holloway mines, are centered approximately 45 km northeast of Kirkland Lake, 96 km northwest of Rouyn-Noranda, and 58 km by road east of Matheson. The Holt Mine produced 64,677 ounces in 2017, with similar levels of production expected in 2018. The Holloway Mine was placed in care and maintenance at the end of 2016. TSX:KL NYSE:KL ASX:KLA Introduction - Kirkland Lake Gold Sustainability Report | January to December 2017 | Kirkland Lake Gold Ltd 04 1.1.3 Through the acquisition of St Andrew Goldfields Ltd. in January of 2016, the Taylor Company also obtained the Taylor mine. The Taylor mine is a relatively new mine that was commissioned in the fourth quarter of 2015. Production in 2017 totaled 50,764 ounces with the mine also having significant exploration potential in support of future production growth. The Taylor property is located in the Taylor Township, approximately eight km northwest of the town of Matheson and two km west of Highway 11, which lies within the Black River-Matheson Municipality and within Lots 5 – 8, Concessions II and III of Taylor Townships in the Larder Lake Mining Division, District of Cochrane, Ontario. The main access to the property is via Highway 11, north of Highway 101. Existing mine workings are located immediately north and south of Concession Road 3. TSX:KL NYSE:KL ASX:KLA Economical Benefits Sustainability Report | January to December 2017 | Kirkland Lake Gold Ltd 05 2.0 Table 2. Canadian operations total headcount at year end 2017 ECONOMIC Department Full Time Equivalents BENEFITS Macassa 822 Taylor 135 Kirkland Lake Gold’s Holt 313 Canadian Operations Total 1,270 are a major direct contributor to the The overview of the direct economic contribution through wages, goods and local Northern services and sponsorships and donations is provided in Table 3. Kirkland Lake Ontario’s livelihood Gold regularly evaluates and specifically allocates funds for local community grants and sponsorships/donations. and economy through both Table 3. employment and Economic contribution of Kirkland Lake Gold Canadian Operations for FY2017. Goods and Sponsorships sourcing of local Site Wages Services and Donations goods and services. Canadian Operations $157 M $152 M $197 k Additionally, Kirkland Lake Gold has a positive impact on secondary and tertiary Kirkland Lake Gold Canadian Operations has spent $151M in local goods businesses that support our and services in Northern Ontario, which accounts for 67% of the Canadian direct local contributions. Operations spend in goods and services as shown in Figure 2. Local suppliers Secondary and tertiary should benefit from expected growth in 2018 and beyond, resulting in greater industries resulting from direct positive economic benefits in the communities. contributions in the community have not been quantified in this report. Figure 2. Percent local procurement for Canadian Operations FY2017 The total local employment at our sites as Full-Time Equivalents (FTE) for the 2017 Fiscal Year is summarized in Table 2. Kirkland Lake Gold Total local payments has contributed approximately 33% Non - Local (Northern Ontario) $157M in wages through the employment of 1,270 Total payments employees in Canadian 67% outside of Northern Operations. Local Ontario TSX:KL NYSE:KL ASX:KLA Environmental Management Sustainability Report | January to December 2017 | Kirkland Lake Gold Ltd 06 Kirkland Lake Gold has an Environmental Policy 2.0 that outlines the vision of promoting sustainability ENVIRONMENTAL through implementing environmentally responsible MANAGEMENT practices throughout our organization. Kirkland Lake Gold has adopted environmental management practices for proactively managing our risks, which are regularly monitored and reported. 2.1 Each site has a robust system of managing the environment along with supporting Overview of procedures on key aspects. One of the areas of current focus is in determining where common practices and procedures can be utilized, including in the Environmental development of consistent Spills Response Procedures, Risk Management and Management Environmental Key Performance Indicators (KPIs). An overarching environmental data management system will also be explored to bring consistency on data management across sites. All of our Canadian sites operate in compliance with all applicable legislation. An active permit register is maintained for all sites and all Closure Plans for all Canadian operating sites are regularly reviewed by the site and executive management team and updated as necessary.