53 53 Page 52 Kirkland Lake Gold KLG reported it had a highly productive second quar ter of 2018 led by a record quarterly production from its Macassa Mines in Kirkland Lake and its Fosterville Mine in Australia Production for the second quarter of 2018 totaled 164685 ounces and for the frst six months of 2018 of 312329 ounces Production in Q2 2018 ex ceeded tar get levels for the quarter driven by record quarterly production from Macassa of 60571 ounces and record monthly production in June at Fosterville of 31710 ounces 77462 ounces for Q2 2018 As of June 30 2018 KLG was poised to achieve its fullyear 2018 consoli dated production guidance of over 620000 ounces W e had a strong second quarter achieving record quarterly production at Macassa and a record month in June at Fosterville said T ony Makuch President and CEO of Kirkland Lake A verage grades at both mines were above expecte d levels Contributing to Fosterville s strong results was higher than planned mining in areas close to the contact of the Eagle and Swan zones where we encountered greater widths and higher average grades than were anticipated Kirkland Lake Gold Exceeds 2nd quarter targets At Macassa production on the 5700 Level a relativ ely new area of mining continued to outperform on grade as they did during the frst quarter of the year Makuch added W e will be mining in and around this area throughout the balance of 2018 Based on Kirkland Lake s solid frst half results and expectations for 2018 they are very much on track to achieve their consolidated produc tion guidance for 2018 of more than 620000 ounces KLG also made a major advance by replacing three smaller battery electric vehicles with a new Artisan Z40 elec tric vehicle The Artisan Z40 makes the hauling of the ore more efcient Eventually all KLG s vehicles will be Battery Electric V ehicle BEV Highlights of Q2 2018 and H1 2018 pr oduction r esults All dollar amounts ar e expr essed in US dollars unless otherwise noted Consolidated Q2 2018 production of 164685 ounces compared to 160305 ounces in the second quarter of 2017 Q2 2017 and 147644 ounces in the frst quarter of 2018 Q1 2018 Gold poured in Q2 2018 of 162748 ounces with consolidated gold sales totaling 164305 ounces Record quarterly production at Ma cassa totaling 60571 ounces in Q2 2018 an increa se of 33 from 45699 ounces in Q2 2017 and 12 from the previous quarterly record of 54038 ounces in Q1 2018 Strong results at Fostervill e in Q2 2018 with production totaling 77462 ounces compared to 77069 ounces in Q2 2017 and 63843 ounces the previ ous quarter Production at Holt and T aylor of 13712 ounces and 12940 ounces respectively in Q2 2018 compared to production of 15101 ounces and 12218 ounces respectively in Q2 2017 and 16675 ounces and 13055 ounces respectively in Q1 2018 Record frsthalf productio n total ing 312329 ounces in H1 2018 an increase of 7 from 290733 ounces in the frst six months of 2017 H1 2017 with year over year produc tion increasing 21 at Macassa to 1 14609 ounces and 15 at Foster ville to 141305 ounces Y ear todate 2018 gold poured of 310793 ounces with H1 2018 gold sales of 312068 ounces Page 52 Rock Solid Solutions T o p l e f t T h e R h i n o X D S e r i e s R o c k b r e a k e r s a r e d e s i g n e d s p e c i f c a l l y f o r h e a v y d u t y a p p l i c a t i o n s a n d b u i l t t o h a n d l e u n d e r g r o u n d r i g o r s s u b j e c t t o t o r s i o n a l l o a d i n g s i d e b e n d i n g v i b r a t i o n a n d s h o c k l o a d s F r o m a n i n n o v a t i v e c o m p a ny c o m e s i n s p i r e d t h i n k i n g a n d u n d e r g r o u n d e q u i p m e n t e n g i n e e r e d t o m e e t y o u r s p e c i f c r e q u i r e m e n t s R o c k T e c h i n t r o d u c e s a t r i o o f u n i q u e p r o d u c t s f o r u n d e r g r o u n d a p p l i c a t i o n s d e si g n e d t o i m p r o v e b o t h p r o d u c t i v i t y a n d s a f e t y T h e y a r e s u p p o r t e d b y t h e m o s t d e d i c a t e d t e a m o f p r o f e s si o na l s i n t h e b u si n e s s a n d a n a f t e r s a l e s s u p p o r t n e t w o r k s e c o n d t o n o n e A d v a nt a g e y ou Record quarterly production from its Macassa Mines By Frank Giorno Contd on pg 53 Page 53 Other key developments during Q2 2018 include Signifcant exploration success Fosterville Highgrade visiblegold bearing quartz veins intersected at Robbin s Hill 38 km from Foster ville Mine highlighting the potential to identify new areas of highgrade gold mineralization Macassa Under ground infll drill ing intersects highgrade mineral ization within and outside existing V isible gold from the Fosterville mine Rock Solid Solutions T o p l e f t T h e R h i n o X D S e r i e s R o c k b r e a k e r s a r e d e s i g n e d s p e c i f c a l l y f o r h e a v y d u t y a p p l i c a t i o n s a n d b u i l t t o h a n d l e u n d e r g r o u n d r i g o r s s u b j e c t t o t o r s i o n a l l o a d i n g s i d e b e n d i n g v i b r a t i o n a n d s h o c k l o a d s F r o m a n i n n o v a t i v e c o m p a ny c o m e s i n s p i r e d t h i n k i n g a n d u n d e r g r o u n d e q u i p m e n t e n g i n e e r e d t o m e e t y o u r s p e c i f c r e q u i r e m e n t s R o c k T e c h i n t r o d u c e s a t r i o o f u n i q u e p r o d u c t s f o r u n d e r g r o u n d a p p l i c a t i o n s d e si g n e d t o i m p r o v e b o t h p r o d u c t i v i t y a n d s a f e t y T h e y a r e s u p p o r t e d b y t h e m o s t d e d i c a t e d t e a m o f p r o f e s si o na l s i n t h e b u si n e s s a n d a n a f t e r s a l e s s u p p o r t n e t w o r k s e c o n d t o n o n e A d v a nt a g e y ou Mineral Resources of the South Mine Complex in support of future growth in Mineral Resources and Mineral Re serves Northern T erritory Highgrade vis iblegold bearing mineraliz ation ex tended to 1000 metres below surface at Union Reefs identifying a potential new source of gold production T aylor Highgrade mineral ization in tersected up to 29 km east of Shaft Deposit new gold system discovered below the W est Porphyry Deposit ex tended by 150 metres to depth Str ong cash and cash fow Cash and cash equivalents increased 43 mil lion or 16 during Q2 2018 to approximately 318 million at June 30 2018 Factors afecting cash included continued strong operating cash fow the weighting of capital expenditures to the second half of 2018 H2 2018 the release of approximately 20 million of previouslyrestricted cash refecting changes to security requireme nts re lated to rehabilitation performance guarantees and the use of 150 million C200 million of cash to acquire four million common shares of Novo Resources Corp On May 2 2018 the Company re ported strong Q1 2018 net earnings of 538 million 025share cash fow from operating activit ies of 896 million and free cash fow of 502 million Continued focus on shar eholder r eturns Quarterly dividend of C002share paid on April 13 2018 with an in crease to C003share announced efective for Q2 2018 dividen d pay able on July 13 2018 Common share price increased 40 in Q2 2018 44 year to date closing on Friday June 29 2018 at C2784 on the TSX C2920 per share as at July 9 2018 Contd from pg 52 Page 53 Other key developments during Q2 2018 include Signifcant exploration success Fosterville Highgrade visiblegold bearing quartz veins intersected at Robbin s Hill 38 km from Foster ville Mine highlighting the potential to identify new areas of highgrade gold mineralization Macassa Under ground infll drill ing intersects highgrade mineral ization within and outside existing V isible gold from the Fosterville mine Rock Solid Solutions T o p l e f t T h e R h i n o X D S e r i e s R o c k b r e a k e r s a r e d e s i g n e d s p e c i f c a l l y f o r h e a v y d u t y a p p l i c a t i o n s a n d b u i l t t o h a n d l e u n d e r g r o u n d r i g o r s s u b j e c t t o t o r s i o n a l l o a d i n g s i d e b e n d i n g v i b r a t i o n a n d s h o c k l o a d s F r o m a n i n n o v a t i v e c o m p a ny c o m e s i n s p i r e d t h i n k i n g a n d u n d e r g r o u n d e q u i p m e n t e n g i n e e r e d t o m e e t y o u r s p e c i f c r e q u i r e m e n t s R o c k T e c h i n t r o d u c e s a t r i o o f u n i q u e p r o d u c t s f o r u n d e r g r o u n d a p p l i c a t i o n s d e si g n e d t o i m p r o v e b o t h p r o d u c t i v i t y a n d s a f e t y T h e y a r e s u p p o r t e d b y t h e m o s t d e d i c a t e d t e a m o f p r o f e s si o na l s i n t h e b u si n e s s a n d a n a f t e r s a l e s s u p p o r t n e t w o r k s e c o n d t o n o n e A d v a nt a g e y ou Mineral Resources of the South Mine Complex in support of future growth in Mineral Resources and Mineral Re serves Northern T erritory Highgrade vis iblegold bearing mineraliz ation ex tended to 1000 metres below surface at Union Reefs identifying a potential new source of gold production T aylor Highgrade mineral ization in tersected up to 29 km east of Shaft Deposit new gold system discovered below the W est Porphyry Deposit ex tended by 150 metres to depth Str ong cash and cash fow Cash and cash equivalents increased 43 mil lion or 16 during Q2 2018 to approximately 318 million at June 30 2018 Factors afecting cash included continued strong operating cash fow the weighting of capital expenditures to the second half of 2018 H2 2018 the release of approximately 20 million of previouslyrestricted cash refecting changes to security requireme nts re lated to rehabilitation performance guarantees and the use of 150 million C200 million of cash to acquire four million common shares of Novo Resources Corp On May 2 2018 the Company re ported strong Q1 2018 net earnings of 538 million 025share cash fow from operating activit ies of 896 million and free cash fow of 502 million Continued focus on shar eholder r eturns Quarterly dividend of C002share paid on April 13 2018 with an in crease to C003share announced efective for Q2 2018 dividen d pay able on July 13 2018 Common share price increased 40 in Q2 2018 44 year to date closing on Friday June 29 2018 at C2784 on the TSX C2920 per share as at July 9 2018 Contd from pg 52 Page 53 Other key developments during Q2 2018 include Signifcant exploration success Fosterville Highgrade visiblegold bearing quartz veins intersected at Robbin s Hill 38 km from Foster ville Mine highlighting the potential to identify new areas of highgrade gold mineralization Macassa Under ground infll drill ing intersects highgrade mineral ization within and outside existing V isible gold from the Fosterville mine Rock Solid Solutions T o p l e f t T h e R h i n o X D S e r i e s R o c k b r e a k e r s a r e d e s i g n e d s p e c i f c a l l y f o r h e a v y d u t y a p p l i c a t i o n s a n d b u i l t t o h a n d l e u n d e r g r o u n d r i g o r s s u b j e c t t o t o r s i o n a l l o a d i n g s i d e b e n d i n g v i b r a t i o n a n d s h o c k l o a d s F r o m a n i n n o v a t i v e c o m p a ny c o m e s i n s p i r e d t h i n k i n g a n d u n d e r g r o u n d e q u i p m e n t e n g i n e e r e d t o m e e t y o u r s p e c i f c r e q u i r e m e n t s R o c k T e c h i n t r o d u c e s a t r i o o f u n i q u e p r o d u c t s f o r u n d e r g r o u n d a p p l i c a t i o n s d e si g n e d t o i m p r o v e b o t h p r o d u c t i v i t y a n d s a f e t y T h e y a r e s u p p o r t e d b y t h e m o s t d e d i c a t e d t e a m o f p r o f e s si o na l s i n t h e b u si n e s s a n d a n a f t e r s a l e s s u p p o r t n e t w o r k s e c o n d t o n o n e A d v a nt a g e y ou Mineral Resources of the South Mine Complex in support of future growth in Mineral Resources and Mineral Re serves Northern T erritory Highgrade vis iblegold bearing mineraliz ation ex tended to 1000 metres below surface at Union Reefs identifying a potential new source of gold production T aylor Highgrade mineral ization in tersected up to 29 km east of Shaft Deposit new gold system discovered below the W est Porphyry Deposit ex tended by 150 metres to depth Str ong cash and cash fow Cash and cash equivalents increased 43 mil lion or 16 during Q2 2018 to approximately 318 million at June 30 2018 Factors afecting cash included continued strong operating cash fow the weighting of capital expenditures to the second half of 2018 H2 2018 the release of approximately 20 million of previouslyrestricted cash refecting changes to security requireme nts re lated to rehabilitation performance guarantees and the use of 150 million C200 million of cash to acquire four million common shares of Novo Resources Corp On May 2 2018 the Company re ported strong Q1 2018 net earnings of 538 million 025share cash fow from operating activit ies of 896 million and free cash fow of 502 million Continued focus on shar eholder r eturns Quarterly dividend of C002share paid on April 13 2018 with an in crease to C003share announced efective for Q2 2018 dividen d pay able on July 13 2018 Common share price increased 40 in Q2 2018 44 year to date closing on Friday June 29 2018 at C2784 on the TSX C2920 per share as at July 9 2018 Contd from pg 52