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Gold Miner's Latest Drill Results 'Continue to Support Growth Plans'
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A CIBC report relayed the latest exploration findings at one of its Canadian mines.

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In a July 6 research note, CIBC analyst Cosmos Chiu indicated that Kirkland Lake Gold Inc. (KL:TSX; KLGDF:OTCQX) reported results from underground drilling in the eastern extension of the South mine complex at Macassa, which "continue to support the company's growth plans" there. CIBC increased its target price on the company to CA$31 per share from CA$26. In comparison, it is trading today at around CA$29.29 per share.

At Macassa, the company intends to finish building the #4 shaft and to reach annual gold production of more than 400,000 ounces. Chiu noted that "intersections reported today are in close proximity, or ~560 meters (~560m) south-southeast, of the new #4 shaft," the first construction phase of which is scheduled for completion in early 2022.

Chiu relayed that drilling indicated additional resource expansion as all of the extensions but two were outside of the existing mineral resource area. The high-grade ones included 241 grams per ton (241 g/t) over 1.1m true width, 24.3 g/t over 1.4m true width and 54.2 g/t over 2.3m true width. Others, within the footwall veins, included 50.7 g/t over 0.8m and 16 g/t over 0.7m.

Drilling also identified a "'high potential area' within the eastern extension of the South mine complex of high grades and exceptional true widths," Chiu said. It featured an approximately 73m strike length and 45m dip. Average grades there were greater than or equal to 30 g/t. True widths were greater than or equal to 30m.

Chiu added that Kirkland Lake, "one of our preferred gold producers," is trading below its peers but warrants a premium to the group based on its "ability to deliver attractive returns to investors." He reiterated CIBC's Outperformer rating on the miner.

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Disclosures from CIBC, Kirkland Lake Gold Ltd., July 6, 2018

Analyst Certification:
Each CIBC World Markets Corp./Inc. research analyst named on the front page of this research report, or at the beginning of any subsection hereof, hereby certifies that (i) the recommendations and opinions expressed herein accurately reflect such research analyst's personal views about the company and securities that are the subject of this report and all other companies and securities mentioned in this report that are covered by such research analyst and (ii) no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

Analysts employed outside the U.S. are not registered as research analysts with FINRA. These analysts may not be associated persons of CIBC World Markets Corp. and therefore may not be subject to FINRA Rule 2241 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Potential Conflicts of Interest:
Equity research analysts employed by CIBC World Markets Corp./Inc. are compensated from revenues generated by various CIBC World Markets Corp./Inc. businesses, including the CIBC World Markets Investment Banking Department. Research analysts do not receive compensation based upon revenues from specific investment banking transactions. CIBC World Markets Corp./Inc. generally prohibits any research analyst and any member of his or her household from executing trades in the securities of a company that such research analyst covers.
Additionally, CIBC World Markets Corp./Inc. generally prohibits any research analyst from serving as an officer, director or advisory board member of a company that such analyst covers.

In addition to 1% ownership positions in covered companies that are required to be specifically disclosed in this report, CIBC World Markets Corp./Inc. may have a long position of less than 1% or a short position or deal as principal in the securities discussed herein, related securities or in options, futures or other derivative instruments based thereon.

Recipients of this report are advised that any or all of the foregoing arrangements, as well as more specific disclosures set forth below, may at times give rise to potential conflicts of interest.

Important Disclosure Footnotes for Kirkland Lake Gold Ltd.

· Kirkland Lake Gold Ltd. is a client for which a CIBC World Markets company has performed investment banking services in the past 12 months..

· CIBC World Markets Inc. has received compensation for investment banking services from Kirkland Lake Gold Ltd. in the past 12 months.

· CIBC World Markets Inc. expects to receive or intends to seek compensation for investment banking services from Kirkland Lake Gold Ltd. in the next 3 months.

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