The reason for the error was that over the course of the last year and a half, Kirkland Lake Gold was upgrading the mill in preparation of an increase to 2,200 tons per day of ores milled. New and larger equipment was installed and commissioned. The company did not factor in the gold that would become trapped in the upgraded circuity- the trapping of gold in any new circuit is comon during "bedding in" periods. These gold ounces are lost and are only recoverable when the equipment or the mill is decomissioned by a full cleanout.

Kirkland Lake believed it was appropriate for them to correct the figure for the actual quantities of ounces as soon as it received the information. The according Kirkland Gold the correction will have no impact on the historical financial statements nor on the second quarter financial results which will be released on December 12, 2013. The financial statments will be based on the corrected operating results.

During the second quarter Kirkland Lake Gold said it produced  105,670 tons  at a grade of 0.35 ounces per ton ("opt") and a recovery rate of 95.17% to produce 34,935 ounces of gold. A re-examination of month-end procedures surrounding inventories and the mill circuit protocols resulted in the number of gold ounces produced being corrected to 31,387 ounces. Total production for the first two quarters of the fiscal year is therefore corrected to 61,566 ounces.

Kirkland Lake Gold has reviewied its policies and procedures concerning the reporting of mill inventories and all necessary improvements will be in place by the end of November. These initiatives will also result in improvements to the operating effectiveness of Disclosure Controls and Procedures.

About the Company

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 capacity to 2,200 tons of ore per day in several stages, and by decreasing production costs by realizing the economies of scale associated with that higher production capacity. 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 sufficient to sustain a mine life of more than ten years for as long as practicable.