Lake Shore Gold Corp. Press Releases

Lake Shore Gold Announces Results of Shareholders' Meeting

Thu, 16 May 2013 08:45:00 -0400

TORONTO, ONTARIO -- (Marketwired - May 16, 2013) - Lake Shore Gold Corp. (TSX:LSG)(NYSE MKT:LSG) ("Lake Shore Gold" or the "Company") is pleased to announce that all matters presented for approval at the Company's annual and special meeting of shareholders held on May 15, 2013, have been duly authorized and approved, as follows:

	(i)	setting the number of directors at six and election of all management nominees to the board of directors of the Company;

	(ii)	appointment of Deloitte LLP as auditors of the Company for the ensuing year and authorization of the directors to fix their remuneration;

	(iii)	approval of the unallocated options under the Company's Stock Option Plan; and

	(iv)	confirmation of the by-law relating to nominations for election to the board of directors of the Company.

Detailed voting results for the election of directors (based on proxy returns) were as follows:

Name	Shares Voted	Shares Withheld
Alan Moon	120,530,247	6,616,567
Arnold Klassen	122,953,815	4,192,999
Jon Gill	120,776,866	6,369,948
Frank Hallam	86,889,497	40,257,317
Peter Crossgrove	84,654,636	42,492,177
Anthony Makuch	102,939,757	24,207,057

About Lake Shore Gold

Lake Shore Gold is a mine development and operating company that is in production and pursuing rapid growth through the advancement of three wholly owned, multi-million ounce gold complexes in the Timmins Gold Camp. The Company is in production at both the Timmins West and Bell Creek mines, with material being delivered for processing to the Bell Creek Mill. The Company continues to have an active drilling program aimed at supporting current operations and evaluating high-priority exploration targets around the Timmins Camp. The Company's common shares trade on the TSX and NYSE MKT under the symbol LSG.

FOR MORE INFORMATION PLEASE CONTACT:

Tony Makuch
President & CEO
(416) 703-6298

Mark Utting
Vice-President, Investor Relations
Lake Shore Gold Corp. (416) 703-6298
Website: www.lsgold.com

Lake Shore Gold Reports First Quarter 2013 Results

Tue, 14 May 2013 20:32:00 -0400

TORONTO, ONTARIO -- (Marketwired - May 14, 2013) - Lake Shore Gold Corp. (TSX:LSG)(NYSE MKT:LSG) ("Lake Shore Gold" or the "Company") today announced financial and operating results for the first quarter of 2013. As previously announced, gold produced during the first quarter 2013 totaled 23,200 ounces from milling 197,640 tonnes at an average grade of 3.8 grams per tonne. The Company sold 26,100 ounces during the first quarter 2013 at an average price of US$1,630 per ounce.

Tony Makuch , President and CEO of Lake Shore Gold, commented: "Overall, we had a solid quarter and achieved strong production growth from the same period in 2012. In particular, we finished the quarter strong with throughput in March averaging the new capacity of 2,500 tonnes per day. Our grade for the quarter was 3.8 grams per tonne and averaged 4.0 grams per tonne in March, which compared to a target level for the quarter of 3.9 to 4.1 grams per tonne. Exiting the first quarter, we continued to have a solid balance sheet, with cash and cash equivalents of $51.9 million.

"Looking ahead, our company remains poised to achieve at least 40% production growth in 2013 to between 120,000 and 135,000 ounces of gold. Even at today's prices, this output will position us to generate net free cash flow in the fourth quarter. A key milestone in achieving our growth is completing our mill expansion. When complete, our mill will be capable of processing in excess of 3,000 tonnes per day, which will support both higher production and lower unit operating costs, with cash costs targeted for below US$700 per ounce by the fourth quarter. The Company has been reviewing all costs, particularly at this time of lower gold prices and when we are nearing completion of the heaviest phase of our capital program for the year. Although we are experiencing cost pressures as we near completion of the mill expansion, we are offsetting the impact with cost savings in other areas through efficiencies and capital reductions. We continue to target capital investment in 2013 of approximately $90 million. Once the mill expansion is complete, our capital requirements will decline dramatically, which along with higher production and lower costs, will position us to generate net free cash flow."

"With the recent drop in the gold price, we are managing our debt and our debt covenants and working closely with our secured lender, Sprott Resource Lending Partnership. We are also reviewing our spending timelines in order to manage the balance sheet. Because of this, we now plan to complete the mill expansion in the third quarter."

First Quarter 2013 Highlights

Produced 23,200 ounces of gold in first quarter 2013 (197,640 tonnes at 3.8 grams per tonne), an increase of 39% from the 16,680 ounces (160,510 tonnes at 3.4 grams per tonne) produced in first quarter 2012.
- Timmins West Mine - 18,700 ounces (161,410 tonnes @ 3.7 grams per tonne)
- Bell Creek Mine - 4,500 ounces (36,230 tonnes @ 4.2 grams per tonne)
Poured 20,530 ounces of gold in first quarter 2013, an increase of 27% compared to 16,180 ounces for first quarter 2012.
Sold 26,100 ounces in first quarter 2013 at an average price of US$1,630 per ounce compared to 18,470 ounces at an average price of US$1,690 per ounce in first quarter 2012.
Cash operating costs per ounce of US$982 in first quarter 2013 (including US$42 per ounce for royalties) compared to US$1,046 per ounce (including US$9 per ounce for royalties) for first quarter 2012.

Company invested $36.8 million in mine development and mill expansion in first quarter 2013, with additional $1.4 million invested for exploration (largely in-mine drilling), compared to $36.8 million and $7.4 million, respectively ($2.9 million for in-mine drilling), for first quarter 2012.
- $17.6 million at Timmins West Mine
- $15.5 million at Bell Creek Mill
- $3.7 million at Bell Creek Mine

$35 million standby line of credit ("Standby Line") with Sprott Resource Lending Partnership drawn on February 1, 2013. The Standby Line bears an interest rate of 9.75% compounded monthly and is due on January 1, 2015.

Cash and cash equivalents of $51.9 million at March 31, 2013.

Cash earnings from mine operations for the first quarter of 2013 of $16.9 million, an increase of 80% from $9.4 million for the first quarter of 2012.

Net loss for the first quarter of 2013 was $0.6 million (or $0.00 per common share) compared to net loss of $3.0 million (or $0.01 per common share) for the first quarter 2012.

Increased total probable reserve estimate by 13% to 927,000 ounces, including 798,000 ounces (4,811,000 tonnes at 5.2 grams per tonne) at Timmins West Mine and 129,000 ounces (960,000 tonnes at 4.2 grams per tonne) at Bell Creek Mine.

Outlook

The Company's key milestones over the balance of 2013 are:

Completing the ongoing mill expansion in the third quarter to reach a capacity exceeding 3,000 tonnes per day;

Growing mine production to support higher throughput and lowering unit operating costs to below US$700 per ounce by the fourth quarter of the year; and

Completing its 2013 capital investment program, with investment levels set to decline dramatically during the third and fourth quarters of the year.

With the achievement of these milestones, the Company will begin generating net free cash flow in the fourth quarter, based on current gold prices. The Company is committed to achieving its guidance for the year, including production growth of at least 40%, to 120,000 to 135,000 ounces, cash operating costs of US$800 to US$875 per ounce and capital investment for the year of approximately $90 million.

Conference Call & Webcast

Lake Shore Gold will also host a conference call and webcast on Wednesday, May 15, 2013 at 2:00 pm EST to discuss the Company's first quarter financial and operating results. Those wishing to access the call can do so using the telephone numbers that follow. The call will also be webcast and available on the Company's website.

Participant call-in: 416-340-8018 or 866-223-7781

Replay number: 905-694-9451 or 800-408-3053

Re-dial ID: 8256094

Available until: 11:59 pm (May 22, 2013)

Qualified Persons

Mine development and operating activities at the Company's Timmins assets are conducted under the supervision of Dan Gagnon , Senior Vice-President, Operations. Mr. Gagnon is a qualified person ("QP") as defined by National Instrument 43-101 and has reviewed and approved the information included in this news release. Mr. Gagnon is an employee of Lake Shore Gold

The QP for the Company's reserve estimates at Timmins West Mine and Bell Creek Mine is Natasha Vaz , P. Eng. As QP, Ms. Vaz has prepared or supervised the preparation of the scientific or technical information disclosed in this press release. Ms. Vaz is an employee of Lake Shore Gold.

About Lake Shore Gold

FORWARD-LOOKING STATEMENTS

Certain statements in this press release relating to the Company's expected production levels, production growth, exploration activities, potential for increasing resources, project expenditures and business plans are "forward-looking statements" or "forward-looking information" within the meaning of certain securities laws, including under the provisions of Canadian provincial securities laws and under the United States Private Securities Litigation Reform Act of 1995 and are referred to herein as "forward-looking statements." The Company does not intend, and does not assume any obligation, to update these forward-looking statements. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable, including that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts, labour disturbances, interruption in transportation or utilities, or adverse weather conditions, that there are no material unanticipated variations in budgeted costs, that contractors will complete projects according to schedule, and that actual mineralization on properties will be consistent with models and will not be less than identified mineral reserves. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In particular, delays in development or mining and fluctuations in the price of gold or in currency markets could prevent the Company from achieving its targets. Readers should not place undue reliance on forward-looking statements. More information about risks and uncertainties affecting the Company and its business is available in the Company's most recent Annual Information Form and other regulatory filings with the Canadian Securities Administrators, which are posted on sedar at www.sedar.com, or the Company's most recent Annual Report on Form 40-F and other regulatory filings with the Securities and Exchange Commission.

FOR FURTHER INFORMATION PLEASE CONTACT:

Tony Makuch
President & CEO
(416) 703-6298

Mark Utting
Vice-President, Investor Relations
Lake Shore Gold Corp.
(416) 703-6298
Website: www.lsgold.com

Lake Shore Gold Announces Amendments to Shareholder Meeting Matters

Fri, 10 May 2013 07:38:00 -0400

TORONTO, ONTARIO -- (Marketwired) - May 10, 2013 - Lake Shore Gold Corp. (TSX:LSG)(NYSE MKT:LSG) ("Lake Shore Gold" or the "Company") today announced proposed amendments to certain matters which are to be considered and voted upon at its annual and special shareholder meeting scheduled to be held on May 15, 2013 (the "Meeting"). The management information circular of Lake Shore Gold (the "Company") dated April 15, 2013 (the "Circular") indicated that at the Meeting, shareholders would be invited to consider, and if deemed fit: (i) approve the unallocated options, rights and other entitlements issuable pursuant to the stock option plan for the Company (the "Option Plan"); and (ii) confirm a new By-Law No. 2 for the Company ("By-Law No. 2"). The Company is proposing to amend the Option Plan and By-Law No. 2 in the following manner from the descriptions thereof contained in the Circular:

(a)		Lake Shore Gold proposes to amend the Option Plan attached as Schedule "B" to the Circular in order to:

	(i)	incorporate a limitation which would restrict the number of stock options issuable under the Option Plan to non-executive directors to the lesser of (I) 1% of the outstanding issued common shares; and (II) such number of stock options as entails a maximum aggregate grant date value of Cdn$100,000 within any one year period, calculated based upon the Black-Scholes option pricing model, subject to certain specified exceptions (collectively, the "Director Limitations");

	(ii)	provide that shareholder approval shall be required in order to amend the Option Plan where any such amendments would (I) reduce the exercise price of any existing option or result in the cancellation and proximate re-issuance of any existing option, or any other amendments to entitlements in relation to options held by optionees; (II) extend the term of any stock options held by optionees, beyond the original expiry date thereof; or (III) amend the Director Limitations; and

	(iii)	reduce the aggregate number of common shares issuable pursuant to options granted under the Option Plan from 10% to 7% of the issued and outstanding common shares at the time of the stock option grant; and

(b)		Lake Shore Gold proposes to amend By-Law No. 2 attached as Schedule "A" to the Circular, to provide that the board of directors of the Company may, in its sole discretion, waive any requirement in By-law No. 2.

Lake Shore Gold is committed to best corporate governance practices and has proposed the above amendments in accordance with such mandate. Accordingly, management and the board of directors of the Company are of the opinion that the Option Plan and By-Law No. 2 (which has been renamed as By-Law No. 3 following the above-noted amendments), as amended as described above, are each in the best interests of the Company and its shareholders and accordingly, unanimously recommend that the shareholders vote for the approval and confirmation of such matters at the Meeting. Copies of the amended Option Plan and By-Law No. 3 have been filed on SEDAR at www.sedar.com.

About Lake Shore Gold

FORWARD-LOOKING STATEMENTS

FOR FURTHER INFORMATION PLEASE CONTACT:

Tony Makuch
President & CEO
Lake Shore Gold
(416) 703-6298

Mark Utting
Vice-President, Investor Relations
Lake Shore Gold
(416) 703-6298
Website: www.lsgold.com

Lake Shore Gold Completes Sale of Mexican Portfolio to Revolution Resources Corp. for Significant Equity Interest

Thu, 09 May 2013 13:41:00 -0400

TORONTO, ONTARIO--(Marketwired - May 9, 2013) - Lake Shore Gold Corp. ("Lake Shore Gold" or the "Company") (TSX:LSG)(NYSE MKT:LSG) has closed its previously announced transaction (see press release of January 30, 2013) with Revolution Resources Corp. ("Revolution"), pursuant to which the Company transferred to Revolution control of a subsidiary holding the Company's Mexican property portfolio, which includes the Universo property and the Montaña de Oro, La Bufa and Lluvia de Oro properties totalling over 400,000 hectares in two historic mining regions of Mexico, and valued on the Company's financial statements at approximately $2.2 million. In return, the Company has acquired direct ownership of a total of 20,000,000 common shares of Revolution, representing 16.8% of the outstanding shares. Together with shares already held, the Company now owns directly 26,713,740 common shares of Revolution, representing 22.4% of the outstanding shares of Revolution.

In connection with the transaction, the Company and Revolution have entered into an agreement which, among other things, places certain restrictions on the transfer of shares issued to the Company for a period of 18 months and prohibits the Company from acquiring additional shares and taking certain other actions without Revolution's consent for 18 months. In addition, on closing and through 2014, the Company will have the right to at least two nominees to the board of directors of Revolution and the Company will continue to have rights to appoint one or more nominees depending on its level of ownership for so long as the Company holds at least 5% of the outstanding Revolution shares.

Lake Shore Gold acquired the shares for investment purposes and has no present intention to acquire any additional shares.

FOR FURTHER INFORMATION PLEASE CONTACT:

Lake Shore Gold Corp.
2000 - 181 University Avenue
Toronto, ON M5H 3M7

Tony Makuch
President & CEO
(416) 703-6298

Mark Utting
Vice-President, Investor Relations
Lake Shore Gold
(416) 703-6298
Website: www.lsgold.com

Lake Shore Gold Announces Details of First Quarter 2013 Conference Call and Webcast

Tue, 07 May 2013 08:00:00 -0400

TORONTO, ONTARIO -- (Marketwire -- May 7, 2013) - Lake Shore Gold Corp. (TSX:LSG)(NYSE MKT:LSG) ("Lake Shore Gold" or the "Company") today announced that the Company plans to release its first quarter 2013 financial results following the market close on Tuesday, May 14, 2013. The Company will then host a conference call and webcast to review the results on Wednesday, May 15, 2013 at 2:00 pm EST. Those wishing to access the call can do so using the telephone numbers listed below. The call will also be webcast and available on the Company's website.

Participant call-in: 416-340-8018 or 866-223-7781

Replay number: 905-694-9451 or 800-408-3053

Re-dial ID: 8256094

Available until: 11:59 pm (May 22, 2013)

In addition to the first quarter 2013 conference call and webcast, the Company also plans to provide a webcast of its annual meeting to be held the same day, Wednesday, May 15, 2013, at 8:30 am. The meeting will be held at the TMX Broadcast Centre, located at 130 King Street West in Toronto, Ontario.

About Lake Shore Gold

FOR FURTHER INFORMATION PLEASE CONTACT:

Tony Makuch
President & CEO
(416) 703-6298

Mark Utting
Vice-President, Investor Relations
Lake Shore Gold
(416) 703-6298
Website: www.lsgold.com

Lake Shore Gold to Hold Annual Meeting in Toronto on May 15, 2013

Mon, 22 Apr 2013 07:26:00 -0400

TORONTO, ONTARIO -- (Marketwire -- April 22, 2013) - Lake Shore Gold Corp. (TSX:LSG)(NYSE MKT:LSG) ("Lake Shore Gold" or the "Company") today announced that the Company will hold its Annual Meeting on Wednesday May 15, 2013 at 8:30 am EST. The meeting will be held at the TMX Broadcast Centre, located at 130 King Street West in Toronto, Ontario. The mailing of documents related to the meeting has been completed. The documents, including the Proxy Form, Management Information Circular, Annual Information Form and Annual Report (containing the audited consolidated financial statements) have been filed on SEDAR in Canada and EDGAR in the United States. In addition, the Company's Form 40-F has been completed and filed with the United States Securities Exchange Commission.

Copies of these documents are available through the Company's website at www.lsgold.com. Hard copies may be requested, free of charge, by calling 416-703-6298 or via email using the Contact Us form on the Company's website.

About Lake Shore Gold

Lake Shore Gold Reports First Quarter 2013 Production of 23,200 Ounces of Gold

Mon, 08 Apr 2013 16:24:00 -0400

Gold production for first quarter 2013 of 23,200 ounces, an increase of 40% from the first quarter 2012
Average mill throughput for first quarter 2013 increased 25% from a year earlier to 2,200 tonnes per day, 2,500 tonnes per day in March
Grades for first quarter 2013 rose 12% from first quarter 2012 and averaged 3.8 grams per tonne, with average grade in March of 4.0 grams per tonne
Company on track for full-year 2013 production of 120,000 to 135,000 ounces of gold.

TORONTO, ONTARIO -- (Marketwire -- April 8, 2013) - Lake Shore Gold Corp. (TSX:LSG)(NYSE MKT:LSG) ("Lake Shore Gold" or the "Company") Lake Shore Gold Corp. today announced details of the Company's operating results for the first quarter of 2013. A total of 23,200 ounces of gold was produced, an increase of 40% from the first quarter of 2012. Mill throughput during the first quarter of 2013 totaled 197,640 tonnes at an average grade of 3.8 grams per tonne with average mill recoveries of 95.6%. Total gold poured for the first quarter of 2013 totaled 20,530 ounces, while gold sales totaled 26,100 ounces at an average price of US$1,630 per ounce.

On March 18, 2013, the Company announced that it expected to produce between 20,500 and 23,000 ounces during the first quarter of 2013. Production for the quarter of 23,200 ounces exceeded the top end of the expected range reflecting average mill throughput of 2,500 tonnes per day in March, in line with the mill's current capacity, and an average grade for the month of 4.0 grams per tonne.

		Q1/13	Q1/12	Q4/12
Tonnes milled		197,640	160,510	181,580
Tonnes per day		2,200	1,760	1,970

Average recovery (%)		95.6	95.1	96.0
Average grade (grams per tonne)		3.8	3.4	4.2

Gold Ounces
	Production	23,200	16,680	23,740
	poured	20,530	16,180	24,040
	sales	26,100	18,470	19,940

Gold price (US$ per ounce)		1,630	1,690	1,720

Tony Makuch , President and CEO of Lake Shore Gold, commented: "We had a strong finish to the first quarter of 2013 with average throughput in March at 100% of capacity and an average grade for the month of 4.0 grams per tonne. For the full quarter, average daily throughput increased 25% from the first quarter of last year, our average grade rose 12% and production ounces were 40% higher. Throughput during the first quarter averaged 2,200 tonnes per day mainly due to the impact of very cold winter conditions and unplanned maintenance in the crushing circuit during February. The average grade for the quarter of 3.8 grams per tonne compared to an expected level of between 3.9 and 4.1 grams per tonne. At the end of the first quarter, we had 23,000 tonnes in stockpile that we had planned to mill during the quarter, but will now be processed later in the year.

"Also during the quarter, we continued to make progress with the capital development program at our Timmins West Mine and the expansion of our milling facility to a capacity of 3,000 tonnes per day. Work at the mill during the first quarter focused on the crushing and grinding circuit, including construction of the truck dump, jaw crusher and ore bin, and the installation of the SAG mill. Work remaining for completion is largely related to installation of electrical and piping infrastructure for these areas with the increase in milling capacity to 3,000 tonnes per day scheduled for completion in June."

Details of the Company's financial performance, including capital and operating costs, will be included in its first quarter financial results to be released on May 14, 2013, with the Company's annual meeting of shareholders to be held on May 15, 2013 at 8:30 am EST.

Qualified Person

Mine development and operating activities at the Company's Timmins assets are conducted under the supervision of Dan Gagnon , Senior Vice-President, Operations. Mr. Gagnon is a qualified person as defined by National Instrument 43-101 and has reviewed and approved the information included in this news release.

About Lake Shore Gold

FORWARD-LOOKING STATEMENTS

Certain statements in this press release relating to the Company's expected production levels, production growth, exploration activities, potential for increasing resources, project expenditures and business plans are "forward-looking statements" or "forward-looking information" within the meaning of certain securities laws, including under the provisions of Canadian provincial securities laws and under the United States Private Securities Litigation Reform Act of 1995 and are referred to herein as "forward-looking statements." The Company does not intend, and does not assume any obligation, to update these forward-looking statements. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable, including that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts, labour disturbances, interruption in transportation or utilities, or adverse weather conditions, that there are no material unanticipated variations in budgeted costs, that contractors will complete projects according to schedule, and that actual mineralization on properties will be consistent with models and will not be less than identified mineral reserves. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In particular, delays in development or mining and fluctuations in the price of gold or in currency markets could prevent the Company from achieving its targets. Readers should not place undue reliance on forward-looking statements. More information about risks and uncertainties affecting the Company and its business is available in the Company's most recent Annual Information Form and other regulatory filings with the Canadian Securities Administrators, which are posted on SEDAR at www.sedar.com, or the Company's most recent Annual Report on Form 40-F and other regulatory filings with the Securities and Exchange Commission.

FOR FURTHER INFORMATION PLEASE CONTACT:

Tony Makuch
President & CEO
(416) 703-6298

Mark Utting
Vice-President, Investor Relations
Lake Shore Gold
(416) 703-6298
Website: www.lsgold.com

Lake Shore Gold Files Bell Creek Mine Reserve Technical Report

Thu, 28 Mar 2013 17:06:00 -0400

TORONTO, ONTARIO -- (Marketwire - March 28, 2013) - Lake Shore Gold Corp. (TSX:LSG)(NYSE MKT:LSG) ("Lake Shore Gold" or the "Company") today announced that a technical report (the "Report"), entitled "NI 43-101 Technical Report, Resource Estimate Update, and Prefeasibility Study and Mineral Reserve Estimate For Bell Creek Mine Hoyle Township Timmins, Ontario, Canada" has been filed on SEDAR at www.sedar.com.

The Report includes the previously announced updated resource and initial reserve estimates for the wholly owned Bell Creek Mine (see press release dated March 18, 2013).

About Lake Shore Gold

FOR FURTHER INFORMATION PLEASE CONTACT:

Tony Makuch
President & CEO
(416) 703-6298

Mark Utting
Vice-President, Investor Relations
Lake Shore Gold Corp.
(416) 703-6298
Website: www.lsgold.com

Lake Shore Gold Announces Appointment of Philip C. Yee as Vice-President & Chief Financial Officer

Tue, 19 Mar 2013 09:28:00 -0400

TORONTO, ONTARIO--(Marketwire - March 19, 2013) - Lake Shore Gold Corp. (TSX:LSG)(NYKSE MKT:LSG) ("Lake Shore Gold" or the "Company") is pleased to announce the appointment of Philip C. Yee as Vice-President & Chief Financial Officer of the Company, effective May 1, 2013.

Mr. Yee is a Chartered Professional Accountant ("CPA") and a Chartered Accountant ("CA") with over 25 years of experience in the accounting and financial fields and over 10 years of experience in the mining sector. Most recently, he has served as Chief Financial Officer for Patagonia Gold Plc since May 2011. Prior to joining Patagonia Gold, Mr. Yee served as Director, Finance for Centerra Gold Inc. and, prior to that, as Vice-President, Finance for the Kumtor Gold Mine in the Kyrgyz Republic (the flagship project of Centerra Gold). In addition to being a CA, Mr. Yee holds a Bachelor of Commerce degree from the University of Saskatchewan.

Tony Makuch , President and CEO of Lake Shore Gold, commented: "I am extremely pleased to welcome Philip to Lake Shore Gold at a very exciting time for our Company. His financial experience in the mining sector will be an important asset as we continue to advance Timmins West Mine towards full production by the end of this year, and advance phase two of our mill expansion towards completion in June. With the progress we have achieved, our company is positioned for strong production growth, improved cash operating costs and lower capital investment requirements in 2013. With his expertise in financial reporting, planning and cash flow management, Philip is a valuable addition to our team."

About Lake Shore Gold

FOR FURTHER INFORMATION PLEASE CONTACT:

Lake Shore Gold Corp.
Tony Makuch
President & CEO
(416) 703-6298
Email: click here

Mark Utting
Vice-President, Investor Relations
(416) 703-6298
Email: click here
Website: www.lsgold.com

Lake Shore Gold Reports Solid Progress in 2012, Company Nearing Completion of Key Construction Programs, Strong Production Growth and Lower Costs Planned in 2013

Mon, 18 Mar 2013 20:47:00 -0400

TORONTO, ONTARIO -- (MARKETWIRE -- March 18, 2013) - Lake Shore Gold Corp. (TSX:LSG)(NYSE MKT:LSG) ("Lake Shore Gold" or the "Company") today announced financial and operating results for the full-year and fourth quarter of 2012. Highlights of the year include: meeting the Company's production guidance; achieving significant development and construction progress; effectively managing operating costs and capital investment; and ending the year positioned for production growth of 40% or more in 2013 (120,000 to 135,000 ounces) and well financed.

Tony Makuch , President and CEO of Lake Shore Gold, commented: "Last year was our peak year for capital investment, development and construction as we advanced the Timmins West Mine and kept our mill expansion on track for completion during the second quarter of 2013. It was also a year in which we achieved our production guidance, reported average cash costs per tonne below expected levels and capital expenditures at the low end of our target range. Based on the progress achieved in 2012, we are now poised for strong production growth, sharply lower capital investment and improved operating costs in 2013."

Full Year and Fourth Quarter 2012 Review

Met Production Guidance

Produced 85,782 ounces of gold in 2012 (719,298 tonnes at 3.9 grams per tonne), in line with guidance. Gold poured from 2012 production totaled 85,184 ounces with 83,779 ounces sold at an average price of US$1,666 per ounce.
Produced 23,738 ounces of gold in the fourth quarter of 2012 (181,575 tonnes at 4.2 grams per tonne), with gold poured of 24,041 ounces and 19,940 ounces sold at an average price of US$1,719 per ounce.

Achieved Significant Development and Expansion Progress

Completed 11,900 metres of mine development at its Timmins West and Bell Creek mines, as well as approximately 140,000 metres of delineation and infill drilling. Development and drilling during the year was completed to better define resources and outline mineralization in support of production growth and to optimize mine planning.
Extended Timmins Deposit ramp to 790 Level and connected lower mine at Thunder Creek from 660 Level to 765 Level. Ramp at Bell Creek driven to 610 Level with drill drift established to support evaluation of the Bell Creek deposit at depth.
Completed phase one of Company's mill expansion in December, increased processing capacity by 25% to 2,500 tonnes per day.
Completed 3,030 metres of mine development in fourth quarter of 2012, as well as 27,000 metres of delineation and infill drilling.

Effectively Managed Operating Costs and Capital Investment

Reported cash operating costs per tonne in 2012 of $115, below target levels. On a per ounce basis, cash operating costs were US$996 in 2012 (including $30 relating to royalties). For the fourth quarter 2012, cash operating costs totaled $124 per tonne or US$990 per ounce (including $36 relating to royalties).
Effectively managed capital investment during peak investment phase of Timmins West Mine development and mill expansion projects with total investment of $160.7 million for projects and $9.1 million for exploration, in line with the Company's target for total capital investment of $170 to $175 million.
Capital investment during the fourth quarter 2012 totaled $36.6 million, with $1.5 million invested in exploration.

Increased Cash Earnings and Added Capital to Fund Growth

Cash earnings from mine operations in 2012 were $53.7 million, an increase of approximately 70% from 2011. Fourth quarter 2012 cash earnings from mine operations totaled $14.3 million compared with $8.7 million for the same period in 2011. (In 2012, Timmins West Mine, including Timmins Deposit and Thunder Creek, and Bell Creek Mine were in commercial production, while only Timmins Deposit was in commercial production in 2011.)
Net loss for the year totaled $317.9 million or $0.77 per common share. Excluding a non-cash impairment charge of $302.5 million and related deferred tax recovery of $2.1 million, net loss for 2012 was $17.5 million or $0.04 per common share, higher than the net loss in 2011 of $10.9 million or $0.03 per common share, due largely to higher depletion and depreciation expenses compared to the prior year. The $302.5 million non-cash charge relates to the write down of the Company's mining interests as a result of the impairment assessment performed by the Company at December 31, 2012 (refer to the "Impairment" discussion in the Company's Management Discussion & Analysis dated March 18, 2013).
Net loss in the fourth quarter of 2012, excluding the impairment charge of $302.5 million and related deferred tax recovery of $2.7 million, was $2.4 million or $0.01 per common share, an improvement from the net loss in the fourth quarter of 2011 of $5.5 million or $0.01 per common share. Including the impairment charge and the related deferred tax recovery, the net loss in the fourth quarter of 2012 is $302.2 million or $0.73 per common share.
During 2012, the Company raised more than $220 million of capital to fund its growth by completing a royalty and equity investment transaction with Franco-Nevada Corporation for $50 million; completing a credit facility with Sprott Resource Lending Partners ("Sprott") for $70.0 million, with $35.0 million from a gold-linked note drawn on July 16, 2012 and a $35.0 million standby line drawn subsequent to year end; and issuing Convertible Unsecured Debentures for an aggregate principal amount of $103.5 million. Of the funds raised, US$50.0 million was used to repay a credit facility with UniCredit Bank AG.
Cash and gold bullion inventory at December 31, 2012 totaled approximately $61 million, including $48.7 million of cash and the remainder in bullion inventory (valued at market prices).

Continued Exploration Success

Achieved exploration success at Timmins West Mine, including intersecting high-grade mineralization outside the existing resource around the 750 metre level at Timmins Deposit as well as 50 metres west of the existing resource at the 765 metre level at Thunder Creek.
Discovered new areas of mineralization in the Highway 144 gap 850 metres south of Thunder Creek, doubled the depth of known mineralization at 144 North and intersected new mineralization at 144 South.
Intersected high-grade mineralization in the North A Deep Zone at Bell Creek below the 600 metre level, verifying the continuity of the Zone and confirming the structure and orientation of the mineralization.

Outlook

The progress the Company achieved in 2012 has positioned Lake Shore Gold for higher production, reduced investment and improved cash operating costs in 2013. Production in 2013 is targeted between 120,000 to 135,000 ounces of gold. Capital investment on mine development and mill expansion projects is forecast at approximately $80 million, with an additional $10 million budgeted for exploration, largely in-mine drilling. Cash operating costs in 2013 are targeted at US$800 to US$875 per ounce, including royalties.

Based on cash and gold bullion inventory at the beginning of 2013 of approximately $61 million, $35 million received from Sprott in January 2013 and anticipated cash flows during the year, the Company is positioned to finance its planned expenditures in 2013. (All cash flow and other financial projections for 2013 are based on an assumed average gold price for the year of US$1,650 per ounce and a C$/US$ exchange rate of 1.00).

Reserve and Resource Update

The Company will be publishing updated reserve and resource estimates in connection with the filing of its 2012 Annual Information Form. The results are expected to include an increase in total probable reserves of just over 100,000 ounces reflecting the release of an initial probable reserve for Bell Creek Mine of 129,000 ounces (960,000 tonnes at an average grade of 4.2 grams per tonne). The initial reserve estimate at Bell Creek incorporates results from mining, development and detailed diamond drilling during 2012 with ounces located between the 300 and 775 levels. The majority of resources at Bell Creek are located below the 775 Level. Updated probable reserves at Timmins West Mine are estimated at approximately 798,000 ounces (following depletion of 64,177 ounces in 2012). The updated estimate is based on 4.8 million tonnes at an average grade of 5.2 grams per tonne, largely unchanged from the previous reserve estimate in May 2012.

Indicated resources (inclusive of reserves) and inferred resources at Bell Creek are expected to be similar to the levels reported in the March 2012 resource estimate. Updated resources are estimated at 4.7 million tonnes at an average grade of 4.7 grams per tonne for 710,000 ounces in the indicated category and 6.1 million tonnes at 4.6 grams per tonne for 904,000 ounces in the inferred category. Ounces included in the updated indicated resources at Timmins West Mine, inclusive of reserves, are expected to total 1,060,000 ounces (6.0 million tonnes at an average grade of 5.5 grams per tonne) compared to the 1,122,500 ounces (5.8 million tonnes at an average grade of 6.0 grams per tonne) of indicated resources in the previous estimate reported in March 2012. Inferred resources are expected to total 615,000 ounces (3.5 million tonnes at an average grade of 5.4 grams per tonne) versus the previous estimate of 791,500 ounces (4.3 million tonnes at an average grade of 5.8 grams per tonne). The reduction in inferred resources largely reflects the removal of ounces at Thunder Creek where drilling at the periphery of the deposit did not encounter sufficient continuity to maintain the ounces in inferred resources. More drilling is required to fully assess these areas.

First Quarter 2013

During the first quarter of 2013, the Company has continued to make significant progress towards completing the construction of its Timmins mining operations, which include the development of Timmins West Mine and expansion of its milling facility to a capacity of 3,000 tonnes per day. Production for the quarter is expected to total 20,500 - 23,000 ounces, representing growth of between 23% and 38% from the first quarter of 2012. Mill throughput for the quarter is expected to average approximately 2,150 tonnes per day, reflecting the impact of very cold winter conditions, unplanned maintenance in the crushing circuit and disruptions caused by the ongoing mill expansion. Mill throughput has improved in March and is averaging approximately 2,400 tonnes per day. The average grade for the quarter is estimated at 3.5 - 3.8 grams per tonne compared to the expected level of 3.9 - 4.1 grams per tonne. For the full year, the Company is targeting production of 120,000 to 135,000 ounces of gold based on the expectation of higher average throughput, improved grades and the planned increase in milling capacity to 3,000 tonnes per day in June.

Conference Call & Webcast

Lake Shore Gold will also host a conference call and webcast on Tuesday, March 19, 2013 at 10:00 am EST to discuss the Company's full-year and fourth quarter 2012 financial and operating results. Those wishing to access the call can do so using the telephone numbers that follow. The call will also be webcast and available on the Company's website.

Participant call-in: 416-340-2216 or 866-226-1792

Replay number: 905-694-9451 or 800-408-3053

Re-dial ID: 8256094

Available until: 11:59 pm (March 26, 2013)

Qualified Person

The QP for the Company's reserve estimates at Timmins West Mine and Bell Creek Mine is Natasha Vaz , P. Eng. As QP, Ms. Vaz has prepared or supervised the preparation of the scientific or technical information, and verified the underground drill data, disclosed in this press release. Ms. Vaz is an employee of Lake Shore Gold.

The QP for the Company's resource estimates at the Timmins West Mine and Bell Creek Mine is Dean Crick , Director of Geology. As QP, Mr. Crick has prepared or supervised the preparation of the scientific or technical information, and verified the underground drill data, disclosed in this press release. Mr. Crick is an employee of Lake Shore Gold.

About Lake Shore Gold

FORWARD-LOOKING STATEMENTS

Certain statements in this press release relating to the Company's expected production levels, production growth, exploration activities, potential for increasing resources, project expenditures and business plans are "forward-looking statements" or "forward-looking information" within the meaning of certain securities laws, including under the provisions of Canadian provincial securities laws and under the United States Private Securities Litigation Reform Act of 1995 and are referred to herein as "forward-looking statements." The Company does not intend, and does not assume any obligation, to update these forward-looking statements. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable, including that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts, labour disturbances, interruption in transportation or utilities, or adverse weather conditions, that there are no material unanticipated variations in budgeted costs, that contractors will complete projects according to schedule, and that actual mineralization on properties will be consistent with models and will not be less than identified mineral reserves. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In particular, delays in development or mining and fluctuations in the price of gold or in currency markets could prevent the Company from achieving its targets. Readers should not place undue reliance on forward-looking statements. More information about risks and uncertainties affecting the Company and its business is available in the Company's most recent Annual Information Form and other regulatory filings with the Canadian Securities Administrators, which are posted on SEDAR at www.sedar.com, or the Company's most recent Annual Report on Form 40-F and other regulatory filings with the Securities and Exchange Commission.