Lake Shore Gold Announces First Quarter 2012 Operating Results, Company on Track to Achieve 2012 Production Target

- Gold production of 16,680 ounces from 160,500 tonnes ore processed during the quarter at a grade of 3.40 grams per tonne, 95.1% recovery rate, exceeds guidance of 15,000 ounces - Gold poured related to Mill production totaled 16,180 ounces, total sales for the quarter were 18,400 ounces at average gold price of US$1,690 per ounce - Cash and gold bullion inventory at March 31, 2012 estimated at $84.6 million, including $78.9 million of cash and $5.7 million of gold bullion inventory - Company maintains guidance of 85,000 - 100,000 ounces of gold poured in 2012 - The 50% expansion of the Company's milling facility, to 3,000 tonnes per day, is progressing on schedule for completion in the fourth quarter Lake Shore Gold Corp.

today announced details of the Company's operating results for the first quarter of 2012. Ore processed in the quarter amounted to 160,500 tonnes at a grade of 3.40 grams per tonne ("gpt") at a recovery rate of 95.1% for recovered gold of 16,680 ounces. In the first quarter, the work program involved significant ore delineation and infrastructure development at Timmins West Mine, which will continue in the second quarter, resulting in lower grade ore being processed. The first quarter is expected to have the lowest quarterly production of the year, with production weighted to the second half of the year. Actual production for the first quarter of 16,680 ounces exceeded expectations. Gold poured related to Mill production totaled 16,180 ounces. Total gold sold during the first quarter of 2012 was 18,400 ounces at an average gold price of US$1,690 per ounce. For the full year 2012, the Company is reiterating production guidance of between 85,000 and 100,000 ounces of gold poured from the Timmins West and Bell Creek mines with cash operating costs(1) for the year estimated at US$825 to US$875 per ounce. Details of the financial performance will be included in Company's first quarter 2012 financial results. Tony Makuch, President and CEO of Lake Shore Gold, commented: "We are pleased with the results of the first quarter, which included exceeding our production target. However, as the events of this week have clearly demonstrated, there is no more important result than the safety and well being of our people. I would like to again express our extreme regret and sadness over the loss of one of our own. I also want to acknowledge those who responded to the scene and thank them for their efforts." "During the quarter a lot of progress was made including resource updates at Gold River and Bell Creek, a reserve and resource update at the Timmins West Mine along with a Preliminary Economic Assessment, demonstrating a potential ten year mine life with robust economics. We raised $50 million with Franco-Nevada Corporation through a combination of royalty and an equity investment at $1.49 per share."