Lake Shore Gold Reports Underground Drilling Results from Timmins Mine

Lake Shore Gold Corp. (TSX:LSG) today announced results from an additional 72 holes (10,871 metres) of underground drilling at the Timmins Mine. The holes were drilled from platforms on the 260 and 525 levels.

• Drilling from 525 Level to test up plunge extension of Ultramafic Zone above 610 Level intersects high-grade mineralization within next planned area of mining, Zone remains open up dip to at least 550 Level and for 25 metres to east Among key intercepts are 16.58 grams per tonne ("gpt") over 19.10m ("m"), including 51.25 gpt over 5.90m, 7.59 gpt over 9.30m and 3.88 gpt over 13.80m, including 9.99 gpt over 3.80m

  • 525-069 intersects 6.27 grams per tonne ("gpt") over 30.00 metres ("m"), including 19.92 gpt over 4.30m, 525-066 intersects 5.18 gpt over 25.60m, 525-056 intersects 6.88 gpt over 11.90m and 525-046 intersects 27.98 gpt over 6.70m, including 54.40 gpt over 3.30m

• Drilling from 260 Level confirms and expands recently reported 400 metre extension to Main Zone, high-grade intercepts in close proximity to mine workings highlight potential for near-term mining

  • Among key intercepts are 16.58 gpt over 19.10m, including 51.25 gpt over 5.90m, 7.59 gpt over 9.30m and 3.88 gpt over 13.80m, including 9.99 gpt over 3.80m

• Drilling from 525 Level into Main Zone also intersects wide, high-grade mineralization

  • 525-036 intersects 5.52 gpt over 9.40m, 525-035 intersects 5.61 gpt over 4.00m and 4.93 gpt over 6.70m and 525-040 intersects 19.78 gpt over 1.70m.

Of the results being reported, 32 holes (4,164 metres) were designed to test the upward extension of the Ultramafic Zone ("UM") from the 610 Level, which is the upper limit of recent mining between the 610 and 650 levels. The new holes through the UM Zone represent the first phase of detailed infill and expansion drilling being conducted above the 610 Level to aid in designing the next phase of major stoping in the UM Zone. An additional 40 holes (6,707 metres) were designed to confirm and expand the recently identified 400 metre extension to the Main Zone below the 260 Level with wide, high-grade intersections being reported within close proximity to existing mine infrastructure.

Tony Makuch, President and CEO of Lake Shore Gold, commented: "Today's results are highly significant as they confirm that the wide, high-grade mineralization recently mined from the UM Zone between the 650 and 610 levels continues above the 610 Level into the next major area of the UM Zone we plan to mine. Stoping above the 610 Level is expected to commence around the end of the second quarter. In addition, today's results also confirm the excellent potential for the Main Zone to host significant new resources and establish the Zone as a priority target given the excellent grades and widths we have encountered and the location of the Zone close to our existing mine workings."

Among significant results from drilling on the 525 Level into the UM Zone are 6.27 gpt over 30.00m, including 19.92 gpt over 4.30m, in 525-069, 5.18 gpt over 25.60m in 525-066, 6.88 gpt over 11.90m in 525-056 and 54.40 gpt over 3.30m within a broader intercept of 27.98 gpt over 6.70m in 525-046. These holes were drilled above and at the east limit of recently extracted mining blocks between the 610 and 650 levels and strongly confirm the extension of wide, high-grade mineralization into the next phase of major stoping being planned in the UM Zone, which is expected to commence around the end of the second quarter. The UM Zone remains open up dip to at least the 550 Level and for approximately 25 metres to the east of holes 525-046 and 525-066. As with previously reported intersections from the UM Zone between the 610 and 650 levels, mineralization observed in the drill core is closely associated with swarms of quartz veining, surrounded by strong carbonate alteration and 5-20 percent pyrite.

Significant results from drilling in the Main Zone on the 260 Level are 16.58 gpt over 19.10m, including 51.25 gpt over 5.90m in 260-041, 7.59 gpt over 9.30m in 260-017 and 3.88 gpt over 13.80m, including 9.99 gpt over 3.80m, in 260-022. Of these results, the wide, high-grade intersection from 260-041 is located approximately 25 metres west of previously reported 260-013, which intersected 5.09 gpt over 13.84m (see press release November 11, 2010) and is open to the west. Intercepts from holes collared on the 525 Level include 5.52 gpt over 9.40m in 525-036 and 5.61 gpt over 4.00m and 4.93 gpt over 6.70m in 525-035. These intersections are located approximately 300 metres down plunge and to the west of the zones being defined near the 260 Level.

The results from drilling in the Main Zone suggest that the bulk of mineralization is contained in a series of stacked lenses within a second, more northerly fold nose structure, which is similar to the structure hosting the UM Zone but is located 50 to 100 metres to the north. Individual lenses within the second fold nose appear to vary between 80 to 120 metres in length and between 2 and 20 metres in width. The current lowest level of testing on the more northerly fold nose is at the 610 Level, with this structure remaining open to depth.

Drilling is continuing at the Timmins Mine with four drills, including two drills on the 260 Level, one drill on the 525 Level and one drill on the 630 Level. Four underground drills are also operational at Thunder Creek with two near the 730 Level and two near the 300 Level. Drilling at Thunder Creek is largely focused on achieving the Company's goal to establish an initial National Instrument 43-101 resource at Thunder Creek during the second half of 2011, as well as to test the depth potential of both the Rusk and Porphyry zones.

Quality Control

The Company's Qualified Person ("QP") for the underground drill program at the Timmins Mine property is Dean Crick, P.Geo. and the QP for resource estimation at Timmins Mine is Bob Kusins, P.Geo. As QPs, they have prepared or supervised the preparation of the scientific or technical information for the property and have verified the data disclosed in this press release. Both QPs are employees of Lake Shore Gold.

Lake Shore Gold has implemented a quality-control program to ensure best practice in the sampling and analysis of the drill core. Samples are obtained from BQTK-sized diamond drill core, with roughly 25% of sampled core being sawn in half and the remaining 75% being whole core sampled. All remaining core materials, including the remaining half of sawn core is retained on site in a secure location. Drill core samples are stored for sample preparation and gold analysis performed by ALS Chemex. ALS Chemex is an ISO 9001-200 registered laboratory, preparing for ISO 17025 certification. Drill core samples are transported in security-sealed bags to ALS Chemex's Timmins Sample Preparation Facility. Sample preparation is completed in Timmins, and the prepared sample pulps are then transported to ALS Chemex's analytical laboratory in Vancouver, BC. Gold grades are obtained on all samples via Fire Assay with Atomic Absorption finish, using 50g aliquots. For samples that return a gold content greater than 10 gpt, the sample is re-analyzed via Fire Assay with Gravimetric finish, again using a 50g aliquot.