JUL 7, 2009 - 12:11 ET

Lake Shore Gold Confirms Deep Extensions of Gold Mineralization at Bell Creek and Vogel

- Multiple zones of gold mineralization identified at Bell Creek within easterly plunging system 500 metres long by 700 metres deep, system remains open at depth

- Intercepts include 6.76 gpt Au over 6.10 m, 7.90 gpt Au over 5.95 m, including 11.73 gpt over 2.95 m, and 5.16 gpt Au over 8.50 m

- Vogel mineralization extended to depth of 650 metres, with intercepts of 22.50 gpt over 1.00 m, 8.39 gpt Au over 1.60 m and 7.06 gpt Au over 1.95 m

TORONTO, ONTARIO--(Marketwire - July 7, 2009) - Lake Shore Gold Corp. (TSX:LSG) ("Lake Shore Gold" or the "Company") today announced encouraging results from 16 holes and 7 wedge holes (12,593 metres) from the Company's 100% owned Bell Creek and Vogel properties. At Bell Creek, 14 holes and 3 wedge holes (9,273 metres) were designed to test areas below and east of the historic resource and encountered attractive grades and widths of gold mineralization in several holes, among them: 6.76 grams per tonne (gpt) gold (Au) over 6.10 metres (m), including 13.26 gpt over 1.15 m, in Hole BC-09-02, 7.90 gpt Au over 5.95 m, including 11.73 gpt over 2.95 m, in Hole BC-09-3A, plus 5.16 gpt Au over 8.50 m in Hole BC-09-12. The Company's Bell Creek Complex (including the Bell Creek Mine, with its existing 280 metre shaft and related mine workings, the 1,500 tonne per day Bell Creek Mill and the contiguous Vogel and Schumacher properties) is located in Timmins, Ontario along the New Mine Trend, approximately 5.0 kilometers west of Goldcorp Inc.'s Hoyle Pond Mine.

Tony Makuch, President and CEO of Lake Shore Gold, commented: "We are very encouraged by the depth potential and extensions of mineralization being discovered at Bell Creek and Vogel, which support our view that these properties may host large orebodies similar to those found elsewhere along the New Mine Trend. The exploration success we are achieving in an area supported by existing mining and milling infrastructure, positions the Bell Creek Complex to become Lake Shore Gold's second significant mining operation in the Timmins Camp after our 100% owned Timmins Mine."

Some of the best results at Bell Creek occur as multiple zones of gold mineralization marked by increased quartz, sulphides and visible gold located east of the Bell Creek Mine where the North A and Bell Creek West zones converge at depth. These two zones were the major sources of ore for past operations. The convergence of the two zones is related to a sharp bend in stratigraphy near the Bell Creek fault where the volcanic rocks hosting the North A and Bell Creek West zones have been twisted into a wedge shaped nose which will become a main focus for future drilling. Intercepts from this new area indicate favourable grades, widths and consistency. Together with previously released holes BC08-09, BC08-23 and BC09-03 (see press releases dated December 16, 2008 and May 4, 2009), these results suggest a minimum 500 metre long easterly plunging system of mineralization which extends approximately 700 metres down plunge from the lowest level of previous mining and is open at depth and to the east. The system includes extensions of the Bell Creek West and North A zones plus possible new zones emerging at depth.

Drilling at Vogel included 2 holes and 4 wedge holes (3,320 metres) which was designed to test approximately 300 metres below the historic resource in this area. Hole V-09-01A intersected visible gold with assays of 22.50 gpt Au over 1.00 m, 8.39 gpt Au over 1.60 m and 7.06 gpt Au over 1.95 m. These assay results are located approximately 150 metres west of the previously released results of 8.90 gpt over 0.70 m in Hole V08-01 and continue to suggest that a new vein system is emerging at depth.

Mr. Makuch added: "We continue to make good progress with our surface and underground advanced exploration programs at the Bell Creek Complex. The surface program involves four drills testing for depth extensions along the plunge line of the newly defined easterly plunging system at Bell Creek, drilling to infill within the plunge of the new mineralized system and exploring for new systems on other parts of the Bell Creek Complex. We are very encouraged by the results achieved to date from our surface program.

"Our underground advanced exploration program involves de-watering the Bell Creek shaft and rehabilitating the existing mine workings, as well as driving a ramp to support underground diamond drilling and to complete bulk samples at both the Bell Creek and Vogel properties. To date, the ramp has been advanced 215 metres and the Bell Creek shaft is de-watered to the 60 metre level. The program remains on schedule and on budget.

"Additionally, the identification of a new high grade system at depth from our wide spaced drilling at Vogel is very encouraging. Our plan is to continue to aggressively explore for extensions of this new system with upcoming drilling."


Quality Control

The Company's Qualified Person ("QP") for the Bell Creek property is Richard Labine, P.Geo. As QP, he has prepared or supervised the preparation of the scientific or technical information for the property and has verified the data disclosed in this press release.

Lake Shore Gold has implemented a quality-control program to ensure best practice in the sampling and analysis of the drill core. Assays have been completed using a standard fire assay with a 30g aliquot. Any assays showing VG or with greater than five grams per tonne Au were re-analyzed using the pulp metallic method. NQ size drill core is saw cut and half the drill core is sampled in standard intervals. The remaining half of the core is stored in a secure location. The drill core is transported in security-sealed bags to ALS Chemex.

About Lake Shore Gold

Lake Shore Gold Corp. is a mineral development and exploration company that is moving towards gold production through its 100%-owned Timmins Mine project, where the Company is sinking a shaft and driving a ramp to access shallow mineralization. The wholly owned Bell Creek Mill, located on the east side of Timmins, was refurbished to a capacity of 800 tonnes per day as of the end of 2008, with the capacity currently being increased to 1,500 tonnes per day. The Company recently commenced an underground advanced exploration program at its Bell Creek Complex, including the Bell Creek Mine, Schumacher and Vogel properties, which have the potential to become the Company's second mining project in the Timmins Camp, and is pursuing a number of other highly prospective exploration properties in Northern Ontario and Quebec. Lake Shore Gold's common shares trade on the Toronto Stock Exchange under the symbol LSG.

Forward-looking Statements

Certain statements in this press release relating to the Company's exploration activities, project expenditures and business plans are "forward-looking statements" within the meaning of securities legislation. 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 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, 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 Lake Shore Gold's most recent Annual Information Form and other regulatory filings which are posted on sedar at www.sedar.com.

There is no guarantee that drill results reported in this news release will lead to the identification of a deposit that can be mined economically, and further work is required to identify a reserve or resource.

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Hole        From       To   Length  Assay     Target               Comments
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Number        (m)      (m)      (m)  (gpt)      Zone
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BC-09-01                              nsv                 possible NS fault
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BC-09-02  736.90   749.55    12.65   4.30    North A
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includes  736.90   743.05     6.15   1.98    North A
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and       743.05   749.15     6.10   6.76    North A
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and       743.05   744.20     1.15  13.36    North A
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and       747.15   748.15     1.00  11.03    North A
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          793.90   796.30     2.40   3.67    North A
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BC-09-02A 669.85   670.45     0.60   9.43    North A
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          703.25   705.25     2.00   3.11    North A
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          711.45   711.90     0.45  12.25    North A
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          720.00   728.10     8.10   3.63    North A
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includes  720.00   721.40     1.40   7.08    North A
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and       726.20   728.10     1.90   8.71    North A
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          728.10   734.50     6.40   1.64    North A
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BC-09-03A 781.10   787.05     5.95   7.90  West Zone
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includes  781.60   784.55     2.95  11.73  West Zone            VG @ 781.25
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and       781.60   783.05     1.45  15.74  West Zone
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          864.50   866.50     2.00   3.90    North A
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          911.00   912.00     1.00   3.63    North A
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BC-09-04  244.50   246.50     2.00   7.06  West Zone
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BC-09-05A                             nsv
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                                                               diabase dyke
BC-09-06                              nsv                  at zone interval
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BC-09-10  237.30   239.20     1.90   3.66                       VG @ 238.70
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          357.90   366.40     8.50   1.85  West Zone
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BC-09-12  713.80   714.10     0.30   4.86    North A
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          721.90   730.40     8.50   5.16    North A
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includes  722.70   723.00     0.30  15.85    North A
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and       729.10   730.10     1.00  13.50    North A
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          748.30   749.10     0.80   5.14    North A
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          779.80   780.80     1.00   8.19    North A
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          792.00   792.70     0.70  24.40    North A
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BC-09-13  380.10   381.50     1.40   2.38         W1
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BC-09-14  389.00   389.90     0.90   1.97         W7
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          421.20   421.60     0.40   1.81
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BC-09-15  221.10   221.60     0.50  11.10
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          243.10   245.10     2.00   2.82
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          327.30   328.50     1.20   2.15         E1
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BC-09-16  273.40   274.20     0.80   2.64         E1
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          333.20   333.70     0.50   2.56         E5
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          483.60   484.80     1.20   1.67    North A
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BC-09-17  791.70   793.70     2.00   2.00  West Zone
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          945.85   946.50     0.65   6.94    North A
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BC-09-18  426.10   426.70     0.60   1.42    North A
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          434.80   435.80     1.00   1.13    North A
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          438.30   439.30     1.00   4.88    North A
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          451.15   451.65     0.50   1.81    North A
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          453.15   453.45     0.30   6.64    North A            VG @ 453.25
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          454.15   455.15     1.00   2.26    North A
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BC-09-21  126.40   128.60     2.20   4.12
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          140.50   140.90     0.40   7.37
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          268.50   274.00     5.50   2.18         E1
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          277.00   280.00     3.00   1.75         E2
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          321.70   322.00     0.30   6.04         E7
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BC-09-22  314.20   316.00     1.80   1.34         E2
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          335.00   336.00     1.00  10.05         E3
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                                               Vogel
                                                Deep
V-08-01C  724.20   725.70     1.50   1.66       Expl
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                                               Vogel
                                                Deep
V-08-02   789.90   790.40     0.50   1.58       Expl            VG @ 789.35
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                                               Vogel
                                                Deep
          868.00   868.50     0.50   0.25       Expl  speck of VG @ 868.35m
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                                               Vogel
                                                Deep
V-09-01A  643.15   644.15     1.00  22.50       Expl
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                                               Vogel
                                                Deep
          670.15   671.75     1.60   8.39       Expl
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                                               Vogel
                                                Deep
          678.40   678.90     0.50  16.75       Expl            VG @ 678.50
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                                               Vogel
                                                Deep
          727.55   728.05     0.50  12.05       Expl     VG @ 727.8 & 727.9
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                                               Vogel
                                                Deep
          729.75   731.70     1.95   7.06       Expl
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V-08-1A, V-08-1B and V-09-01 were abandoned and failed to test
mineralization.


True widths are not known at this time due to low drill hole density.
Assays reported are uncut.

To view Figure 1. Plan View (Bell Creek), please visit the following link: http://media3.marketwire.com/docs/LSG0707A.pdf.

To view Figure 2. Long Section (Bell Creek), please visit the following link: http://media3.marketwire.com/docs/LSG0707B.pdf.

To view Figure 3. Cross Section (Bell Creek), please visit the following link: http://media3.marketwire.com/docs/lsgfig3.pdf.

To view Figure 4. Cross Section (Vogel), please visit the following link: http://media3.marketwire.com/docs/LSG0707D.pdf.

FOR FURTHER INFORMATION PLEASE CONTACT:

Lake Shore Gold
Tony Makuch
President & CEO
(416) 703-6298
info@lsgold.com

or

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