Under the term of the rights plan, one right has been issued with respect to each common share of Lake Shore Gold issued and outstanding as of March 29, 2011 and one right will also be issued and will attach to each common share subsequently issued. These rights will become exercisable only when a person, including any related party, acquires or attempts to acquire 20 percent or more of Lake Shore Gold's outstanding common shares without complying with the "Permitted Bid" provisions of the rights plan or without approval of Lake Shore Gold's board of directors. Should such an acquisition occur or be announced, each right would, upon exercise, entitle a rights holder, other than the acquiring person and related parties, to purchase common shares of Lake Shore Gold at a 50 percent discount to the market price at the time. Under the rights plan, a Permitted Bid is a bid which is made to all holders of Lake Shore Gold common shares and which is open for acceptance for not less than 60 days.

http://cnrp.marketwire.com/client/lake_shore_gold/n/release.jsp?actionFor=1421369&releaseSeq=0&year=2008