Lake Shore pours 86,565 oz gold in 2011

Ticker Symbol: C:LSG

Lake Shore pours 86,565 oz gold in 2011

Lake Shore Gold Corp (C:LSG)
Shares Issued 400,160,669
Last Close 1/11/2012 $1.52
Thursday January 12 2012 - News Release

Mr. Tony Makuch reports

LAKE SHORE GOLD REPORTS 2011 OPERATING RESULTS, POURS 26,550 OUNCES IN FOURTH QUARTER AND 86,565 OUNCES FOR FULL YEAR

Lake Shore Gold Corp. has released its production results for the fourth quarter and full year 2011.

Fourth Quarter Production Highlights

• Gold poured during fourth quarter 2011 totaled 26,550 ounces compared with 16,693 ounces the previous quarter.
• Total gold poured in 2011 was 86,565 ounces, in line with Company's target.
• Gold processed during fourth quarter 2011 was 24,809 ounces based on milling 186,231 tonnes (2,024 tonnes per day) at average grade of 4.34 grams per tonne ("gpt"). Fourth quarter results compared to gold processed during previous quarter of 18,833 ounces based on milling 173,877 tonnes (1,890 tonnes per day) at average grade of 3.49 gpt.
• Gold processed in full year 2011 totaled 83,585 ounces from milling 671,467 tonnes at average grade of 4.03 gpt.
• Gold sales totaled 21,956 ounces in fourth quarter and 91,468 ounces for full year 2011.
• Cash and gold bullion at December 31, 2011 totaled approximately $65.0 million.

Other Fourth Quarter Highlights

• Released initial National Instrument ("NI") 43-101 resources for Thunder Creek and Fenn-Gib.
• • Thunder Creek: 521,600 ounces (2,877,000 tonnes at 5.64 gpt) of Indicated and 510,000 ounces (2,693,000 tonnes at 5.89 gpt) of Inferred
  • Fenn-Gib (open-pit project): 1.30 million ounces (40,800,000 tonnes at 0.99 gpt) of Indicated and 0.75 million ounces (24,500,000 tonnes at 0.95 gpt) of Inferred.
  • Total resources doubled in 2011 for second straight year - to 6.3 million ounces (3.1 million ounces of measured and indicated, 3.2 million ounces of inferred).
• Announced 1.9 kilometre downplunge extension of Timmins Mine Ultramafic and Footwall mineralized structures, to vertical depth of approximately 2.4 kilometres,
• Discovered 200 metre expansion of shallow mineralization at Fenn-Gib, including intersection of 1.31 grams per tonne over 414.00 metres.

Also during 2011, the Company advanced work to further increase resources through the release of updated NI 43-101 reports for Thorne, Bell Creek and Timmins Mine early in 2012. As part of the work to update Timmins Mine resources, the Company is completing a mine engineering study, including capital and operating plans, for the integration of the Timmins and Thunder Creek deposits into a single Timmins West Mine.

Tony Makuch, President and CEO of Lake Shore Gold, commented: "We ended 2011 strong with our best quarter of the year, reflecting continued improvements in throughput, grades and efficiencies. Looking at our achievements, we doubled production in 2011 from the previous year and doubled total resources for the second straight year, with further growth in total resources expected early in 2012. At Bell Creek, we launched a mill expansion to 3,000 tonnes per day, which remains on track for completion late this year. We also continued to achieve exploration success at virtually all of our key projects, and added a very exciting new asset through the acquisition of the Fenn-Gib project, which has the potential to be a large-scale, open-pit mining operation.

"Turning to 2012, our work plan is heavily focused on ore delineation and infrastructure development designed to position the Company to support a 3,000 tonne per day processing rate by late this year. At the Timmins West Mine, multiple sublevel horizons will be prepared targeting the Timmins deposit UM complex between the 650 and 810 metre levels and the Thunder Creek Rusk and Porphyry zones between the 600 and 800 metre levels. At Bell Creek, a new mining complex is to be initiated between the 475 and 600 metre levels.

"Based on our work plan, the Company will be poised for significant production growth and increased mining flexibility commencing in 2013. In 2012, we expect to achieve gold production of between 85,000 and 100,000 ounces. Production will be weighted to the second half of the year as we make progress with ore delineation and infrastructure development at Timmins West."

Qualified Person

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

We seek Safe Harbor.

© 2012 Canjex Publishing Ltd.