Lake Shore Gold Corp.
TSX : LSG

Lake Shore Gold Corp.

December 18, 2007 17:04 ET

Lake Shore Finalizes Bell Creek Acquisition

TORONTO, ONTARIO--(Marketwire - Dec. 18, 2007) - Lake Shore Gold Corp. (TSX:LSG) ("Lake Shore" or "the Company") has finalized the acquisition of the Bell Creek mine and mill in Timmins, Ontario from Goldcorp Canada Ltd. and Kinross Gold Corporation.

The acquisition includes the Bell Creek mine property, a hoist, headframe and underground infrastructure, a 1,500 tonne per day mill with permitted tailings facilities, plus all surface infrastructure, including office buildings and road and hydro access.

Consideration for the acquisition will consist of $7.5 million in cash and $2.5 million worth of Lake Shore common shares at a price of $1.51 per share (1,655,629 shares), as well as two million warrants exercisable for a period of two years at $2.41 per share.

"We are pleased to have completed the transaction as it represents a significant milestone in Lake Shore's growth plans," said Brian Booth, Lake Shore's President and CEO. "We can now initiate the recommissioning of the Bell Creek mill and further assess the former producing Bell Creek mine. The Bell Creek complex will form an integral part of the company's transformation into an emerging gold producer in the prolific Timmins gold mining district."

About Lake Shore

Lake Shore is a mineral exploration company focused on the acquisition, exploration and development of mineral properties with prospects for hosting economic gold deposits in the Canadian Shield in Ontario and Quebec. The Company holds a number of gold properties and has commenced sinking a shaft on its 100%-owned Timmins West gold deposit near Timmins, Ontario. Lake Shore is a reporting issuer in British Columbia, Alberta, Manitoba, Ontario and Quebec, and trades on the Toronto Stock Exchange under the symbol LSG.

Forward-looking Statements

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statements.

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