Lake Shore Gold Corp.
TSX : LSG

Lake Shore Gold Corp.

July 21, 2009 08:59 ET

Lake Shore Gold Discovers Substantial New High-Grade Extension at Bell Creek, Intercepts 12.63 gpt Over 11.65 Metres

- High-grade intercepts extend eastern plunging system by 180 metres and expand Bell Creek mineralization to total plunge length of 1,150 metres from surface - Additional new gold zones above and to the west of main mineralized system

TORONTO, ONTARIO--(Marketwire - July 21, 2009) - Lake Shore Gold Corp. (TSX:LSG) ("Lake Shore Gold" or the "Company") today announced encouraging results from four new holes and two wedge holes (3,604 metres) from the Company's 100% owned Bell Creek property. The most significant results are from wedge hole BC-09-24B which intersected 12.63 grams per tonne (gpt) over 11.65 metres (m) within a broader intercept of 11.09 gpt over 13.75 m. Included within the 12.63 gpt intercept were 24.73 gpt over 2.20 m and 23.16 gpt over 1.50 m.

Wedge hole BC-09-24b intersected mineralization approximately 300 metres vertically below the previously released BC-09-3A, which returned 7.90 gpt over 5.95 m (see press release dated July 7, 2009) and 180 m down plunge from the previously released BC-08-09, which indicated significant mineralization and widths with three intercepts of 7.60 gpt over 6.30 m, 6.06 gpt over 4.65 m and 7.76 gpt over 1.15 m (see press release dated December 10, 2008). Two additional zones were also intersected in wedge hole BC-09-24B below the high-grade intercepts, including 3.81 gpt over 1.60 m and 5.38 gpt over 1.00 m.

The intersection in BC-09-24B occurs on the south side of a steeply south dipping contact between the mafic and ultramafic volcanic rocks which has been sharply twisted to the southeast near the Bell Creek fault. The best gold zones are located close to the projected convergence of the North A and Bell Creek West zones which were the two most prominent zones identified during past mining and are surrounded by a broad envelope of hydrothermal alteration. The 12.63 gpt intercept in wedge hole BC-09-24B contains substantial quartz veining and sulphide minerals. The mineralization and alteration zone remain open to the east, west and to depth.

Tony Makuch, President and CEO of Lake Shore Gold, commented: "The results announced today are very encouraging as they add a significant new dimension to the Bell Creek project identifying a large gold system at depth where drilling has demonstrated excellent grades and widths. The system, which plunges eastward towards our wholly owned Schumacher property, where there is limited past drilling, has now been identified to a total plunge length of 1,150 metres from surface and 500 metres along strike and remains open at depth and along strike.

"Drilling at Bell Creek is ongoing, and will be accelerated with five drills active on the property. One drill is testing shallow targets west of the mine workings, two drills are involved with resource definition in the central part of the main easterly plunging system, one drill is doing a wedge hole above BC-09-24B and a fifth drill is working on wide spaced step out holes to test for additional extensions to known mineralization.

"In addition to exploration success from surface drilling, work is progressing well on the underground advanced exploration program at Bell Creek, including concurrent development of the ramp from surface to the Bell Creek mineralization, and dewatering and refurbishment of the Bell Creek Shaft and Mine. Our plans are to develop Bell Creek into Lake Shore Gold's second mine complex in Timmins, as we transition and grow Lake Shore Gold into a mid-tier gold producer."

Results reported today also included two additional holes, which were designed to test near surface areas east of the mine workings and included 7.55 gpt over 0.40 m and 16.15 gpt over 0.30 m in BC-09-19 and 6.53 gpt over 0.50 m in BC-09-09. The results from BC-09-09 and BC-09-19 confirm previously released results of 7.06 gpt over 2.00 m in BC-09-04, 6.05 gpt over 2.20 m from BC-09-15 and 10.05 gpt over 1.00 m in BC-09-22 (see press release dated July 7, 2009) and suggest strong potential for additional gold mineralization in the "East Veins," lying above the plunge line of the newly defined easterly plunging system. While the full extent of these zones is still being evaluated, their close proximity to the new ramp being driven from Bell Creek to Vogel offers the potential for near-term access.

Results were also obtained for BC-09-05, which was a new hole completed to test for additional lenses of mineralization on the projected west extension of the North A Zone. The hole intersected 8.96 gpt over 1.90 m, approximately 125 metres west of previously released BC-08-24B, which intersected 5.30 gpt over 6.90 m, including 8.71 gpt over 1.85 m (see press release dated May 4, 2009) and BC-08-7B, which intersected 7.64 gpt over 2.10 m and 17.31 gpt over 1.00 m (see press release dated December 10, 2009). These additional zones of mineralization will continue to be evaluated as wide spaced definition drilling targeting the North A Zone continues.

Quality Control

The Company's Qualified Persons ("QPs") for the Bell Creek property are Richard Labine, P.Geo. and Stephen Conquer, P.Geo. As QPs, they have prepared or supervised the preparation of the scientific or technical information for the property and 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 intervals showing visible gold (VG) as well as select intersections, based upon visual inspection of the core, were 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 TSX 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.



Bell Creek Property-Significant New Assay results

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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-09-05 863.60 865.50 1.90 8.96 North A2
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BC-09-09 108.90 109.40 0.50 6.53 Unknown
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BC-09-19 79.00 79.40 0.40 7.55 Unknown
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212.80 214.60 1.80 3.57 West Zone
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345.45 346.45 1.00 3.86 Unknown
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436.05 436.35 0.30 16.15 North A
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BC-09-24B 1117.90 1131.65 13.75 11.09 BC West Zone
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Includes 1119.50 1131.15 11.65 12.63 BC West Zone
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and 1119.50 1121.70 2.20 24.73 BC West Zone
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and 1123.50 1125.00 1.50 23.16 BC West Zone
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and 1126.85 1127.50 0.65 33.70 BC West Zone VG @ 1126.85m
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Includes 1138.50 1140.10 1.60 3.81 North A
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1199.20 1200.20 1.00 5.38 North A
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Note: 1)Hole 24 terminated at 633 metres due to excessive flattening.
2)Hole 24a was wedged off from hole 24 at a depth of 431 metres and
terminated at a depth of 544 metres due to rods and wedge being
stuck in the hole.
3)Hole 24 b was wedged from hole 24 a at a depth of 441 metres and
achieved a total depth from surface of 1406 metres.
4)True widths are not known at this time.
5)Assays reported are uncut.


To view Figure 1. Plan View, please click on the following link:
http://media3.marketwire.com/docs/planview1.pdf

To view Figure 2. Cross Section, please click on the following link:
http://media3.marketwire.com/docs/crosssection1.pdf

To view Figure 3. Long Section, please click on the following link:
http://media3.marketwire.com/docs/longsection1.pdf

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