Lake Shore Gold Corp.

Lake Shore Gold Corp.

January 06, 2005 08:30 ET

Lake Shore Gold Exploration Update: 2005 Resource Expansion Drilling; Pre-feasibility to Start on Timmins Gold Project, Ontario


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: LAKE SHORE GOLD CORP.

TSX VENTURE SYMBOL: LSG

JANUARY 6, 2005 - 08:30 ET

Lake Shore Gold Exploration Update: 2005 Resource
Expansion Drilling; Pre-feasibility to Start on
Timmins Gold Project, Ontario

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 6, 2005) - Lake Shore
Gold Corp. (TSX VENTURE:LSG) announced today that the 2005 resource
expansion drilling program on the Company's 100% owned Timmins Gold
Property will be initiated in January 2005. Three diamond drills will be
used for this program; two drills will continue with the section
drilling and a third drill will be used to define satellite gold
mineralization on the Property. Drilling is expected to continue through
the next 12 months. Pre-feasibility studies will also commence with
completion expected in 2005. These studies will include baseline
environmental studies, engineering and additional metallurgical studies,
and socio-economic studies.

On December 31, 2004, Lake Shore acquired a 100% interest in the Timmins
Gold Property (see News Release dated December 31, 2004), which has
indicated and inferred mineral resources as shown below:



2004 Estimated Resources(i) (Lake Shore Gold Corp.)

----------------------------------------------------------------------
Cut Uncut
Grade Grade Contained Contained
Category Tonnes Au (g/t) Au (g/t) Ounces Cut Ounces Uncut
----------------------------------------------------------------------
Indicated 1,369,000 10.96 16.45 482,000 724,000
----------------------------------------------------------------------
Inferred 200,000 8.70 12.43 56,000 80,000
----------------------------------------------------------------------
Additional
Inferred(ii) 1,000,000 4.07 4.07 131,000 131,000
----------------------------------------------------------------------
(i) Based on a 6 gram per tonne gold minimum cutoff and 50 gram per
tonne gold cap, except the Footwall Zone that was cut to 30 grams
per tonne gold.
(ii) Additional Inferred Resources grading 3-6 grams per tonne gold.


The current resource figures are National Instrument 43-101 compliant
and have been externally audited by Watts, Griffis and McOuat Limited,
consulting geologists and engineers, as disclosed in the Company's News
Release dated September 10, 2004. The Ultramafic Zone, Footwall Zone and
the newly discovered Deep Zone mineralization are all open down plunge
to the west and will be the focus of the 2005 expansion drilling
program. The strength and consistent grades of both the Ultramafic Zone
and the Footwall Zone have been demonstrated in the 2004 drilling
programs and management believes that the next resource base target of
1.5 million ounces is realistic and achievable with the planned program.
The newly discovered Deep Zone has exploration potential in all
directions. Satellite gold mineralization intersected in earlier
drilling will also be targeted and both have the potential to
significantly increase the resource base.

The success of the 2003/2004 drilling programs on the Timmins Gold
Property has added a totally new dimension to the western extension of
the Timmins Gold Camp. Lake Shore has acquired/optioned a number of
properties within this target area and exploration/drilling campaigns
will be initiated on three of these properties. Drilling will continue
to explore the adjoining Thunder Creek Property optioned from Band-Ore
Resources Ltd. where gold mineralization has been drill intersected in
an ultramafic intrusive host, similar to the main mineralized host in
the Ultramafic Zone on the Timmins Gold Property.

In January 2005, a first phase drill program will be initiated on the
optioned Ogden Property adjoining the past producing Desantis Mine, to
the east of the Timmins Gold Property as well as on the Price Property
along the Destor-Porcupine Fault to the southeast of the Timmins Gold
Property. Limited past exploration on the Price Property identified a
porphyry body intruding Ultramafic rocks with localized gold
mineralization (see News Release dated September 13, 2004).

A second phase, resource definition drilling program will be initiated
this month on the Company's 100% owned Bazooka Gold Property located in
Beauchastel Township, seven kilometres southwest of Rouyn Noranda,
Quebec. The Property covers 1.8 kilometres of the main Cadillac break,
immediately west of the Augmitto deposit of Yorbeau Resources Inc. A
first phase drilling program completed in 2004 resulted in 26 new gold
intersections with a 560 metre long, 20 metre to 60 metre wide zone of
strong deformation and alteration. High-grade gold mineralization is
hosted by sulphides rich quartz-tourmaline veining within the
deformation zone (see News Release dated March 29, 2004). The 2005
drilling program should expand the above mineralization along strike and
to depth.

Daniel Innes, President of Lake Shore Gold Corp. said, "2005 promises to
be a defining year for our Company with the continued advancement of our
principal projects and excellent potential for new resource development."

Lake Shore Gold is exploring for gold and base metals in the Archean
Superior Province of Ontario and Quebec.

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
Corporation'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 statement.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Lake Shore Gold Corp.
    Daniel G. Innes
    President
    (604) 669-3533
    (604) 688-5175 (FAX)
    or
    Lake Shore Gold Corp.
    John G. Paterson
    Director
    (604) 669-3533
    (604) 688-5175 (FAX)
    or
    Lake Shore Gold Corp.
    Michael J. Byron
    VP, Exploration
    (705) 525-0992
    (705) 525-7701 (FAX)
    Email: info@lsgold.com
    Website: www.lsgold.com
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.