Lake Shore Gold Corp.

Lake Shore Gold Corp.

August 05, 2008 08:00 ET

Lake Shore Gold Provides Update on Thunder Creek Exploration

TORONTO, ONTARIO--(Marketwire - Aug. 5, 2008) - Lake Shore Gold Corp. (TSX:LSG) ("Lake Shore Gold" or "the Company") today announced that it has commenced a 36-hole, 22,000 metre diamond drill program on the Company's Thunder Creek property ("Thunder Creek" or the "Property") located adjacent to its 100%-owned Timmins West project in Timmins, Ontario. Drilling will focus on further expanding and infilling the recently discovered, high-grade Rusk Zone, and will also test the sediment-ultramafic contact, which hosts both the Rusk Zone and Timmins West gold discoveries, as well as a number of other high priority gold targets on the Thunder Creek property. The drill program is expected to take 9-12 months to complete with two drill rigs active throughout that period.

The Rusk Zone has been traced to date for 260 metres down plunge and remains open both up and down plunge. Recent intercepts from the Rusk Zone, announced on March 31, 2008, included 8.57 grams per tonne gold over 9.00 metres, 27.21 grams gold per tonne over 0.90 metres, 8.52 grams gold per tonne over 2.05 metres and 6.33 grams gold per tonne over 2.60 metres. The 8.57 grams per tonne intersection (hole TC07-43) is located 120 metres down plunge from the Rusk Zone intersection grading 24.61 grams gold per tonne over 7.00 metres first reported on December 4, 2007.

Anthony (Tony) Makuch, President and CEO of Lake Shore Gold, commented: "The discovery of the Rusk Zone was a major milestone for Lake Shore Gold and we are very pleased to be launching this new drill program to build on our earlier exploration success. Thunder Creek is a highly prospective target, particularly given its close proximity to our Timmins West project, with the Rusk Zone expected to be easily accessible from the Timmins West shaft currently under development."

Lake Shore Gold owns a 60% interest in Thunder Creek and is the project operator, with the remaining 40% owned by West Timmins Mining Inc.

Quality Control and Assurance

Drill results reported herein have been previously reported and the reader is referred to the Company's press releases dated March 31, 2008 and December 4, 2007 for details of Quality Control and Assurance measures undertaken as part of the exploration programs on the Property. Lake Shore Gold's Qualified Person ("QP") for the Thunder Creek property is Jacques Samson, P.Geo. As QP, he has prepared or supervised the preparation of the scientific or technical information contained in this press release.

About Lake Shore Gold

Lake Shore Gold Corp. is a mineral development and exploration company that is rapidly moving towards gold production through a portfolio which includes an existing processing facility and a number of quality mineral properties located in the Timmins gold mining district of northern Ontario and Quebec. The Company has completed a pre-feasibility study and is moving forward with an advanced exploration program at its Timmins West property, is well advanced in refurbishing its 100%-owned Bell Creek mill and is continuing drilling programs at a number of other prospective properties. The Company's common shares trade on the Toronto Stock Exchange under the symbol LSG.

Forward-looking Statements

Certain statements in this press release relating to the Company's Thunder Creek and Timmins West properties 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 demand for products develops as anticipated, that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts and supplies, labour disturbances, interruption in transportation or utilities, or adverse weather conditions, and that there are no material unanticipated variations in the cost of energy or supplies. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions.

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