Golden Share Mining Corporation
TSX VENTURE : GSH

Golden Share Mining Corporation

May 12, 2011 10:24 ET

Golden Share and Lake Shore Gold Corp. Fix Terms of Asset Acquisition

MONTREAL, QUEBEC--(Marketwire - May 12, 2011) - Golden Share Mining Corporation (TSX VENTURE:GSH)("Golden Share" or the "Company") is pleased to announce that following its successful completion of two private placements announced on April 21 and 27, 2011, it has fixed the number of shares and warrants to be issued in connection with its previously-announced acquisition (the "Acquisition") from Lake Shore Gold Corp. ("Lake Shore Gold") of a 100% interest in the Band Ore gold property, located in the Shebandowan belt of Northwestern Ontario.

Under the terms of the Acquisition, Golden Share will issue to Lake Shore Gold 21,690,000 common shares and 10,845,000 common share purchase warrants, each entitling the holder to acquire one common share of Golden Share at a price of $0.20 during the 36-month period following its issuance. Following the Acquisition, Lake Shore Gold will hold an approximately 19.99% ownership interest in Golden Share.

The Acquisition remains subject to the conclusion of final agreements between Golden Share and Lake Shore Gold and to the approval of the TSX Venture Exchange.

For more information on the Acquisition, please consult Golden Share's press release of March 28, 2011.

About Golden Share Mining Corporation

Golden Share Mining Corporation is a Canadian-based mining exploration company whose primary mission is to target, explore and develop gold deposits in Canada. Golden Share is developing a promising portfolio of properties in the greenstone belts of eastern Canada, namely in the Val d'Or-Malartic, Red Lake and Shebandowan areas.

The Company is led by a technically focused management team relying on a strong network of high quality contacts and consultants, including SRK Consulting Canada in Toronto and InnovExplo in Val d'Or. Golden Share is further strengthened by an experienced board of directors and a proven advisory board including successful geologists Roy Corrans and Sethu Raman as well as seasoned financier Anthony Frizelle.

Golden Share's development strategy involves advancing a well balanced portfolio of gold properties in a politically stable environment with a history of gold endowment through systematic exploration, resource definition and acquisitions. Highlights of the current portfolio include :

  • Past producing high grade Au-Ag Berens River Mine to be redeveloped,
  • NI 43-101 compliant resources on Pistol Lake (150,699 oz Au Inferred Resources*),
  • NI 43-101 compliant resources on Forsan (35,000 oz Au Inferred Resources**),
  • New discoveries in the Cadillac break environment.

Golden Share signed a letter of intent dated March 25th, 2011 (the "LOI") to acquire Lake Shore Gold's 100% interest in the Band Ore gold property, located in the Shebandowan belt of northwestern Ontario. Under the terms of the LOI, and if the Band Ore transaction (the "Transaction") is successfully completed, Lake Shore Gold would in return obtain a 19.99% interest in Golden Share, which may be increased to as much as 30% under certain conditions, and thereby become the Company's single largest shareholder.

* 2,857,200 MT @ 1.64 g/t Au at 1.00 g/t Au cut off

** 536,500 MT @ 2.03 g/t Au at 1.00 g/t Au cut off

FOR MORE INFORMATION, CONSULT http://www.goldenshare.ca OR OUR FACEBOOK PAGE AT http://www.facebook.com/#!/profile.php?id=100001472712018&v=wall

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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