Lake Shore Gold Corp.

Lake Shore Gold Corp.

February 24, 2005 16:05 ET

Lake Shore Acquires DeSantis Property in Timmins Gold Camp


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: LAKE SHORE GOLD CORP.

TSX VENTURE SYMBOL: LSG

FEBRUARY 24, 2005 - 16:05 ET

Lake Shore Acquires DeSantis Property in Timmins Gold
Camp

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 24, 2005) - Lake Shore
Gold Corp. (TSX VENTURE:LSG) announced today that it has signed an
agreement with Explorers Alliance Corporation to earn up to a 70%
interest in the DeSantis Gold Property, located in Ogden Township,
Timmins Gold Camp, Ontario.

The DeSantis Property consists of 22 patented claims and 2 leased claims
covering approximately 665 hectares. The DeSantis Property is well
located, immediately north of the Destor-Porcupine Fault Zone in the
western part of the Timmins Gold Camp. The Property has a past history
of limited underground mining (mainly in the 1930's and 1940's),
accessed by two shafts and 752 metres of underground drifting. Limited
surface and underground exploration in the 1980's by Noranda and Stan
West reported resource estimates for a number of mineralized zones
accessible by existing underground workings. These include 129,000
tonnes at 7.51 grams per tonne gold (cut grade; 34,111 ounces or 74,768
ounces gold at 16.44 grams per tonne gold, uncut grade) in the
Hydrothermal Zone (above 300 metres) and 72,000 tonnes at 6.49 grams per
tonne gold (cut grade; 16,356 ounces) in the Albite Zone between 200 and
365 metres depth. The Hydrothermal and Albite zones are accessible by a
380 metre deep three-compartment shaft. A third zone located 300 metres
south of the ventilation shaft and above the Albite Zone grading 3.40
grams per tonne gold was also identified, as was a small surface zone
grading 2.27 grams per tonne gold.

The above resource estimates are historic and are not considered as a
National Instrument 43-101 defined resource. The Company has not
completed the work necessary to verify the classification of the
resource and as such any historic estimates should not be relied upon.

Gold mineralization is associated with highly altered mafic and
ultramafic volcanic rocks of the Tisdale Group and with a mineralized
albite porphyry stock intrusive into the volcanic package. The style and
grade of the DeSantis mineralization is consistent with world-class
Archean gold deposits in the Timmins Camp. The potential to define
additional mineralization along strike and to depth of the known
mineralization is considered to be excellent. A number of other isolated
intercepts from past exploration that have not been followed up offer
additional potential for the DeSantis Property.

Ongoing exploration by Lake Shore in its 100 percent owned Timmins Gold
Property, located approximately 8 kilometres to the west of the DeSantis
claims, has confirmed the potential of this geologic environment to host
significant gold mineralization. In late 2004, the Company announced a
National Instrument 43-101 compliant resource estimate for the Timmins
Gold Property of 1,369,000 tonnes at an uncut grade of 16.45 grams per
tonne gold for 724,000 contained ounces. Additional inferred resource
estimates of 200,000 tonnes grading 12.43 grams per tonne (uncut grade)
and 1,000,000 tonnes grading 4.07 grams per tonne (cut grade) were also
identified. Resource definition and expansion drilling is ongoing and a
pre-feasibility study has been initiated.

Exploration of the DeSantis Property will begin immediately, with a
compilation of all past work followed by a 5,000 metre first phase drill
program designed to confirm and expand the known mineralization.

"We are excited with the potential that the DeSantis Property brings to
Lake Shore's growing Timmins asset base. With an underground
infrastructure largely in place on the DeSantis Property, a new
dimension has been added to our exploration focus" said Daniel Innes,
Chairman.

Under the terms of the agreement, Lake Shore can earn a 51% interest in
the Property by making cash payments totalling $375,000, issuing 75,000
shares plus additional shares worth $200,000 and spending $3,000,000
over a three year period. Lake Shore has a further option to earn up to
a 70% interest in the Property, by spending an additional $3,726,000 on
the Property. The agreement is subject to the approval of each party's
Board of Directors as well as the TSX Venture Exchange. Lake Shore will
be the operator.

Lake Shore Gold is exploring for gold and base metals in the Archean
Superior Province of Ontario and Quebec. The Company has a strong
treasury and is debt free.

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.

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Contact Information

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