Lake Shore Gold Corp.

Lake Shore Gold Corp.

March 07, 2005 08:30 ET

Lake Shore Acquires the Vogel Gold Property and Continues to Increase its Gold Assets in Timmins Gold Camp


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: LAKE SHORE GOLD CORP.

TSX VENTURE SYMBOL: LSG

MARCH 7, 2005 - 08:30 ET

Lake Shore Acquires the Vogel Gold Property and
Continues to Increase its Gold Assets in Timmins Gold
Camp

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 7, 2005) - Lake Shore
Gold Corp. (TSX VENTURE:LSG) announced today that it has signed a terms
of agreement letter with Black Hawk Mining Inc. (a wholly owned
subsidiary of Glencairn Gold Corporation) to acquire 100% of Black
Hawk's interest in the Vogel Gold Property, located in Hoyle Township,
Timmins Gold Camp, Ontario.

The Vogel Property consists of one patented "Vet Lot" covering 64
hectares. The Property straddles 800 metres of the favourable gold
bearing stratigraphy between the Hoyle Pond and Bell Creek gold
deposits. The Hoyle Pond deposit, located one kilometre to the east has
the highest head grade of all significant past and present gold
producers in the Timmins Gold Camp. The Bell Creek deposit (a former
producer), is located 1.4 kilometres to the west of the Property. The
Property is readily accessible by an all weather gravel road from
Highway 101.

The Vogel Property has been explored by several companies in the past
and contains an historic measured and indicated resource estimate of
642,000 tonnes at 12.7 grams per tonne gold and an inferred resource of
933,800 tonnes at 12.7 grams per tonne gold (Glencairn's 2003 Annual
Report based on a 1999 resource estimate prepared by ACA Howe
International Limited for Black Hawk using CIM standards). In 1997,
while under option to Kinross Gold Corporation, the deposit was
estimated to contain a resource of 1,706,500 tonnes at 8.4 grams per
tonne gold for 459,678 contained ounces (1997 Annual Report, Black Hawk
Mining Inc.).

Gold mineralization on the Property is associated with typical Timmins
Camp quartz veins within highly altered mafic and ultramafic volcanic
rocks of the Lower Tisdale Group. The potential to define additional
mineralization at depth is considered to be excellent.

Under the terms of the agreement with Black Hawk, Lake Shore will
acquire 100% of Black Hawk's interest under the mining lease on the
Property by making an initial cash payment of $3,000,000 and issuing
100,000 shares of the Company. A further cash payment of $500,000 will
be payable to Black Hawk, once an NI 43-101 compliant indicated resource
of 600,000 ounces of gold has been confirmed on the Property. The
agreement is subject to due diligence, and the approval of each party's
Board of Directors as well as regulatory approval.

"The addition of the Vogel Property substantially strengthens Lake
Shore's gold assets in the Timmins Camp. Along with our 100 percent
owned Timmins Gold Property and the recently announced DeSantis Gold
Property, Lake Shore now has three significant properties with gold
resources," said Brian Booth, President.

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.

The DeSantis Gold Property contains 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) 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 above resource estimates for the Vogel and DeSantis properties are
historic and the Company is not treating the estimates 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.

Lake Shore Gold Corp. is a well financed mineral exploration company
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.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Lake Shore Gold Corp.
    Daniel G. Innes
    Chairman
    (604) 669-3533
    (604) 688-5175 (FAX)
    or
    Lake Shore Gold Corp.
    Brian R. Booth
    President
    (705) 525-0992
    (705) 525-7701 (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.