Lake Shore Gold Corp.
TSX : LSG

Lake Shore Gold Corp.

July 10, 2008 08:22 ET

Lake Shore Gold Announces Economic Benefits Agreement for the Tipahaakaaning Gold Project

TORONTO, ONTARIO--(Marketwire - July 10, 2008) - Lake Shore Gold Corp. (TSX:LSG) ("Lake Shore Gold" or the "Company") today announced that its 50% joint venture partner and project operator in the Tipahaakaaning gold project in northwestern Ontario, Northern Superior Resources Inc. ("Northern Superior"), has signed an Early Economic Benefits Agreement ("EEBA") with the Neskantaga First Nation. This agreement defines the working relationship between Northern Superior and the Neskantaga First Nation at the current early stage of exploration associated with the Tipahaakaaning project. This EEBA allows Northern Superior to continue exploration work at Tipahaakaaning for three years or until the exploration program proceeds to an advanced exploration stage involving the delineation of a resource.

In less than one year of exploration activity, Northern Superior has made significant progress with understanding the geology of the very large Tipahaakaaning property, which covers approximately 33,248 hectares. This includes the understanding of the relationships between the recently discovered gold grain dispersal apron, greenstone belt and historic anomalous gold assay results reported late in 2007 and earlier this year (see Northern Superior press releases dated October 15th, 2007, January 21st, 2008).

Tony Makuch, President and CEO of Lake Shore Gold, commented: "We are pleased to be part of the Tipahaakaaning project, which we view as a highly prospective gold exploration target. The EEBA agreement with the Neskantaga First Nation is an important step for the joint venture and for Northern Superior as it moves forward with an exploration program that we are confident will lead to encouraging results."

The Tipahaakaaning gold project is a 50/50 joint venture between Lake Shore Gold and Northern Superior with Northern Superior as the operator. The joint venture was formed in 2007 when each company contributed a total of 48 claims covering 9,072 hectares. Nine of these claims are subject to an underlying 1.5% net smelter royalty payable to a third party, to a maximum of $2.5 million.

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 progressing refurbishing work at its 100%-owned Bell Creek mill and is continuing drilling programs at a number of prospective properties. The Company's shares trade on the Toronto Stock Exchange under the symbol LSG.

Forward-looking Statements

Certain statements in this press release relating to the Tipahaakaaning project 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 materials or supplies. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Readers should not place undue reliance on forward-looking statements. More information about risks and uncertainties affecting the Company and its business is available in Lake Shore Gold's regulatory filings which are posted on sedar at www.sedar.com.

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