Lake Shore Gold Corp.

Lake Shore Gold Corp.

February 25, 2008 13:00 ET

Lake Shore Gold Completes Financing and Enters Into Strategic Alliance With Hochschild Mining plc

TORONTO, ONTARIO--(Marketwire - Feb. 25, 2008) - Lake Shore Gold Corp. (TSX:LSG) ("Lake Shore" or "the Company") is pleased to announce that it has completed its financing with Hochschild Mining plc (LSE:HOC) ("Hochschild") and has received proceeds of $64,689,239.90.

Further to the Company's announcement on February 19, 2008, Lake Shore has also entered into the Strategic Alliance Agreement with Hochschild, a copy of which will be filed on SEDAR.

About Lake Shore

Lake Shore is a mineral exploration company focused on the acquisition, exploration and development of mineral properties with prospects for hosting economic gold deposits in the Canadian Shield in Ontario and Quebec. The Company holds a number of 100% owned and joint ventured gold properties in Ontario and Quebec, including the Bell Creek Mine and Mill Complex and has commenced sinking a shaft on its 100%-owned Timmins West gold deposit near Timmins, Ontario. Lake Shore is a reporting issuer in British Columbia, Alberta, Manitoba, Ontario and Quebec, and trades on the Toronto Stock Exchange under the symbol LSG.

About Hochschild

Hochschild Mining plc (HOCM.L for Reuters / HOC LN for Bloomberg) is a leading precious metals company listed on the London Stock Exchange with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild currently operates five underground epithermal vein mines, four located in southern Peru and one in southern Argentina and one open pit mine in northern Mexico. Hochschild also has one early stage development project in Mexico and fifteen long-term prospects throughout Latin America. Hochschild has over forty years experience in the mining of precious metal epithermal vein deposits. The registered address of Hochschild is 18 Hanover Square, London, England, W1S 1HX.

Forward-looking Statements

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 Company'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 statements.

Contact Information

  • Lake Shore Gold Corp.
    Meghan Brown
    Manager Investor Relations
    (604) 685-4644 or (778) 899-1605
    Lake Shore Gold Corp.
    Brian R. Booth
    President and CEO
    (416) 703-6298