Lake Shore Gold Corp.
TSX : LSG

Lake Shore Gold Corp.

March 22, 2007 16:37 ET

Lake Shore Gold Corp. Announces Exercise of Over-Allotment Option

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 22, 2007) -

THIS NEWS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Lake Shore Gold Corp. (TSX:LSG) ("Lake Shore" or the "Company") announces that the over-allotment option granted to the underwriters in connection with its prospectus offering (the "Offering") announced yesterday, March 21, 2007, has been fully exercised.

The underwriters have agreed to buy five million units (the "Units") and six million flow-through common shares of the Company (the "Flow-Through Shares") at an issue price of C$2.00 per Unit and C$2.50 per Flow-Through Share for gross proceeds to the Company of C$25,000,000. Pursuant to the underwriters' exercise of the over-allotment option, the Company will issue an additional 1,875,000 Units, at C$2.00 per Unit, raising the total gross proceeds of the Offering to $28,750,000.

The Offering was underwritten by a syndicate led by Canaccord Capital Corporation, and including Raymond James Ltd. and Haywood Securities Inc. The Company expects to file a preliminary short form prospectus with the securities regulatory authorities to qualify the Units and Flow-Through Shares for distribution. Closing is expected on or about April 16, 2007. Net proceeds of the Offering will be used for exploration and development of the Company's mineral projects and general corporate purposes.

The Offering is being made pursuant to a short form prospectus to be filed in the provinces of British Columbia, Alberta, Manitoba, Ontario and Quebec. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About Lake Shore

Lake Shore is a mineral exploration company engaged in the acquisition and exploration of mineral properties with prospects for hosting gold deposits. The Company is currently active in eastern Canada and holds a number of mineral resource properties in Ontario, including the Timmins West and Vogel/Schumacher projects, either directly or through option agreements. In February 2007 Lake Shore announced its agreement to acquire the Bell Creek mine and mill complex near Timmins, Ontario from the Porcupine Joint Venture. 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.

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) 669-3533
    (604) 688-5175 (FAX)
    Email: mbrown@lsgold.com
    or
    Lake Shore Gold Corp.
    Brian R. Booth
    President
    (705) 525-0992
    (705) 525-7701 (FAX)
    Email: info@lsgold.com
    Website: www.lsgold.com