Lake Shore Gold Corp.

Lake Shore Gold Corp.

April 06, 2006 08:00 ET

Lake Shore Gold Corp. Proposed Shareholder Rights Plan

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 6, 2006) - Lake Shore Gold Corp. (TSX:LSG) provided the following information today in response to inquiries received by the Company regarding the Shareholder Rights Plan (the "Rights Plan") for which shareholder approval will be sought at the upcoming annual and special meeting of shareholders to be held on May 8, 2006.

As noted in the news release dated March 24, 2006 announcing the adoption by Lake Shore's board of directors of the Rights Plan, each Right held by a person other than an Acquiring Person would, upon the occurrence of certain events such as a take-over bid that is not a Permitted Bid, entitles the holder, by paying the exercise price, to purchase that number of Lake Shore common shares which have a current aggregate market value equal to twice the exercise price. In plain language, therefore, in the event of a non-permitted bid, each Right entitles the holder (with the exception of an Acquiring Person) to purchase $40 worth of common shares for $20.

The recently mailed Management Information Circular contains a misstatement on page 21 under the subheading "Rights Exercise Privilege". The statement should read "Ten business days after the occurrence of the Flip-in Event, each Right (other than those held by the Acquiring Person), will permit the purchase of $40 worth of Common Shares for $20, subject to anti-dilution adjustments".

Lake Shore is a mineral exploration company with a strong treasury exploring for gold and base metals in the Archean Superior Province of Ontario and Quebec. See the Company's website at for further information on the Company's properties.

Forward-Looking Statement

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 statement.

Contact Information

  • Lake Shore Gold Corp.
    Thomas W. Beattie
    VP Corp. Development
    (604) 669-3533
    (604) 688-5175 (FAX)
    Lake Shore Gold Corp.
    Brian R. Booth
    (705) 525-0992
    (705) 525-7701 (FAX)