Lake Shore Gold Corp.
TSX : LSG

Lake Shore Gold Corp.

March 12, 2007 17:01 ET

Lake Shore Gold Files Application for Advanced Exploration Permit at Timmins West

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 12, 2007) - Lake Shore Gold Corp. (TSX:LSG) ("Lake Shore" or "the Company") has filed an application under the Ontario Mining Act for an advanced exploration permit for continued underground work at its Timmins West Gold Project in Timmins, Ontario. The Timmins West Gold Project is Lake Shore's most advanced property, with mineral resource estimates totaling 1.3 million ounces in the indicated category and 200,000 ounces in the inferred category.(1)

Subject to permitting, the Timmins West advanced underground exploration program is expected to commence in the third quarter and take 24 months to complete. The program will include environmental and mine engineering, surface infrastructure, shaft and/or ramp construction, scheduling, underground drilling and bulk sampling. The cost estimates of conducting the advanced underground exploration programs for the property will be determined as part of the above process. Resource expansion and exploration diamond drill programs at Timmins West will continue throughout the advanced exploration period.

Completion of a pre-feasibility study at Timmins West is expected by the end of the second quarter. The pre-feasibility study contemplates using the Bell Creek mill, which Lake Shore is in the process of acquiring from the Porcupine Joint Venture,(2) as the location for processing ore from Timmins West. The Bell Creek mill has been on care and maintenance since 2002. Lake Shore's preliminary review indicates it can be made operational quickly and with low capital cost.

Lake Shore President and CEO Brian Booth said: "We have completed as much drilling as we can from surface at Timmins West, so going underground is the next logical step following our successful surface exploration programs. Once permits are in place, we plan to sink a shaft to the 700-metre level to drill the deeper zones within the deposit. We are looking at opportunities to process ore from Timmins West at the Bell Creek mill, which we expect will allow us to bring Timmins West into production within two years."

About Lake Shore

Lake Shore is a mineral exploration company engaged in the acquisition and exploration of mineral properties with prospects for hosting gold and base metal deposits. The Company is currently active in Canada and holds a number of mineral resource properties, either directly or through option agreements, in Ontario and Quebec. 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.

(1) As announced on November 20, 2006, Timmins West hosts gold resources totaling 1.29 million ounces (uncut) in the indicated category and an additional 207,000 ounces (uncut) in the inferred category. The indicated resource contains 3.3 million tonnes of ore grading 12.29 grams per tonne (uncut), and the inferred resource contains 968,000 tonnes grading 5.79 grams per tonne (uncut). Lake Shore's Qualified Person ("QP") for Timmins West is Jacques Samson, P.Geo. As the QP he has prepared or supervised the preparation of the scientific or technical information for the property. For details refer to Lake Shore's news release dated November 20, 2006, available on www.lsgold.com.

(2) In January 2007 Lake Shore announced it had entered into an agreement with the Porcupine Joint Venture to acquire the Bell Creek mine and mill. For details refer to Lake Shore's news release dated January 31, 2007, available on www.lsgold.com.

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