1. Lake Shore Gold Corp.
p
Poised for Valuation Break-Out
49 North Resource Conference TSX & NYSE MKT : LSG
December 13, 2012 www.lsgold.com
2. Forward Looking Statements
Information included in this presentation relating to the Company's expected production levels, production growth, costs, cash flows, economic
returns, exploration activities, potential f i
t l ti ti iti t ti l for increasing resources, project expenditures and b i
i j t dit d business plans are "f
l "forward-looking statements" or
d l ki t t t "
"forward-looking information" within the meaning of certain securities laws, including under the provisions of Canadian provincial securities laws and under
the United States Private Securities Litigation Reform Act of 1995 and are referred to herein as "forward-looking statements." 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 operating and capital plans will not be disrupted
by issues such as mechanical failure, unavailability of parts, labour disturbances, interruption in transportation or utilities, or adverse weather conditions,
that there are no material unanticipated variations in budgeted costs that contractors will complete projects according to schedule and that actual
costs, schedule,
mineralization on properties will be consistent with models and will not be less than identified mineral reserves. 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 actual results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by the forward-looking statements. In particular, delays in development or
mining and fluctuations in the price of gold or in currency markets could prevent the Company from achieving its targets. 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 the
Company's most recent Annual Information Form and other regulatory filings with the Canadian Securities Administrators, which are posted on sedar at
www.sedar.com, or the Company’s most recent Annual Report on Form 40-F and other regulatory filings with the Securities and Exchange Commission.
QUALITY CONTROL
Lake Shore Gold has a quality control program to ensure best practices in the sampling and analysis of drill core. A total of three Quality Control samples
consisting of 1 blank, 1 certified standard and 1 reject duplicate are inserted into groups of 20 drill core samples. The blanks and the certified standards are
checked to be within acceptable limits prior to being accepted into the GEMS SQL database. Routine assays have been completed using a standard fire
p p g p y p g
assay with a 30-gram aliquot. For samples that return a value greater than three grams per tonne gold on exploration projects and greater than 10 gpt at the
Timmins mine and Thunder Creek underground project, the remaining pulp is taken and fire assayed with a gravimetric finish. Select zones with visible gold
are typically tested by pulp metallic analysis on some projects. NQ size drill core is saw cut and half the drill core is sampled in standard intervals. The
remaining half of the core is stored in a secure location. The drill core is transported in security-sealed bags for preparation at ALS Chemex Prep Lab
located in Timmins, Ontario, and the pulps shipped to ALS Chemex Assay Laboratory in Vancouver, B.C. ALS Chemex is an ISO 9001-2000 registered
laboratory preparing for ISO 17025 certification.
QUALIFIED PERSON
The Company’s Qualified Persons (“QPs”) (as defined in National Instrument 43-101, “Standards of Disclosure for Mineral Projects”) for surface diamond
drilling projects at the Timmins West Mine Complex, Bell Creek Mine Complex; Fenn-Gib property and Casa Berardi optioned property are Jacques
Samson, P.Geo. and Keith Green, P.Geo. Dean Crick, P.Geo. is the QP for underground drilling at the Timmins West Mine and Bell Creek Mine properties.
Reno Pressacco, P.Geo is the QP for the current resource estimate at the Marlhill Deposit. Ralph Koch, P.Geo is the QP for the current resource estimate
at the Bell Creek property and portions of the Timmins West Mine. Bob Kusins, P.Geo. is the QP for resource estimation for portions of the Timmins West
Mine d t ll
Mi and at all remaining Company properties. A QP M
i i C ti As QPs, Messrs. S Samson, G Green, C i k K h and K i h
Crick, Koch d Kusins have prepared or supervised th preparation of
d i d the ti f
the scientific or technical information for their respective properties as reviewed in this MD&A. Messrs., Samson, Green, Koch, Kusins and Crick are
employees of the Company.
2
3. LSG: Poised for Valuation Break-Out
Excellent progress in 2012 – stage set for outperformance
Significant development and expansion work completed
On track to achieve production targets
Positioned for rapid growth in 2013 & 2014(1)
Exiting 2012 with 25% increase ( 2,500 tpd) in p
g (to p ) production rate
Further increase planned for Q2/13 to 3,000 tpd
Underpins @ 50% production growth in 2013, further growth planned in
2014
Strong financial position
Cash position of $55-$60M exiting 2012(1)
p g
Significant reduction in capital spending going forward
Positive free cash flow from operations in 2013
Excellent exploration upside
(1) Examples of forward-looking information
3
4. LSG: Poised for Valuation Break-Out
Lake Shore Gold (TSX, NYSE MKT: LSG)
Shares outstanding (basic) 415,700,000
Share price (Dec. 10, 2012)
p ( ) $0.71
Market capitalization $295,000,000
52 week High/Low $1.73/$0.63
3M average volume (shares on TSX/NYSE MKT) 2,034,000
2 034 000
4
5. LSG – 3 Multi-Million Ounce Gold Complexes
Pipestone Fault
Bell Creek Complex
Bell Creek Mill
Destor-Porcupine Fault
City of Timmins Fenn-Gib
Timmins Timmins West Mine
Timmins Gold Camp: >70M ozs produced
Timmins West Complex Main drivers of near-term growth
Large resource base – 3.4M ozs M&I, 3.7M ozs Inferred
Timmins West Complex
– Total resources of 1.2M ozs M&I, 1.8M ozs Inferred
– Timmins West Mine in production, 144/GRT attractive exploration targets
Bell Creek Complex
– Resources: 0.8M ozs M&I, 1.1M ozs Inferred
– North A Deep Zone key target, other properties provide upside
– Bell Creek Mill – operating at 2,500 tpd capacity
Fenn-Gib
– Large open pit project with significant exploration upside
open-pit
– Resources: 1.3M ozs Indicated, 0.8M ozs Inferred
(1) Examples of Forward Looking Statements.
5
6. LSG – Large Resource Base
Probable Reserves Tonnes Au Grade (g/t) Contained Ounces
Timmins West Mine 4,922,000 5.21 823,800
Measured & Indicated(1) Tonnes Au Grade (g/t) Contained Ounces
Timmins West Mine 5,826,000 5.99 1,122,500
Gold River 690,000 5.29 117,400
Bell Creek Mine 4,249,000 4.73 646,400
Vogel 2,219,000 1.75(2) 125,000
Marlhill 395,000 4.52 57,400
Fenn Gib 40,800,000 0.99(2) 1,300,000
Total
T t l 3,368,700
Inferred Tonnes Au Grade (g/t) Contained Ounces
Timmins West Mine 4,272,000 5.76 791,500
Gold River 5,273,000
5 273 000 6.06
6 06 1,027,800
1 027 800
Bell Creek Mine 6,088,506 4.87 953,800
Vogel 1,459,000 3.60(3) 168,800
Fenn-Gib
e Gb 24,500,000
,500,000 0.95(2)
0 95 750,000
50,000
Total 3,691,900
(1) Resources are inclusive of reserves
(2) Open-pit resources
(3) Combination of underground and open-pit resources 6
7. LSG – Strong Operating Performance in 2012
O track to produce over 85,000 ounces gold(1)
On t k t d 85 000 ld
Development program well advanced
700 000 ounces of resources to be accessed at TWM at year end(1)
700,000
Development to 610 Level at Bell Creek to support deep U/G drilling
Extensive U/G diamond drilling program, 106,000 m to date
in 2012
Focus on resource conversion and delineation
Significant success achieved
Si ifi t hi d
Increased mill capacity & mine throughput 25% to 2,500 tpd
Effectively
Eff ti l managed capital and operating costs
d it l d ti t
Capex budget reduced from $193M to $175M
Operating cost per tonne YTD of $112, below budgeted levels ($105
in Q3/12)
(1) Examples of forward-looking information
7
8. Timmins West Complex
130 km2 land position western extension of Timmins Gold Camp
position,
Pipestone Fault
Bell Creek Complex
Hoyle
Pond
Hollinger Pamour Destor Porcupine Fault
McIntyre
Timmins Dome
Fenn-Gib
Timmins West Complex
8
9. Timmins West Mine – 18Kms West of Timmins
Key Facts:
• Reserves: 823,800 ozs (4.9M tonnes & 5.21 gpt)
• Resources: 1.1M ozs Indicated(1), 0.8M ozs Inferred
• Production: 45,155 ozs produced in 9M/12
• Infrastructure: 710 m 5 5 m diameter shaft, hoist, surface
m, 5.5 shaft hoist
ramp, two 800m drifts to Thunder Creek
• 285 employees (85 surface, 200 U/G)
(1) Resources inclusive of reserves.
9
10. Timmins West Mine
Development to Timmins Deposit
Thunder Creek
access 700 000 ozs
700,000 200 Level
of resource by end
of 2012(1) 300 Level
B end of 2013(1)
By
Development of
Thunder Creek
(Lower mine)
(L i ) 650 L
Level
l
completed
Timmins Deposit 2012 Work
2012 Work
Development Program*
Program*
completed to
900M Level
Legend
Existing Development
2012 Plan Work
2013 Plan Work
Future Plan Work
(1) Examples of Forward Looking Statements.
10
11. Timmins West Mine – Expanding Orebodies
B TW Shaft Ramp A
200 Level
Rusk Shear
300 Level
Rusk Zones Bristol Fault
Thunder Creek
Stock
730 Level 650 Level
Porphyry Zones
A Holme
Sh
ear r
Zo
ne
Mafic
volcanics
Turbidites, Timmins Mine UM Complex New results outside
felsic volcanic
Pyroxenite
(AIC)
deposit
50m west extension to current resource at 750Lv:
Syenite,
monzonite Rusk zone at 765 Lv 750‐005: 7.5gpt/21.0m
B
e
D3 shear zone
15.8gpt/5.8m
gp /
on
750 006: 7.3gpt/17.1m
750‐006: 7.3gpt/17.1m
rZ
ea
0 400
10.5gpt/ 3.4m 650‐223: 10.3gpt/39.5m
Sh
meters
sk
Thunder Creek
6.8gpt/5.7m incl 58.0gpt /3.0m
Ru
Rusk
East-west “Greenstone Nose”
Shear Zone
**Selected drill results, Not true widths
11
12. Bell Creek Complex
32 km2 land position, includes Bell Creek Mine and Mill and multiple
position
other exploration targets
Bell Creek Complex Pipestone Fault
Hoyle
Pond
Hollinger Pamour Destor Porcupine Fault
McIntyre
Timmins Dome
Fenn-Gib
Timmins West Complex
12
13. Shaft
Mined out
Bell Creek Mill – 20Kms of East of Timmins areas
Key Facts:
Resources:0.6M ozs Indicated, 1.0M
ozs Inferred
16,892 ozs produced 9M/12
Significant development & drilling to
evaluate North A Deep Zone
Infrastructure: mill, tailings, 300 m
shaft (non-producing), surface decline
to 595 m, vent raises, drill drifts
m raises
Employees: 95 (70 U/G, 25 surface)
(1) Examples of Forward Looking Statements
13
14. Mill – 25% Increase in Capacity Completed
SAG Mill Building
Crusher
New CIL Tanks
Truck Dump 6,000 tonne
Ore bin New Thickener
Exceptional operational & metallurgical performance
Average throughput: 2,108 tpd (Q3/12), recoveries: 97.1% (Q3/12)
First phase of expansion complete: New capacity 2,500 tpd
f
Next phase to 3,000 tpd – Targeted completion Q2/13(1)
(1) Examples of Forward Looking Statements.
14
15. LSG: Set for Rapid Growth in 2013 & 2014
Targeting @ 50% production growth in 2013(1)
Production to reach >150,000 ozs by 2014(1)
Development work largely completed at Timmins West Mine
by end of 2013(1)
Thunder Creek lower mine fully developed
Timmins Deposit developed to 900M Level
Phase 2 of mill expansion to be completed in Q
p p Q2/13 – 3,000
,
tpd capacity 50% higher than pre-expansion level(1)
Cash costs to improve in 2013 and reach <US$700/oz in
2014 (incl. royalties)(1)
Bell Creek, Gold River Trend and Fenn-Gib provide potential
future gro th beyond
f t re growth be ond 2014
(1) Examples of forward-looking information
15
16. Targeting Rapid Production Growth
Estimated Production Ranges(1)(2) 3.7
Ounces Denotes range
160,000
160 000
140,000
120,000
100,000
>85,000
80,000
,
60,000
40,000
20,000
0
2012 2013 2014 2015 2016
(1) Examples of Forward Looking Statement
(2) Bell Creek, Gold River Trend and Fenn-Gib provide further potential growth after 2014 16
17. Bringing Costs Down – Cash Costs
Cash cost per tonne better than planned levels
$105 in Q3/12
$112 in 9M/12
Cash costs per ounce US$970 in 9M/12(1)
Costs reflect average grades (impact of significant development
material processed, deferral of high-grade stopes for further drilling)
Cash costs to reach <US$700/oz. by 2014(2)
$ y
Higher throughput levels – 3,000 tpd
Completion of capital program (leverage to infrastructure)
Higher grades due to greater flexibility and better
understanding of orebodies
(1) Before royalties
(2) Examples of forward-looking information 17
18. LSG: Strong Financial Position
Well financed – no additional outside sources of capital
required
Expected to end 2012 with $55-$60 million in cash(1)
Capital spending in 2012 reduced from $193M to $175M
Capital spending in 2013 to drop @ 50% from 2012, with
further 50% reduction expected in 2014(1)
Positive free cash flow from operations in 2013, with strong
growth in 2014(1)
(1) Examples of forward-looking information
18
19. Strong Financial Position – At Year End 2012
Sources of Cash
S fC h $ millions
illi
Cash and bullion inventory (Sept. 30, 2012) 90.0
Q4/12 operating cash flow(1) 18.0
Total sources of cash (to end of 2012) 108.0
Additional liquidity (standby line) 35.0
Total liquidity at end of 2012
q y 143.0
Uses of Cash (Estimates for Q4/12)(1) $ millions
Estimated project spending 42.0
Exploration
E l ti 1.5
15
Corporate G&A 3.5
Financing costs 1.6
Total
T t l uses of cash
f h 48.6
48 6
Positive Free Cash Flow from Operations Beginning in
2013
(1) Examples of forward-looking information
19
20. Strong Exploration Upside – Timmins West
Gold River Trend Tonnes Grade Timmins West Mine Tonnes Grade
Resources (Millions) (gpt) Ounces Resources (Millions) (gpt) Ounces
Indicated 0.69 5.29 117,400 Indicated 5.83 5.99 1,122,500
Inferred 5.27 6.06 1,027,800 Inferred 4.27 5.76 791,500
6 kms
Thunder Creek – 144 Trend
Timmins West Mine
144 Thunder Creek Timmins Deposit
2,000 Lv
2 000 L
UM and FW structures extended
to 2,400 m 20
21. Strong Exploration Upside – Bell Creek
Tonnes Grade
(M) (gpt) Ozs.
Bell Creek Mine
M&I 4.25 4.73 646,400
Inf. 6.09 4.87 953,800
,
Bell Creek Mine Marlhill Vogel
Bell Creek Mine
Ind. 2.22 1.75 125,000
MH
Inf. 1.46 3.60 168,800
Marhill
Vogel Ind. 0.40 4.52 57,400
VG
Wetmore Hoyle Pond
Hoyle Pond
WM MineMine
Key Projects
MH – Marlhill Project
Marlhill Project
VG – Vogel Project
WM – Wetmore Project
21
21
22. Strong Exploration Upside – Fenn-Gib
Large-scale,
Large-scale open-pit project 60kms from Timmins
Bell Creek Complex Pipestone Fault
Hoyle
Pond
Hollinger Pamour Destor Porcupine Fault
McIntyre
Timmins Dome
Fenn-Gib
Timmins West Complex
22
24. LSG: Well Positioned for Value Creation
Strong operating performance in 2012
On track to achieve production and development targets(1)
Mill expanded by 25% to 2,500 tpd
Effectively managed capital and operating costs
Poised for rapid growth in 2013 & 2014(1)
Targeting @ 50% production growth in 2013, >150,000 ozs by 2014
Mill to reach 3,000 tpd capacity in Q2/13
Timmins West Mine development largely completed
Cash costs to reach <US$700/oz in 2014 (incl. royalties)
Strong financial position(1)
Well financed – no outside capital required
Disciplined approach to capital deployment
Free cash flow from operations starting in 2013
Excellent potential for future growth from projects and
attractive exploration properties – strong exploration upside
(1) Examples of forward-looking information
24
