BMO CAPITAL MARKETSLake Shore Gold Global Metals & Mining ConferenceTSX, NYSE Amex: Symbol: LSG Feb. 29, 2012
Forward Looking Statements Certain statements in this presentation relating to the Companys expected production levels, production growth, exploration activities, potential for increasing resources project expenditures and business plans are "forward looking statements" or "forward looking resources, forward-looking statements 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 managements 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 , , p g , p projects according to schedule, and that actual 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. M t t t More i f information about risks and uncertainties affecting th C ti b t i k d t i ti ff ti the Company and it b i d its business i available i th C is il bl in the Companys most recent t t 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 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 Vancouver, B.C. 9001-2000 certification. QUALIFIED PERSON The Company’s Qualified Persons (“QPs”) (as defined in National Instrument 43-101, “Standards of Disclosure for Mineral Projects”) for diamond drilling projects at the Timmins deposit surface; Thunder Creek, Gold River Trend and 144 properties; Bell Creek Mine; and Casa Berardi optioned property are Jacques Samson, P.Geo., Stephen Conquer, P.Geo, and Keith Green, respectively. Dean Crick, P.Geo. is the QP for the Timmins deposit and Thunder Creek underground drilling projects, and Bob Kusins, P.Geo., is the QP for resource estimation at all of the Company’s properties. As QPs, Messrs. Samson, Conquer, Green, Crick and Kusins have prepared or supervised the preparation of the scientific or technical information for their respective properties as provided in this presentation. Messrs., Samson, Conquer, Kusins, Crick and Green are employees of the Company.2
• Strong growth already Strong growth already achieved • Poised for rapid Poised for rapid production growth • Timmins West Mine PEA Timmins West Mine PEA highlights potential for strong cash flow and g favourable economics • Full pipeline of Full pipeline of prospective projects 3
Three Multi-Million Ounce Gold Complexes in Century-Old Timmins Camp Century Old Bell Creek Complex Destor-Porcupine Fault City of Timmins Fenn-Gib Timmins Timmins West Complex >70 million ounces produced to date in Timmins Camp Highly-prospective geology Politically f low-risk j i di i P li i ll safe, l i k jurisdiction Established infrastructure Access to suppliers labour training suppliers, labour,4
Resources – Strong Growth Already Achieved Doubled resources in 2011 – second straight year 3.2 3.9 1.8 3.1 3.0 0.6 0.9 1.25
Production – Strong Growth Already Achieved Gold ounces poured doubled in 2011 Strong growth expected by 2013 3.1 100,000 85,000 1.8 3.2 37,755 0.6 06 1.2 7,700 0.9 Target Guidance not6 *Examples of Forward Looking Statements. Range* yet released*
LSG: Poised for Next Phase of GrowthProduction Timmins West Mine development advancing (PEA released) Significant development early in 2012 positioning Company for next major jump in production 50% increase in processing rate to 3,000 tpd by late 2012* 85,000 100,000 85 000 to 100 000 ounces targeted for 2012* Strong production growth expected in 2013*Resources Updates at Gold River Trend and Timmins West already increased total resources in 2012, Bell Creek update in Q1/12*Exploration Full project pipeline provides potential for long-term growth long term7 *Examples of Forward Looking Statements.
Three Multi-Million Ounce Gold Complexes: Timmins West Mine Pipestone Fault Bell Creek Complex Hoyle Pond Destor Porcupine Fault Hollinger McIntyre Dome Fenn- Fenn-Gib F Timmins West Complex8
Timmins West Mine – PEA (Feb. 28, 2012) PEA Disclaimer: The Timmins West Mine PEA is preliminary in nature. It includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be9 realized.
Timmins West Mine Thunder Creek Timmins Deposit Timmins and 200 Level Thunder Creek deposits combined 300 Level Initial Thunder Creek resource released Nov. 2011 Updated Timmins deposit resource February 2012 650 Level PEA first evaluation 2012 Work 730 Level 2012 Work of fully integrated Program* Program* operation Conceptual view - full development of current resources *Examples of Forward Looking Statements.10
Timmins West Mine – Resources PEA assumes mining 1.4M ozs, including majority of Indicated and portion of Inferred Opportunity to grow ounces through increased conversion of resources, continued exploration success Capped Grade Deposit Category Tonnes (gpt (i) Au) Ounces Au Timmins Indicated 2,949,000 6.34 600,900 Inferred 1,579,000 5.54 281,500 Thunder Creek Indicated 2,877,000 5.64 521,600 Inferred 2,693,000 5.89 510,000 Total Indicated 5,826,000 5.99 1,122,500 Inferred 4,272,000 5.76 791,50012
PEA: Highlights*• Potential for $65M free cash flow in Year 2, over $100M of annual free cash flow1 by Year 3 using current prices• 10 years of production – averaging 160 000 in Years 3 – 9 peaking 160,000 9, at 175,000 ounces• Average cash operating costs of US$625/oz, US$590/oz in Years 3 – 9• Growth capital of $160M, including $67M for mill expansion, with $225M of sustaining and other capital• At current pricing2, total cash flow of $1.14B, NPV of $880M, IRR of 115%, payback p p y period 1.25 yyears• At analyst consensus3, total cash flow of $730M, NPV of $570M, IRR of 100%, payback period 1.25 years. 1. All information is presented before income taxes. At December 31, 2011, the Company had total tax shelters of $540 million. 2. Gold price of US$1,775 and exchange rate at par. 3. Gold price starting at US$1,744/oz in 2012, declining to a long-term price of US$1,200/oz in 2018, average exchange rate of13 $US:1.00 = $CDN 1.07 *Examples of Forward Looking Statements, see PEA disclaimer on slide 9
Timmins West Mine – Sensitivities* Over 1.0 billion of total cumulative cash flow at current market prices NPV of $880 million, IRR of 115% at current market prices All numbers presented before income taxes (LSG had total tax shelters of $540M at December 31, 2011) Average Annual Total Cash Flow Cash Flow ($M) ($M) NPV @ 5% Payback Case (Full Production) (undiscounted) ($M) I IRR (years) Current prices1 $165 $1,140 $880 115% 1.25 Analyst Consensus2 $110 $730 $570 100% 1.25 $1500 US$/Oz Gold $120 $770 $580 70% 2.00 $2000 US$/Oz Gold $200 $1,443 $1,130 175% 0.75 1. Gold price of US$1,775 and exchange rate at par. 2. Gold price starting at US$1,744/oz in 2012, declining to a long-term price of US$1,200/oz in 2018, average exchange rate of $US:1.00 = $CDN 1.0714 *Examples of Forward Looking Statements, see PEA disclaimer on slide 9
Timmins West Mine – Production & Costs* PEA assumes mining 1.4M ozs, including majority of Indicated and 1 4M ozs portion of Inferred Average annual production 140,000 ozs, cash costs US$625/oz (exchange rate at par) Years 3 – 9: Average production of 160,000 ozs, cash costs US$590/oz15 *Examples of Forward Looking Statements, see PEA disclaimer on slide 9
Timmins West Mine – Substantial Cash Flow* Over $100 million of annual free cash flow by Year 3 at current market prices (US$1,775/oz) Net Cashflow ($Can) $200 $180 $160 $140 $120 $100 $80 Millions ($Can) $60 $40 $20 $0 ‐$20 1 2 3 4 5 6 7 8 9 10 ‐$40 Year of Project ‐$60 ‐$80 ‐$100 $100 ‐$12016 *Examples of Forward Looking Statements, see PEA disclaimer on slide 9
Timmins West Mine – Substantial Cash Flow* Over $1 billion of cumulative free cash flow over 10 years at current market prices (US$1,775/oz) Undiscounted Cumulative Cash Flow $1,200 $1,100 $1,000 $900 $800 $700 n) Millions ($Can $600 $500 $400 $300 $200 $100 $0 ‐$100 1 2 3 4 5 6 7 8 9 10 Year of Project17 *Examples of Forward Looking Statements, see PEA disclaimer on slide 9
Processing – Expanding Mill to Meet Growth Mill operating very well Recoveries of 96% Exceeded 2 000 t d i Q4/11 E d d 2,000 tpd in Expansion to 3,000 tpd to be completed by late 2012* 2012 Mainly involves crushing/grinding circuits 2012 capex of $67M (expansion and other infrastructure) All costs of expansion allocated t t f i ll t d to Timmins West Mine Second phase of expansion to 5 500 5,500 tpd linked to continued project growth18 *Examples of Forward Looking Statements.
Timmins West Mine – Opportunities Many opportunities to enhance Timmins West Mine economics Reduced capital and operating costs R d d it l d ti t Additional ounces through higher conversions and continued exploration success p Increased throughput Potential for enhanced value at other projects given all costs for mill expansion, indirect and overhead costs in Timmins applied to Timmins West Mine Additional projects include Bell Creek Mine Gold River Mine, Trend and Fenn-Gib19
LSG – Full Project Pipeline Early Stage Advanced Exploration Development ProductionProduction Timmins West Mine In commercial operation, excellent potential to grow resources DevelopmentBell Creek Complex In advanced exploration, updated NI 43‐101 pending* Scoping study ongoing* Other Projects Fenn‐Gib Large initial resource, recent expansion highlights depth potential Gold River TrendG ld Ri T d Large updated resource, zones open in all directionsExploration 144 144 Adjacent to Thunder Creek, initial drill results compare favourably Adjacent to Thunder Creek initial drill results compare favourablyWetmore Second potential mineralized trend at Bell Creek ComplexCasa Berardi JV option with Aurizon , highly prospective land position *Examples of Forward Looking Statements.20
LSG Resources Measured & Indicated Tonnes Au Grade (g/t) Contained Ounces Timmins West 5,826,000 5.99 1,122,500 Gold River Trend 690,000 5.29 117,400 Bell Creek Mine* 1,790,000 4.36 251,200 Vogel 2,219,000 1.75 (OP) 125,000 Marlhill 395,000 4.52 57,400 Fenn Gib 40,800,000 0.99 (OP) 1,300,000 Total 2,973,500 Inferred I f d Tonnes T Au G d (g/t) A Grade ( /t) Contained Ounces C t i dO Timmins West 4,272,000 5.76 791,500 Gold River Trend 5,273,000 6.06 1,027,800 Bell Creek Mine* 8,427,500 4.40 1,192,900 Vogel 1,459,000 3.60 (some OP) 168,800 Fenn Gib 24,500,000 0.95 (OP) 750,000 Total 3,931,00021 *Revised NI 43-101 resources planned for Q1/12 OP – Open Pit
Gold River Trend Timmins Deposit Timmins West Mine Thunder Creek Deposit 144 Zone East Deposit West Deposit Gold River Trend 144 South22
Gold River Trend – Ounces Nearly Tripled Second potential mining operation on west side of Ti S d t ti l i i ti t id f Timmins i Updated resource released Feb. 22/12 (2.0 gpt cut off grade) 117,400 117 400 ozs @ 5 29 gpt Indicated 5.29 1,027,800 ozs @ 6.06 gpt Inferred Brings total ounces at Timmins West Complex to 1,239,900 ozs @ 5.92 gpt Indicated 1,819,300 ozs @ 5.93 gpt Inferred High-grade core at East Deposit includes >300,000 ozs @ 9.81 gpt – remains open at depth & along strike Sensitivity analysis demonstrates potential for higher grades with minimal loss of ounces at increased cut-off grades 1,044,400 o s @ 6 89 gpt at 3 0 gpt cut o ,0 , 00 ozs 6.89 3.0 cut-off Potential to add further resources considered excellent23
Three Multi-Million Ounce Gold Complexes: Bell Creek Pipestone Fault Bell Creek Complex Hoyle Pond Destor Porcupine Fault Hollinger McIntyre Dome Fenn- Fenn-Gib F Timmins West Complex Ti i W tC l24
Bell Creek Complex Marlhill New Mine Trend Hoyle Pond Bell Creek Mine Vogel Past Prod. 2.4M ozs @ 13.0 g Wetmore Pamour Past Prod. 4.2M ozs @ 3.1 g Historic Mine Trend Hallnor/ Hallnor/Broulan Trend Past Prod. 2.7M ozs @ 10.6g 25 25
Shaft Bell Creek Mine Bell Creek Mine Mined out areas Recent Over 20,000 ozs i 2011 O 20 000 in mining Total resources of 0.4M ozs M&I, 1.4M ozs Inferred North A 0.2M 0 2M ozs I di t d 1 2M ozs Indicated, 1.2M “Deep” Inferred at Bell Creek Mine 0.2M ozs M&I, 0.2M ozs g Inferred at Vogel/Marlhill Updated resource in Q1/12* Further increase in resources expected* Existing resources to be upgraded* 2012 work plan focused on establishing new t bli hi mining complex (475 L and 600 L)* Mine scoping study ongoing26 *Examples of Forward Looking Statements. Conceptual view of planned work in 2012
Three Multi-Million Ounce Gold Complexes: Fenn-Gib Fenn Gib Pipestone Fault Bell Creek Complex Hoyle Pond Destor Porcupine Fault Hollinger McIntyre Dome Fenn- Fenn-Gib Timmins West Complex Ti i W tC l27
Fenn-Gib* Potential large- P t ti l l scale, open-pit mine 1.3M ozs Indicated 0.75M ozs Inferred Current estimate: 15,000 to 25,000 tpd operation Production range of 120k to 210k ozs per year 10 15 10-15 year mine life based on current resource Excellent exploration potential, expect to increase resources28 *Examples of Forward Looking Statements.
Summary: Why Invest in Lake Shore Gold? Three multi-million ounce gold complexes in the century- old Timmins Gold Camp Timmins West Mine Bell Creek Mine Fenn- Fenn-Gib Reserve estimate Q1/12* R ti t Resource update Q1/12* R d t Advancing project Ad i j t PEA by end 2012* PEA to follow29 *Examples of Forward Looking Statements.