TD Securities Mining C f Conference January 24, 2012 TSX, TSX NYSE Amex: AmeLake Shore G ldL k Sh Gold Symbol: LSG
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 g j g g 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 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 i targets. R d hi i its Readers should not place undue reliance on f h ld l d li forward-looking statements. M d l ki More i f information about risks and i b i k d uncertainties affecting the Company and its business is available in the Companys most recent 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 p p g p Q y 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. 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
Asset Portfolio Geared for Value & Growth Bell Creek Mine & Mill Bell Creek Complex Timmins Destor-Porcupine Fault G Fenn-Gib Timmins Deposit Timmins Thunder Creek 144 Thorne Timmins West Complex Five >1 million ounce deposits in: Politically safe, low-risk jurisdiction 100 year old Timmins Gold Camp year-old Attractive geology Established infrastructure Access to suppliers labour training suppliers, labour,3
LSG – Strong Resource Base Timmins West Mine (Timmins Mine & Thunder Creek) Ti i W t Mi (Ti i Mi Th d C k) – Current resources exceed 2.0 million ounces (Indicated and Inferred) Bell Creek Complex – Current resources of approx. 1.8 million ounces (Measured, (Measured Indicated and Inferred) – Expect resource to increase in Q1/12* Thorne (GRT) –CCurrent resource of approx. 400 000 ounces i t f 400,000 in Inferred – Strong growth in resources expected in Q1/12* Fenn-Gib – Initial resources of approx. 2.0 million ounces (Indicated and Inferred)4 *Examples of Forward Looking Statements.
Strong Growth Already Achieved – Resources Doubled resources in 2011 – second straight year 6.3 3.2 3.0 1.8 3.1 1.5 0.6 06 1.2 0.95
2011 – Strong Resource Growth Significant new resources added in November 2011 Thunder Creek Fenn‐Gib 521,600 ozs @ 5.64 gpt M&I 1,300,000 ozs @ 0.99 gpt Ind. 510,000 ozs @ 5.89 gpt Inf. 750,000 ozs @ 0.95 gpt Inf. November 16, 2011 November 17, 2011 Resource to 900m level Potential large‐scale, open‐pit 200m interval contains 650,000 ozs 200 i t l t i 650 000 i i ti mining operation @ approx. 6 g/t Excellent potential to grow To support mining for 3‐4 years resources while Company grows Timmins p yg Silver content, recent expansions Mine/Thunder Creek deposits* not included in resource6 *Examples of Forward Looking Statements.
LSG: Setting Ourselves Up for Rapid Growth Targeting strong production growth by H2/12 Establishing multiple levels and multiple headings at Timmins West and Bell Creek 50% increase in processing rate to 3,000 tpd by late 2012 p g , p y 85,000 to 100,000 ounces targeted for 2012, to exit year p positioned for sharply higher p py g production in 2013 Continued growth in resources – Q1/12 Continued exploration success – f ll project pipeline C ti d l ti full j t i li8
2006 Timmins MineFrom Drill Bit to Commercial Production
Timmins West Mine Timmins Deposit Thunder Creek Timmins and 200 Level Thunder Creek deposits combined 300 Level Growing to 2,500 to 3,000 tpd* Potential for low cash costs already demonstrated Commercial 650 Level production at 2012 Work Thunder Creek in 2012 Work 730 Level Program* Program* 2012 Conceptual view - full development of current resources *Examples of Forward Looking Statements.21
Timmins Deposit Stoping in UM 1 545L (545L to 565L) in Setting Ourselves Up g p Q2, Q3, Q4/12 Q2 Q3 Q4/12 565L For Rapid Growth 585L In 2012: Ore delineation and 610L 610L infrastructure focus during early part of year Shaft 650L Production weighted to H2/12 Q4/12 670L stopes 690L 710L Q3/12 stope 730L 750L Q1/12 Q2/12 790L Q3/12 Q4/12 810L 22
Timmins Deposit Stoping in UM 1 545L (545L to 565L) in Setting Ourselves Up g p Q2, Q3, Q4/12 Q2 Q3 Q4/12 565L For Rapid Growth 585L In 2012: Ore delineation and 610L 610L infrastructure focus during early part of year Shaft 650L Production weighted to H2/12 Q4/12 670L By end of 2012: stopes 690L • R d f stoping on th Ready for t i three 710L new levels• Four additional levels Q3/12 stope 730L accessed d 750L Q1/12 Q2/12 790L Q3/12 Q4/12 810L 23 2013 +
Thunder Creek Deposit Q1/12 Q2/12Setting Ourselves Up Q3/12For Rapid Growth Q4/12In 2012: 2013 + Extensive ramping, ore Thunder Creek delineation and Lower Mine infrastructure work Stope production 660L weighted to H2/12 695L 730L 730L 765L i l i Typical stoping block 800L 24
Thunder Creek Deposit Q1/12 Q2/12Setting Ourselves Up Q3/12For Rapid Growth Q4/12In 2012: 2013 + Extensive ramping, ore Thunder Creek delineation and Lower Mine infrastructure work Stope production 660L weighted to H2/12By end of 2012: 695L • Development advanced on four levels• Multiple stoping blocks 730L 730L accessible 765L Typical stoping i l i block 800L 25
Bell Creek Over 20,000 ozs i 2011 O 20 000 in Total resources of 1.8M ozs o 1.44M ozs M&I & Inferred at Bell Creek Mine o Approx. 350,000 ozs at Vogel and Marlhill Updated resource in Q1/12* Further increase in resources expected Existing resources to be upgraded 2012 work plan focused on establishing new mining complex (475 L and 600 L)* Mine scoping study ongoing Conceptual view of planned work in 2012 *Examples of Forward Looking Statements.26
Bell Creek Mill – Expanding to Meet Growth 671,467 tonnes processed in 2011 at 4.03 gpt Recoveries of 96% Current capacity of 2,000 tpd – 2,024 tpd in Q4/11 Expanding capacity t 3 000 t d b l t 2012 E di it to 3,000 tpd by late Mainly involves crushing/grinding circuits Remaining capex approx. $60M Mill is scalable to 5,500 tpd *Examples of Forward Looking Statements.27
Full Project Pipeline – Long-Term Growth Early Stage Advanced Exploration Development ProductionTimmins Mine Commercial production effective Jan. 1/11 – Updated NI 43‐101 in Q1/12Thunder Creek Initial resource >1M ounces at close to 6 gpt PFS/mine design ongoing Comm Prod’n ’12* Bell Creek Mineralization already extended 400m Updated 43‐101, PFS planned* Fenn‐Gib New resource Nov. ‘11, recent expansion highlights depth potential Thorne (GRT) >3.5km strike length, updated NI 43‐101 in Q1/12 Vogel/Marlhill Initial resources mainly within 400m of surface 144 144 Adjacent to Thunder Creek, Initial results compare favourably Adj t t Th d C k I iti l lt f blWetmore Second potential mineralized trend at Bell Creek ComplexCasa Berardi JV option with Aurizon ‐ Highly prospective land position *Examples of Forward Looking Statements.28
Fenn-Gib 1.3M 1 3M ozs I di t d Indicated 0.75M ozs Inferred Significant potential for growth th Total mineral inventory of 3.4M ozs drilled to date Excellent exploration potential29
LSG – Achieving Strong Performance Production Doubled production in 2011 (ozs) 2009 2010 2011 Doubled resources for second straight year Resources (million ozs) (million ozs) 3.2 1.8 3.3 0.6 1.2 12 0.9 09 Demonstrated potential for low cash 2009 2010 2011 M&I Inferred costs30
LSG – Setting the Stage for Rapid Near-Term Growth 2012 Making necessary commitment to development ore development, delineation, infrastructure to establish multiple headings on multiple levels by late 2012 Expanding mill to 3,000 tpd – further expansion planned 85,000 to 100,000 ounces expected in 2012, to exit year positioned for rapid growth in 201331
LSG – Much More Growth to Follow Going Forward Excellent potential for extensions & new discoveries at Timmins and Thunder C Creek deposits, Bell C Creek Full pipeline of new projects to support future growth Fenn-Gib Fenn Gib Thorne 144 Others LSG has high quality portfolio of assets that: g q yp 1. Has already achieved solid performance 2. Is poised for rapid near term growth near-term 3. Has excellent long-term potential32
Lake Shore Gold – Corporate Overview Lake Shore Gold (TSX, NYSE Amex: LSG) Shares outstanding (basic) 400,169,669 Shares outstanding ( y diluted) g (fully ) 419,827,171 , , Share price (Jan. 23/12) $1.41 Market capitalization $565,000,000 Current cash* $65,000,000 US$50 million credit facility Fully Drawn Hedging None *Includes gold bullion inventory33
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