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Marketing Presentation

  1. 1. Lake Shore Gold Corp. TSX & NYSE MKT : LSG www.lsgold.com Approaching A Major Turning Point July 2013
  2. 2. 2 Information included in this presentation relating to the Company's expected production levels, production growth, costs, cash flows, economic returns, exploration activities, potential for increasing resources, project expenditures and business plans are "forward-looking statements" or "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 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 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 Scientific and technical information contained in this presentation has been reviewed and approved by Dan Gagnon, P.Geo., Executive Vice- President, Operations, and Natasha Vaz, P.Eng., Director of Technical Services & Project Evaluation, both of whom are employees of Lake Shore Gold Corp., and “qualified persons” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). Forward Looking Statements
  3. 3. 3 Dome Hollinger McIntyre Hoyle Pond Destor Porcupine Fault Pipestone Fault Fenn-Gib M&I resources: 1.3M oz Inferred resources: 0.8M oz Pamour Timmins Timmins West Complex Reserves: 0.8M oz M&I resources(1): 1.2M oz Inferred resources: 1.2M oz Bell Creek Complex Reserves: 0.1M oz M&I resources(1): 0.9M oz Inferred resources: 1.1M oz Three Multi-Million Ounce Au Complexes in Timmins (1) Resources inclusive of reserves. A review of tonnes and grades is available in the Appendix (2) Examples of Forward Looking Information LSG – A Growing Gold Producer  Two operating mines with a central milling facility  0.9M oz in reserves, with a large resource base 2013(2):  On track for at least 40% production growth (120-135,000 oz)  Cash costs of US$800-US$875/oz  Capital investment of $90M
  4. 4. 4  Construction of Timmins Operations to 3,000 tpd nearly complete  Commissioning of mill expansion to commence later this month  Development of Timmins West and Bell Creek mines well advanced  By early September  Production to reach at least 140,000 oz on annual basis  Cash costs to improve to approx. US$700/oz  Capital requirements to fall off dramatically  Positioned for net free cash flow in Q4/13 at current gold price (C$1,320 per ounce) (1) Examples of forward-looking information Approaching a Major Turning Point(1)
  5. 5. 5  Record quarterly performance in Q2/13  Gold production: 30,800 oz  Gold poured: 31,800 oz  Mill throughput averaged 2,540 tpd, 2,800 tpd over last 3 weeks of June  Average grade of 4.3 gpt (3.8 gpt in April, 4.5 gpt in May and 4.6 gpt in June)  YTD production of 54,000 oz at average grade of 4.1 gpt  Positioned for significantly higher production in H2/13 Q2/13 – Solid Performance, Improving Results
  6. 6. 200 300 400 500 600 700 800 900 1,000 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 2012 2013 2014 2015 2016 2017 6 Production to reach >140,000 oz by 2014 Production (Actual) Guidance (low end) Denotes range Strong Near-Term Production Growth(1) Production Cash Costs Estimate (low end) (1) Examples of Forward Looking Statements At least 60% growth 2012 to 2014
  7. 7.  Timmins West Mine  New, world-class mine along western extension of Timmins Camp  Ramping up to full production  Low-cost producer in region  Significant opportunities for exploration and resource expansion  Bell Creek Mine • Historic producer with new, large gold zone discovered at depth • Current reserve supports production of >20k oz Au/year for 5 years with potential for expansion • Multiple exploration targets for expansion and new discoveries  Bell Creek Mill • Conventional gold mill circuit with crushing and grinding, gravity and leaching, followed by CIP process • Excellent operating performance with better than 95% recovery • Completing Phase 2 expansion to 3,000 tpd in Q3/13 7 Key Assets Provide Solid Foundation(1) (1) Examples of forward-looking information
  8. 8. Timmins West Mine  Underground mine with two deposits – Timmins Deposit and Thunder Creek Deposit  Exceptional infrastructure, well trained workforce support efficient operations and growth  Gold production of 64,177 ounces in 2012  Q2/13 production of 24,100 ounces (177,900 tonnes @ 4.4 gpt) (42,700 oz @ 4.1 gpt YTD)  2013 production focused on Porphyry and Rusk zones between 660 & 765 levels at Thunder Creek and UM Zone between 670 & 790 levels at Timmins Deposit (1) Resources inclusive of reserves (2) Example of Forward Looking Statements 8 Reserves (ounces)(1) 798,000 Av. grade (gpt) 5.2 M&I resource (ounces) (includes reserves) 1,061,000 Av. grade (gpt) 5.5 Inferred resources (ounces) 615,000 Av. grade (gpt) 5.4 Full production (‘000s ounces/yr) >140,000(2) Cash cost/oz (full production) <US$700(2) (1) A review of tonnes and grades is available in the Appendix. (2) Examples of Forward Looking Statements
  9. 9. 9 Thunder Creek Stock 650 Level 200 Level 300 Level 730 Level TW Shaft Ramp RuskShearZone Holmer Shear Zone Thunder Creek Rusk Timmins Mine deposit 0 400 meters East-west Shear Zone D3 shear zone Syenite, monzonite Pyroxenite (AIC) Turbidites, felsic volcanic Mafic volcanics AB A B Rusk Zones Porphyry Zones Timmins Deposit  Focus between 790 to 950 levels  New drill platforms on 750 and 790 Mineralized structure intersected at 2,400 m depth Mineralization extended along strike and to 2,400 m depth 1,200 Level Thunder Creek  2012 drilling results confirm core to mineralization and identifies 50m west extension of Rusk Zone at 765 Level  2013 to continue focus on infill and explore along strike Timmins Mine  Results confirm continuity of UM1, UM5 & intersects high- grades o/s resource  Key target between 650 and 790 levels Timmins West Mine – A Mine Built for Growth
  10. 10. 10 Timmins West Mine
  11. 11. Bell Creek Mine – Production & Growth (1) Resources inclusive of reserves (2) Example of Forward Looking Stements 11 Production Supports Evaluation of Deep Zone Initial reserves (ounces)(2) 129,000 Av. grade (gpt) 4.2 M&I resource (ounces) (includes reserves) 710,000 Av. grade (gpt) 4.7 Inferred resources (ounces) 904,000 Av. grade (gpt) 4.6  Underground mine with five years of reserves  Gold production of 21,605 ozs in 2012  6,700 ounces (53,000 tonnes @ 4.2 gpt) in Q2/13 (11,300 oz @ 4.2 gpt YTD)  Current production supports evaluation of high- potential deep zone  Potential to substantially grow production by deepening shaft  Ramp to be advanced to 685 Level in 2013, production focused on North A Zone between 525 & 625 levels(1) Deep Zone Potential shaft extension Shaft (1) Examples of Forward Looking Statements (2) A review of tonnes and grades is available in the Appendix.
  12. 12. 12 Bell Creek Mill – 50% Expansion Project SAG Mill Building New Thickener New CIL Tanks Crusher Truck Dump 6,000 tonne Ore bin  2,500 tpd plant consisting of a crushing circuit, two-stage grinding circuit with gravity recovery, followed by pre-oxidation and cyanidation of the slurry with CIP and CIL recovery  Exceptional operational & metallurgical performance with better than 95% recovery  Expansion to 3,000 tpd nearly complete, commissioning to start in late July (to reach 3,000 tpd by early September)(1)  Potential expansion to 5,500 tpd to support future production increases from Timmins West and Bell Creek incorporated in current infrastructure  Crushing and grinding capabilities already at this level (1) Examples of Forward Looking Statements
  13. 13. Bell Creek Mill – New Crushing/Grinding Circuit 13
  14. 14. 14 Bell Creek Mill – Solution Circuit & Refinery
  15. 15.  Timmins West Complex  Both deposits at Timmins West Mine open for expansion  Gold River Trend has >1M oz in resource, limited drilling in many areas  144 property covers 4 km trend southwest of Timmins West Mine 15 Outstanding Exploration Potential  Bell Creek Complex  Significant potential for growth at Bell Creek Mine  Initial resources established at Vogel and Marlhill  Additional exploration targets with limited or no drilling  Fenn-Gib  Advanced exploration stage project  Large, near-surface, potential open-pitable resource  Major extensions announced, new targets discovered
  16. 16. 16 (1) Examples of forward-looking information (2) Resources inclusive of reserves Lake Shore Gold – Poised for Value Creation(1)  At least 60% growth between 2012 and 2014 – potential for more  Estimated cash costs of US$700/oz by Q4/13  @ 3.2M oz M&I resources(2) and @ 3.5M oz Inferred resources with potential for much more Improving operating costs Full pipeline of projects & exploration properties Strong production growth  Capital investment to decline dramatically starting in Q3/13 Declining capital requirements Positioned for Net Free Cash Flow in Q4/13
  17. 17. APPENDIX 17
  18. 18. 18 (1) Timmins 101 11 11 66 Rouyn-Noranda Kirkland Lake Timmins Cochrane Hoyle Pond GoldcorpBell Creek Lake Shore Gold Fenn-Gib Lake Shore Gold Gold River Lake Shore Gold Timmins West Lake Shore Gold O N TA R I O Q U E B E C Casa Berardi Hecla Detour Lake Detour Val-d’Or Canadian Malartic Osisko Casa Berardi JV LSG/AurizonBlakelock/Burntbush Lake Shore Gold Little Abitibi Lake Shore Gold Abitibi Greenstone Belt  Over 200M ozs Au of mined and current resources  Favourable geology  Supportive government policies  Good infrastructure  Highly skilled labour force  High safety & environmental standards Casa Berardi JV LSG/Aurizon Lake Shore Gold land position Dome Goldcorp Pamour Goldcorp Hollinger McIntyre 640 km2 in One of the World’s Great Gold Districts
  19. 19. 19 LSG – Reserves and Resources Measured & Indicated(1) Tonnes Au Grade (g/t) Contained Ounces Timmins West Mine 5,978,000 5.5 1,061,000 Gold River 690,000 5.3 117,000 Bell Creek Mine 4,685,000 4.7 710,000 Vogel 2,219,000 1.75(2) 125,000 Marlhill 395,000 4.5 57,000 Fenn Gib 40,800,000 0.99(2) 1,300,000 Total 3,245,000 Inferred Tonnes Au Grade (g/t) Contained Ounces Timmins West Mine 3,549,000 5.4 615,000 Gold River 5,273,000 6.1 1,028,000 Bell Creek Mine 6,080,000 4.6 904,000 Vogel 1,459,000 3.60(3) 169,000 Fenn-Gib 24,500,000 0.95(2) 750,000 Total 3,466,000 (1) Resources are inclusive of reserves (2) Open-pit resources (3) Combination of underground and open-pit resources Probable Reserves Tonnes Au Grade (g/t) Contained Ounces Timmins West Mine 4,811,000 5.2 798,000 Bell Creek Mine 960,000 4.2 129,000
  20. 20. 2,000 Lv Timmins DepositThunder Creek144 TC – 144 Trend UM and FW structures extended to 2,400 m 6 kms Timmins West Mine 20 Exploration Potential – Timmins West Complex 1,000 Lv 500 Lv
  21. 21. 21 HWY-11-28 12.60 gpt / 1.3m 1.30 gpt/ 57.7m incl. 4.06 gpt/ 7.6m HWY-12-45 2.01 gpt/ 41.7m incl. 14.76 gpt/ 3.0m HWY-12-43 5.10 gpt/3.0m incl. 10.35 gpt/ 1.0m 3.33 gpt/ 6.9m and 10.18 gpt/ 1.7m Timmins Deposit 650m Lv 144 North Thunder CreekGap Area144 Southwest Syenite Intrusions HWY-11-19 1.02 gpt/ 51.65m incl. 3.28 gpt/ 4.65m and 5.14 gpt/ 3.0m 1000m Lv HWY-12-40 1.42 gpt/ 37.1m incl. 13.54 gpt/ 2.0m and 6.07 gpt/ 3.0m Exploration Potential – 144 Property
  22. 22. 22 MH – Marlhill Project VG – Vogel Project Bell Creek Mine WM – Wetmore Project MH VG Hoyle Pond MineWM Key Projects Bell Creek Mine Marlhill Vogel Hoyle Pond Mine Wetmore Bell Creek Complex Large Resource base, large underexplored land position
  23. 23. 23 Fenn-Gib Resources  Potential large-scale, open-pit project  Excellent opportunity to increase existing resources  Significant potential along strike and at depth given limited drilling beyond the 300 meter level  Contained silver ounces in the deposit, which are not factored into the resource estimate, may provide further value Category Tonnes Grade (g / t) Contained Gold (k oz) Indicated 40,800,000 0.99 1,300 Inferred 24,500,000 0.95 750 Total 65,300,000 0.98 2,050 Fenn-Gib – Pit Outline Fenn-Gib
  24. 24. 24 Current Resource Pit (>2.0M oz) 1.2M oz Starter Pit New Pit Outline based on most recent drilling 1.72 gpt/48.8m 1.03 gpt/81.4m 1.02 gpt/190.5m 1.01 gpt/52.5m 1.01 gpt/22.1m 1.63 gpt/60.4m 0.67 gpt/121.5mPotential Westerly Pit Expansion into untested gap Opportunities – Fenn-Gib

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