Marketingjuly2012july412

Lake Shore Gold Corp.
Tony Makuch, President & CEO
Marketing Presentation TSX & NYSE MKT : LSG
July 4, 2012 www.lsgold.com

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 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
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

LSG – 4 Multi-Million Ounce Gold Deposits

Pipestone Fault
Bell Creek Complex
Bell Creek Mill
Destor-Porcupine Fault

City of Timmins Fenn-Gib
Timmins Timmins West Mine

Timmins West Complex
Main drivers of near-term growth

 Gold producer with 2 operating mines in Timmins Gold Camp
 85,000 to 100,000 ozs in 2012(1)
 Growing to >150,000 ozs/year Au at <US$600/oz by 2014(1)
 Poised to outperform peers

 Large, growing resource base: 3.4M ozs M&I and 3.7M ozs
Inferred
 Capable of supporting over 500,000 ozs per year(1)
(1) Examples of Forward Looking Statements.
3

LSG – Growing Production, Lowering Costs(1)
Estimated Production(1) Cash Costs(2)
(000’s of ozs) (US$/oz)
180
1,100
160 LSG 1,000
ARZ SAS
140 900 SGR
RIC
RIC
800 ARZ
120
SGR
SAS 700 LSG
100
600
80
500

60 400
2012 2013 2014 2012 2013 2014
(1) Based on NBF Financial estimates. LSG estimates based on (2) All cost numbers (including LSG’s) based on NBF Financial
Timmins West Mine PEA (excludes Bell Creek) estimates. (NBF estimates more conservative than TWM PEA)

4

LSG – Share Structure
Lake Shore Gold (TSX, NYSE MKT: LSG)
Shares outstanding (basic) 410,000,000
Share price (June 29, 2012) $0.91
Market capitalization $373,000,000
52 week High/Low $3.49/$0.74
Three Month average volume (shares) 6,650,000

Market cap per ounce of resource(1) ($)
San Gold 116
Aurizon Mines 112
Lake Shore Gold(2) 64
Richmont Mines 42
St Andrews Goldfields 34

(1) Source: NBF Financial estimates.
(2) Assumes 5.8 million ounces based on NBF methodology of discounting certain categories of resources.

5

LSG – Comparative Share Performance

ARZ

LSG
SAS

SGR
RIC

6

Five-Years of Growth and Progress…
Timmins West Mine Production and Cash3.7
Costs
Ounces (Additional Potential from Bell Creek) US$/Oz
175,000 900
850
150,000
800
125,000 750
Target
Range 700
100,000
650
75,000 600
50,000 100,000 550
500
25,000
450
0 400
2012 2013 2014 2015 2016
Production Cash Costs

7

… Starting in Q2/12(1)
 Production reaches 24,298 ozs in Q2/12, near top of 20,000 to 25,000 oz
target range, expected to grow to 25,000 to 30,000 ozs in Q3 & Q4/12
 Cash costs to show improvement as 2012 progresses

Ounces $US/oz
35,000 1600
30,000 24,298 ozs 1400
(Actual) 1200
25,000 US$1,048
1000
20,000 16,180
(Actuals) 800
15,000
600
10,000 400
5,000 200
0 0
Q1 Q2 Q3 Q4
Denotes target range

8

Review of Second Quarter 2012
 24,426 ounces produced in Q2/12, at top of 20,000 to 25,000
ounce target range
 Gold poured of 24,298 ounces, gold sales of 24,915 ounces
at US$1,605 per ounce
 Third consecutive quarter of meeting or exceeding production
targets
 Significant improvement in mill throughput, grades and gold
production from Q1/12
 On track to produce 85,000 to 100,000 ozs in 2012(1)
 Recently announced savings of $15-$20 million in 2012 capex
 Continued exploration success
 Extended high-grade core at Gold River
 Expanded mineralization at Fenn-Gib
9

Positive Free Cash Flow Beginning in 2013(1)
3.7
Timmins West Mine
175 Within One Year of Positive Free Cash Flow(2)
150
125
100
$ Millions

75
50
25
0
-25 2012 2013 2014 2015 2016
-50
-75
-100
Capital Expenditures Net Free Cash Flow

1. Examples of Forward Looking Statements.
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 . 10

Four Multi-Million Ounce Projects(1)
 Timmins West Mine
– Growing to >150,000 ozs/ year at <US$600/oz by 2014(1)
– PEA covers 10 years of mining, strong potential for growth
– Resources: 1.1M ozs M&I, 0.8M ozs Inferred

 Bell Creek Complex
– Current production: approx. 20,000 ozs/year
– Pursuing development of North A Deep Zone
– Resources: 0.8M ozs M&I, 1.1M ozs Inferred
 Gold River Trend
– 4 kms from Timmins West Mine
– Shallow resources with excellent potential for growth
– Resources: 0.1M ozs Indicated, 1.0M ozs Inferred
 Fenn-Gib
– Large open-pit project 60 kms from Timmins
– Exploration success highlights potential to grow resources
– Resources: 1.3M ozs Indicated, 0.8M ozs Inferred
(1) Examples of Forward Looking Statements
11

LSG – Large, Growing 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 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 6.06 1,027,800
Bell Creek Mine 6,088,506 4.87 953,800
Vogel 1,459,000 3.60(3) 168,800
Fenn-Gib 24,500,000 0.95(2) 750,000
Total 3,691,900
(1) Resources are inclusive of reserves
(2) Open-pit resources
(3) Combination of underground and open-pit resources 12

Timmins West – Building to >150,000 Oz/Year(1)
 Reserves: 823,800 ozs (4.9M t @
5.21 gpt)
 Resources: 1,122,500 ozs Indicated,
791,500 ozs Inferred
 Production: Growing to 130,000 ozs
in 2013, >150,000 ozs by 2014
 Cash costs: <US$600/oz at full
production (2014)

Key Facts:
 Located 18 kms west of Timmins, at junction of HWY’s 101 and 144
 Infrastructure includes 710 m, 5.5 m diameter shaft, hoist, shaft stations (200, 400,
525 and 650 L) surface ramp to 290 L
 285 employees ( 85 surface, 200 U/G)

13

Section View

Timmins
Deposit Thunder Creek
Deposit

2012 Work 2012 Work
Program* Program*

 2012 development plan to support next several
years of mining

14

TWM – Significant Potential to Upgrade Resources
Timmins Deposit Thunder Creek Deposit

Long Section Looking SE Long Section Looking SE

300 m Level
290 m Level 395 m Level

525 m Level

650 m Level

730 m Level

Inferred Resource Inferred Resource
Indicated Resource Indicated Resource

15

Bell Creek Mine and Mill

16

Shaft

Bell Creek Mine – 2nd Producing Mine Mined out
areas

 Resources: 646,400 ozs (4.2M t
@ 4.73 gpt) Indicated, 953,800
Recent
ozs (6.1M t @ 4.87 gpt) mining
 Production: Current production
approx. 20,000 ozs/year(1)
North A
 Evaluation of high-potential “Deep”
North A Deep Zone ongoing

Key Facts:
 Located 20 kms east of Timmins
 Historic production (112,000 ozs)
 Infrastructure includes mill, tailings 300
m shaft (non-producing), hoist, decline
to 565 L, vent raises
 95 employees (25 surface, 70 U/G)

17

Bell Creek Mine – Working to Upgrade Resources

Large scale trend

Local (high grade) trend

535 mL Delineation drilling, 30,000 m

610 mL Drilling Campaign, 2013

Lake Shore Gold – 2012
 Exploration drilling down plunge
 Development to 535m Level
 8 veins recognized (NA – NB style)

18

Milling Facility – Expanding for Growth(1)

 50% expansion to 3,000 tpd progressing – completion in 2013
 Timmins West Mine to reach 3,000 tpd by Q4/13
 Next expansion to increase capacity to 5,500 tpd
 To support Bell Creek Mine, Gold River Trend

19

LSG – 160km2 In Century-Old Gold Camp
>70 Million Ounces Produced in Timmins Camp
>140 Million Ounces Produced Between Timmins & Val-d’Or

Pipestone Fault
Bell Creek Complex
Hoyle
Pond
Destor Porcupine Fault
Pamour
Hollinger
McIntyre
Dome
Fenn-Gib

Timmins West Complex

20

Timmins Gold Camp – Deep Orebodies
Significant Depth Potential at LSG Projects

Kidd Creek McIntyre Hollinger Dome Hoyle Pond Lake Shore Gold Properties*
Production Base 12M ozs 20M ozs 17M ozs 3M ozs Timmins Thunder Bell Creek Gold Fenn-Gib
Metals @ 9.8 gpt @ 9.8 gpt @ 6.2 gpt @ 13.0gpt Deposit Creek Complex River
0
Metres

400
‐500

‐1,000 800
900

1,200
‐1,500
Open 1,700
Open
‐2,000

Open
‐2,500
Operating Mine
‐3,000 Historic Mine

21

Timmins – Long History of Expanding Resources

30
Timmins Reserves: Grow 10x During
Production

25

20
Millions of Ounces

15

10

5

0
Abitibi-Quebec Hemlo Kirkland Lake Red Lake Timmins
Region
Start After 10 Years Life of Mine

(1) Source: CIBC World Markets.
22

Timmins West: High-Growth Mining Complex

23

Conceptual Cross Section for Timmins Gold Camp

Bristol
Fault

24

Conceptual Cross Section for Timmins West

Bristol
Fault

25

Timmins West: High-Growth Mining Complex

6 kms
Thunder Creek – 144 Trend
144 Thunder Creek Timmins Deposit

2,000 Lv

UM and FW structures extended
(1) Examples of Forward Looking Statements. to 2,400 m

26

TWM – Potential at Depth & Along TC-144 Trend
144 Thunder Creek Deposit Timmins Deposit
Main and FW Zones
Rusk Horizon
Ultramafic Fold Structure

Bristol Creek Fault

Porphyry Zone

Thunder Creek Stock
Along contact towards 144
Mafic-Sedimentary Contact
(Multiple Folds provide
exploration potential)

27

Bell Creek – Multiple Targets in All Directions

NI 43-101 Resources
57,400 ozs Indicated

NI 43-101 Pit Resources
125,000 ozs Indicated
31,700 ozs Inferred

NI 43-101
Resources NI 43-101 U/G Resources
137,100 ozs Inferred
646,400 ozs M&I
953,800 ozs
Inferred

28

Fenn-Gib – Potential Large Open-Pit Mine

 Large, open pit project located 60 kms east of Timmins
 Acquired from Barrick Gold Corp. in August 2011
 Initial resource with significant potential for growth:
 M&I - 1.3M ozs (40.8M tonnes @ 0.99 gpt)
 Inferred - 0.75M ozs (24.5 tonnes @ 0.95 gpt)
 Potential for large-scale production based on a 15,000 to 25,000 tonne per
day operation(1)
29

Fenn-Gib – Identifying New Targets
Hislop Open Pit Ross Mine
(Active Mine)

Main Zone
~ 2 million ounce
resource with excellent
growth potential

400 Lv
Open
Central
Porphyry
Structure
1000 Lv

30

Steps to Realizing Value
 Timmins West Mine
 Grow production to >150,000 ozs at <US$600/oz
 Continue to grow reserve base

 Bell Creek
 Upgrade resources and expand resource base
 Complete PFS & FS

 Gold River Trend
 Upgrade large inferred resource, expand resource base
 Identify potential of high-grade core
 Complete PEA & PFS

 Fenn-Gib
 Grow resource base to more than 5 million ounces
 Upgrade existing resources
 Complete PEA, PFS

31

Funded to Reach Positive Free Cash Flow(1)
Sources of Cash $ millions
Cash and bullion inventory (January 1, 2012) 66.2
Franco-Nevada royalty & equity investment 50.0
Gold Loan (Closed June 14/12) 35.0
Standby Line (Closed June 14/12) 35.0
Operating Cash Flow(2) 75.5
Total sources of cash 261.7
Uses of Cash $ millions
Development of Timmins West Mine 85.0
50% mill expansion and other improvements 56.0
Advancement of Bell Creek Mine 16.0
Exploration 10.0
Corporate G&A 10.5
Financing costs 5.0
Total uses of cash 182.5
(1) Examples of forward-looking information
(2) Assumptions include 92,500 ozs Au sold (middle of range for gold poured), US$850/oz 32
cash cost (middle of range), US$1,650/oz gold price, C$/US$ exchange rate: $0.98

LSG – A Growing Gold Producer(1)
 Gold producer with 4 multi-million ounce gold deposits

 Large, growing resource base (3.4M ozs M&I and 3.7M ozs
Inferred)
 Rapidly growing production, improving cash costs
 85,000 -100,000 ozs in 2012 growing to >150,000 ozs by 2014
 Resource base supports potential for >500,000 ozs/year
 Cash cost to improve below US$600/oz

 Positive free cash flow from TWM beginning in 2013

 Overtaking peers in production & cost performance

 Multiple, highly-prospective exploration targets in one of the
world’s great gold camps
TSX, NYSE MKT: LSG
33

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