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Scotia Capital Mining Conference November 29, 2011


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Scotia Capital Mining Conference November 29, 2011

  1. 1. Scotia CapitalMining ConferenceN o v e m b e r 2 9 , 2 0 11 Building Value through Growth  Building Value through Growth Production – Resources – Cash Flow  
  2. 2. Forward Looking StatementsCertain statements in this presentation relating to the Company s expected production levels, production growth, exploration activities, Companys levels growth activitiespotential for increasing resources, project expenditures and business plans are "forward-looking statements" or "forward-lookinginformation" within the meaning of certain securities laws, including under the provisions of Canadian provincial securities laws andunder the United States Private Securities Litigation Reform Act of 1995 and are referred to herein as "forward-looking statements." TheCompany does not intend, and does not assume any obligation, to update these forward-looking statements. These forward-lookingstatements 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 failure, parts,disturbances, interruption in transportation or utilities, or adverse weather conditions, that there are no material unanticipated variationsin budgeted costs, that contractors will complete projects according to schedule, and that actual mineralization on properties will beconsistent with models and will not be less than identified mineral reserves. The Company makes no representation that reasonablebusiness people in possession of the same information would reach the same conclusions. Forward-looking statements involve knownand unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company tobe materially different from any future results performance or achievements expressed or implied by the forward-looking statements In results, forward looking statements.particular, delays in development or mining and fluctuations in the price of gold or in currency markets could prevent the Company fromachieving its targets. Readers should not place undue reliance on forward-looking statements. More information about risks anduncertainties affecting the Company and its business is available in the Companys most recentQUALITY CONTROLLake Shore Gold has a quality control program to ensure best practices in the sampling and analysis of drill core. A total of three Quality Controlsamples consisting of 1 bl k 1 certified standard and 1 reject d li t are i l i ti f blank, tifi d t d d d j t duplicate inserted i t groups of 20 d ill core samples. Th bl k and th t d into f drill l The blanks d thecertified standards are checked to be within acceptable limits prior to being accepted into the GEMS SQL database. Routine assays have beencompleted using a standard fire assay with a 30-gram aliquot. For samples that return a value greater than three grams per tonne gold onexploration projects and greater than 10 gpt at the Timmins mine and Thunder Creek underground project, the remaining pulp is taken and fireassayed with a gravimetric finish. Select zones with visible gold are typically tested by pulp metallic analysis on some projects. NQ size drill coreis 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 istransported in security-sealed bags for preparation at ALS Chemex Prep Lab located in Timmins Ontario and the pulps shipped to ALS Chemex security sealed Timmins, Ontario,Assay Laboratory in Vancouver, B.C. ALS Chemex is an ISO 9001-2000 registered laboratory preparing for ISO 17025 certification.QUALIFIED PERSONThe Company’s Qualified Persons (“QPs”) (as defined in National Instrument 43-101, “Standards of Disclosure for Mineral Projects”) for diamonddrilling projects at the Timmins deposit surface; Thunder Creek, Gold River Trend and 144 properties; Bell Creek Mine; and Casa Berardioptioned property are Jacques Samson, P.Geo., Stephen Conquer, P.Geo, and Keith Green, respectively. Dean Crick, P.Geo. is the QP for theTimmins deposit and Thunder Creek underground drilling projects and Bob Kusins P Geo is the QP for resource estimation at all of the projects, Kusins, P.Geo.,Company’s properties. As QPs, Messrs. Samson, Conquer, Green, Crick and Kusins have prepared or supervised the preparation of thescientific or technical information for their respective properties as provided in this presentation. Messrs., Samson, Conquer, Kusins, Crick andGreen are employees of the Company. 2
  3. 3. Lake Shore Gold (LSG:TSX & NYSE Amex) Advancing five multi‐million ounce deposits*1. Timmins Mine  – In commercial production – Updated reserve/resource in Q1/12*2. Thunder Creek  – First resource released November 2011  – Commercial production targeted for 2012*3. Bell Creek   – In advanced exploration – Updated resource in Q1/12*   4. Fenn‐Gib  – Large‐scale open‐pit project – First resource released in November 20115. Thorne (GRT) – Updated resource expected in Q1/12* *Examples of Forward Looking Statements. 3
  4. 4. Lake Shore Gold – Achieving Growth Rapidly Growing Production, Resources – with more to come Production to double in 2011 o Total gold poured of 60,014 ounces in 9M/11, targeting at least 85,000 on 2011* o Production growth to continue through advancement of five deposits Cash costs to improve h o $96/tonne or US$845/oz in 9M/11 o Working to return to Q1/11 levels of $92/tonne and US$586/ounce* Resources already doubled in 2011, more growth to follow* o Total resource now totals 6.3 million ounces o To increase further through updated NI 43‐101 estimates in Q1/12* To increase further through updated NI 43 101 estimates in Q1/12 Exploration upside at multiple properties – more growth to come   o Deep hole discovers potential 1.9km extension at Timmins Mine  o Company built on exploration success (“with Drill Bit”) and, increasingly, on cash flow  from gold sales *Examples of Forward Looking Statements. 4
  5. 5. Timmins Gold Camp N LSG Bell Creek Ontario Timmins Ti i Timmins LSG Timmins West Toronto Detroit 5
  6. 6. Strong Land Position in Timmins Bell Creek Complex Taylor T l Taylor Mine Mine Black Black Hoyle Hoyle Fox Fox Pond Pond Hollinger Hollinger McIntyre M I t McIntyre Pamour Fenn-Gib Fenn Gib Mine Timmins, Ontario Ross Ross Mine Mine Dome Dome Mine Mine Timmins West Mine Complex 6
  7. 7. Timmins Mine Operations  Timmins West Complex Bell Creek Complex  7 7
  8. 8. Steadily Growing Production   43,500 7,700 Actual Actual *Examples of Forward Looking Statements. 8
  9. 9. Timmins West Complex Timmins MineTi i Mi Commercial production Jan1/11 32,486 ozs in 9M/11 Shaft UM1 grade reconciling well  UM1 grade reconciling well Significant infrastructure completed Development ongoing to more fully  access orebody, increase production Updated resource in Q1/12/ Cash Costs Q1 Q2 Q3 9M $/t 92 122 94 96 US$/oz  586 1,187 884 845Thunder Creek Advanced exploration program 8,497 ozs recovered in 9M/11 Underground access and ventilation   l t d completed  Bulk sample off 730 L advancing 9
  10. 10. Bell Creek Mine – Excellent Long‐Term Potential  Advanced exploration program Surface Shaft Mined out 17,792 ozs recovered in 9M/11 ramp areas Dec 2010 NI 43‐101 resource  o 251,200 ozs M&I 300 Level o 1,192,000 ozs Inferred  North A H2/11 stoping area Zone Between 2,000 and 3,000 ozs per  420 Level Planned development vertical metre below 950 L North A “Deep” Updated resource to 1600m depth  targeted for Q1/12* Mine scoping study to be completed  by mid‐2012* 1600 metre depth (Open) *Examples of Forward Looking Statements. 10 10
  11. 11. Bell Creek Mill – Expanding to Meet Growth  Meeting and exceeding current 2,000 tpd capacity Excellent recoveries – consistently exceeding 95% Two‐phase expansion* – timing to correspond to mine  advancement Phase 1 to 3,000 tpd*  Mainly involves crushing and grinding Estimated cost – $80 million  Phase 2 to 5,500 tpd* , p Phase 1 incorporates material handling, crushing,  grinding and infrastructure  (to support Phase 2  capacity) Phase 2 work mainly involves back end of circuit  Estimated cost – $40 to $50 million *Examples of Forward Looking Statements. 11
  12. 12. Doubled Resources in First 11 Months 2011  6.3 Doubled Resources 3.2 32 Doubled Resources 3.0 1.8 1.5 3.1 0.6 1.2 0.9 12
  13. 13. LSG Resources  Measured & Indicated Tonnes Au Grade (g/t) Contained Ounces Timmins Mine* 3,268,000 8.56 892,700 Thunder Creek 2,877,000 5.64 521,600 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 3,147,900 Inferred Tonnes Au Grade (g/t) (g ) Contained Ounces Timmins Mine* 894,000 5.74 164,900 Thunder Creek 2,693,000 5.89 510,000 Thorne (GRT) (GRT)* 4,154,000 4 154 000 3.33 3 33 444,500 444 500 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 24,500,000 0 95 0.95 750 000 750,000 Total 3,231,100 *Revised 43-101 resources planned for Q1/12 OP – Open Pit 13
  14. 14. Doubled Resources in 2011   Significant new resources added in November 2011 Thunder Creek  Fenn‐Gib  521,600 521 600 ozs @ 5 64 gpt M&I 5.64 1,300,000 1 300 000 ozs @ 0 99 gpt Ind 0.99 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  g p p 200m interval contains 650,000 ozs mining operation @ approx. 6 g/t Excellent potential to grow  To support mining for 3‐4 years  resources   while Company grows Timmins while Company grows  Timmins  Silver content recent expansions Silver content, recent expansions  Mine/Thunder Creek deposits* not included in resource *Examples of Forward Looking Statements. 14
  15. 15. Thunder Creek – First Resource   Thunder Creek   2,877,000 tonnes @ 5.64 gpt for 521,600 ozs 2,693,000 tonnes @ 5.89 gpt for 510,000 ozs 200 metre interval around 730 Level contains  200 metre interval around 730 Level contains 650,000 ozs @ close to 6.00 gpt >3,250 ozs per vertical metre Near existing infrastructure  To support efficient, profitable mining  while  new reserves/resources established* Mine planning & design   Significant potential to grow resources at depth  and along strike and along strike 650k ozs @ 6.00 gpt *Examples of Forward Looking Statements. 15
  16. 16. Fenn‐Gib Resource  40.8 t @ 0.99 for 1.3M ozs Ind. 40 8 t @ 0 99 f 1 3M I d 24.5 t @ 0.95 for 0.75M ozs Inf. Gold price US$1,190/ozs., cut  off grade of 0.5 gpt Potential for extensions  considered excellent High silver values and recent  200 metre expansion not  200 metre expansion not included in resource  Recent Hole: FG-11-04 1.31 gpt over 414.0m 16
  17. 17. Exploration – Much More Growth to Come 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 with open pit, U/G potential 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. 17
  18. 18. Deep Target – Potential 1.9Km extension Hole intersects UM and Hole intersects UM andFootwall mineralization at 2,380m from surfacePotential quadrupling of Potential quadrupling ofUM Zone Hole came into target on north limb of foldon north limb of foldWedge cuts into nose of fold planned (greatest potential for high grade potential for high grademineralization)Second, deeper zone discovered, results discovered resultspendingHole continuing to test TM and TC depthTM and TC depth potential  18
  19. 19. Poised for Short‐Term Value Enhancement    Over next several months, LSG expects to achieve:  Improved  Further Growth  Progress with  Continued  Production   Production in Total  in Total Mill Expansion  Mill Expansion exploration  explorationPerformance   & Cost  + Resources,  + 43‐101 updates  and  Mine Scoping  + success ‐ 27  drills currently Management in Q1/12 in Q1/12 Studies working  working Increased production Increased production Lower cash costs = Rapid resource growth Greater clarity – future production Additional new discoveries/extensions  19
  20. 20. Leading to Long‐Term Value Creation   Much more production and resource growth to come  Advancing five multi‐million ounce deposits* gf p Potential for at least 300,000 ounces per year, with  considerable upside, all from existing, wholly owned assets considerable upside, all from existing, wholly owned assets* Long‐term cash operating costs to be well below US$845/oz  recorded from Timmins Mine in 9M/11* / Continued growth in reserves and resource  from existing  assets – additional drilling and technical work to grow current  g g resource base*  160 km2 land position hosts excellent potential for major new  p p j discoveries and extensions *Examples of Forward Looking Statements. 20
  21. 21. Lake Shore Gold Lake Shore Gold (TSX, NYSE Amex: LSG) Shares Outstanding  (Basic) 400,146,669 Shares Outstanding (Fully diluted) 418,145,521 Share Price (Nov. 28/11) $1.30 Market Capitalization $520,000,000 52 Week High/Low $4.42 – $1.27 3 month Average Volume (# of shares) 3,700,000 A Rapidly Growing Gold Company in Production  Doubling production in ’11 to 85‐90k ozs Doubled resourced for second straight year to 6.3M ozs Going forward: More production and resource growth C i d l i Continued exploration success 21