First Quarter 2012Conference Call & Webcast

May 11, 2012

TSX, NYSE Amex: LSG

Lake Shore Gold

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-lookingstatements" or "forward-looking information" within the meaning of certain securities laws, including under the provisions of Canadian provincialsecurities laws and under the United States Private Securities Litigation Reform Act of 1995 and are referred to herein as "forward-lookingstatements." 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, thatcontractors will complete projects according to schedule, and that actual mineralization on properties will be consistent with models and will notbe less than identified mineral reserves. The Company makes no representation that reasonable business people in possession of the sameinformation would reach the same conclusions. Forward-looking statements involve known and unknown risks, uncertainties and other factorswhich may cause the actual results, performance or achievements of the Company to be materially different from any future results, performanceor achievements expressed or implied by the forward-looking statements. In particular, delays in development or mining and fluctuations in theprice 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 mostrecent Annual Information Form and other regulatory filings with the Canadian Securities Administrators, which are posted on sedar atwww.sedar.com, or the Company’s most recent Annual Report on Form 40-F and other regulatory filings with the Securities and ExchangeCommission.

QUALITY 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 blank, 1 certified standard and 1 reject duplicate are inserted into groups of 20 drill core samples. The blanks and 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 ChemexAssay 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 theCompany’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

Forward Looking Statements

3

Exceeded targets for production and cash costsActual Target

Gold poured (ozs) 16,180 15,000Cash costs (US$/oz) 1,048 1,450

Three consecutive quarters of meeting or exceeding targets

On schedule with extensive development program at Timmins West Mine Poised for strong production growth & free cash flow

Mill expansion on track for completion by late 2012

LSG – Excellent Progress in Q1/12

Timmins Deposit reaches 100,000 ounces of total gold production

4

Updated reserve for Timmins West Mine 4,922,000 tonnes @ 5.21 gpt for 823,400 ozs Supports the first 5 Year Mine Plan

Strong growth in resources 3.4M ozs of Measured and Indicated, 3.7M ozs inferred

Released Preliminary Economic Assessment for Timmins West Mine

Reported continued exploration success Announced major expansion of Fenn-Gib mineralization

Strengthened balance sheet $50M from Franco-Nevada royalty and equity transactions $70M Sprott credit facility (expected to close in late May)

LSG – Excellent Progress in Q1/12

5

LSG: Q1/12 Operating Highlights

Q1/12Gold poured (ozs) 16,180

Total tonnes (ozs) 160,510

Average grade (gpt) 3.40

Total Production 16,680

Cash Costs* ($/t) 109

Cash Costs* (US$/oz) 1,048

Surpassed expectations for throughput and unit costs ($109/tonne), average grade largely in line

* Non-GAAP measure.

6

LSG: Q1/12 Financial Highlights

Q1/12Total gold sold (ozs) 18,474Commercial gold sales (ozs) 14,437Average price (US$/oz) 1,690Proceeds from gold sales ($M) 31.3Proceeds from commercial gold sales ($M) 24.6Cash earnings from operations*

$ millions 9.4Net loss

$ millions$ per share

3.00.01

Net loss largely reflected non-cash charges and impact of high level of mine development on operating costs

* Non-GAAP measure.

7

LSG: Q1/12 Expenditures

$ millions 2012Projects 24.9

Exploration 4.5

Mill Expansion 14.1

Total 43.5

On track with full-year spending Timmins West Mine development: $93M Mill expansion/other costs: $67M Bell Creek Mine: $18M Exploration: $15M

8

Franco-Nevada

US$35 million from sale of 2.25% NSR related to Timmins West Complex

$15 million related to sale of 10,050,591 shares @ 1.49/share

Sprott Resource Lending Partnership Agreement

$35 million gold loan – repayment based on 29 monthly cash payments linked to gold price

$35 million standby line of credit – Interest rate of 9.75% compounded monthly

Expected to close later in May

LSG – Enhanced Balance Sheet Strength

Addressed balance sheet requirements with little dilution to shareholders

2012 – Funded for Growth(1)

9

Sources of Cash $ millions Cash and bullion inventory (January 1, 2012) 66.2Franco-Nevada royalty & equity investment 50.0Gold Loan (expected close May/12) 35.0

Standby Line (expected close May/12) 35.0

Operating Cash Flow(2) 75.5

Total sources of cash 261.7

(1) Examples of forward-looking information(2) Assumptions include 92,500 ozs Au sold (middle of range for gold poured), US$850/oz cash cost

(middle of range), US$1,650/oz gold price, C$/US$ exchange rate: $0.98

Uses of Cash $ millions Development of Timmins West Mine 93.050% mill expansion and other improvements 67.0Advancement of Bell Creek Mine 18.0Exploration 15.0Corporate G&A 10.5Financing costs 5.0Total uses of cash 208.5

10

On schedule with extensive development program 2,900 metres of total capital development 33,000 metres of definition and delineation drilling

16,180 ounces poured in Q1/12, exceeded target of 15,000 ounces

Processed 16,680 ozs in Q1/12 (160,510 t grading 3.40 gpt) Timmins Mine: 133,044 tonnes @ 2.92 gpt Bell Creek: 47,465 tonnes @ 4.54 gpt

Cash costs of US$1,048 per ounce, better than budget of US$1,450 per ounce

Mill expansion on track for 3,000 tonnes per day by late 2012

Tracking well to plan to date in Q2/12

LSG – Effectively Executing 2012 Plan

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Timmins Deposit Setting Ourselves Up For Rapid Growth

565L 

585L 

610L 

Shaft 650L 

670L 

690L 710L 

730L 

750L 

790L 

810L 

In Q1/12 Development in UM

Zone below 650L Working to establish

multiple mining horizons between 650L and 730L

Recently commenced stoping on 730L

12

Timmins Deposit Setting Ourselves Up For Rapid Growth

565L 

585L 

610L 

Shaft 650L 

670L 

690L 710L 

730L 

750L 

790L 

810L  2013 +

660L 

695L 

730L 

765L 

800L 

Thunder Creek Deposit Setting Ourselves Up For Rapid Growth

Thunder Creek Lower Mine

13

In Q1/12:Ramped from 370L

to 395 LRamped from 730L

up to 695 L and down to 765L Recently began

stoping above 730LTargeting multiple

mining horizons between the 660L and 800L

*Examples of Forward Looking Statements.

660L 

695L 

730L 

765L 

800L 

Thunder Creek Deposit Setting Ourselves Up For Rapid Growth

Thunder Creek Lower Mine

14 2013 +

Bell Creek Complex

15* Examples of Forward Looking Statements. Conceptual view of planned work in 2012

47,465 tonnes @ 4.54gpt in Q1/12

North A Deep ramp reached 535L (total vertical advance of 37m)

Development of upper stopes in North A Deep and North B zones completed

Pillar recoveries in North A Main Zone largely completed in Q1/12

Diamond drilling program in North A Deep Zone ongoing

Bell Creek Mine Mined out areas

Recent mining

Shaft

North A“Deep”

2012 Production and Cash Costs(1)

16

Production to reach 25,000 to 30,000 per quarter by Q3/12, Company to be positioned for strong growth in 2013

Cash costs to improve, to end year in low US$700/oz range, and to improve below US$700/oz in 2013

(1) Examples of Forward Looking Statements,

16,180 (Actual)

Denotes target range

Actual US$1,048

Target US$1,450

Mill Expansion – Site Construction

17

Truck Dump

6,000 tonneOre bin SAG Mill Building

Crusher

New Thickener

New Leach Tanks

Mill Expansion – Site Construction

18

Fenn-Gib – Potential Large Open Pit Mine

19

Current resources: (within pit shell) M&I - 1.3M ozs (40.8M tonnes @ 0.99 gpt) Inferred - 0.75M ozs (24.5 tonnes @ 0.95 gpt)

Excellent exploration upside – 200 metre expansions announced to the north, east and to depth

New exploration targets identified Potential large-scale, open-pit operation

Fenn-Gib – Majors Expansions Announced

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12-32 1.01/22.10m

Incl. 2.48/5.00m

12-27 0.63/79.4m

Incl. 0.82/28.00m

12-220.87/71.80m

Incl. 1.12/50.00m

12-25 1.39/20.10m

Incl. 2.09/9.10m

12-31 1.01/52.50m

Incl. 1.43/32.70m

12-23 0.72/50.30m

Incl. 1.01/28.00m

12-170.73/68.80m

Incl. 1.13/27.80m

12-240.58/74.50m

Incl. 2.03/8.00m

12-210.76/34.00m

Incl. 2.04/8.80m

12-330.70/183.50m

Incl. 2.48/50.10mIncl. 3.76/14.20m

12-191.02/190.50m

12-340.88/177.10m

Incl. 0.94/82.00mIncl. 1.32/26.00m

12-291.66/41.00m

Incl. 2.96/21.10m12-130.70/88.40m

Incl. 0.90/36.90m12-14

0.73/284.00mIncl. 1.46/20.00mIncl. 2.42/14.00m

12-151.93/241.20m

Incl. 8.00/18.00mIncl. 3.82/32.70mIncl. 3.66/21.00m

11-051.26/324.00m

Incl. 2.27/50.50mand 3.41/63.00m

11-080.67/189.50m

Incl. 2.08/21.00m2.24/39.40m

11-070.89/260.50m

Incl. 1.93/41.00m11-06

0.97/140.00m

11-041.31/414.00m2.40/20.00m

Fenn-Gib – New Targets Identified

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Main Zone Extension

Talisman Shaft

G-101 ZoneC4-3: 4.91/11.98m C4-5: 3.25/5.18m

C4-5A: 1.18/10.06mCentral Syenite

9.00/3.00m3.75/3.00m

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3.7

Timmins West Mine – Realizing the Potential (1)

Ounces

85,000

100,000

Estimated Production and Sales

(1) Examples of Forward Looking Statements

2012 Full-CompanyGuidance

3.1

23

3.7

Moving Towards Lower Cash Costs(1)

US$/oz

(1) Examples of Forward Looking Statements

2012 Full-CompanyGuidance

Timmins West Mine Only

Total cost (opex & sustaining): <US$700/oz

Operating and capital costs over 10 years: <US$900/oz

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3.7

Timmins West Mine – Capital Spending(1)

$ Millions

(1)Examples of Forward Looking Statements

Rapid Decline in Planned Capital Spending

Growth Capital Sustaining Capital

25 (1) Examples of Forward Looking Statements

In the coming months, LSG plans to:

Increase production to 25,000 to 30,000 ounces per quarter

Demonstrate track record of meeting or exceeding targets

Complete capital program at Timmins West Mine, including mill expansion

Position Company for strong production growth and positive free cash flow from Timmins West Mine entering 2013

LSG – Approaching a Turning Point (1)

The Key: Realizing the Potential of Timmins West Mine