BMO Conference Presentation February 29 2012

BMO CAPITAL MARKETSGlobal Metals & MiningLake Shore Gold Global Metals & Mining

ConferenceFeb. 29, 2012TSX, NYSE Amex: Symbol: LSG

Lake Shore Gold

Certain statements in this presentation relating to the Company's expected production levels, production growth, exploration activities,potential for increasing resources project expenditures and business plans are "forward looking statements" or "forward looking

Forward Looking Statements potential 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 and under theUnited States Private Securities Litigation Reform Act of 1995 and are referred to herein as "forward-looking statements." The Company does notintend, and does not assume any obligation, to update these forward-looking statements. These forward-looking statements representmanagement's best judgment based on current facts and assumptions that management considers reasonable, including that operating andcapital plans will not be disrupted by issues such as mechanical failure, unavailability of parts, labour disturbances, interruption in transportationor utilities, or adverse weather conditions, that there are no material unanticipated variations in budgeted costs, that contractors will complete, , p g , pprojects according to schedule, and that actual mineralization on properties will be consistent with models and will not be less than identifiedmineral reserves. The Company makes no representation that reasonable business people in possession of the same information would reachthe same conclusions. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause theactual results, performance or achievements of the Company to be materially different from any future results, performance or achievementsexpressed or implied by the forward-looking statements. In particular, delays in development or mining and fluctuations in the price of gold or incurrency markets could prevent the Company from achieving its targets. Readers should not place undue reliance on forward-lookingt t t M i f ti b t i k d t i ti ff ti th C d it b i i il bl i th C ' t tstatements. 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 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 certificationAssay 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.

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• Strong growth alreadyStrong growth already achieved

• Poised for rapidPoised for rapid production growth

• Timmins West Mine PEA• Timmins West Mine PEA highlights potential for strong cash flow and gfavourable economics

• Full pipeline ofFull pipeline of prospective projects

3

Three Multi-Million Ounce Gold Complexes in Century Old Timmins Campin Century-Old Timmins Camp

Bell Creek Complex

Destor-Porcupine Fault

TimminsCity of Timmins

Timmins West Complex

Fenn-Gib

>70 million ounces produced to date in Timmins Camp Highly-prospective geologyP li i ll f l i k j i di iPolitically safe, low-risk jurisdictionEstablished infrastructureAccess to suppliers labour trainingAccess to suppliers, labour, training

4

Resources – Strong Growth Already Achieved Doubled resources in 2011 – second straight year

3.2 3.9

1.8 3.1 3.0

0.90.6

1.2

3.0

5

Production – Strong Growth Already Achieved Gold ounces poured doubled in 2011Strong growth expected by 2013

3.1

85,000

100,000

0 6

1.8 3.237,755

0.9

0.61.2

7,700

6Target Range*

Guidance not yet released*

*Examples of Forward Looking Statements.

LSG: Poised for Next Phase of Growth ProductionProduction

Timmins West Mine development advancing (PEA released)Significant development early in 2012 positioning Company

85 000 to 100 000 ounces targeted for 2012*50% increase in processing rate to 3,000 tpd by late 2012*for next major jump in production

85,000 to 100,000 ounces targeted for 2012*Strong production growth expected in 2013*

ResourcesResources Updates at Gold River Trend and Timmins West already increased total resources in 2012, Bell Creek update in Q1/12*Q1/12*

Exploration Full project pipeline provides potential for long-term growth

7 *Examples of Forward Looking Statements.

Full project pipeline provides potential for long term growth

Three Multi-Million Ounce Gold Complexes:Timmins West MineTimmins West Mine

Bell Creek ComplexBell Creek Complex

Hoyle Hoyle

Pipestone Fault Pipestone Fault

DomeDome

HollingerHollingerMcIntyreMcIntyre

PondPondDestorDestor Porcupine Fault Porcupine Fault

FF GibGibDomeDome FennFenn--GibGib

Timmins West Complex Timmins West Complex

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Timmins West Mine – PEA (Feb. 28, 2012)

PEA Disclaimer:PEA Disclaimer:The Timmins West Mine PEA is preliminary in nature. It includes inferred mineral

99

resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized.

Timmins Deposit Timmins Deposit Thunder Creek Thunder Creek

200 Level200 Level

Timmins West MineTimmins West Mine

Timmins and 200 Level200 Level

300 Level300 Level

Timmins and Thunder Creek deposits combined

Initial ThunderInitial Thunder Creek resource released Nov. 2011

Updated Timmins

650 Level650 Level

730 Level730 Level2012 Work 2012 Work 2012 Work2012 Work

Updated Timmins deposit resource February 2012

PEA first evaluation 730 Level730 LevelProgram*Program*

2012 Work 2012 Work Program*Program*of fully integrated

operation

Conceptual view - full development


of current resources

10

1111

Timmins West Mine – Resources PEA assumes mining 1.4M ozs, including majority of Indicated and portion of InferredOpportunity to grow ounces through increased conversion of

Deposit Category TonnesCapped Grade(gpt (i) Au) Ounces Au

Opportunity to grow ounces through increased conversion of resources, continued exploration success

Deposit Category Tonnes (gpt (i) Au) Ounces AuTimmins Indicated 2,949,000 6.34 600,900

Inferred 1,579,000 5.54 281,500

Thunder Creek Indicated 2,877,000 5.64 521,600

Inferred 2,693,000 5.89 510,000

Total Indicated 5,826,000 5.99 1,122,500

Inferred 4,272,000 5.76 791,500

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PEA: Highlights* • Potential for $65M free cash flow in Year 2, over $100M of annual

free cash flow1 by Year 3 using current prices

• 10 years of production averaging 160 000 in Years 3 9 peaking• 10 years of production – averaging 160,000 in Years 3 – 9, peaking at 175,000 ounces

• Average cash operating costs of US$625/oz, US$590/oz in Years 3 – 9

• Growth capital of $160M, including $67M for mill expansion, with $225M of sustaining and other capital$225M of sustaining and other capital

• At current pricing2, total cash flow of $1.14B, NPV of $880M, IRR of 115%, payback period 1.25 yearsp y p y

• At analyst consensus3, total cash flow of $730M, NPV of $570M, IRR of 100%, payback period 1.25 years.

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1. All information is presented before income taxes. At December 31, 2011, the Company had total tax shelters of $540 million.2. Gold price of US$1,775 and exchange rate at par.3. 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 1.07 *Examples of Forward Looking Statements, see PEA disclaimer on slide 9

Timmins West Mine – Sensitivities*Over 1.0 billion of total cumulative cash flow at current market pricesNPV of $880 million, IRR of 115% at current market pricesAll numbers presented before income taxes (LSG had total taxAll numbers presented before income taxes (LSG had total tax shelters of $540M at December 31, 2011)

Case

Average Annual Cash Flow ($M)

(Full Production)

Total Cash Flow ($M)

(undiscounted)NPV @ 5%

($M) I IRRPayback(years)

Current prices1 $165 $1,140 $880 115% 1.25

Analyst Consensus2 $110 $730 $570 100% 1.25

$1500 US$/Oz Gold $120 $770 $580 70% 2.00

$2000 US$/Oz Gold $200 $1,443 $1,130 175% 0.75

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1. Gold price of US$1,775 and exchange rate at par.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 1.07

*Examples of Forward Looking Statements, see PEA disclaimer on slide 9

Timmins West Mine – Production & Costs*PEA assumes mining 1 4M ozs including majority of Indicated andPEA assumes mining 1.4M ozs, including majority of Indicated and portion of InferredAverage annual production 140,000 ozs, cash costs US$625/oz (exchange rate at par)(exchange rate at par)Years 3 – 9: Average production of 160,000 ozs, cash costs US$590/oz

15*Examples of Forward Looking Statements, see PEA disclaimer on slide 9

Timmins West Mine – Substantial Cash Flow* Over $100 million of annual free cash flow by Year 3 at current market prices (US$1,775/oz)

$180$200

Net Cashflow ($Can)

$80$100$120$140$160

$0$20$40$60$80

Millions ($

Can)

Year of ProjectYear of Project

‐$100‐$80‐$60‐$40‐$20 1 2 3 4 5 6 7 8 9 10

‐$120$100

16 *Examples of Forward Looking Statements, see PEA disclaimer on slide 9

Timmins West Mine – Substantial Cash Flow* Over $1 billion of cumulative free cash flow over 10 years at current market prices (US$1,775/oz)

$1,100

$1,200

Undiscounted Cumulative Cash Flow

$700

$800

$900

$1,000

n)

$300

$400

$500

$600

Millions ($

Can

$0

$100

$200

$300

‐$100 1 2 3 4 5 6 7 8 9 10

Year of ProjectYear of Project17 *Examples of Forward Looking Statements, see PEA disclaimer on slide 9

Processing – Expanding Mill to Meet GrowthMill operating very wellMill operating very well

Recoveries of 96%

E d d 2 000 t d i Q4/11Exceeded 2,000 tpd in Q4/11

Expansion to 3,000 tpd to be completed by late 2012*completed by late 2012

Mainly involves crushing/grinding circuits2012 capex of $67M (expansion and other infrastructure)

All t f i ll t d tAll costs of expansion allocated to Timmins West Mine

Second phase of expansion to 5 500

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Second phase of expansion to 5,500 tpd linked to continued project growth


Timmins West Mine – Opportunities

Many opportunities to enhance Timmins West Mine economics

R d d it l d ti tReduced capital and operating costsAdditional ounces through higher conversions and continued exploration success pIncreased throughput

Potential for enhanced value at other projects given all costs for mill expansion, indirect and overhead costs in Timmins applied to Timmins West Mine

Additional projects include Bell Creek Mine Gold RiverAdditional projects include Bell Creek Mine, Gold River Trend and Fenn-Gib

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LSG – Full Project Pipeline

Early Stage Advanced Exploration Development Production

Timmins West Mine In commercial operation, excellent potential to grow resources

Production

Bell Creek Complex In advanced exploration, updated NI 43‐101 pending* Scoping study ongoing*

Development

Fenn‐Gib Large initial resource, recent expansion highlights depth potential

G ld Ri T d

Other Projects

Gold River Trend Large updated resource, zones open in all directions

144 Adjacent to Thunder Creek initial drill results compare favourably

Exploration

144 Adjacent to Thunder Creek, initial drill results compare favourably

Wetmore Second potential mineralized trend at Bell Creek Complex

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Casa Berardi JV option with Aurizon , highly prospective land position


Measured & Indicated Tonnes Au Grade (g/t) Contained Ounces

LSG ResourcesMeasured & Indicated Tonnes Au Grade (g/t) Contained Ounces

Timmins West 5,826,000 5.99 1,122,500Gold River Trend 690,000 5.29 117,400Bell Creek Mine* 1,790,000 4.36 251,200

Vogel 2,219,000 1.75 (OP) 125,000Marlhill 395,000 4.52 57,400

Fenn Gib 40,800,000 0.99 (OP) 1,300,000Total 2,973,500

I f d T A G d ( /t) C t i d OInferred Tonnes Au Grade (g/t) Contained Ounces

Timmins West 4,272,000 5.76 791,500Gold River Trend 5,273,000 6.06 1,027,800Bell Creek Mine* 8,427,500 4.40 1,192,900

Vogel 1,459,000 3.60 (some OP) 168,800Fenn Gib 24,500,000 0.95 (OP) 750,000

Total 3,931,000

*Revised NI 43-101 resources planned for Q1/12 OP – Open Pit21

Gold River Trend

Timmins Deposit Timmins Deposit Timmins West MineTimmins West Mine

Thunder Creek DepositThunder Creek Deposit

144 Zone144 Zone

Gold River TrendGold River TrendEast Deposit East Deposit

West Deposit West Deposit

144 Zone 144 Zone

Gold River Trend Gold River Trend 144 South144 South

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Gold River Trend – Ounces Nearly TripledS d t ti l i i ti t id f Ti iSecond potential mining operation on west side of Timmins

Updated resource released Feb. 22/12 (2.0 gpt cut off grade)117 400 ozs @ 5 29 gpt Indicated117,400 ozs @ 5.29 gpt Indicated1,027,800 ozs @ 6.06 gpt Inferred

Brings total ounces at Timmins West Complex toBrings total ounces at Timmins West Complex to 1,239,900 ozs @ 5.92 gpt Indicated 1,819,300 ozs @ 5.93 gpt Inferred

High-grade core at East Deposit includes >300,000 ozs @ 9.81 gpt – remains open at depth & along strike

Sensitivity analysis demonstrates potential for higher grades with minimal loss of ounces at increased cut-off grades

1,044,400 ozs @ 6.89 gpt at 3.0 gpt cut-off

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,0 , 00 o s @ 6 89 gpt at 3 0 gpt cut o

Potential to add further resources considered excellent

Three Multi-Million Ounce Gold Complexes:Bell CreekBell Creek


Hoyle Hoyle


DomeDome



FF GibGib

Ti i W t C lTi i W t C l

DomeDome FennFenn--GibGib


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Bell Creek Complex

MarlhillMarlhill

Hoyle PondHoyle PondNew Mine Trend

Bell Creek MineBell Creek Mine VogelVogelHoyle PondHoyle PondPast Prod.Past Prod.2.4M 2.4M ozsozs @ 13.0 g@ 13.0 g

WetmoreWetmorePamourPamourPast Prod.Past Prod.4.2M 4.2M ozsozs @ 3.1 g@ 3.1 g@ g@ g

Historic Mine Trend

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HallnorHallnor//BroulanBroulan TrendTrendPast Prod.Past Prod.2.7M 2.7M ozsozs @ 10.6g@ 10.6g

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Bell Creek Mine O 20 000 i 2011

Bell Creek Mine Mined out areas

Recent

Shaft

Over 20,000 ozs in 2011

Total resources of 0.4M ozs M&I, 1.4M ozs Inferred

0 2M I di t d 1 2M

mining

North A0.2M ozs Indicated, 1.2M ozs Inferred at Bell Creek Mine0.2M ozs M&I, 0.2M ozs Inferred at Vogel/Marlhill

North A“Deep”

gUpdated resource in Q1/12*

Further increase in resources expected*Existing resources to be upgraded*

2012 work plan focused t bli hion establishing new

mining complex (475 L and 600 L)*Mine scoping study

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

Mine scoping study ongoing

Three Multi-Million Ounce Gold Complexes:Fenn GibFenn-Gib


Hoyle Hoyle


DomeDome



FennFenn--GibGib

Ti i W t C lTi i W t C l

DomeDome FennFenn GibGib


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Fenn-Gib* P t ti l lPotential large-scale, open-pit mine

1.3M ozs Indicated 0.75M ozs InferredCurrent estimate: 15,000 to 25,000 tpd operationProduction range of 120k to 210k ozs per year10-15 year mine life10 15 year mine life based on current resourceExcellent explorationExcellent exploration potential, expect to increase resources

28*Examples of Forward Looking Statements.

Summary: Why Invest in Lake Shore Gold? Three multi-million ounce gold complexes in the century-old Timmins Gold Camp

Timmins West Mine Timmins West Mine Bell Creek Mine Bell Creek Mine FennFenn--GibGib

R ti t Q1/12*R ti t Q1/12* R d t Q1/12*R d t Q1/12* Ad i j tAd i j t

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Reserve estimate Q1/12*Reserve estimate Q1/12* Resource update Q1/12*Resource update Q1/12*PEA by end 2012*PEA by end 2012*

Advancing project Advancing project PEA to follow PEA to follow


Investor Relations

BMO Conference Presentation February 29 2012