Lsg scotiaconference 2011_11_29

Scot ia Capi ta l Min ing Conference

Scot ia Capi ta l Min ing Conferencegg

N o v e m b e r 2 9 , 2 0 11

Building Value through GrowthBuilding Value through Growth Production – Resources – Cash Flow

Certain statements in this presentation relating to the Company's expected production levels production growth exploration activities

Forward Looking StatementsCertain 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-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 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 labourincluding that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts, labourdisturbances, 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 Inbe materially different from any future results, performance or achievements expressed or implied by the forward looking statements. Inparticular, 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 Company's most recent

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 Control

l i ti f 1 bl k 1 tifi d t d d d 1 j t d li t i t d i t f 20 d ill l Th bl k d thsamples 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 Chemextransported 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 the

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Timmins 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.

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 2011

5. Thorne (GRT) – Updated resource expected in Q1/12*

*Examples of Forward Looking Statements. 3

Lake Shore Gold – Achieving Growth

Rapidly Growing Production, Resources – with more to come

Production to double in 2011o 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

hCash costs to improveo $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 ounceso To increase further through updated NI 43‐101 estimates in Q1/12*o 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.

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Timmins Gold Camp

N

Ti iTi i

LSG Bell Creek

LSG Bell Creek

OntarioOntarioTimminsTimmins

TimminsTimmins

LSG LSG Timmins WestTimmins West TorontoToronto

55

DetroitDetroit

Strong Land Position in Timmins

Bell Creek Complex

Bell Creek Complex T lComplex

Fenn GibHollingerM I t

Hoyle Pond

TaylorMine

BlackFox

Complex

Fenn GibHollinger

Hoyle Pond

TaylorMine Black

Fox

Fenn-GibMcIntyre

Dome Mine

Pamour Mine

RossMine

Timmins, Ontario Fenn-GibMcIntyre

DomeMine

Pamour Mine

RossMineTimmins, Ontario

Timmins West Mine ComplexTimmins West Mine Complex

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Timmins Mine Operations

Timmins West Complex

Bell Creek Complex

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Steadily Growing Production

43,50043,500

7,700

Actual Actual

8*Examples of Forward Looking Statements.

Timmins West Complex Ti i Mi

Shaft

Timmins Mine

Commercial production Jan1/1132,486 ozs in 9M/11UM1 grade reconciling wellUM1 grade reconciling well Significant infrastructure completedDevelopment 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 1,187 884 845

Thunder Creek

Advanced exploration program8,497 ozs recovered in 9M/11Underground access and ventilation

l t d

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completed Bulk sample off 730 L advancing

Bell Creek Mine – Excellent Long‐Term Potential

Advanced exploration program

17,792 ozs recovered in 9M/11 Mined out areas

ShaftSurface ramp

Dec 2010 NI 43‐101 resource o 251,200 ozs M&Io 1,192,000 ozs Inferred

North A Zone

300 Level

H2/11 stoping areaBetween 2,000 and 3,000 ozs per vertical metre below 950 L

Updated resource to 1600m depth

Zone

North A “Deep”

Planned development

H2/11 stoping area420 Level

targeted for Q1/12*

Mine scoping study to be completed by mid‐2012*

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1600 metre depth (Open)


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 grindingEstimated cost – $80 million

Phase 2 to 5,500 tpd*, pPhase 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


Doubled Resources in First 11 Months 2011

6.3

3 2

Doubled Resources

3.2

3.0Doubled

Resources

1.83.11.5

3.0Resources

0.9

0.61.2

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

Timmins Mine* 3,268,000 8.56 892,700Thunder Creek 2,877,000 5.64 521,600

Bell Creek Mine* 1,790,000 4.36 251,200Vogel 2,219,000 1.75 (OP) 125,000

Marlhill 395,000 4.52 57,400Fenn Gib 40,800,000 0.99 (OP) 1,300,000

Total 3,147,900

Inferred Tonnes Au Grade (g/t) Contained Ounces(g )

Timmins Mine* 894,000 5.74 164,900Thunder Creek 2,693,000 5.89 510,000Thorne (GRT)* 4 154 000 3 33 444 500Thorne (GRT) 4,154,000 3.33 444,500

Bell Creek Mine* 8,427,500 4.40 1,192,900Vogel 1,459,000 3.60 (some OP) 168,800

Fenn Gib 24 500 000 0 95 750 000

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Fenn Gib 24,500,000 0.95 750,000Total 3,231,100

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

Doubled Resources in 2011

Significant new resources added in November 2011

Thunder Creek 521 600 ozs @ 5 64 gpt M&I

Fenn‐Gib 1 300 000 ozs @ 0 99 gpt Ind521,600 ozs @ 5.64 gpt M&I

510,000 ozs @ 5.89 gpt Inf.November 16, 2011

Resource to 900m level

1,300,000 ozs @ 0.99 gpt Ind. 750,000 ozs @ 0.95 gpt Inf.

November 17, 2011 Potential large‐scale, open‐pit

200m interval contains 650,000 ozs@ approx. 6 g/tTo support mining for 3‐4 years while Company grows Timmins

g p pmining operationExcellent potential to grow resources Silver content recent expansions

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while Company grows Timmins Mine/Thunder Creek deposits*

Silver content, recent expansions not included in resource

*Examples of Forward Looking Statements.

Thunder Creek – First Resource Thunder Creek

2,877,000 tonnes @ 5.64 gpt for 521,600 ozs2,693,000 tonnes @ 5.89 gpt for 510,000 ozs

200 metre interval around 730 Level contains200 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 strikeand along strike

650k ozs @ 6.00 gpt


Fenn‐Gib Resource 40 8 t @ 0 99 f 1 3M I d40.8 t @ 0.99 for 1.3M ozs Ind.24.5 t @ 0.95 for 0.75M ozs Inf.Gold price US$1,190/ozs., cut off grade of 0.5 gptPotential for extensions considered excellentHigh silver values and recent 200 metre expansion not200 metre expansion not included in resource

Recent Hole:FG-11-04

1.31 gpt over 414.0m

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Exploration – Much More Growth to Come

Early Stage Advanced Exploration Development Production

Timmins Mine Commercial production effective Jan. 1/11 – Updated NI 43‐101 in Q1/12

Thunder Creek Initial resource >1M ounces at close to 6 gpt

Bell Creek

PFS/mine design ongoing

Mineralization already extended 400m Updated 43‐101, PFS planned*

Comm Prod’n ’12*

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 Adj t t Th d C k I iti l lt f bl144 Adjacent to Thunder Creek, Initial 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

*Examples of Forward Looking Statements.

Deep Target – Potential 1.9Km extension Hole intersects UM andHole intersects UM and Footwall mineralization at 2,380m from surface

Potential quadrupling ofPotential quadrupling of UM Zone

Hole came into target on north limb of foldon north limb of fold

Wedge cuts into nose of fold planned (greatest potential for high gradepotential for high grade mineralization)

Second, deeper zone discovered resultsdiscovered, results pending

Hole continuing to test TM and TC depth

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TM and TC depth potential

Poised for Short‐Term Value Enhancement

Over next several months, LSG expects to achieve:

Improved Production

Further Growth in Total

Progress with Mill Expansion

Continued explorationProduction

Performance & Cost

Management

in Total Resources,

43‐101 updates in Q1/12

Mill Expansion and

Mine Scoping Studies

+ + +exploration success ‐ 27

drills currently workingManagement in Q1/12 Studies

Increased production

working

Increased productionLower cash costs

Rapid resource growth==Greater clarity – future production

Additional new discoveries/extensions 19

Leading to Long‐Term Value Creation

Advancing five multi‐million ounce deposits*

Much more production and resource growth to come

g f 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 gresource base*

160 km2 land position hosts excellent potential for major new p p jdiscoveries and extensions


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 $520,000,000Market 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 ozsDoubled resourced for second straight year to 6.3M ozsGoing forward:

More production and resource growthC i d l i

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Continued exploration success

Business

Lsg scotiaconference 2011_11_29