Low-Cost Gold Production in Timmins, Ontario

PDAC Convention 2016

March 6 – 9, 2016

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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

Scientific and technical information related to mine production and reserves contained in this presentation has been reviewed and approved by Natasha Vaz, P.Eng., Vice-

President, Technical Services, who is an employee of Lake Shore Gold Corp., and a “qualified person” as defined by National Instrument 43-101 – Standards of

Disclosure for Mineral Projects (“NI 43-101”).

Scientific and technical information related to resources, drilling and all matters involving mine production geology, as well as exploration drilling, contained in this

presentation, or source material for this presentation, was reviewed and approved by Eric Kallio, P.Geo., Senior Vice-President, Exploration. Mr. Kallio is an employee of

Lake Shore Gold Corp., and is a “qualified person” as defined by NI 43-101.

Forward-Looking Statements

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LSG, Tahoe Business Combination 0.1467 Tahoe Share for Each LSG Share

Large-scale, low-cost production @ 400,000 oz gold, 20M oz silver per year (600,000 – 700,000 oz gold equivalent)(1)

Gold equivalent cash costs <US$700/oz, AISC <US$950/oz(1)

Large portfolio of growth assets Growing gold production in Peru and Canada

Attractive exploration targets in all regions

Solid free cash flow generation

Strong balance sheet

Returning capital to shareholders

(1) Using US$1,175/oz gold, US$15.00/oz silver

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Diversified Operating Platform in the Americas

La Arena Oxides Shahuindo Oxides

2016E Prod. 200-250koz Au

Cash Costs US$700-$750/oz

Reserves Au 0.9Moz @ 0.36g/t 1.9Mozs @ 0.53g/t

M&I Res. Au 1.2Moz @ 0.32g/t 2.3Mozs @ 0.50g/t

La Arena Sulfides

Reserves Au 0.6Moz @ 0.31g/t

Reserves Cu 0.6Blbs @ 0.43%

M&I Res. Au 2.1Moz @ 0.24g/t

M&I Res. Cu 2.0Blbs @ 0.33%

Shahuindo Sulfides

Inf. Res. Au 2.0Moz @ 0.71g/t

Inf. Res. Ag 59Moz @ 21g/t

Timmins West Bell Creek

2016E Prod. 170-180koz Au

Cash Costs <$650/oz

Reserves Au 0.5Moz @ 4.30g/t 0.3Moz @ 4.57g/t

M&I Res. Au 0.7Moz @ 4.76g/t 0.7Moz @ 4.36g/t

Escobal

2016E Prod. 18-21Moz Ag

Cash Costs $7.50-$8.50/oz

Reserves Ag 310Moz @ 332g/t

M&I Res. Ag 389Moz @ 332g/t

Other Lake Shore Assets

Resources M&I (Moz) Inferred (Moz)

144 Gap Zone 0.3 @ 5.41g/t 0.3 @ 5.19g/t

Whitney 0.7 @ 6.85g/t 0.2 @ 5.34g/t

Gold River 0.1 @ 5.29g/t 1.0 @ 6.06g/t

Juby 1.1 @ 1.28g/t 2.9 @ 0.94g/t

Vogel 0.1 @ 1.75g/t 0.2 @ 3.60g/t

Marlhill 0.1 @ 4.52g/t -

Fenn-Gib 1.3 @ 0.99g/t 0.8 @ 0.95g/t

Total 3.7 @ 2.77g/t 5.4 @ 2.41g/t

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Strong Balance Sheet

Cash: US$162M

C$216M (C$/US$:0.75)

Debt: US$65M

C$87M*

* Assumes conversion of LSG

convertible debentures to shares

Growing, Low-Cost Gold Production

20.4 20.3 20.3

$7.57 $7.10 $7.06

2016E 2017E 2018E

Sil

ver

Pro

du

cti

on

(M

ozs

)

Ag Production - THO Cash Cost (US$/oz Ag)

Stable Prodution

254 283 300

175 175 176

429 458 476

$621 $622 $628

2016E 2017E 2018E

Go

ld P

rod

ucti

on

(ko

zs)

Au - THO Au - LSG PF Cash Cost (US$/oz)

StrongGrowth

Potential

Source: Available analyst estimates Note: EBITDA as per Bloomberg consensus estimates

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Benefits for LSG shareholders

Unlocks value immediately at level well over conversion price

of convertible debenture ($1.40/share)

Increases prospects for future value creation through

ownership of Tahoe shares

Leverage to accelerated growth plans for Timmins assets

Participation in near-term growth in gold production in Peru

Leverage to silver through Escobal mine in Guatemala

Participation in attractive dividend

US$0.02 per share per month (US$0.24 per share per year)

LSG, Tahoe Business Combination

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LSG: Three-Year Outlook(1)

Production 170,000 to 180,000 oz per year

Improved balance sheet

Drive growth pipeline forward

Cash op. costs <US$650/oz, AISC <US$950/oz

(1) Contains Forward-looking Information

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Growth Projects

Potential for Multiple Gold Deposits Along 144/GR Trends

Timmins West Mine

Near-Term Exploration

Targets Gold River Trend

TC–144 Trend

Gold River Deposit M&I: 690k tonnes @ 5.3 gpt (117k oz)

Inferred: 5.3M tonnes at 6.1 gpt (1.0M oz)

Timmins

Deposit

Thunder

Creek

144

North

144 South

144 Gap SW Zone Discovery (Within 200 m of 144 Gap Zone)

144 Gap

144 Gap Deposit Indicated: 1,734,000 tonnes @ 5.41 gpt (301.7k oz)

Inferred: 1,914,000 tonnes @ 5.19 gpt (319.2k oz)

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Growth Projects 144 Gap Deposit – New Resource

Timmins Deposit Thunder Creek 144 GAP Deposit

144 Gap Deposit(1) Indicated: 1,734,000 tonnes @ 5.41 gpt (301.7k oz)

Inferred: 1,914,000 tonnes @ 5.19 gpt (319.2k oz)

(1) See Slide 16 for footnotes related to the 144 Gap Deposit resource

Open

Open

Open

Open

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Growth Projects

Bell Creek Deep: Preparing for Shaft Extension

Conceptual shaft

extension and

development plan

775 mL

925 mL

1250 mL

1050 mL

1625 mL

Bottom of current

reserve at 1165 L

(1) Refers to proven and probable

(2) Refers to measured and indicated

Reserves

P&P(1): 1,792,000 tonnes @ 4.6 gpt 263,600 oz

Resources

M&I(2): 4,904,000 tonnes @ 4.29 gpt 687,000 oz

Inferred: 4,399,000 tonnes @ 4.84 gpt 685,000 oz

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Growth Projects

Potential Open-Pit at Whitney

* Grams per tonne, at 3.0 gpt cut-off

(1) Lake Shore Gold has not verified the mineral

resources disclosed in the technical report for

the Whitney Project. To the best of Lake Shore

Gold’s knowledge, information, and belief, there

is no new material scientific or technical

information that would make the disclosure of

the mineral resources inaccurate or misleading.

(2) 60% Interest

Whitney Project JV – Resources(1)(2)

Tonnes Grade* Ounces

Measured 966,000 7.02 218,100

Indicated 2,253,000 6.77 490,500

Total M&I 3,219,000 6.85 708,600

Inferred 995,000 5.34 170,700

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Growth Projects New Drilling Planned at Gold River

986,000 tonnes @ 9.81

gpt for 310,900 ozs

(between 400 and 800

metres)

1,700 m

800 m

Gold River Trend – East Two highly prospective deposits

within 4 kms of Timmins West

mine shaft – East and West

deposits

Resources:

690k tonnes @ 5.3 gpt (117k oz)

5.3M tonnes @ 6.1 gpt (1.0M oz)

Resource contains high-grade

core consisting of 310,900 oz at

9.81 gpt

Drilling to date focused on shallow

targets in East Deposit

2016 drilling largely focused on

Gold River Extension

3D View – Conceptual

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Growth Projects Potential Large-Scale, Open-Pit at Fenn-Gib

Potential large-scale,

open-pit project

Excellent opportunity to

increase existing

resources

Significant potential

along strike and at

depth given limited

drilling beyond the 300

metre level

Contains silver ounces

in deposit, not factored

into current resource

estimate

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Unlocks value immediately

Participation in attractive monthly dividend

Financial strength/flexibility to drive growth projects

LSG, Tahoe Business Combination Benefits for LSG Shareholders

144 Trend (advancing into production, significant exploration potential)

Bell Creek Deep (sinking shaft to below 1,400 metres)

Whitney Project (Combined Open Pit, U/G project adjacent to Bell Creek Mill)

Gold River (>1 million ounces in resources, new drilling planned in 2016)

Fenn-Gib (large-scale, longer-term project)

Juby (large-scale, longer-term project)

Low-Cost Gold Production in Timmins, Ontario

PDAC Convention 2016

March 6 – 9, 2016

16

Footnotes to 144 Gap Deposit Resource

1) Mineral resource estimates have been classified according to CIM Definitions and Guidelines.

2) Mineral resources are reported inclusive of reserves.

3) Mineral resources incorporate a minimum cut-off grade of 2.6 grams per tonne gold.

4) Cut-off grade is determined using a weighted average gold price of US$1,100 per ounce and an

exchange rate of $0.90 $US/$CAD.

5) Cut-off grades assume mining, G&A and trucking costs of $74 per tonne and processing costs of $22 per

tonne. Metallurgical recoveries are estimated at 97.0% based on initial test work.

6) Mineral resources have been estimated using Inverse Distance Squared estimation method and gold

grades which have been capped between 70 and 120 grams per tonne based on statistical analysis of

each zone.

7) Assumed minimum mining width is two metres.

8) The mineral resources were prepared under the supervision of, and verified by, Eric Kallio, P.Geo.,

Senior Vice-President, Exploration, Lake Shore Gold Corp., who is a qualified person under NI 43-101

and an employee of Lake Shore Gold.

9) Tonnes information is rounded to the nearest thousand and gold ounces to the nearest one hundred. As a

result, totals may not add exactly due to rounding.

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Cash Operating Costs per Ounce

Cash operating cost per ounce is a Non-GAAP measure. In the gold mining industry, cash operating cost per ounce is a

common performance measure but does not have any standardized meaning. Cash operating costs per ounce are based

on ounces sold and are derived from amounts included in the Consolidated Statements of Comprehensive Income and

include mine site operating costs such as mining, processing and administration, but exclude depreciation, depletion and

share-based payment expenses and reclamation costs. The Company discloses cash cost per ounce as it believes this

measure provides valuable assistance to investors and analysts in evaluating the Company’s performance and ability to

generate cash flow. This measure should not be considered in isolation or as a substitute for measures prepared in

accordance with GAAP such as total production costs. A reconciliation of cash operating costs and cash operating cost

per ounce sold to total production costs for the three and twelve months ended December 31, 2015 is set out beginning

on page 24 of the Company’s Management Discussion and Analysis (“MD&A”) for the full-year and fourth quarter 2015.

All-In Sustaining Costs per Ounce

AISC is a Non-GAAP measure. The measure is intended to assist readers in evaluating the total costs of producing gold

from current operations. While there is no standardized meaning across the industry for this measure, the Company’s

definition conforms to the AISC definition as set out by the World Gold Council in its guidance note dated June 27, 2013.

The Company defines all-in sustaining cost as the sum of cash costs from mine operations, sustaining capital (capital

required to maintain current operations at existing levels), corporate general and administrative expenses, in-mine

exploration expenses and reclamation cost accretion related to current operations. All-in sustaining cost excludes growth

capital, growth exploration expenditures, reclamation cost accretion not related to current operations and interest and

other financing costs. A reconciliation of all-in sustaining costs and all-in sustaining cost per ounce to total production

costs for the three and twelve months ended December 31, 2015 is set out beginning on page 25 of the Company’s

MD&A for the full-year and fourth quarter 2015.

Non-GAAP Measures(1)

(1) The Company’s MD&A for the full-year and fourth quarter of 2015 and 2014 is posted at www.sedar.com and on the Company’s website at www.lsgold.com.