Third Quater 10 November 2011 Conferance Call

Thi rd Quar ter 2011Conference Cal l and WebcastThi rd Quar ter 2011Conference Cal l and WebcastConference Ca l l and Webcast Conference Ca l l and Webcast

N o v e m b e r 1 0 , 2 0 11

Making Progress, Realizing Our Potential

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

Forward Looking StatementsCertain statements in this presentation relating to the Company s expected production levels, production growth, exploration activities, potential forincreasing resources, project expenditures and business plans are "forward-looking statements" or "forward-looking information" within themeaning of certain securities laws, including under the provisions of Canadian provincial securities laws and under the United States PrivateSecurities Litigation Reform Act of 1995 and are referred to herein as "forward-looking statements." The Company does not intend, and does notassume any obligation, to update these forward-looking statements. These forward-looking statements represent management's best judgmentbased on current facts and assumptions that management considers reasonable, including that operating and capital plans will not be disrupted byissues such as mechanical failure, unavailability of parts, labour disturbances, interruption in transportation or utilities, or adverse weather, y p , , p p ,conditions, that there are no material unanticipated variations in budgeted costs, that contractors will complete projects according to schedule, andthat actual mineralization on properties will be consistent with models and will not be less than identified mineral reserves. The Company makes norepresentation that reasonable business people in possession of the same information would reach the same conclusions. Forward-lookingstatements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements ofthe Company to be materially different from any future results, performance or achievements expressed or implied by the forward-lookingstatements. In particular, delays in development or mining and fluctuations in the price of gold or in currency markets could prevent the Companyp y p g p g y p p yfrom achieving its targets. Readers should not place undue reliance on forward-looking statements. More information about risks and uncertaintiesaffecting the Company and its business is available in the Company's most recent Annual Information Form and other regulatory filings with theCanadian Securities Administrators, which are posted on sedar at www.sedar.com, or the Company’s most recent Annual Report on Form 40-Fand 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 Control samplesLake 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 samplesconsisting 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 arechecked to be within acceptable limits prior to being accepted into the GEMS SQL database. Routine assays have been completed using a standard fireassay 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 theTimmins mine and Thunder Creek underground project, the remaining pulp is taken and fire assayed with a gravimetric finish. Select zones with visible goldare 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. Theremaining 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 Lablocated in Timmins, Ontario, and the pulps shipped to ALS Chemex Assay Laboratory in Vancouver, B.C. ALS Chemex is an ISO 9001-2000 registeredlaboratory 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 diamond drillingprojects at the Timmins deposit surface; Thunder Creek, Gold River Trend and 144 properties; Bell Creek Mine; and Casa Berardi optioned property areJacques Samson, P.Geo., Stephen Conquer, P.Geo, and Keith Green, respectively. Dean Crick, P.Geo. is the QP for the Timmins deposit and Thunder

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q , , p q , , , p y , pCreek underground drilling projects, and Bob Kusins, P.Geo., is the QP for resource estimation at all of the Company’s properties. As QPs, Messrs.Samson, Conquer, Green, Crick and Kusins have prepared or supervised the preparation of the scientific or technical information for their respectiveproperties as provided in this presentation. Messrs., Samson, Conquer, Kusins, Crick and Green are employees of the Company.

Lake Shore Gold (LSG:TSX & NYSE Amex)

Good Progress in Third Quarter & Nine Months 2011

18 833 ounces recovered in Q318,833 ounces recovered in Q3

60,014 ounces poured YTD, poised to achieve 2011 target*

Strong cost performance in Q3, cash costs of $94/tonne, US$884/ounce

Mill throughput levels meeting and exceeding target levels

1,890 tpd for Q3 – over 2,000 tpd in September

Continued exploration success

*Examples of Forward Looking Statements.3


Advancing five potential multi‐million ounce deposits

1. Timmins Mine – Q3/11 production increased 24% from Q2, grades in Q / p Q , gUM1 reconciled well

Deep hole outlines incredible depth potential of Timmins deposit

2 Th d C k Fi t ti t t k f l i Q4*2. Thunder Creek – First resource estimate on track for release in Q4*

3. Bell Creek Mine – Continued exploration success, working to demonstrate resource potential

4. Thorne deposit (Gold River Trend) – Mineralization extended 450 metres to depth and 300 metres along strike, updated NI 43‐101 resource in Q1/12*resource in Q1/12

5. Fenn‐Gib – Drilling confirms geological model and extends mineralization

b l d b f d*First resource to be released before year end*Potential long‐life open pit



Outlook

2011 production to reach at least 85 000 ounces poured*2011 production to reach at least 85,000 ounces poured

Head grades, cash operating costs and mill throughput in Q4/11 all expected to improve* Q / p p

Significant growth in resources by year end*o Initial resources from Thunder Creek and Fenn-Gibo To at least double resource base by March 2012

Continue drilling for additional discoveries and strike extensionsextensions


2011 Financial Performance

Q3/11 9 Mo. 2011

Gold sold (oz) 16,570 69,512

$/Average price (US$/oz) 1,726 1,501

Proceeds from gold sales ($M) 28.1 102.4Proceeds from commercial gold sales ($M) 18.8 51.5Cash operating costs (US$/oz)

per tonne 94 96per ounce 884 845

Cash earnings from operations$ millions$ h

9.10 02

23.00 06$ per share 0.02 0.06

Net loss $ million$ per share

5.20.01

5.40.01$ p

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Financial Position and Capital Structure

Shares Outstanding (Basic) 400,146,669

Shares Outstanding (Fully diluted) 418,145,521

Share Price (Nov. 4/11) $1.72

Market Capitalization $688,000,000

Cash & Equivalents (Sept. 30, 2011) $47,600,000

Revolving Credit Facility ‐ DrawnAvailable

$20,000,000$30 000 000Available $30,000,000

Gold Hedging None

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Planned Expenditures

9M/11Projected Full Year

P j t 71 1 85 0Projects 71.1 85.0

Exploration 24.5 30.0

Mill Expansion 12.7 20.0‐25.0Mill Expansion 12.7 20.0 25.0

Total 108.3 135.0‐140.0

Expenditures for 2011 expected to be consistent with previous estimates as increased project spending at Bell Creek and Thunder Creek offset lower expenditures for millCreek and Thunder Creek offset lower expenditures for mill expansion

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Operations Review

99

Growing Production at Timmins Mine

Recovered Ounces Q1/11 Q2/11 Q3/11 9M/11

Timmins Mine 10,951 9,627 11,909 32,486Timmins Mine 10,951 9,627 11,909 32,486

Thunder Creek 2,731 2,323 3,433 8,497

Total Timmins West Complex 13,682 11,950 15,350 40,983p , , , ,

Bell Creek Mine 8,635 5,666 3,491 17,792

Total Production 22,328 17,615 18,833 58,775

Cash Costs ($/t) (Timmins Mine) 92 122 94 96

Cash Costs (US$/oz) (Timmins Mine) 586 1,187 884 845

1 – Production growth reflects 24% increase in production from Timmins Mine

1 ‐ Higher costs reflect lower average grade and significant development and

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g g g g psilling work in support of production in H2/11 – Costs to improve in H2/11

Timmins West – Significant Progress

Timmins Mine Timmins Mine Q3/11 grades in UM1 reconciled very well to block modelExcellent progress with developmentExcellent progress with development

Completed significant drilling and development ahead of Q4 productionSill development to 545 Level 130,000 tonnes to be mined early in ’12Ramped to from 650 L up to 480 L and down to 710 LRamped to from 650 L up to 480 L and down to 710 LRamp to reach 730 L by year end to support second heading into UM1 early next year

Advanced major infrastructure including fill raise shop fuelling systemAdvanced major infrastructure including fill raise, shop, fuelling system, electrical upgrades, etc.

Thunder CreekThunder CreekEstablished primary ventilation system at 730 LevelSignificant lateral development completed off both 300 and 730 LevelsCommenced and progressing with large bulk sample (730 Level) p g g g p ( )

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UM1 – Current Mining Block

525 Level

565 L l

525 – 565565 Level

565 – 585585 Level

UM2a

585 – 610610 Level

UM2b

610 – 650

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Thunder Creek – 730 Level (Min. 100 x 200m)

Bulk sample(Q4/11)(Q4/11)

1313

Bell Creek Complex

1414

Bell Creek Mine

Mined out areas

Surface ramp

Driving ramp to 500 Level by year end*

Currently mining in North

Shaft

Currently mining in North A Zone – 370 to 415 Level

Grades improving from Q3/11 level

300 Level

ShaftQ3/11 level

Diamond drill program ongoing for North A Deep Zone (500 to 800m levels)

330 LevelH2/11 stoping areaNorth A

Zone

Zone (500 to 800m levels)

420 Level

Planned development

Zone

151515

North A “Deep”(Upper portion of new gold system)

*Examples of Forward Looking Statements.

Bell Creek Mill – Expanding to Meet Growth

Two‐phase mill expansion*

Phase 1 from 2,000 tpd to 3,000 tpd by late 2012 Estimated cost – $80 millionEstimated cost $80 million $20 ‐ $25 million estimated for 2011 ($12.7M as of Sept. 30)

Phase 2 to 5 500 tpd *Phase 2 to 5,500 tpdPhase 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 millionTiming dictated by mine advancement

16*Examples of Forward Looking Statements.

New SAG Mill Arriving in Timmins (Nov. 1, 2011)

Expanding to 5,500 tpd (from 2,000 tpdcurrently)*

Two‐phase expansion *Two phase expansion

Phase 1 to 3,000 tpd by end of 2012

Mainly involves crushing and grindingEstimated cost – $80 millionEstimated cost $80 million

Phase 2 to 5,500 tpd *Phase 1 incorporates material handling, crushing grinding and infrastructurecrushing, grinding and infrastructure (to support Phase 2 capacity)Phase 2 work mainly involves back end of circuit Estimated cost – $40 to $50 millionTiming dictated by mine advancement

C ti t k itti d l iContinue to work on permitting and planning for new mill on west side of Timmins

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Exploration Review

2011 drill program to Sept. 30/11• 133,000 metres• $24.5 million $

Key focus of drilling initial resource at Thunder Creek (Q4/11) and updates to existing NI 43‐101 resources

27 drills currently active6 Timmins Mine underground1 Thunder Creek surface 6 Thunder Creek underground3 Thorne property2 144 property

ll k f5 Bell Creek surface3 Bell Creek underground 1 Deep hole

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Deep Hole – Major Extension of Timmins Mine

Hole intersects Ultramafic and Footwall Zone style mineralization at 2,380 metresPotential for 1.9 kilometre extension down plunge from bottom of current reserve, quadrupling of Ultramafic Zone plunge lengthPotential to add significant new resources considered extremely highHole intersected north limb of Timmins Mine Fold Nose

Planning wedge cuts into nose of fold structure Will eventually infill drill from new intersections up to bottom of current reserve

Same potential exists to extend Thunder Creek mineralization with more drillingDrilling of deep hole continuing on LSG/RTM/AEG JV propertySecond zone intersected (37 metres wide) between 3,024 and 3,061m down ( ) , ,hole. Core just received, currently being logged

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Fenn‐Gib Acquired from Barrick in August 2011 for 14 9 million sharesAcquired from Barrick in August 2011 for 14.9 million shares Provides high‐quality project with large‐scale, open pit potentialInitial NI 43‐101 resource targeted for release before end of 2011* Drill results released on October 18th included 1.31 gpt over 414.00 metres, strong gp , gconfirmation of geologic mode and potential for depth extensions, plus expansion of mineralization 200m north

23*Examples of Forward Looking Statements.

Fenn‐Gib

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Outlook

2011 production to reach at least 85 000 ounces poured*2011 production to reach at least 85,000 ounces poured

Head grades, cash operating costs and mill throughput in Q4/11 all expected to improve* Q / p p

Significant growth in resources by year endo Initial resources from Thunder Creek and Fenn-Gibo To at least double resource base by March 2012

Continue drilling for additional discoveries and strike extensionsextensions


Third Quater 10 November 2011 Conferance Call

Investor Relations

Transcript of Third Quater 10 November 2011 Conferance Call