TORONTO, ONTARIO -- (Marketwired – April 29, 2015) – Lake Shore Gold Corp. (TSX:LSG)
(NYSE MKT:LSG) ("Lake Shore Gold" or the “Company") today announced strong financial and
operating results for the first quarter of 2015 (“Q1/15”). Full details of the results are provided in the
Company’s Consolidated Financial Statements and Management’s Discussion & Analysis, which are
available on the Company’s website at www.lsgold.com and on SEDAR at www.sedar.com.
Key highlights of the Q1/15 results include:

Record production of 53,000 ounces, 19% increase from first quarter 2014 (“Q1/14”)

Cash operating costs(1) of US$510 per ounce sold (based on production costs(2) of $33.4
million), 18% improvement from Q1/14

All-in sustaining costs(3) of US$750 per ounce, 22% better than in Q1/14

Record revenues of $79.1 million, 29% higher than in Q1/14

Record cash earnings from mine operations(4) of $45.8 million, 44% increase from Q1/14

Net earnings of $12.1 million, 163% higher than $4.6 million in Q1/14

Cash flows from operating activities of $35.9 million, 44% increase from Q1/14
Cash and bullion(5) at March 31, 2015 totaled $77.1 million, an increase of $15.6 million or 25% from $61.5 million at December 31, 2014.
Tony Makuch, President and CEO of Lake Shore Gold, commented: “Record production and improved unit costs contributed to strong growth in revenue, earnings and cash flows from operating activities in Q1/15. Our solid results, combined with favourable market conditions, resulted in a significant increase in our cash position during the quarter. Turning to exploration, we released very encouraging drill results at our 144 Gap Zone discovery during Q1/15, with additional results being issued earlier this week. Drilling so far this year has been successful in continuing to expand what is already a large zone, and has identified a wide, high-grade core near the zone’s western boundary.”
“As we look to the remainder of the year, we will make the final payment on our gold-linked note at the end of next month, which will eliminate the remainder of our senior secured debt. We will also continue our aggressive work program at the 144 Gap Zone discovery, and remain on track to release a first resource for the end of 2015 (to be issued in early 2016). Finally, we expect to generate solid operating results over the remainder of the year that, in combination with our strong performance in Q1/15, will position us to achieve our production and cost targets for 2015.”

Consolidated Financial Information
Key Performance Indicators

Outlook
Following completion of Q1/15, the Company is well positioned to achieve its 2015 production and cost targets (listed in the table below) and to finance its operating, capital investment and debt repayment and servicing requirements over the balance of the year. While average grades are
scheduled to come down as the Company sequences into different areas of mining, it expects to deliver solid operating results over the remaining nine months of 2015 that, at current gold prices, will support continued strong cash flow generation. The Company will make the final monthly payment on
its gold-linked note on May 29, 2015, at which time its senior secured debt will be fully repaid.
During Q1/15, the Company completed a total of 75,410 metres of in-mine and exploration drilling, which compares to a planned total for the year of over 200,000 metres. At the 144 Gap Zone, the Company’s 2015 work program includes $18.0 million of exploration expenditures and involves approximately 90,000 metres of surface drilling, 30,000 metres of underground drilling and an
exploration drift from Thunder Creek to establish an underground drill platform. Total expenditures at the 144 Gap Zone in Q1/15 were $4.9 million, which represented the cost to complete 40,230 metres of surface drilling during the quarter, as well as to advance the exploration drift approximately 230
metres. The drift is scheduled for completion during the third quarter of 2015. The Company’s goal is
Three months ended March 31, 2015 2014
(in $'000, except the per share amounts)
Revenue $79,124 $61,459
Production costs $33,431 $29,673
Earnings from mine operations $23,345 $14,289
Net earnings $12,066 $4,587
Basic net income per share $0.03 $0.01
Cash flows from operating activities $35,855 $24,928
Three months ended March 31, 2015 2014
Tonnes milled 299,900 283,800
Grade 5.7 5.1
Average mill recoveries 96.7% 96.6%
Ounces recovered 53,000 44,600
Ounces poured 52,000 45,700
Ounces sold 52,600 43,000
Average price (US$/oz) $1,219 $1,294
Average price ($/oz) $1,504 $1,430
Cash operating costs (US$/oz) $510 $623
Cash operating costs ($/oz) $633 $688
All - in sustaining costs (US$/oz) $750 $960
All - in sustaining costs ($/oz) $930 $1,060
Cash earnings from mine operations ($000s) $45,832 $31,881
Adjusted net earnings ($000s) $11,102 $5,463
Adjusted net earnings per share ($/share) $0.03 $0.01

to establish a first resource at the 144 Gap Zone for December 31, 2015, which will be released as part of the next resource update early in 2016.

2015 Targets 2015 2014 Q1/15
(Target) (Actual) (Actual)
Ounces produced 170,000 - 180,000 185,600 53,000
Cash operating costs (US$/oz) 650 - 700 592 510
All-in sustaining costs (US$/oz) 950 - 1,000 872 750
Total production costs ($
millions) 125.0 120.3 33.4
Key Assumptions in 2015 Targets
Average gold price (US$/oz) 1,170
US$/C$ exchange rate (US$) 0.90

The Company’s Outlook section contains forward-looking information within the meaning of certain securities laws. The Outlook section, also included in the Company’s MD&A, represents the Company’s guidance and forms the basis for most of the forward-looking information disclosed elsewhere in these documents and in other areas such as other press releases, newsletters, fact sheets and the Company’s website. Readers are directed to the Forward-Looking Statements advisory at the end of this press release for cautionary language relating to forward-looking information.