Mr. Tony Makuch reports

LAKE SHORE GOLD DECLARES COMMERCIAL PRODUCTION AT TIMMINS MINE, 12,300 OUNCES OF GOLD PRODUCED IN DECEMBER 2010

Lake Shore Gold Corp. declared commercial production at Timmins mine effective Jan. 1, 2011. The mining rate at Timmins mine averaged 1,700 tonnes per day during December, 2010, and approximately 1,600 tonnes per day for the fourth quarter, exceeding the target rate for the mine of 1,500 tonnes per day and supporting production levels above 10,000 ounces per month.

Mill production in December, 2010, totalled 12,300 ounces of gold, which brought total recovered gold over the final two months of the year to 24,500 ounces. For the fourth quarter, mill production totalled 29,900 ounces, which included only two weeks of mill operation in October due to the timing of the company's mill expansion to a capacity of 2,000 tonnes per day. For the full year 2010, the company produced 43,500 ounces of gold from the mill. In addition, at the end of December, approximately 103,500 tonnes of ore from the company's Timmins mine, Thunder Creek and Bell Creek properties was in broken inventory yet to be processed.

Mill throughput during the fourth quarter, from the start of commissioning of the expansion in mid-October, averaged 1,650 tonnes per day. A total of 127,000 tonnes were milled during the fourth quarter at an average grade of 7.5 grams per tonne. Recoveries during the quarter averaged 97 per cent. In December, 50,000 tonnes were processed at an average grade of 7.9 g/t with recoveries exceeding the 97-per-cent level. Average throughput levels at the mill are expected to increase to the nominal rate of 2,000 tonnes per day, with the potential existing to increase throughput above this level.

Tony Makuch, president and chief executive officer of Lake Shore Gold, commented: "Today represents a major achievement for Lake Shore Gold with the declaration of commercial production at Timmins mine effective Jan. 1, 2011. Reaching commercial production is an important milestone for driving value creation and results from our exploration, development and operating success. We have made rapid progress at Timmins mine, going from commencing advanced exploration to commercial production in roughly three years. At our mill, head grades continue to be strong and recoveries are consistently better than we expect, averaging around the 97-per-cent level. Over the last two months of the year we exceeded our target to exit 2010 producing at an average rate of 10,000 ounces per month at the mill."

We seek Safe Harbor.