Mr. Tony Makuch reports

LAKE SHORE GOLD REPORTS HIGHER COMMERCIAL PRODUCTION FROM TIMMINS MINE IN THIRD QUARTER, MAINTAINS TARGET PRODUCTION RANGE FOR 2011

Lake Shore Gold Corp. has released higher commercial production numbers from the company's 100-per-cent-owned Timmins mine in the third quarter of 2011 compared with the first two quarters of the year. Following are details of the company's performance during the third quarter and first nine months of 2011:

• Total gold produced for third quarter 2011 of 18,833 ounces, including growth in commercial production at Timmins mine of 9 per cent and 24 per cent from the first and second quarters of 2011, respectively; gold poured during the third quarter of 16,693 ounces (with the rest of third quarter recovered ounces to be poured during the fourth quarter);
• Nine-month gold production of 58,775 ounces, with total gold poured year to date of 60,016 ounces;
• Gold sold in third quarter totalled 16,570 ounces at an average price of $1,726 (U.S.) per ounce, while nine-month gold sales were 69,635 ounces at an average price of $1,501 (U.S.) per ounce.

Tony Makuch, president and chief executive officer of Lake Shore Gold, commented: "We are very encouraged about the progress that has been made and what we expect to achieve over the next several months. Looking at the key areas of our operations:

"Milling: our mill is now meeting and exceeding expected performance levels. Throughput levels averaged over 2,000 tonnes per day in September and, to date in October, are averaging over 2,100 tonnes per day. A total of 173,877 tonnes were milled during the third quarter of 2011 at an average grade of 3.49 grams per tonne (485,343 tonnes at an average grade of 3.92 grams per tonne for the nine months ended Sept. 30, 2011).

"Timmins mine: we increased production during the third quarter at Timmins mine compared to the previous two quarters. Our grades in the UM1 zone are reconciling very closely to the block model. We started in a lower-grade part of the UM1 between the 585 and 610 levels, with grades matching well to the estimate of 4.80 grams per tonne. Production from the UM1 accounted for approximately 27 per cent of total mill feed during the third quarter. We expect both total tonnes and average grades to increase during the fourth quarter of 2011. Also during the third quarter, we made excellent progress with infrastructure work intended to set us up well for mining in 2012. For example, we advanced sill development in the UM1 to the 545 level in support of mining 130,000 tonnes of UM1 material early next year. We also have ramped from the 650 level up to the 480 level and down to the 690 level. Our goal is to reach the 730 level by the end of the year, at which time we will begin work to establish multiple mining horizons into the UM1 zone.

"Thunder Creek: we processed significant development material as part of the Thunder Creek advanced exploration program during the third quarter as we prepared to commence a bulk sample off the 730 level later this month. The target area is expected to have attractive grades and will contribute to increased output from Thunder Creek during the fourth quarter.

"Bell Creek: lower tonnage was processed from the Bell Creek advanced exploration program during the third quarter. Both tonnes and average grades are expected to improve during the fourth quarter as we commence mining the North A zone around the 370 level.

"Production target: based on anticipated throughput levels at Bell Creek mill, higher tonnes and grades from the Timmins mine, UM1 zone, and increased output from advanced exploration activities at Thunder Creek and Bell Creek mine, we expect our production in 2011 to be within the low to midpoint of our previously announced target range of 85,000 to 100,000 ounces of gold.

"Resource growth: production growth is one part of the Lake Shore Gold story. We are also targeting significant growth in resources over the next six months, with total resources expected to reach 6.0 [million] to 8.0 million ounces from 1.4 million ounces in the measured and indicated categories and 1.9 million ounces of inferred currently. In support of this target, we completed drilling in September for an initial resource at Thunder Creek, which is estimated for release during the fourth quarter, commenced work at our Fenn-Gib project for an initial resource to be announced by the first quarter of 2012, and continued drilling and other work in order to update our existing reserves and resources at Timmins mine, Bell Creek and the Thorne property (Gold River trend) by the end of March, 2012."

                                                                            
                          PRODUCTION RESULTS

                                       Three months              Nine months
                               ended Sept. 30, 2011     ended Sept. 30, 2011
Gold sales (ounces)                                                         
Timmins mine                                 11,054                   46,425
Bell Creek                                    3,845                   17,003
Thunder Creek                                 1,671                    6,084
Total gold sales                             16,570                   69,512
Gold recovered (ounces)                                                     
Timmins mine                                 11,909                   32,486
Bell Creek                                    3,491                   17,792
Thunder Creek                                 3,441                    8,497
Total gold recovered                         18,833                   58,776
Gold poured (ounces)                         16,693                   60,014
Grade (grams per tonne)                                                     
Timmins mine                                   3.43                     3.73
Bell Creek                                     3.69                     4.48
Thunder Creek                                  3.48                     3.65
Average grade                                  3.49                     3.92
Mill throughput (tonnes)                    173,877                  485,236
Tonnes per day                                1,890                    1,777

Lake Shore Gold will issue its full third quarter 2011 operating and financial results on Nov. 9, 2011. A conference call to review the results will follow on Nov. 10, 2011, at 10 a.m. Details related to the call will be provided later in October.

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