Mr. Tony Makuch reports

LAKE SHORE GOLD REPORTS SIGNIFICANT NEW DRILL INTERCEPTS AT FENN-GIB OPEN-PIT PROJECT INCLUDING 1.93 GPT GOLD OVER 241.20 METRES, RESULTS HIGHLIGHT POTENTIAL FOR MAJOR RESOURCE EXPANSION

Lake Shore Gold Corp. has released the results of 26 holes (15,846 metres) at the company's wholly owned Fenn-Gib project. The Fenn-Gib project, which is located approximately 60 kilometres east of Timmins along the eastern extension of the Destor Porcupine (DPFZ) and Pipestone fault zones (PFZ), has the potential to host significant open-pit and underground resources. The current drill program is being conducted to expand and infill the existing mineralized structure with a goal of increasing the total resources at the project from the current level of 1.30 million ounces gold (40.8 million tonnes grading 0.99 gram per tonne) in the indicated category and 750,000 ounces Au (24.5 million tonnes at 0.95 gram per tonne) in the inferred category.

Highlights:

• Drilling in the west portion of current open-pit resource intersects thick, high-grade intercepts in untested gaps and confirms expansion potential to north and west.
  • Key intercepts include 1.93 grams per tonne gold over 241.20 metres, 1.26 g/t Au over 324.00 m, 0.89 g/t Au over 260.50 m and 0.73 g/t Au over 284.0 m.
• Drilling to depth expands mineralization up to 200 metres below current lower limit of resource.
  • Intercepts include 1.02 g/t Au over 190.50 m, 2.48 g/t Au over 50.10 m, 0.70 g/t Au over 183.50 m, including 2.48 g/t Au over 50.10 m, and 0.68 g/t Au over 177.10 m.
• Drilling in the east portion of the resource extends Main zone mineralization to a minimum of 200 metres eastward.
  • Intercepts include 1.01 g/t Au over 52.50 m, 1.66 g/t Au over 41.0 m, 0.87 g/t Au over 71.8 m, 0.73 g/t Au over 68.80 m and 1.74 g/t Au over 6.00 m.
• Additional exploration targets identified (G-101 zone, Talisman shaft and Central Syenite zone) highlight the potential for significant new discoveries within 1.5 kilometres of the current resource.
• Silver assaying indicates overall average grade of one g/t to two g/t silver and gold-to-silver ratio of around 1 to 1 (silver values not included in current resource).

Tony Makuch, president and chief executive officer of Lake Shore Gold, commented: "We are extremely pleased with the most recent drill results which, when factored into new pit optimization studies, highlight the potential to substantially grow resources at the Fenn-Gib project. Based on the drilling we have completed since acquiring Fenn-Gib last August, we have now expanded the known mineralization by 200 metres to the north, to the east and to depth, with the deposit remaining open. We have also identified a number of new exploration targets, all within 1.5 kilometres of the current resource. Also encouraging are the opportunities that exist to establish a low-strip-ratio starter pit and to apply high silver values to the existing resource, both of which could significantly enhance the economics of the project. Based on what we have seen so far, we are delighted to have Fenn-Gib in our portfolio and believe that the project has excellent potential to become a successful open-pit mining operation in the same category as other projects currently being developed in Northern Ontario and Quebec."

Significant results from the most recent drilling include 1.26 g/t Au over 324.00 m, including 2.27 g/t Au over 50.50 m, and 3.41 g/t Au over 63.0 m, including 8.19 g/t Au over 9.70 m in FG-12-05; 1.93 g/t Au over 241.20 m, including 8.00 g/t Au over 18.00 m, 3.82 g/t Au over 32.70 m and 3.66 g/t Au over 21.0 m in FG-12-15; 0.73 g/t Au over 284.0 m in FG-12-14; and 0.89 g/t Au over 260.50 m in FG-12-07. These four holes were drilled in the west portion of the current open-pit resource and successfully confirmed that considerable potential exists to expand the resource to both the north and west.

FG-12-15 and FG-12-14 intercepted the Main zone near the west limit of the current resource approximately 100 metres below previously reported FG-11-04, which had an intercept of 1.31 g/t over 414.0 metres. Drilling to the west and below these intercepts is extremely limited, and the potential for further expansions of the zone in both directions is considered excellent. FG-12-05 was collared 75 metres north of FG-12-04 and not only confirmed the previous intercept for the Main zone in FG-12-04, but also extended the recently discovered Footwall zones in FG-11-04 by approximately 75 metres to the east.

Significant results from drilling below the current resource include 1.02 g/t Au over 190.50 m, including 3.69 g/t Au over 14.00 m, in FG-12-19; 0.70 g/t Au over 183.50 m, including 2.48 g/t Au over 50.10 m, in FG-12-33; and 0.68 g/t Au over 177.10 m, including 0.94 g/t Au over 82.00 m, in FG-12-34. These holes are among the deepest to test the deposit to date and strongly confirm the down plunge extension of the Main zone by a minimum of 200 metres below the current resource. The mineralized system is still considered open to depth.

Drilling in the east portion of the resource successfully extended the Main zone mineralization to the east by 200 metres. Key intercepts include 1.01 g/t Au over 52.50 m in FG-12-31, 1.66 g/t Au over 41.0 m in FG-12-29, 0.87 g/t Au over 71.80 m in FG-12-22, and 0.73 g/t Au over 68.80 m and 1.74 g/t Au over 6.00 m in FG-12-17.

Drilling at the Fenn-Gib project also involved assaying for silver. The results indicate elevated silver values with key intersections including 1.03 g/t silver over 324.00 m in FG-11-05, 1.20 g/t silver over 140.00 m in FG-11-06, 0.74 g/t silver over 260.50 m in FG-11-07 and 0.67 g/t over 189.50 m in FG-11-08. Composites for silver across the mineralized envelope average 1.00 g/t to 2.00 g/t with a gold-to-silver ratio of around 1 to 1. These silver grades are higher than those found in most gold deposits in the Timmins camp, where silver values are typically less than 0.5 g/t with ratios closer to 6 to 1.

The company has also identified a number of additional high-potential exploration targets, all located within a 1.5-kilometre radius of the current resource. Key targets to the west include the area surrounding the historic Talisman shaft and the G-101 zone. The Talisman shaft is located approximately 500 metres west of the current resource and along the interpreted extension of the Main zone. The G-101 zone showing is located 1.5 kilometres to the southwest on a potential new structure. Limited past drilling at the G-101 zone with partial sampling was completed by NAR Resources Ltd. in 1995, and included intercepts of 4.91 g/t over 11.98 m in historic drill hole C4-3, 3.25 g/t over 5.18 m in historic hole C4-5 and 1.18 g/t over 10.06 m in C4-5A. The key targets to the east include the direct east extension of the Main zone from the current resource as well as a series of felsic intrusives located approximately 1.5 kilometres to the southeast known as the Central Syenite target. Total drilling along the east extension and Central Syenite target is extremely limited although past results in short holes at the Central Syenite zone have obtained values of up to 9.0 g/t over 3.0 metres.

Current work at the project includes further research and field surveys to gain additional information regarding the newly identified exploration targets, as well selective drilling to evaluate the overall expansion potential at the project.

Quality control

The company's qualified persons for the surface drilling and check sampling programs being completed on the Fenn-Gib property are Stephen Conquer, PGeo, and Bob Kusins, PGeo. As qualified persons, they have prepared or supervised the preparation of the scientific or technical information, and have verified the data disclosed in this press release. Both Mr. Conquer and Mr. Kusins are employees of Lake Shore Gold.

Lake Shore Gold has implemented a quality-control program to ensure best practice in the sampling and analysis of the drill core. NQ-size drill core is saw cut; half the drill core is sampled in standard intervals while 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 Minerals prep lab located in Timmins, Ont., and the pulps shipped to ALS Minerals assay laboratory in either Vancouver, B.C., or Val d'Or, Que. Assays have been completed by ALS Minerals using a standard fire assay with a 30-gram aliquot and an AA finish. Samples with assay results above 10.0 g/t are reanalyzed using a gravimetric finish. ALS Minerals is an ISO 9001-2000-registered laboratory preparing for ISO 17025 certification.

There is no guarantee that drill results reported in this news release will lead to the identification of a deposit that can be mined economically, and further work is required to identify minable reserves at the Fenn-Gib project.

  FENN-GIB PROPERTY SIGNIFICANT ASSAY RESULTS, NEW DRILL 
                   RESULTS, APRIL, 2012                                                                       

Hole              From      To  Length  Au assay  Ag assay
No.                 (m)     (m)     (m)     (g/t)     (g/t)

FG-11-05         27.00  351.00  324.00      1.26      1.03
includes         69.50  120.00   50.50      2.27      1.39
and includes    229.90  254.00   24.10      2.43      0.84
                495.60  502.60    7.00      1.63      0.32
                570.00  633.00   63.00      3.41      0.75
includes        588.80  623.00   34.20      4.47      0.90
includes        609.00  618.70    9.70      8.19      1.35
                644.00  662.00   18.00      1.77      0.42
FG-11-06          6.00  146.00  140.00      0.97      1.20
                297.60  304.70    7.10      2.45      0.77
                494.00  500.00    6.00      1.73      0.45
FG-11-07         12.00  272.50  260.50      0.89      0.74
includes         46.00   87.00   41.00      1.93      0.89
                539.40  561.00   21.60      1.05      0.44
FG-11-08         27.00  216.50  189.50      0.67      0.67
includes         50.00   71.00   21.00      2.08      0.99
                346.00  351.00    5.00      1.91      0.46
                541.50  580.90   39.40      2.24      0.67
FG-11-09        325.20  342.50   17.30      0.85      4.35
                417.20  436.80   19.60      0.93      1.21
FG-12-10         84.00   92.00    8.00      0.70      1.00
                133.50  144.50   11.00      0.46      2.13
FG-12-11         46.10   81.10   35.00      0.50      1.05
                247.00  262.00   15.00      0.91      0.36
                332.50  336.70    4.20      1.55      0.66
                414.00  422.00    8.00      1.04      0.43
FG-12-13        304.00  392.40   88.40      0.70      1.32
includes        304.00  340.90   36.90      0.90      0.84
FG-12-14        194.00  478.00  284.00      0.73      0.86
includes        245.00  265.00   20.00      1.46      2.37
and includes    464.00  478.00   14.00      2.42      0.36
                512.00  525.80   13.80      0.53      0.44
FG-12-15        173.00  181.60    8.60      1.54      1.99
                230.00  471.20  241.20      1.93      1.03
includes        251.00  269.00   18.00      8.00      2.05
and includes    370.40  403.10   32.70      3.82      0.81
and includes    432.00  453.00   21.00      3.66      0.64
                494.00  500.00    6.00      2.33      1.03
FG-12-17        283.50  289.50    6.00      1.74     17.73
                380.20  449.00   68.80      0.73      0.55
includes        380.20  408.00   27.80      1.13      0.79
FG-12-19        490.50  681.00  190.50      1.02      1.15
includes        621.00  635.00   14.00      3.69      3.71
FG-12-21        616.40  650.40   34.00      0.76      1.23
includes        616.40  625.20    8.80      2.04      3.31
FG-12-22        382.70  454.50   71.80      0.87      0.99
includes        404.50  454.50   50.00      1.12      1.14
includes        404.50  423.60   19.10      2.03      1.85
FG-12-23        238.50  243.00    4.50      3.75     43.90
                387.70  438.00   50.30      0.72      0.70
includes        410.00  438.00   28.00      1.01      0.89
FG-12-24        553.50  628.00   74.50      0.58      1.71
includes        561.00  578.00   17.00      1.15      1.05
includes        561.00  569.00    8.00      2.03      1.36
FG-12-25        476.40  496.50   20.10      1.39      0.78
includes        476.40  485.50    9.10      2.09      0.78
FG-12-27        182.00  261.40   79.40      0.63      1.50
includes        233.40  261.40   28.00      0.82      1.86
FG-12-29        351.50  392.50   41.00      1.66      1.27
includes        371.40  392.50   21.10      2.96      1.30
FG-12-31        465.40  517.90   52.50      1.01      1.43
includes        485.20  517.90   32.70      1.43      1.38
FG-12-32        174.70  196.80   22.10      1.01      0.64
includes        180.60  185.60    5.00      2.48      1.60
FG-12-33        525.60  709.10  183.50      0.70      1.24
includes        602.00  652.10   50.10      2.48      2.14
includes        637.90  652.10   14.20      3.78      1.75
FG-12-34        540.90  718.00  177.10      0.68      0.79
includes        598.00  680.00   82.00      0.94      0.77
includes        654.00  680.00   26.00      1.32      0.81

Notes:                                                                      
(1) FG-12-12, FG-12-26, FG-12-28 and FG-12-30 were stopped early due to     
    excess deviation and did not reach intended target.                     
(2) FG-12-04 was extended from 651 m to 836 m and did not return any           
    significant values.                                                     
(3) FG-12-16, FG-12-18 and FG-12-20 did not return any significant values.   
(4) True widths are not reported at this time.                              
(5) Assay results are reported uncut.

We seek Safe Harbor.