Mr. Tony Makuch reports

LAKE SHORE GOLD REPORTS SMOKE FROM FOREST FIRE RESULTS IN PRECAUTIONARY SUSPENSION OF MINING AT TIMMINS WEST MINE, MILL PRODUCTION UNAFFECTED

As a result of high winds and smoke from a forest fire approximately 15 kilometres southwest of Lake Shore Gold Corp.'s Timmins West mine, operations at the mine have been temporarily suspended. The company also announced that it has suspended all surface exploration work. Production from the company's milling facility and mining operations at the Bell Creek mine, both located on the east side of Timmins, is not affected by the forest fire. The company currently has a stockpile of 16,000 tonnes of ore available for processing at the mill, representing approximately eight days of production, with another 6,000 tonnes of ore on surface at the Timmins West mine and 35,000 tonnes of low-grade material also stockpiled at the mill.

Tony Makuch, president and chief executive officer of Lake Shore Gold, commented: "Nothing is more important than the health and safety of our people, and, with the temporary suspension of operations at Timmins West mine, we have taken the steps necessary to ensure that no one is at risk. In terms of production, with the large stockpile we have at the mill, we expect there to be no impact on our processing activities. Our production guidance for the second quarter and full-year 2012 remain unchanged. We are very pleased with the level of professionalism and co-operation we are receiving from the Ontario provincial police, City of Timmins and Ontario Ministry of Natural Resources and believe that everything is being done to alleviate the situation as quickly as possible."

We seek Safe Harbor.