Mr. Tony Makuch reports

LAKE SHORE GOLD'S PRELIMINARY 2013 OPERATING COST PER OUNCE SOLD BEATS COMPANY GUIDANCE

Lake Shore Gold Corp. has released its preliminary cash operating cost and all-in sustaining cost per ounce sold for the full-year and fourth quarter 2013. Final numbers for these measures will be available in March, 2014, following completion of the company's year-end 2013 audit. Preliminary cash operating cost per ounce sold for the full year 2013 is approximately $770 (U.S.) (including $32 (U.S.) per ounce for royalties), better than the company's guidance of $800 (U.S.) to $875 (U.S.). All-in sustaining cost for the year is expected to be approximately $1,135 (U.S.) per ounce sold. Preliminary total production costs for 2013 are estimated at $107-million.

For the fourth quarter 2013, cash operating cost per ounce sold is expected to be approximately $605 (U.S.) per ounce (including $29 (U.S.) per ounce for royalties), based on preliminary total production costs of $31.5-million. All-in sustaining cost for the fourth quarter of 2013 is expected to be approximately $835 (U.S.) per ounce sold.

Tony Makuch, president and chief executive officer of Lake Shore Gold, commented: "We have completed a very successful year in 2013, including four consecutive quarters of cost improvements, four consecutive quarters of improved grades, increased mill throughput volumes that were 60 per cent higher at year-end than when the year began and record production of 134,600 ounces of gold (previously announced on Jan. 7, 2014), which achieved the top end of our guidance for the year. We also increased financial flexibility and strengthened our balance sheet by restructuring our standby line of credit, generating significant net free cash flow during the fourth quarter and by paying down approximately $20-million of debt during the year.

"Entering 2014, production is expected to grow to between 160,000 and 180,000 ounces, our cost performance will remain strong and capital investment levels are expected to decline significantly from 2013. In addition, we are launching a new exploration program within our mines focused on replenishing and increasing our resources and reserves. The program, which involves an initial investment of approximately $3-million, is focused on identifying extensions and new resources at both Timmins West mine and Bell Creek. Key targets of the program include: depth extensions, high-potential areas along strike and exploration of a second fold-nose structure at Timmins deposit; drilling at depth and to the southwest toward 144 at Thunder Creek; and confirmation drilling below the 775-metre level and along parallel structures in the current mining area at Bell Creek."

                      PRELIMINARY PRODUCTION AND COSTS
 
                                 Q1 2013  Q2 2013  Q3 2013  Q4 2013     2013
Production (oz)
Timmins West                      18,700   24,200   22,600   41,600  107,100
Bell Creek                         4,500    6,600    6,300   10,100   27,500 
Total                             23,200   30,800   28,900   51,700  134,600
Gold poured (oz)                  20,500   31,800   25,900   51,400  129,600
Gold sold (oz)                    26,100   27,600   32,300   49,600  135,600
Average price (US$/oz)            $1,630   $1,409   $1,324   $1,261   $1,377
Costs (US$/oz sold)
Cash operating                       982      908      701      605      770
All-in sustaining                  1,558    1,257    1,027      835    1,135

Qualified person

Scientific and technical information contained in this press release has been reviewed and approved by Dan Gagnon, PGeo, senior vice-president, operations, and Natasha Vaz, PEng, vice-president, technical services, both of whom are employees of Lake Shore Gold, and qualified persons as defined by National Instrument 43-101 -- standards of disclosure for mineral projects.

Scientific and technical information related to resources, drilling and all matters involving mine production geology contained in this press release, or source material for this press release, was reviewed and approved by Eric Kallio, PGeo, vice-president, exploration. Mr. Kallio is an employee of Lake Shore Gold, and is a qualified person as defined by NI 43-101.

We seek Safe Harbor.