Mr. Tony Makuch reports

LAKE SHORE GOLD REPORTS CASH OPERATING COSTS OF US$630 PER OUNCE FOR FIRST QUARTER 2014, BETTER THAN FULL-YEAR 2014 GUIDANCE

Lake Shore Gold Corp. has released its preliminary cash operating costs and all-in sustaining costs for the first quarter of 2014. Final numbers for these measures will be available on May 7, 2014, when the company releases its full first quarter 2014 financial results. Preliminary cash operating cost per ounce sold for the first quarter of 2014 is approximately $630 (U.S.) (including $33 (U.S.) per ounce for royalties) better than the company's guidance for full-year 2014 of $675 (U.S.) to $775 (U.S.). AISC per ounce sold for the first quarter of 2014 is expected to be approximately $970 (U.S.) per ounce, in the low end of the company's target range for the year of between $950 (U.S.) and $1,050 (U.S.) per ounce. Total cash production costs for the first quarter of 2014 are estimated at approximately $30.0-million.

Based on the preliminary estimates, cash operating cost per ounce for the first quarter of 2014 improved by 36 per cent from the first quarter of 2013, while AISC improved by 37 per cent. The cost estimates follow the release on April 3, 2014, of the company's first quarter 2014 production results, which totalled 44,600 ounces, an increase of 92 per cent from the first quarter of 2013.

Tony Makuch, president and chief executive officer of Lake Shore Gold, commented: "After beating our cost guidance in 2013, we have gotten off to a good start this year with our cash operating costs during the first quarter coming in below our full-year target range. Our unit cost performance, in part, reflects strong production volumes for the quarter, as well as our ongoing commitment to effectively managing our costs in order to build our financial strength in support of both our current operations and our long-term growth. Based on our production and costs so far in 2014, we have been able to increase our cash and bullion by about $7.0-million to $41.0-million, while also repaying approximately $3.7-million of debt and making a $3.2-million interest payment on our convertible debentures at the end of March. As we move forward, we are well positioned to achieve our guidance for the full year, including production of 160,000 to 180,000 ounces of gold with cash operating costs of between $675 (U.S.) and $775 (U.S.) per ounce and AISC of $950 (U.S.) to $1,050 (U.S.) per ounce."

                PRODUCTION AND CASH COSTS

                          Q1     Q2     Q3     Q4     Q1
                        2013   2013   2013   2013   2014
Production (oz)
Timmins West          18,700 24,200 22,600 41,600 33,900
Bell Creek             4,500  6,600  6,300 10,100 10,700
Total                 23,200 30,800 28,900 51,700 44,600
Gold poured (oz)      20,500 31,800 25,900 51,400 45,700
Gold sold (oz)        26,100 27,600 32,300 49,600 42,900
Avg. price (U.S.$/oz) $1,630 $1,409 $1,324 $1,261 $1,294
Costs (U.S.$/oz sold)
Cash operating           982    908    701    609    630
All-in sustaining      1,550  1,257  1,027    849    970

Details of the company's financial performance, including final capital and operating cost numbers, will be included in its first quarter 2014 financial results to be released on May 7, 2014, before the market opens. A conference call and webcast will be held at 3 p.m. that afternoon to discuss the first quarter 2014 results with the webcast available on the company's website. The company's annual general meeting of shareholders is also being held on May 7, 2014, and will commence at 10 a.m. EST at the TMX Broadcast Centre in Toronto, Ont. A webcast of the AGM will also be available on the company's website.

Qualified person

Scientific and technical information contained in this press release related to mine operations 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 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.