Mr. Tony Makuch reports

LAKE SHORE GOLD REPORTS RECORD PRODUCTION OF 52,300 OUNCES IN SECOND QUARTER 2014

Lake Shore Gold Corp. had record quarterly and six-month production in the second quarter and first half of 2014.

• Record quarterly gold production in second quarter 2014 of 52,300 ounces, a 70-per-cent increase from second quarter 2013;
• Record six-month gold production in the first half of 2014 of 96,900 ounces, a 79-per-cent increase from the first half of 2013;
• Company now targeting top end of production guidance for 2014 of 160,000 to 180,000 ounces of gold;
• Approximately $17-million of debt repaid in the first half of 2014;
• Cash and bullion totalled approximately $53.0-million at June 30, 2014.

A total of 52,300 ounces of gold was produced in second quarter 2014, an increase of 70 per cent from second quarter 2013. Mill throughput during second quarter 2014 totalled 309,800 tonnes (approximately 3,400 tonnes per day) at an average grade of 5.4 grams per tonne, with average mill recoveries of 96.6 per cent. The company both poured and sold 53,500 ounces of gold during second quarter 2014, with an average selling price of $1,289 (U.S.) per ounce. The company's cash and bullion totalled approximately $53.0-million at June 30, 2014.

In the first half of 2014, the company produced 96,900 ounces of gold, an increase of 79 per cent from 54,000 ounces in the first half of 2013. Total mill throughput was 593,600 tonnes (approximately 3,280 tonnes per day) at an average grade of 5.3 grams per tonne. Gold poured during the first half of 2014 totalled 99,200 ounces, while the company sold 96,500 ounces of gold at an average selling price of $1,291 (U.S.) per ounce. Based on results in the first half of 2014, the company now expects to achieve the top end of its 2014 production guidance of 160,000 to 180,000 ounces of gold.

                               Three months ended          Six months ended
                          June 30,  March 31,  June 30,   June 30,  June 30,
                             2014       2014      2013       2014      2013

Tonnes milled             309,800    283,800   230,920    593,600   428,560
Recovery (per cent)          96.6       96.6      95.6       96.6      95.6
Grade (grams/tonne)           5.4        5.1       4.3        5.3       4.1
Gold ounces
Production                 52,300     44,600    30,800     96,900    54,000
Poured                     53,500     45,700    31,800     99,200    52,300
Sales                      53,500     43,000    27,600     96,500    53,700
Gold price (U.S. $/ounce)  $1,289     $1,294    $1,409     $1,291    $1,516
Gold price ($/ounce)        1,404      1,430     1,441      1,416     1,539

Tony Makuch, president and chief executive officer of Lake Shore Gold, commented: "We are very pleased with our operating results in the first half of 2014, which include production, throughput and average grades all meeting or exceeding expected levels. Driven by our strong performance, we have generated significant free cash flow, with our cash and bullion rising to approximately $53-million at June 30, 2014. We have also repaid approximately $17-million of debt so far in 2014, including a $10-million prepayment on our standby line of credit on June 4. Supported by our growing financial strength, we have resumed drilling at our mines to grow reserves and resources, and extend mine life. We are also advancing work at a number of our key growth projects and will soon commence drilling at our 144 property, a very exciting exploration target located adjacent to our Thunder Creek deposit.

"Looking ahead, we now expect to achieve the top end of our full-year 2014 production guidance of 160,000 to 180,000 ounces of gold. In addition to building on our track record of meeting and exceeding our key targets, our priorities for increasing value include continuing to grow our cash position and further reducing debt. We are also working to extend mine life, and to realize value from our many attractive growth projects and exploration properties, all located in close proximity to our existing mines."

The company's full financial results for second quarter 2014 and the first half of 2014 will be released before the market opens on July 31, 2014, with a conference call and webcast to follow that afternoon at 3 p.m. Details of the conference call and webcast will be released shortly.

Qualified person

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 National Instrument 43-101.

We seek Safe Harbor.