Mr. Tony Makuch reports

LAKE SHORE GOLD ANNOUNCES NORMAL COURSE ISSUER BID APPROVED BY TSX

Lake Shore Gold Corp. has received Toronto Stock Exchange approval for its notice of intention to make a normal course issuer bid (NCIB) to purchase for cancellation up to $10.35-million principal amount of its 6.25 per cent convertible debentures due Sept. 30, 2017. The NCIB will take place over a one-year period, with the principal amount of debentures subject to the NCIB representing up to 10 per cent of the debentures' public float as of Dec. 9, 2015.

Tony Makuch, president and chief executive officer of Lake Shore Gold, commented: "The approval of the NCIB positions us to move forward with purchases of our debentures. Deleveraging our balance sheet continues to be a key objective for our company, one that is being achieved at the same time that we have significantly grown our cash position. We regard the purchase of the debentures as an efficient use of cash, which will lead to lower debt levels and reduced debt service obligations going forward."

The company may purchase the debentures at prevailing market prices and by means of open market transactions through the facilities of the TSX. In accordance with the applicable TSX rules, daily purchases under the NCIB will not exceed $24,000 in principal amount, which represents 25 per cent of the average daily trading volume of the debentures (being $99,800 principal amount of debentures). The company may make, once per calendar week, a block purchase of debentures not owned, directly or indirectly, by insiders of the company, that exceeds the daily repurchase restriction. The NCIB will commence on Dec. 15, 2015, and will remain in effect until the earlier of Dec. 14, 2016, or the date on which the company has purchased the maximum number of debentures permitted under the NCIB.

The company has entered into an automatic purchase plan with a broker in order to facilitate repurchases of debentures under the NCIB, for up to a maximum of $10.35-million principal amount of debentures through the facilities of the TSX and alternative Canadian marketplaces. Under the plan, the company's broker may purchase debentures under the NCIB when the company would ordinarily not be permitted to, due to self-imposed blackout periods.

We seek Safe Harbor.