Mr. Tony Makuch reports

LAKE SHORE GOLD REPORTS FULL YEAR AND FOURTH QUARTER 2015 PRODUCTION RESULTS, COMPANY RELEASES 2016 GUIDANCE

Lake Shore Gold Corp. has released production results for the full year and fourth quarter of 2015.

Highlights

2015 gold production:

• 183,300 ounces sold;
• 179,600 ounces poured;
• 178,700 ounces recovered.

Q4 2015 gold production:

• 42,000 ounces sold;
• 42,800 ounces poured;
• 42,500 ounces recovered.

Guidance for 2016 includes:

• Production of 170,000 to 180,000 ounces;
• Cash operating cost per ounce sold better than $650 (U.S.);
• All-in sustaining cost per ounce sold below $950 (U.S.);
• Production costs, including royalties, of $125.0-million to $130.0-million;
• Cash and bullion of approximately $100.0-million at Dec. 31, 2015;
• First resource for 144 Gap zone on track for first quarter 2016.

Production results for full year 2015 include 183,300 ounces sold at an average selling price of $1,164 (U.S.) ($1,481) per ounce, 179,600 ounces poured and 178,700 ounces recovered. The company achieved record annual mill throughput in 2015, processing 1,307,200 tonnes at an average grade of 4.4 grams per tonne and average recoveries of 96.6 per cent. The company's cash and bullion at Dec. 31, 2015, totalled approximately $100.0-million.

Production results for the fourth quarter of 2015 include 42,000 ounces sold at an average selling price of $1,100 (U.S.) ($1,473) per ounce, 42,800 ounces poured and 42,500 ounces recovered. Mill throughput in Q4 2015 was a quarterly record, totalling 355,600 tonnes, with an average grade of 3.9 g/t and average recoveries of 96.4 per cent.

Tony Makuch, president and chief executive officer of Lake Shore Gold, commented: "Two thousand fifteen was another solid year for our company with strong production, record mill throughput and unit costs that compare favourably to target levels. Preliminary estimates for cash operating costs and all-in sustaining costs will be released around the middle of the month. In addition, we achieved considerable exploration success at our 144 Gap zone, acquired Temex Resources Corp., fully repaid our senior secured debt and grew our cash positon to $100-million. Looking at Q4 2015, we achieved record quarterly mill throughput, including an average of 4,270 tonnes per day in the month of December. The impact of record throughput was offset by a lower-than-expected average grade, mainly reflecting the underperformance of a large stope mined during the quarter.

"Turning to 2016, we will release an initial resource at the 144 Gap zone during the first quarter. 144 will remain an important priority, with our plan to develop into the eastern portion of the 144 Gap zone and to extract preproduction ounces during the second half of the year. Total production in 2016 is targeted at 170,000 to 180,000 ounces of gold, to include 160,000 to 170,000 ounces of commercial production and 10,000 to 15,000 ounces of non-commercial production from the 144 Gap zone. Our unit costs for 2016, based on commercial ounces sold, are expected to be similar to levels in 2015, with our guidance for cash operating costs and all-in sustaining costs remaining unchanged at better than $650 (U.S.) per ounce sold and below $950 (U.S.) per ounce sold, respectively. The 2016 unit cost guidance reflects estimated total production costs, including royalties, of $125.0[-million] to $130.0-million."

                               PRODUCTION RESULTS

                                    Three months ended       12 months ended                        
                           Dec. 31, Sept. 31,  Dec. 31,   Dec. 31,   Dec. 31,
                              2015      2015      2014       2015       2014
                        
Tonnes milled              355,600   325,000   331,500  1,307,200  1,245,900
Recovery (%)                  96.4      96.6      96.7       96.6       96.6
Grade (grams/tonne)            3.9       4.0       4.2        4.4        4.8
Gold ounces
Recovered                   42,500    40,600    43,200    178,700    185,600
Poured                      42,800    40,400    42,400    179,600    186,500
Sold                        42,000    42,800    41,200    183,300    183,300
Gold price (US$/ounce)       1,100     1,122     1,200      1,164      1,269
Gold price ($/ounce)         1,473     1,474     1,360      1,481      1,398

Qualified person

Scientific and technical information contained in this press release related to mine engineering and production has been reviewed and approved by Natasha Vaz, PEng, vice-president, technical services, who is an employee of Lake Shore Gold and a qualified person as defined by National Instrument 43-101.

Scientific and technical information related to resources, exploration 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, senior 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.