Growing Gold Production in the Timmins Camp 1 F act Sheet Spring 2013 TSX NYSE MK T LSG In 2013 Lake Shore Gold is poised for strong production growth improved cash costs sharply lower capital spending and by the fourth quarter of the year net free cash fow The T immins W est Mine A new mine in the historic T immins Gold Camp Lake Shore Gold TSX NYSE MKT LSG is a rapidly growing gold producer based in the centuryold T immins Gold Camp In 2012 the Company met its production guidance producing 85782 ounces of gold V ery importantly it achieved its development and expansion objectives In December 2012 the frst phase of the Company s mill expansion was completed which increased its processing ca pacity by 25 to 2500 tonnes per day The Company also made progress with the second phase of the mill expansion to 3000 tonnes per day with completion expected during the third quarter of 2013 Supported by higher throughput levels and increased mine development the Company is on track to increase production by at leas t 40 in 2013 to between 120000 and 135000 ounces of gold At the same time that production is increasing cash operating costs ar e expected to improve to between US800 and US875 per ounce including royalties Following a heavy year of capital spending in 2012 the spending requirement will decline by close to 50 in 2013 to approximately 90 million The combination of higher produ ction improved costs and lower capital requirements is expected to lead to net free cash fow by the fourth quarter of 2013 With T immins W est Mine advancing towards full production and the Company s mill operating at 3000 tonnes per day starting in the third quarter this year production in 2014 is expected to increase further to at least 140000 ounces with cash costs below US700 per ounce Entering 2014 the Company s expects to generate signifcant free cash fow at the same time that it is paying down debt Lake Shore Gold s top priorities are achieving its targets for production costs and capital investment leading to net free cash fow The Company also has a number of other highlyprospective projects which are 100 owned and offer the potential for future gro wth LAKE SHORE GOLD CORP