16:55 EST Thursday, December 17, 2009

TORONTO, ONTARIO--(Marketwire - Dec. 17, 2009) - Lake Shore Gold Corp. (TSX:LSG) ("Lake Shore Gold" or the "Company") today reported that the Company has completed the previously announced agreement with Goldcorp Canada Ltd. ("Goldcorp"), manager of the Porcupine Gold Mines Joint Venture ("PJV"), and Goldcorp Inc., for the purchase of approximately 28 square kilometers of prospective exploration property (the "Bell Creek West" properties) in the surrounding vicinity of Lake Shore Gold's 100% owned Bell Creek Complex (See Figure 1). The properties, which range from a project with historic resources, the Marlhill Mine, to early stage exploration targets, are all located along the New Mine Trend, host of the PJV's Hoyle Pond Mine and Pamour operations.

Tony Makuch, President and Chief Executive Officer of Lake Shore Gold, commented: "The Bell Creek West acquisition provides us with a number of new, high-potential targets along the same geological trend as our Bell Creek Complex, all within close proximity to our Bell Creek shaft and the ramp we are driving from Bell Creek to Schumacher and Vogel. In addition, the land we have acquired around Bell Creek will also support our expansion plans for the Bell Creek Mill."

Consideration for the transaction totals $20 million, including $15 million of cash and 1,596,023 Lake Shore Gold common shares. The PJV has obtained a 2% net smelter royalty relating to any future production from the acquired properties. In addition to the 1,596,023 shares of the Company received by Goldcorp through the Bell Creek West transaction, Goldcorp has also exercised warrants with a strike price of $2.41 per share to acquire 2,000,000 common shares of the Company. The warrants had a two year term and were issued to Goldcorp on December 18, 2007 as partial consideration for the sale of the Bell Creek Mine and Mill to Lake Shore Gold. Proceeds to the Company from the exercise of the warrants were $4.8 million.

Lake Shore Gold's Bell Creek Complex is a highly prospective land package comprised of the Bell Creek Mine and Mill as well as the Schumacher and Vogel properties. The Company has completed approximately 52,000 metres ("m") of surface drilling at the Bell Creek Complex in 2009 and is advancing an underground advanced exploration program. Recent exploration results at Bell Creek have extended gold mineralization to a plunge length of 1,250 m and included intercepts of 12.63 grams per tonne ("gpt") over 11.65 m, 12.67 gpt over 14.40 m, and 5.13 gpt over 26.40 m.

About Lake Shore Gold

Lake Shore Gold is a rapidly growing mining company with large land positions on the west and east sides of the Timmins Gold Camp. The Company is carrying out an underground advanced exploration program at its 100%-owned Timmins Mine project, where it has both a shaft and a ramp, and recently commenced advanced exploration work at the adjacent Thunder Creek property. The Bell Creek Mill, located on the east side of Timmins, has been refurbished to a capacity of 1,500 tonnes per day. The Company is also making progress with an underground advanced exploration program at its Bell Creek Complex, including the Bell Creek Mine, Schumacher and Vogel properties, which is moving forward to become the Company's second mining operation in the Timmins Camp. The Company continues to invest aggressively in exploration primarily in Timmins and in select other areas of Northern Ontario and Quebec, and also owns a large land position in Mexico. The Company's common shares trade on the TSX under the symbol LSG.