Lake Shore Gold drills 10.4 m of 11.2 g/t Au

The TC08-54 intercept displays a distinct style of mineralization, which could represent the upper portion of a new porphyry-hosted subzone. The intercept extends the Rusk zone by at least 160 metres farther down plunge from the previously released hole TC07-43, which returned 8.57 grams per tonne gold over nine metres (see the company's news release in Stockwatch dated March 31, 2008), with other intercepts being reported today extending it by at least another 100 metres farther up plunge and closer to surface. The depth of the intercept in hole TC08-54 is similar to the depth at the top of the best mineralized zones at the Timmins deposit owned 100 per cent by Lake Shore Gold.

Highlights included the following:

• Rusk/Porphyry zone (TC08-54) 657.65 to 684.00 at 5.90 grams per tonne gold over 26.35 metres, including 666.40 to 676.80 at 11.20 grams per tonne gold over 10.40 metres, including 666.40 to 669.40 at 25.99 grams per tonne gold over three metres, including 672.25 to 676.80 at 7.79 grams per tonne gold over 4.55 metres;
• Rusk zone (shallow level) (TC08-56) 231.35 to 235.10 at 2.37 grams per tonne gold over 3.75 metres, including 231.35 to 231.65 at 18.20 grams per tonne gold over 0.30 metre;
• Rusk zone (TC08-57) 601.30 to 602.20 at 12.54 grams per tonne gold over 0.90 metre.

Tony Makuch, president and chief executive officer of Lake Shore Gold, commented: "We are very encouraged that as we drill deeper at Thunder Creek, we continue to encounter new mineralization with attractive grades and have been able to significantly extend the Rusk zone both down and up plunge. Our deepest hole, TC08-54, is of particular interest, as it appears to represent a new mineralized system that has the potential to extend much further at depth. While more work remains to be done, Thunder Creek is clearly a highly prospective exploration target that could become an important new dimension to our Timmins project."

In August of 2008, Lake Shore Gold announced the beginning of a 22,000-metre diamond drilling program on the Thunder Creek property. The program was designed to be carried out intermittently with one to two drill rigs. Drilling is focused on the Rusk gold zone, and is also testing various other exploration targets across the property. A total of 7,101 metres in 15 holes were recently completed, and results from the first nine holes have been finalized and are included in this press release, with six holes yet to be reported. The drill program is continuing and will continue into 2009.

Hole               From       To   Length    Gold                  Comments
No.(i)               (m)      (m)      (m)   (g/t)

TC08-51                                              No significant results
TC08-52          179.10   179.95     0.85    4.68       Rusk (shallow level)
                 185.95   187.40     1.45    3.02       Rusk (shallow level)
                 200.00   200.45     0.45    3.46       Rusk (shallow level)
TC08-53                                              No significant results
TC08-54          608.50   609.50     1.00    1.57                      Rusk
                 621.75   625.45     3.70    1.92                      Rusk
                 644.1    645.65     1.55    4.03                      Rusk
                 657.65   684.00    26.35    5.90        Rusk/Porphyry zone
Including        666.40   676.80    10.40   11.20
Including        666.40   669.40     3.00   25.99
Including        672.25   676.80     4.55    7.79
TC08-55          266.30   266.60     0.30    5.06       Rusk (shallow level)
TC08-56          231.35   235.10     3.75    2.37       Rusk (shallow level)
Including        231.35   231.65     0.30   18.20
                 251.65   259.00     7.35    1.34       Rusk (shallow level)
Including        258.50   259.00     0.50    8.60
TC08-57          576.90   577.20     0.30    5.67                      Rusk
                 601.30   602.20     0.90   12.54                      Rusk
                 607.15   607.65     0.50    5.74
TC08-58          110.55   113.40     2.85    3.01       Rusk (shallow level)
                 117.60   117.90     0.30    3.15
TC08-59                                              No significant results

(i) Due to uncertainties in zone orientations, true widths are not known at
this time. Assays reported are uncut.

Based on data collected to date, the Rusk gold zone appears to represent a high-grade shoot within a broad northeast-trending mineralized corridor, steeply dipping to the northwest. This shoot lies along the contact between the alkalic intrusive complex and sediments located in the footwall to the intrusive. It is characterized by very strong alteration and deformation, accompanied by numerous ultramafic to felsic dikes, quartz-ankerite veining and sulphide mineralization. Significant intercepts below the 200-metre level, previously reported by the company, within this zone include 10.91 grams per tonne gold over 3.65 metres (TC07-30), 8.57 grams per tonne gold over nine metres (TC07-43) and up to 24.61 grams per tonne gold over seven metres (TC07-36).

Drill holes TC08-51, TC08-53, TC08-55, TC08-56, TC08-58 and TC08-59 were focused on testing the Rusk horizon along strike and at shallow depths, generally less than 200 metres from surface. Strong shearing, brecciation and pervasive carbonate alteration were locally noted, accompanied by sporadic mineralization and assay results up to 18.20 grams per tonne gold over 0.30 metre (see table). These results confirm that the zone extends for at least another 100 metres farther up plunge and closer to surface.

Hole TC08-54 intersected 11.20 grams per tonne gold over 10.40 metres at a depth of 575 metres below surface, representing the deepest intercept on the Rusk zone to date. It is hosted by a syenitic feldspar porphyry dike, accompanied by quartz-ankerite stockwork, pyrite, galena, scheelite, possible tellurides and several occurrences of visible gold. The intercept displays a distinct style of mineralization, which occurs south of the alkalic intrusive complex and could represent the upper section of a new porphyry-hosted subzone. It extends the mineralization by at least 160 metres, and defines a high-grade gold shoot which plunges well in excess of 400 metres toward the northeast. The zone remains open at depth and along strike and lies within 750 metres from the Timmins mine shaft.

The Thunder Creek property is a joint venture, with Lake Shore Gold owning a 60-per-cent interest and acting as project operator, with the remaining 40-per-cent interest owned by West Timmins Mining Inc.

Quality control

The company's qualified person for the Thunder Creek property is Jacques Samson, PGeo. As qualified person, he has prepared or supervised the preparation of the scientific or technical information for the property and has verified the data disclosed in this press release.

Lake Shore Gold has a quality control program to ensure best practices in the sampling and analysis of drill core. Assays have been completed using a standard fire assay with a 30-gram aliquot. For samples that return a value greater than three grams per tonne gold, another pulp is taken and fire assayed with a gravimetric finish. Zones with visible gold are tested by pulp metallic analysis. NQ-size drill core is saw cut and half the drill core is sampled in standard intervals. The remaining half of the core is stored in a secure location. The drill core is transported in security-sealed bags for preparation at ALS Chemex prep lab located in Timmins, Ont., and the pulps shipped to ALS Chemex assay laboratory in Vancouver. ALS Chemex is an ISO-9001-2000-registered laboratory preparing for ISO 17025 certification.

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