TORONTO, ONTARIO--(Marketwire - Sept. 20, 2010) - Lake Shore Gold Corp. (TSX:LSG - News; "Lake Shore Gold" or the "Company") today announced that the new access ramp being developed from surface at the Bell Creek Mine has reached the 320 Level and intersected high-grade mineralization in the North A Zone (the "Zone") with a development cross cut. The Company is now developing east and west along mineralization on the Zone. In addition, the Company reported several wide, high-grade intersections from the initial 15 holes (3,261 metres) of underground drilling to test the North A Horizon between the 300 and 360 metre levels. The 320 Level is 20 metres below the previous deepest level of the mine. This drilling and development program is designed to confirm and expand mineralization outlined in this area from previous wide-spaced drilling and to support first NI 43-101 mineral resource estimates.

Tony Makuch, President and CEO of Lake Shore Gold, commented "Reaching the North A Zone on the 320 Level is a major milestone for Lake Shore Gold as we move forward with development for delineation of the gold mineralization at the Bell Creek Mine. At this point, the development along the Zone on the 320 Level is proceeding well and reached approximately 25 metres east and 15 metres west of the crosscut. Mineralization encountered in the development to date matches our expectations from surface diamond drilling, and shows a distinct east-west trending and steeply southward dipping gold rich quartz vein and alteration zone with widths of up to 3.00 metres. Numerous occurrences of coarse visible gold have been recognized in the muck pile and diamond drill core. The initial results of the underground drilling have also easily met our expectations and intersected high-grade gold values over widths up to 8.60 metres wide in areas below and east of the previous mine workings. This information supports our belief that Bell Creek will be a very successful mining project.

"Additional drilling to define and extend the mineralization will continue to target areas below the current underground development at Bell Creek, as well as at the Marlhill, Vogel and Wetmore properties. The Company remains on track to announce an initial resource for the Bell Creek Complex during the fourth quarter of 2010."

Underground drilling was completed from cut-outs located on the 180 and 210 metre levels of the Bell Creek Mine. Eight of the holes (2,130 metres) were drilled from the 180 Level and were designed to test a block between the 300 Level and the 360 Level, immediately below the original mine workings, that will be the main focus for development on mineralization for the next six to twelve months. The results from drilling included 6.95 gpt over 8.60m in BC-180-225, 5.89 gpt over 3.90 m in BC180-231, 9.53 gpt over 1.60 m in BC180-228, 7.95 gpt over 1.50 m in BC180-224 and 7.81 gpt over 1.50 m in BC180-221.

Seven of the new holes (1,131 metres) were drilled from the east portion of the 210 Level and were designed to confirm and expand the North A Zone to the east of previously mined areas surrounding the 300 Level. These holes were successful and included 7.49 gpt over 7.40m in BC210-258, 5.03 gpt over 8.20m in BC210-257 and 8.50 gpt over 4.00m in BC210-255. BC210-255 and BC210-258 are in an untested area 60 to 80 metres east of previous Hole BC05-22, which intersected 7.83 gpt over 9.67m, and 60 to 80 metres below previous Hole BC05-28, which intersected 7.17 gpt over 5.10m. BC210-257 is located slightly above these holes. Testing along the structure along strike of these intersections to the east is limited and is considered to host excellent potential for the addition of new resources.

Of note, several of the newly reported intersections from the recent drilling contain widths that are substantially greater than the historic average of 2.00 metres. Based on the current and past drill results in the North A Zone, the minimum overall strike length of the Zone near the 320 Level is projected to be 500 metres with excellent potential for extension. Drilling is continuing on the 210 and 240 metre levels in order to complete the necessary infill drilling for resource definition and estimation, and to evaluate further extensions of the North A Zone to both the east and west. In addition, drilling is also ongoing from surface with five drills. Two of the surface drills are conducting further infill above the 1,000 Level with the other three testing for further extensions of mineralization to depth where previous drilling has indicated some of the widest and best-grade intersections to date. Testing is also ongoing at the Vogel and Wetmore properties.

Quality Control

The Company's Qualified Person ("QP") for the Bell Creek property is Ralph Koch, P.Geo. As QP, he has prepared or supervised the preparation of the scientific or technical information for the property and verified the data disclosed in this press release.

Lake Shore Gold has implemented a quality-control program to ensure best practice in the sampling and analysis of the drill core. Assays have been completed at both SGS Minerals Services (BC180 series holes) and LSG - Bell Creek lab (BC210 series holes) using a standard fire assay with a 30g aliquot and an AA finish. Samples with assay results above 3.0 gpt are re-analyzed using a gravimetric finish. Any intervals showing visible gold ("VG") as well as select intersections, based upon visual inspection of the core, are sometimes analyzed using the pulp metallic method. 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 to the SGS Minerals Services lab in Sudbury for preparation or the LSG - Bell Creek lab for preparation and analysis. The pulps from drill core sent to the SGS Minerals Services prep lab are shipped to the SGS Minerals Services lab in Don Mills for analysis.

The SGS Minerals Services labs are ISO 17025 certified. The LSG - Bell Creek lab conducts in-house analysis of mill, underground and drill core samples and is not an ISO 9001-2000 registered laboratory.