Lake Shore Gold Reports Strong Cost Performance in Q1/154 hours ago by Marketwire

--  Preliminary cash operating cost per ounce sold of US$509 in Q1/15 (based
    on total production costs of $33.0 million) compared to full-year target
    range of US$650 - US$700
--  Preliminary all-in sustaining cost per ounce sold of US$748 in Q1/15
    compared to full-year target range of US$950 - US$1,000
--  Company continues to generate significant free cash flow and build cash
    position.

Lake Shore Gold Corp. (TSX: LSG)(NYSE MKT: LSG) ("Lake Shore Gold" or the "Company") today announced preliminary cash operating cost(1) and all-in sustaining cost(2) ("AISC") per ounce sold for the first quarter of 2015 ("Q1/15"). Final numbers for these measures will be available on April 29, 2015 when the Company issues its full Q1/15 financial results. Cash operating cost per ounce sold for Q1/15 is estimated at US$509 (including US$27 per ounce for royalties), an 18% improvement from US$623 per ounce in first quarter of 2014 ("Q1/14") and significantly better than the Company's full-year 2015 target range of US$650 to US$700 per ounce. AISC per ounce sold in Q1/15 is estimated at US$748 per ounce, an improvement of 22% from US$960 in Q1/14 and well below the full-year 2015 target range of US$950 to US$1,000 per ounce. Total production costs in Q1/15 are estimated at approximately $33.0 million compared to total production costs of $29.7 million in Q1/14 and a full-year 2015 target of $125.0 million.

Tony Makuch, President and CEO of Lake Shore Gold, commented: "Our cash operating costs and AISC per ounce sold were very strong in Q1/15, largely driven by record production and the highest average quarterly grade since we declared commercial production. Our preliminary cash operating costs and AISC show considerable improvement from last year's first quarter and are well below our full-year 2015 target ranges. With our high level of production, low costs per ounce and an average Canadian dollar gold price of over $1,500 per ounce, we generated significant free cash flow during Q1/15 and increased our cash and bullion(3) by $15.5 million to approximately $77.0 million.

"Looking ahead, with our strong start to the year we are well positioned to achieve our production and unit cost targets in 2015. While average grades will come down as we sequence into different areas of mining, we expect to deliver solid operating results over the balance of the year that, at current gold prices, will support continued strong cash flow generation. Based on our current business plan, and assuming an average Canadian dollar gold price for the year at or close to $1,500 per ounce, we are positioned to end 2015 with over $100.0 million of cash and bullion."

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                                   Q1/14    Q2/14    Q3/14    Q4/14    Q1/15
Production (oz.)
Timmins West                      33,900   41,900   35,000   31,200   43,000
Bell Creek                        10,700   10,400   10,600   12,000   10,000
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Total                             44,600   52,300   45,600   43,200   53,000
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Gold poured (oz.)                 45,700   53,500   44,900   42,400   52,000
Gold sold (oz.)                   43,000   53,500   45,500   41,200   52,600
Avg. price (US$/oz.)               1,294    1,289    1,284    1,200    1,219
Avg. price ($/oz.)                 1,430    1,404    1,397    1,360    1,504
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Costs (US$/oz. sold)
Cash operating costs                 623      560      598      597      509
All-in sustaining costs              960      784      858      915      748
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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, P.Eng., Vice-President, Technical Services, who is an employee of Lake Shore Gold Corp., and a "qualified person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 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, P.Geo., Senior Vice-President, Exploration. Mr. Kallio is an employee of Lake Shore Gold Corp., and is a "qualified person" as defined by NI 43-101.