First McEwen dumped RMX now Hochschild dumps almost all of its LSG holdings. Is Goodman next?

Lake Shore holder Hochschild to sell 109 million shares
Ticker Symbol: C:LSG

Lake Shore holder Hochschild to sell 109 million shares

Lake Shore Gold Corp (C:LSG)
Shares Issued 376,242,851
Last Close 10/12/2010 $3.65
Thursday October 14 2010 - News Release

Mr. Tony Makuch reports

HOCHSCHILD MINING AGREES TO SELL COMMON SHARES OF LAKE SHORE GOLD

Lake Shore Gold Corp. and Hochschild Mining PLC have entered into an agreement with RBC Capital Markets, BMO Capital Markets and CIBC World Markets ( the "Syndicate") through which the Syndicate will purchase 109,000,000 of the common shares of Lake Shore Gold held by Hochschild, on a bought deal basis, at a price of C$3.60 per share for sale to the public.

The offering is expected to provide Hochschild with proceeds of C$392.4 million prior to payment of expenses and underwriting fees. None of the proceeds will be received by Lake Shore Gold. Immediately following the closing of the offering, Hochschild will continue to hold 21,540,992 common shares of Lake Shore Gold, representing approximately 5.7% of the issued and outstanding common shares.

The common shares will be offered by way of a short form prospectus in British Columbia, Alberta, Manitoba, Ontario and Quebec and may also be offered on a private placement basis in certain jurisdictions outside of Canada pursuant to applicable prospectus or registration exemptions.

Lake Shore Gold will file with the securities commissions and other similar regulatory authorities in the provinces referred to above a preliminary short form prospectus in respect of the sale of the shares. The offering is subject to certain customary terms and conditions. Closing of the offering is expected to take place on or about November 3, 2010.

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