San Gold loses $5.33-million in Q1 2011

San Gold Corp (C:SGR)
Shares Issued 309,298,842
Last Close 5/12/2011 $2.52
Friday May 13 2011 - News Release

Mr. George Pirie reports

SAN GOLD REPORTS IMPROVED RESULTS

San Gold Corp. has released first-quarter 2011 financial statements. They reflect a large improvement in performance at the Rice Lake Project in Bissett.

Mr. Pirie said "that San Gold continues to be one of the most exciting gold mining and exploration companies in Canada with huge gold potential. We expect production to increase and cash costs per ounce of gold to decrease substantially throughout the balance of 2011. In addition, we continue with a very aggressive exploration drilling program, on the large prospective land package surrounding the operating mines. This drilling program demonstrates the size and strength of the gold mineralization within the newly discovered Shoreline Basalt and is allowing us to develop a new mine complex along this mafic unit."

The Company recognized revenue of $19.8 MM during the quarter and experienced an operating income from operations of $3.2 MM. The comprehensive loss from operations for the quarter was $5.3 MM. Comparable figures for the first quarter of 2010 are revenue of $14.0 MM, operating loss of $2.3 MM and a comprehensive loss of $2.7 MM.

The quarter generated positive cash flow from operations of $4.4 MM. Cash cost was $862 per ounce and $146 per ton. This represents a 60% reduction in cash cost per ton in comparison to the same quarter last year and a 35% reduction in the cash cost per ounce. This is consistent with management's objective of reducing costs this year as we transition to a steady state producer. (Please see discussion on Non-IFRS financial measures for a detailed calculation and reconciliation of these figures to our IFRS financial statements).

San Gold completed 87,000 metres of diamond during the first quarter of 2011. Of this, about 44,000 metres was drilled underground with the balance of 43,000 metres drilled from surface. These totals are slightly ahead of San Gold's 2011 plan.

San Gold invested $10.7 MM for the purchase of equipment during the quarter and capitalized development on mineral properties of $12.9 MM. This Capital investment positions San Gold well early in 2011 to achieve the budgeted increases in mine and mill production. San Gold maintains its expectation to produce 80,000 ounces during 2011 and approach cash costs of $650 per ounce by year end.

As at March 31st, 2011, the Company had a working capital surplus of $59.0 MM compared to a working capital surplus of $33.2 MM at March 31st, 2010. During the quarter, the Company completed a Flow-Through financing designed to fund exploration expenditure through 2011 and into 2012. Liquidity remains excellent and the Company continues to have sufficient cash reserves to meet currently planned exploration and development activities.

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Lake Shore Gold earns $2.2-million in Q1

Lake Shore Gold Corp (C:LSG)
Shares Issued 384,444,156
Last Close 5/25/2011 $3.71
Wednesday May 25 2011 - News Release

Mr. Tony Makuch reports

LAKE SHORE GOLD ANNOUNCES FIRST QUARTER 2011 RESULTS, INCLUDING STRONG GOLD SALES, LOW OPERATING COSTS AND CONTINUED EXPLORATION SUCCESS

Lake Shore Gold Corp. has released its operating and financial results for the first quarter of 2011. Highlights of the results include:

Financial review

• Cash earnings from operations of $11.4-million or three cents per common share during first quarter 2011;
• Net earnings of $2.2-million or one cent per share versus a loss of $3.2-million or one cent per share during same period in 2010 (prior to Timmins mine achieving commercial operation);
• Gold sales of 33,954 ounces at average price of $1,387 (U.S.) per ounce for total proceeds of $46.6-million (commercial gold sales from Timmins mine of 14,635 ounces for commercial revenue of $19.9-million);
• Cash operating costs from Timmins mine totalling $92 per tonne or $586 (U.S.) per ounce during first quarter of commercial operation, better than budget for the quarter and in line with full-year 2011 target for Timmins mine of $575 (U.S.) per ounce;
• Project spending in first quarter 2011 of $26.2-million, reflecting weighting of planned development and infrastructure expenditures during early part of year, company continues to target and is on budget for total project spending in 2011 of $75-million (excluding exploration expenditures, capitalized operating costs and gold sales from development assets as well as any costs related to a mill expansion);
• Total exploration spending of $6.2-million during first quarter, company continues to target $31-million of exploration expenditures during 2011;
• $88.1-million of cash at March 31, 2011, $50-million (U.S.) revolving credit facility finalized during first quarter 2011 (undrawn).

Operating results

• Gold poured related to mill production totalled 25,900 ounces, including ore processed during the first quarter 2011 from all sources of 22,328 ounces based on 148,400 tonnes at grade of 4.89 grams per tonne with average recovery rate of 95.8 per cent;
• Daily mill throughput in first quarter 2011 averaged 1,650 per day, with higher levels of throughput being achieved in May following improvements to material handling through the mill circuit. The company expects to achieve average throughput between 2,000 to 2,100 tonnes per day on sustained basis by end of second quarter;
• Guidance of 125,000 ounces poured from all sources in 2011 maintained.

Continued exploration success

• Extension of wide, high-grade mineralization in ultramafic zone at Timmins mine;
• Confirmation of broad mineralized envelope around 730 level at Thunder Creek;
• Discovery of new gold zone at 144 property;
• Confirmation of open-pit potential and extensions to depth at Gold River trend;
• Release of initial resources at Marlhill mine and Vogel (subsequent to quarter end).

Tony Makuch, president and chief executive officer of Lake Shore Gold, commented: "A significant highlight of the first quarter 2011 was our cost performance, with average cash costs at Timmins mine during the first quarter of commercial operation being $92 per tonne and very close to our full-year target average for the mine of $575 (U.S.) per ounce despite the anticipated lower grades due to mine sequencing. Output from Timmins mine is expected to be weighted to the second half of the year once mining resumes in the Timmins mine ultramafic zone near the end of the second quarter. At the mill, recoveries continue to be excellent. In terms of throughput, we have addressed some issues to more effectively manage the flow of material through the circuit. We are already seeing improvement and expect to achieve average throughput of 2,000 to 2,100 tonnes per day on a sustained basis by the end of the second quarter, with higher rates targeted for later in the year."