SGR's communication with investors SUCK = NO confidence

TORONTO, ONTARIO--(Marketwire - March 18, 2013) - Lake Shore Gold Corp. (TSX:LSG)(NYSE Amex:LSG)(NYSE MKT:LSG) ("Lake Shore Gold" or the "Company") today announced financial and operating results for the full-year and fourth quarter of 2012. Highlights of the year include: meeting the Company's production guidance; achieving significant development and construction progress; effectively managing operating costs and capital investment; and ending the year positioned for production growth of 40% or more in 2013 (120,000 to 135,000 ounces) and well financed.

Tony Makuch, President and CEO of Lake Shore Gold, commented: "Last year was our peak year for capital investment, development and construction as we advanced the Timmins West Mine and kept our mill expansion on track for completion during the second quarter of 2013. It was also a year in which we achieved our production guidance, reported average cash costs per tonne below expected levels and capital expenditures at the low end of our target range. Based on the progress achieved in 2012, we are now poised for strong production growth, sharply lower capital investment and improved operating costs in 2013."

Net loss for the year totaled $317.9 million or $0.77 per common share. Excluding a non-cash impairment charge of $302.5 million and related deferred tax recovery of $2.1 million, net loss for 2012 was $17.5 million or $0.04 per common share, higher than the net loss in 2011 of $10.9 million or $0.03 per common share, due largely to higher depletion and depreciation expenses compared to the prior year. The $302.5 million non-cash charge relates to the write down of the Company's mining interests as a result of the impairment assessment performed by the Company at December 31, 2012 (refer to the "Impairment" discussion in the Company's Management Discussion & Analysis dated March 18, 2013).