interesting that both SGR and LSG shares are currently trading for about 33% of their respective debenture conversion price, SGR $.50 and LSG $1.40. Again clearly George waited too long to raise money, poor coversion price and higher interest rate.

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Lake Shore Gold Corp. ("Lake Shore" or the "Company") (TSX:LSG.TO - News)(NYSE MKT:LSG - News)(NYSE Amex:LSG.TO - News) announced today a public offering, on a "bought deal" basis, of C$75 million principal amount of convertible senior unsecured debentures, at a price of C$1,000 per debenture, with an interest rate of 6.25% per annum, payable semi-annually on the last day of March and September commencing on March 31, 2013 (the "Debentures"). The Debentures will mature on September 30, 2017.

The offering is being made through a syndicate of underwriters led by BMO Capital Markets.

The Company has also granted the underwriters the option to purchase up to C$11.25 million principal amount of additional Debentures at a price of C$1,000 per Debenture to cover over-allotments, exercisable in whole or in part anytime up to 30 days following closing of the offering.

The Debentures will be convertible at the holder's option into common shares of the Company at a conversion price of C$1.40 per common share. The debentures will not be redeemable prior to September 30, 2015. On and after September 30, 2015 and prior to maturity, the Debentures may be redeemed in whole or in part from time to time at the Company's option, at a price equal to their principal amount plus accrued and unpaid interest, provided that the volume weighted average trading price of the common shares on the Toronto Stock Exchange for the 20 consecutive trading days preceding the date on which the notice of redemption is given is not less than 130% of the conversion price.

The net proceeds from the offering will be used to repay and extinguish the Company's US$50 million three-year corporate revolving facility and for general corporate purposes.

The offering is subject to normal regulatory approvals, including approval of the Toronto Stock Exchange, the NYSE MKT and is expected to close on or about September 7, 2012.