Lake Shore Gold Corp.TSX & NYSE MKT : LSG

www.lsgold.com

Denver Gold ForumSeptember 9-12, 2012

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Information included in this presentation relating to the Company's expected production levels, production growth, costs, cash flows, economicreturns, exploration activities, potential for increasing resources, project expenditures and business plans are "forward-looking statements" or"forward-looking information" within the meaning of certain securities laws, including under the provisions of Canadian provincial securities laws and underthe United States Private Securities Litigation Reform Act of 1995 and are referred to herein as "forward-looking statements." The Company does notintend, and does not assume any obligation, to update these forward-looking statements. These forward-looking statements represent management's bestjudgment based on current facts and assumptions that management considers reasonable, including that operating and capital plans will not be disruptedby issues such as mechanical failure, unavailability of parts, labour disturbances, interruption in transportation or utilities, or adverse weather conditions,that there are no material unanticipated variations in budgeted costs, that contractors will complete projects according to schedule, and that actualmineralization on properties will be consistent with models and will not be less than identified mineral reserves. The Company makes no representation thatreasonable business people in possession of the same information would reach the same conclusions. Forward-looking statements involve known andunknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially differentfrom any future results, performance or achievements expressed or implied by the forward-looking statements. In particular, delays in development ormining and fluctuations in the price of gold or in currency markets could prevent the Company from achieving its targets. Readers should not place unduereliance on forward-looking statements. More information about risks and uncertainties affecting the Company and its business is available in theCompany's most recent Annual Information Form and other regulatory filings with the Canadian Securities Administrators, which are posted on sedar atwww.sedar.com, or the Company’s most recent Annual Report on Form 40-F and other regulatory filings with the Securities and Exchange Commission.

QUALITY CONTROLLake Shore Gold has a quality control program to ensure best practices in the sampling and analysis of drill core. A total of three Quality Control samplesconsisting of 1 blank, 1 certified standard and 1 reject duplicate are inserted into groups of 20 drill core samples. The blanks and the certified standards arechecked to be within acceptable limits prior to being accepted into the GEMS SQL database. Routine assays have been completed using a standard fireassay with a 30-gram aliquot. For samples that return a value greater than three grams per tonne gold on exploration projects and greater than 10 gpt at theTimmins mine and Thunder Creek underground project, the remaining pulp is taken and fire assayed with a gravimetric finish. Select zones with visible goldare typically tested by pulp metallic analysis on some projects. NQ size drill core is saw cut and half the drill core is sampled in standard intervals. Theremaining half of the core is stored in a secure location. The drill core is transported in security-sealed bags for preparation at ALS Chemex Prep Lablocated in Timmins, Ontario, and the pulps shipped to ALS Chemex Assay Laboratory in Vancouver, B.C. ALS Chemex is an ISO 9001-2000 registeredlaboratory preparing for ISO 17025 certification.

QUALIFIED PERSONThe Company’s Qualified Persons (“QPs”) (as defined in National Instrument 43-101, “Standards of Disclosure for Mineral Projects”) for surface diamond drilling projects at the Timmins West Mine Complex, Bell Creek Mine Complex; Fenn-Gib property and Casa Berardi optioned property are Jacques Samson, P.Geo. and Keith Green, P.Geo. Dean Crick, P.Geo. is the QP for underground drilling at the Timmins West Mine and Bell Creek Mine properties. Reno Pressacco, P.Geo is the QP for the current resource estimate at the Marlhill Deposit. Ralph Koch, P.Geo is the QP for the current resource estimate at the Bell Creek property and portions of the Timmins West Mine. Bob Kusins, P.Geo. is the QP for resource estimation for portions of the Timmins West Mine and at all remaining Company properties. As QPs, Messrs. Samson, Green, Crick, Koch and Kusins have prepared or supervised the preparation of the scientific or technical information for their respective properties as reviewed in this MD&A. Messrs., Samson, Green, Koch, Kusins and Crick are employees of the Company.

Forward Looking Statements

Step #1

Solid & growing production

Targeting 85,000 to 100,000 ozs in 2012

Further growth planned in 2013

Targeting >150,000 ozs by 2014

Step #4

Strong balance sheet – positioned to fund growth

Cash of $90M(2) (After repayment of UniCredit facility)

Repayment of senior, secured debt reduces risk

(2) After convertible debenture issue & repayment of US$50 million UniCredit facility, includes gold bullion inventory

Step #3

Effective capital management On track for 2012 capex target of $170-$175M

Timmins West development program largely completed by end of 2012

Step #5

Highly-prospective exploration targets

Multiple targets close to Timmins West mining infrastructure

Bell Creek and Fenn-Gib provide new project potential

Step #2

Low operating costs

Targeting US$825-US$875 per oz in 2012

Targeting cash costs of US$600/oz by 2014(2)

(2) Assumes gold sales in 2014 of 163,000 ozs @ 5.2 gpt and a C$/US$ exchange rate of $1.00:$1.04

Solid & growing 

production

Low operating  costs

Exploration upside

Strong balance sheet  Effective    

capital management  

City of Timmins

Timmins West Complex

Bell Creek Complex

Fenn-Gib

Bell Creek Mill

Timmins West Mine

Main drivers of near-term growth

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LSG – 5 Steps to Value Creation(1)

(1) Examples of Forward Looking Statements

Timmins

Destor-Porcupine Fault

Pipestone Fault

(1) Examples of Forward Looking Statements 4(1) Examples of Forward Looking Statements(2) Assumes gold sales of 163,000 ozs @ 5.2 gpt and a C$/US$ exchange rate of $1.00:$1.04(3) After convertible debenture issue & repayment of US$50M UniCredit facility, includes gold bullion inventory.

LSG – 5 Steps to Value Creation(1)

Solid & growing production

Targeting 85,000 to 100,000 ounces in 2012

Targeting >150,000 ozs by 2014

Low operating costs

Targeting US$825-US$875/oz in 2012

Targeting US$600/oz by 2014(2)

Effective capital management

On track for 2012 capex of $170-175 million

Timmins West Mine largely completed after 2012

Strong balance sheet

Funded for growth (cash of $90M)(3)

Repayment of senior, secured debt reduces

Exploration upside

Multiple targets near Timmins West Mine

Bell Creek/Fenn-Gib offer additional upside

Three Multi-Million Ounce Complexes

(1) Examples of Forward Looking Statements 5

Timmins West Complex – Total resources of 1.2M ozs M&I, 1.8M ozs Inferred– Timmins West Mine in production, targeting strong

production growth– 144 adjacent to Timmins West Mine, focus of near-term

exploration, Gold River Trend provides additional upside

Bell Creek Complex– Current production: approx. 20,000 ozs/year– Evaluating potential of North A Deep Zone– Multiple exploration targets at & around Bell Creek Mine– Resources: 0.8M ozs M&I, 1.1M ozs Inferred

Fenn-Gib– Large open-pit project 60 kms from Timmins– Exploration success highlights potential for growth– Resources: 1.3M ozs Indicated, 0.8M ozs Inferred

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LSG – Large, Growing Resource Base

Measured & Indicated(1) Tonnes Au Grade (g/t) Contained OuncesTimmins West Mine 5,826,000 5.99 1,122,500

Gold River 690,000 5.29 117,400

Bell Creek Mine 4,249,000 4.73 646,400

Vogel 2,219,000 1.75(2) 125,000

Marlhill 395,000 4.52 57,400

Fenn Gib 40,800,000 0.99(2) 1,300,000

Total 3,368,700Inferred Tonnes Au Grade (g/t) Contained Ounces

Timmins West Mine 4,272,000 5.76 791,500

Gold River 5,273,000 6.06 1,027,800

Bell Creek Mine 6,088,506 4.87 953,800

Vogel 1,459,000 3.60(3) 168,800

Fenn-Gib 24,500,000 0.95(2) 750,000

Total 3,691,900(1) Resources are inclusive of reserves (2) Open-pit resources (3) Combination of underground and open-pit resources

Probable Reserves Tonnes Au Grade (g/t) Contained OuncesTimmins West Mine 4,922,000 5.21 823,800

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LSG – Convertible Debenture Issue

$90 million of senior unsecured convertible debentures Over-allotment option for additional $13.5 million

6.25% interest rate paid semi-annually in March & September

Maturity date of September 30, 2017

Convertible into common shares at a price of $1.40 per share

Redeemable after September 15, 2015

Closed September 7, 2012, net proceeds of $86.4 million

Net proceeds to repay US$50M UniCredit senior secured debt facility and provide funding at lower cost/longer term

than Sprott $35M standby line

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Sources and Uses of CashSources of Cash $ millions

Cash and bullion inventory (June 30, 2012) 37.0

Gold Loan (Received July 16, 2012) 35.0

Convertible debentures (closed Sept 7/12) 86.4

H2/12 operating cash flow(1)(2) 33.0

Total sources of cash (to end of 2012) 191.4Additional liquidity (standby line) 35.0

Total liquidity at end of 2012 226.4

(1) Examples of forward-looking information(2) Assumptions include low-end of target production range at US$875oz cash cost (plus royalties),

US$1,650/oz gold price, C$/US$ exchange rate at par

Uses of Cash (Estimates for H2/12) (1) $ millions

Repayment of UniCredit facility 50.0

Development of Timmins West Mine 50.0

Phased mill expansion and other improvements 16.0

Advancement of Bell Creek Mine 8.5

Exploration 3.5

Corporate G&A 6.0

Financing costs 3.0

Total uses of cash 137.0

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LSG – On Track to Achieve 2012 Targets Production target: 85,000 to 100,000 ounces

H1/12 – 41,106 ounces recovered (40,479 ounces poured) 24,426 ounces recovered during Q2/12

Cash cost target of US$825 to US$875 per ounce H1/12 – US$936 per ounce Cash costs of US$849 per ounce produced in Q2/12

Capital expenditures of approx. $190 million (incl. exploration) Capex estimate reduced to $170-$175 million in June H1/12 capex of $92.3 million

Complete significant development work at Timmins West Mine to support strong production growth in 2013 On track for multiple mining horizons by year end

Timmins West Complex 130 km2 land position, western extension of Timmins Gold Camp

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Dome

Hollinger McIntyre

Hoyle Pond

Destor Porcupine Fault

Pipestone Fault

Fenn-Gib

Pamour

Timmins

Timmins West Complex

Bell Creek Complex

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Timmins DepositThunder Creek

Deposit

Gold River Trend

Thunder Creek – 144 Trend

Timmins West Complex (Magnetic Survey)

Gold River East

Gold River West 144 South

144 North

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Timmins West: High-Growth Mining Complex

2,000 Lv

Timmins DepositThunder Creek 144

Thunder Creek – 144 Trend

UM and FW structures extended to 2,400 m

6 kms

Timmins West Mine

Timmins West Mine – 18Kms West of Timmins Key Facts:• Reserves: 823,800 ozs (4.9M tonnes & 5.21 gpt)• Resources: 1.1M ozs Indicated(1), 0.8M ozs Inferred• Production of 29,100 ozs produced in H1/12• Targeting >150,000 ozs by 2014 @ cash costs around US$600/oz(2)

• Infrastructure: 710 m, 5.5 m diameter shaft, hoist, surface ramp, two 800m drifts to Thunder Creek

• 285 employees (85 surface, 200 U/G)

(1) Resources inclusive of reserves (2) Examples of Forward Looking Statements.

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2012 Work Program*

2012 Work Program*

Timmins Deposit Thunder Creek

Deposit

2012 plan to access >700,000 ozs of resources(1)

Supports several years of mining

Section View

(1) Examples of Forward Looking Statements.

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TWM – Significant Potential to Upgrade Resources Thunder Creek Deposit

Inferred ResourceIndicated Resource

Long Section Looking SE

650 m Level

525 m Level

290 m Level

Timmins Deposit

Long Section Looking SE

Inferred ResourceIndicated Resource

300 m Level

730 m Level

395 m Level

TWM – Potential at Depth & Along TC-144 Trend

(1) Examples of Forward Looking Statements 16

Timmins DepositThunder Creek Deposit144

Thunder Creek Stock Along contact towards 144

Mafic-Sedimentary Contact (Multiple Folds provide exploration potential)

Ultramafic Fold StructureRusk Horizon

Porphyry Zone

Main and FW Zones

Bristol Creek Fault

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SW Extension of 144 and TC‐144 Gap Targets 

1.5kmOpen

Syenite Intrusives

ThunderCreek

144 North144 South TimminsDepositTC‐144 Gap

144SW 

* View looking to west

1km Lv

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~ 10,000 m of drilling planned for Q3 and Q4with focus on 144 Project(1)

(1) Examples of Forward Looking Statements.

Bell Creek Complex 32 km2 land position, includes Bell Creek Mine and Mill and multiple other exploration targets

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Dome

Hollinger McIntyre

Hoyle Pond

Destor Porcupine Fault

Pipestone Fault

Fenn-Gib

Pamour

Timmins

Timmins West Complex

Bell Creek Complex

Bell Creek Mine – 2nd Producing Mine

(1) Examples of Forward Looking Statements 19(1) Examples of Forward Looking Statements.

Resources: 646,400 ozs (4.2M t @ 4.73 gpt) Indicated, 953,800 ozs (6.1M t @ 4.87 gpt)

Production: Current production approx. 20,000 ozs/year(1)

12,005 ozs produced in H1/12 Evaluation of high-potential

North A Deep Zone ongoing

Shaft

Key Facts: Located 20 kms east of Timmins Infrastructure includes mill, tailings

300 m shaft (non-producing), hoist, decline to 565 L, vent raises

95 employees (25 surface, 70 U/G)

Mined out areas

North A“Deep”

610mL 625mL

1000mL

775mLDrilling target from 610mL

Drilling target from 535mL

Shaft

Recent mining

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183,215 tonnes processed in Q2/12 – 2,013 tpd

Quarterly record for recoveries in Q2/12 – 96.8%

Expansion on track to reach 2,500 tpd in Q4/12, 3,000 tpd in 2013(1)

Further expansion contemplated to 5,500 tpd(1)

(1) Examples of Forward Looking Statements.

Milling Facility – Performing Very Well

Truck Dump

6,000 tonneOre bin SAG Mill Building

Crusher

New Thickener

New CIL Tanks

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Mill Expansion – Site Construction

New truck dump Jaw crusher building

Ore bin foundation

SAG Mill Building

Conveyor tunnel to ore bin

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Mill Expansion – Site Construction

New SAG mill

New thickener New CIL Tanks

SAG Mill Building

Fenn-GibLarge-scale, open-pit project 60kms from Timmins

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Dome

Hollinger McIntyre

Hoyle Pond

Destor Porcupine Fault

Pipestone Fault

Fenn-Gib

Pamour

Timmins

Timmins West Complex

Bell Creek Complex

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Fenn-Gib – Potential Large Open-Pit Mine

Acquired from Barrick Gold Corp. in August 2011

Initial resource with significant potential for growth: M&I - 1.3M ozs (40.8M tonnes @ 0.99 gpt) Inferred - 0.75M ozs (24.5 tonnes @ 0.95 gpt)

Potential for large-scale production based on a 15,000 to 25,000 tonne per day operation(1)

(1) Examples of Forward Looking Statements.

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Latest drilling and re-sampling at Fenn Gib continues to confirm large-scale pit potential

1:5,000

26(1) Examples of Forward Looking Statements.

Fenn-Gib – Identifying New Targets

Main Zone~ 2 million ounce

resource with excellent growth potential

Hislop Open Pit(Active Mine)

Ross Mine

Central Porphyry Structure

Open

400 Lv

1000 Lv

(1) Examples of Forward Looking Statements 27(1) Examples of Forward Looking Statements(2) Assumes gold sales of 163,000 ozs @ 5.2 gpt and a C$/US$ exchange rate of $1.00:$1.04(3) After convertible debenture issue & repayment of US$50M UniCredit facility, includes gold bullion inventory.

LSG – 5 Steps to Value Creation(1)

Solid & growing production

Targeting 85,000 to 100,000 ounces in 2012

Targeting >150,000 ozs by 2014

Low operating costs

Targeting US$825-US$875/oz in 2012

Targeting US$600/oz by 2014(2)

Effective capital management

On track for 2012 capex of $170-175 million

Timmins West Mine largely completed after 2012

Strong balance sheet

Funded for growth (cash of $90M)(3)

Repayment of senior, secured debt reduces

Exploration upside

Multiple targets near Timmins West Mine

Bell Creek/Fenn-Gib offer additional upside