Lake Shore Gold Corp. Announces Timmins West Exploration Agreement With Flying Post and Mattagami First Nations

Lake Shore Gold Corp. is pleased to announce that it has signed an Exploration Agreement with the Flying Post First Nation (”FPFN”) and Mattagami First Nation (”MFN”) in order to promote a cooperative and mutually respectful relationship between the FPFN and MFN and the Company as it moves forward with exploration and advanced exploration work on the Timmins West property. The agreement establishes a framework for ongoing dialogue and consultation between the parties, including providing business, employment and training opportunities for members of the two First Nations groups.

The official signing ceremony included Chief Walter Naveau, Mattagami First Nation; Chief Murray Ray, Flying Post First Nation; Anthony P. Makuch, President, CEO, Director, Lake Shore Gold Corp.; Shawn Batise, Executive Director, Wabun Tribal Council; Chris McKay, Lands and Resources Manager, Mattagami First Nation; Brian Hagan, Vice President, Health, Safety & Environment and Chris Stewart, Vice President, Operations, both of Lake Shore Gold Corp.

Chief Naveau pointed out that this agreement and others that have been signed by Wabun communities are significant and timely developments. “This agreement is another stepping stone in our development as First Nation people. This is an historic period for my people as we are finally able to work with mining companies in a way that benefits us,” said Chief Naveau.

Chief Ray explained that this and other agreements with natural resource developers have reaffirmed a belief by Flying Post First Nation members that historic treaties would someday have meaning. “In the past, life has been very hard on our members and we have been dispersed from our lands far and wide but today with the hope of a brighter future, there is excitement about the prospect of coming back to our land,” said Chief Ray.

Batise and McKay have been the driving force behind the discussions with Lake Shore Gold. “Every bit of this work in negotiating with companies like Lake Shore Gold and others is very gratifying as it directly relates to making life better for our Wabun First Nation members. It is important that our Wabun First Nations must benefit directly in regards to the resource development happening on our traditional lands. Mutual agreements like this one we are signing today ensures that the project goes ahead smoothly and everyone benefits,” said Batise.

Wabun Tribal Council and Mattagami First Nation first began talking with Lake Shore Gold in September 2006, as part of an overall strategy dedicated to consultation with resource development companies operating on or near Wabun traditional lands. The resulting Exploration Agreement provides the First Nations with consulting and advisory services, employment and training, business opportunities, ongoing communication and environmental consultation.

Tony Makuch, President and CEO of Lake Shore Gold, commented: “The agreement being announced today is an important step for maintaining and further developing our solid and mutually beneficial working relationships with both the Mattagami and Flying Post First Nations, two key stakeholders in the Timmins West project. We have the greatest respect for both communities and wish to thank them for the constructive approach they displayed in negotiating the completion of the Exploration Agreement. We look forward to working with them for many years to come as we move Timmins West from exploration/advanced exploration through development and to production.”

“Timmins West is a project with significant momentum, with development from both a surface ramp and shaft, as part of the ongoing advanced exploration program, expected to commence during the third quarter and initial production of ore expected by early 2009.”

About Lake Shore Gold

Lake Shore Gold Corp. is a mineral development and exploration company that is rapidly moving towards gold production through a portfolio which includes an existing processing facility and a number of quality mineral properties located in the Timmins gold mining district of northern Ontario and Quebec. The Company has completed a pre-feasibility study and is moving forward with an advanced exploration program at its Timmins West property, is progressing refurbishing work at its 100%-owned Bell Creek mill and is continuing drilling programs at a number of prospective properties. The Company’s shares trade on the Toronto Stock Exchange under the symbol LSG.

Contacts:
Lake Shore Gold Corp.
Tony Makuch
President & CEO
(416) 703-6298
Email: investorrelations@lsgold.com

Lake Shore Gold Corp.
Mark Utting
Vice-President, Investor Relations
(416) 703-6298
Email: investorrelations@lsgold.com
Website: http://www.lsgold.com

Source: Lake Shore Gold Corp.