Lake Shore Gold Expands Large Gold System at Thunder Creek Project

Lake Shore Gold Corp. today announced results from an additional 15 holes (9,755m) of drilling at the Company's Thunder Creek Project, including from the first underground hole drilled (561m) from the 650 Level regional sales manager latin america miningAccess Drift and 14 holes (9194m) drilled from surface.

Results from the underground hole confirmed the existence of a broad mineralized envelope, including multiple occurrence of VG, encompassing the entire width of a syenite porphyry stock located at the core of the Thunder Creek deposit. Surface drilling continued to expand both the Porphyry and Rusk zones near the 730 Level and also extended the deformation and alteration zone of the Thunder Creek deposit by 350 metres toward the Company's 100% owned 144 property.

Tony Makuch, President and CEO commented: "Drilling results from Thunder Creek continue to demonstrate that the property hosts a very large gold system with considerable potential to support a long-life, low-cost bulk mining operation. The core of porphyry mineralization that we have identified near the 730 Level is similar to those found in world class mines in the Timmins Camp such as the Hollinger and McIntyre deposits.

The excellent widths and grades intersected both in the drill holes and the current mine development strongly confirm previous results obtained from surface drilling and provide us with even greater confidence as we continue development along mineralization on the 730 Level at Thunder Creek.

"In addition, the excellent results in our early stage testing to the southwest of Thunder Creek towards our 144 property are exciting and highlight the fact that our current areas of focus at Thunder Creek represent just a small part of the highly prospective land package we have along the Timmins Mine, Thunder Creek and 144 property corridor with abundant opportunities for major new discoveries."

Hole TC650-001 represents the first underground hole to be drilled towards the Thunder Creek deposit, collared from the Thunder Creek decline. The decline was initiated from the 650 metre Level station at Timmins Mine to access the Thunder Creek Rusk and Porphyry zones at roughly the 730 metre level. Hole TC650-001 intersected mineralization approximately 25 metres below the 730 metre level and 15 metres below previously reported surface hole TC09-068b, which intersected 12.75 gpt over 83.40m (see press release dated June 24, 2009).

Among significant results from TC650-001 was 6.92 gpt over 61.40m, including 13.90 gpt over 18.56m, within a broad mineralized envelope encompassing the entire width of a syenite porphyry stock located at the core of the Thunder Creek deposit, and grading 4.91 gpt over 99.60m. In addition, 650-001 also intersected 5.16 gpt over 2.30m in the Rusk Zone for a total combined width of 110.90m grading 4.92 gpt. The results strongly confirm the presence of a significant mineralizing system within the area, with the bulk of mineralization being associated with the Porphyry Zone and some also being from the Rusk Zone.

Observations from the drill core of 650-001 indicate that the Porphyry Zone intersected has geological characteristics similar to TC09-68b, including widespread hematite, carbonate and potassic alteration, local quartz veining, pyrite, galena, sphalerite, scheelite and multiple occurrences of VG.

Additional significant results were from surface holes drilled near the east and west margins of the deposit which continued to confirm and expand mineralization beyond limits defined by previous drilling. Among significant intercepts near the west margin of the deposit were 13.30 gpt over 13.20m, including 82.27 gpt over1.60m and 7.89 gpt over 3.20m in TC09-69g and 6.97 gpt over 9.75m, 12.74 gpt over 5.60m, 2.24 gpt over 27.10m, 9.40 gpt over 1.50m and 4.88 gpt over 2.90m in TC09-69f.

TC09-69g intersected mineralization approximately 25 metres west of TC09-69, which intersected 8.86 gpt over 24.85m (see press release dated May 5, 2009). TC09-69f intersected mineralization approximately 45 metres below TC09-69g. A substantial area up plunge and to the southwest of these two new holes remains untested suggesting excellent potential for further expansions to the mineralized zones.

Significant intersections near the east margin of the deposit include 6.54 gpt over 23.70m in TC09-68f, 4.00 gpt over 27.30m, including 7.13 gpt over 11.30m, and 14.09 gpt over 2.00m in TC09-80c and 4.24 gpt over 22.30m in TC09-68e. These holes were part of a five hole series testing on a cross section approximately 50 metres east of TC09-68b. TC09-68f was the uppermost hole in the series and intersected mineralization approximately 120 metres above hole TC09-68b.

TC09-68e intersected mineralization 40 metres below TC09-68f, with TC09-80c intersecting mineralization 60 metres below TC09-68e. TC09-80a and TC09-80b tested up to 100 metres below TC09-80c and intersected significant widths of porphyry but decreased widths and grades. Potential to expand the zones further to the east are considered excellent.

Favourable drill results were also intersected by two early stage exploration holes testing to the southwest of the Thunder Creek Deposit. Holes TC10-83a and TC10-84 were designed to test the potential extension of the Thunder Creek Alteration and Deformation zone at Thunder Creek at distances of 150 and 350 metres from the previous west limit of the deposit near the 950-1000 metre level and were successful.

Both holes intersected up to 100 metres of hematite and carbonate alteration containing several strong shear zones, multiple porphyry intrusions and locally elevated gold values which appear to line up well with the Thunder Creek deposit. Of significance, the trend of the zone appears to have shifted slightly to a more southerly direction than originally thought which places it on a path to intersect both a major Porphyry body and the 144 Zone, which is known to host very similar alteration and rock types to Thunder Creek near surface. The total distance between Thunder Creek and the 144 area is approximately 1.6 km and has had little to no previous diamond drilling along the Thunder Creek Alteration and Deformation zone.

Drilling is continuing at the Thunder Creek project with two underground drills on the 650 Level and two on the 300 Level as well as one surface drill. The company also has nine other drills active in the area, including four underground at Timmins Mine and five surface drills (two at the 144 property, two at the Thorne property (Gold River Trend), and one at the AGE/RT Joint Venture property).