Lake Shore Gold Produces 44,600 Ounces in First Quarter 2014

Lake Shore Gold Corp announced that it produced 44,600 ounces in the first quarter of 2014 compared 23,200 ounces produced in the first quarter of 2013 - an increase of 92% from the first quarter of 2013.

Also during the first Quarter, total mill throughput increased 44 per cent to 283,800 tonnes, compared to the same quarter in 2013.   The Mill throughput during the first quarter of 2014 totaled 283,800 tonnes at an average grade of 5.1 grams per tonne with average mill recoveries of 96.6%. Total gold poured for the first quarter of 2014 totaled 45,700 ounces, while gold sales totaled 42,900 ounces at an average price of US$1,294 per ounce. The Average grade of 5.1 grams per tonne is ahead of targeted levels set by Lake Shore Gold and 34% higher than in the first quarter of 2013.

"The strong momentum we carried through the end of 2013 continued in the first quarter of 2014”, said Tony Makuch, President and CEO of Lake Shore Gold. “Our production of 44,600 ounces exceeded our plan for the quarter, our grades continued to average over 5.0 grams per tonne and our average mill throughput remained well above 3,000 tonnes per day despite severe winter conditions and a scheduled four-day maintenance shutdown in March.”

“We continued to build our cash position, with cash and bullion currently totaling approximately $41.0 million compared to $34.0 million at the end of 2013” Makuch said.

If the company is able to maintain the same rate of product through the next three Quarters Lake Shore Gold will be on track for full-year 2014 production of 160,000 to 180,000 ounces of gold.

In the financial side of the Lake Shore’s operation the company announced that it had repaid approximately $3.7 of debt in first Quarter 2014 and that it also made $3.2 million in interest payment on convertible debentures at the end of March, 2014

“During the quarter, we repaid approximately $3.7 million of debt and, at the end of March, made a $3.2 million interest payment on our convertible debentures,” explained Makuch. “Coming out of the first quarter we are well positioned to achieve our production guidance for the year of between 160,000 and 180,000 ounces of gold and to continue to build our cash position at the same time that we are repaying our debt, with total repayments during the year expected to total between $20 and $25 million."

The company reported that it had approximately Cdn $41 million on hand in cash and bullion as of April 3, 2014.

The announcement however coming late in the day on April 3^rd did not impact market activity and it may take a day or two for markets to react to this doubling of output which in itself is noteworthy achievement. Shares dropped a negligible -1 cent to Cdn $0-74 on the Toronto Stock Exchange.

Details of the Company's financial performance, including capital and operating costs, will be included in its first quarter 2014 financial results to be released on Wednesday, May 7, 2014 before the market opens. The Company's Annual General Meeting ("AGM") of shareholders will be held on the same day at 10:00 am EST at the TMX Broadcast Centre in Toronto, Ontario. A webcast of the AGM will be available on the Company's website at www.lsgold.com.

Qualified Person

Scientific and technical information contained in this press release related to reserves has been reviewed and approved by Dan Gagnon, P.Geo., Senior Vice-President, Operations, and Natasha Vaz, P.Eng., Vice-President, Technical Services, both of whom are employees of Lake Shore Gold Corp., and "qualified persons" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").

Scientific and technical information related to resources, drilling and all matters involving mine production geology contained in this press release, or source material for this press release, was reviewed and approved by Eric Kallio, P.Geo. Vice-President, Exploration. Mr. Kallio is an employee of Lake Shore Gold Corp., and is a "qualified person" as defined by NI 43-101.

About Lake Shore Gold

Lake Shore Gold is a gold mining company that is in production and is generating net free cash flow from its wholly owned operations in the Timmins Gold Camp. The Company is in production at both the Timmins West and Bell Creek mines, with material being delivered for processing to the Bell Creek Mill. In addition to current operations, the Company also has a number of highly prospective projects and exploration targets, all located in and around the Timmins Camp. The Company's common shares trade on the TSX and NYSE MKT under the symbol LSG.

FORWARD-LOOKING STATEMENTS

Certain statements in this press release relating to the Company's expected production levels, production growth, 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 under the United States Private Securities Litigation Reform Act of 1995 and are referred to herein as "forward-looking statements."

The Company does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results.

More information about risks and uncertainties affecting the Company and its business is available in the Company's most recent Annual Information Form and other regulatory filings with the Canadian Securities Administrators, which are posted on sear at www.sedar.com, or the Company's most recent Annual Report on Form 40-F and at her regulatory filings with the Securities and Exchange Commission.

Contact Information

• Lake Shore Gold Corp.
  Tony Makuch
  President & CEO
  (416) 703-6298
  
  Lake Shore Gold Corp.
  Mark Utting
  Vice-President, Investor Relations
  (416) 703-6298
  www.lsgold.com