April 2014 marketing presentation

L A K E S H O R E G O L D C O R P.

Making Our Mark Through

Performance

Cash Flow

Growth

1

April 2014

Marketing Presentation TSX, NYSE MKT: LSG

Forward-Looking Statements

2

Information included in this presentation relating to the Company's expected production levels, production growth, costs, cash flows, economic returns, 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. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable, including that operating and capital plans will not be disrupted by 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 actual mineralization on properties will be consistent with models and will not be less than identified mineral reserves. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. 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, performance or achievements expressed or implied by the forward-looking statements. In particular, delays in development or mining and fluctuations in the price of gold or in currency markets could prevent the Company from achieving its targets. Readers should not place undue reliance on forward-looking statements. 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 sedar at www.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 CONTROL

Lake 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 samples consisting 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 are checked to be within acceptable limits prior to being accepted into the GEMS SQL database. Routine assays have been completed using a standard fire assay 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 the Timmins mine and Thunder Creek underground project, the remaining pulp is taken and fire assayed with a gravimetric finish. Select zones with visible gold are 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. The remaining 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 Lab located in Timmins, Ontario, and the pulps shipped to ALS Chemex Assay Laboratory in Vancouver, B.C. ALS Chemex is an ISO 9001-2000 registered laboratory preparing for ISO 17025 certification.

QUALIFIED PERSON

Scientific and technical information related to mine operations and reserves contained in this presentation has been reviewed and approved by Dan Gagnon, P.Geo., Senior Vice-President, Operations, and Natasha Vaz, P.Eng., Director of Technical Services & Project Evaluation, 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 presentation, or source material for this presentation, was reviewed and approved by Eric Kallio, P.Geo. Mr. Kallio is an employee of Lake Shore Gold Corp., and is a “qualified person” as defined by NI 43-101.

LAKE SHORE GOLD

Growing gold producer

Generating net free cash flow

Annual production of 160,000 to 180,000 oz(1)

Low-cost producer - $700/oz cash cost

3 (1) Example of Forward Looking Information

Holloway

St. Andrew

Holt

St. Andrew

Hislop

St. Andrew

Hoyle Pond

Goldcorp

Parmour (PJV)

Goldcorp

Kirkland Lake Gold Mine

Kirkland Lake Gold

Canadian

Malartic

Osisko

Goldex

Agnico-Eagle

Lac-Herbin

Alexis

Lapa

Agnico-Eagle

Bousquet-LaRonde

Agnico-Eagle

Doyon, Westwood

IAMGOLD

Kirkland Lake

47 Moz

Rouyn-

Noranda

19 Moz

Cadillac

18 Moz

Malartic

9 Moz

Val d’Or

18 Moz

Larder Lake-Cadillac

Fault Zone

Destor-Porcupine

Fault Zone

Thunder Creek / Timmins

Lake Shore

Ontario Quebec

Upper Beaver

Osisko

McGarry

Armistice

Dome Mine

Goldcorp

City of Timmins

71 Moz

Matheson

Black Fox

Brigus

Paymaster Shaft

Placer Dome (Barrick)

Bell Creek

Lake Shore

Macassa

Kirkland Lake Gold

South Claims

Kirkland Lake Gold

Taylor

St. Andrew

Young-Davidson

AuRico

ON

QC

Timmins

Other Mines

Town

Goldcorp Porcupine Assets

Lake Shore Gold Assets

20km

Porcupine

Goldcorp

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One of the World’s Great Gold Districts

Fenn-Gib

Lake Shore

15

34 41

0

10

20

30

40

50

Sept. 30/13 Dec. 31/13 Apr. 1/14

Cash & Bullion (As at) Generating net free cash flow

Cash & bullion up >$25M in last 6 months

Current cash & bullion of $41.0M

LSG – Investment Highlights

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Highly leveraged to rising gold price

$100/oz increase adds $16M – $18M of free cash flow

Highly leveraged to C$/US$ exchange rate

Revenue in US$

Costs in C$

($ Millions)

LSG – Investment Highlights (Cont’d)

6

Strong near-term production growth

2012: 85,800 oz. 2013: 134,600 oz. 2014: 160,000 – 180,000 oz.(1)

Low cost producer

Cash operating(2) – 2013: US$766/oz.

2014: US$675 – US$775/oz.(1)(4)

AISC(2)(3) – 2013: US$1,139/oz.

2014: US$950 – US$1,050/oz.(1)(4)

High-potential exploration targets around existing deposits & in highly prospective areas

Attractive, wholly owned projects at/near current operations

-20,000

20,000

60,000

100,000

140,000

180,000

2012 2013 2014

Production Range

(1) Example of Forward Looking Information (2) Example of Non-GAAP Measure (3) All-in sustaining cost (4) Preliminary estimates

(Ounces)

0

500

1000

1500

2000

2012 2013 2014

Cash Operating Cost All-In Sustaining Cost

Lake Shore Gold (TSX, NYSE MKT: LSG)

Shares O/S 416,695,000

Price (April 11/14) $0.88 (TSX)

Market Cap. $367,000,000

52 Week High/Low $1.00/$0.16

3M av. Daily Volume 1,360,000

Capital Structure

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Debt (C$ Millions) Details

Gold-linked note $17 14 monthly cash payments remaining (947 oz/month)

Standby line $30 9.75%, to be repaid monthly (June ‘15/Nov. ‘16)

Convertible debentures TSX: LSG.DB

$103 6.25%, paid semi-annually, due Sept. 30, 2017 Conversion price of $1.40 TSX: LSG.DB – $93.00 (April 11, 2014)

Repaid approx. $20 million of debt in 2013 Targeting debt repayments of $20 – $25 million in 2014 Well positioned relative to debt covenants

0.0

0.3

0.5

0.8

1.0 LSG Share Price ($)

23,200 30,800 28,900

51,700

134,600

-5,000

15,000

35,000

55,000

75,000

95,000

115,000

135,000

Q1 Q2 Q3 Q4 2013

2013 Production (Ounces)

2013 – A Breakthrough Year

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Record production, mill exceeds

>2,500 tpd for first time

Phase 2 mill expansion

commissioned (3,370 tpd in

Sept.)

3,500 tpd achieved, mill

processed mine production &

stockpiles from commissioning

Severe winter limits

throughput to 2,200 tpd

982 908

701 609

766

1,550

1,257

1,027

849

1,139

0

200

400

600

800

1000

1200

1400

1600

Q1 Q2 Q3 Q4 2013

2013 Cash Operating(1) & All-In Sustaining Costs(1)

(US$ Per Ounce Sold)

Cash Operating Cost All-In Sustaining Cost

LSG – A Breakthrough Year

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Four consecutive quarters of unit cost improvement, reflects higher production, improved infrastructure and effective cost control

(1) Example of Non-GAAP Measure

2014 – Poised for a Record Year(1)

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(1) Includes examples of Forward Looking Information (2) Example of non-GAAP Measure (3) All-in sustaining costs (4) Preliminary estimates

In 2014, LSG is targeting:

Production of 160,000 to 180,000 ounces

Cash operating cost/oz(2) between US$675 and US$775

AlSC/oz(2)(3) between US$950 and US$1,050

In first quarter 2014:

Production of 44,600 ounces

Cash operating cost/oz of US$630(4)

AISC/oz of US$970(4)

Cash & bullion increased @ $7 million

Timmins West Mine Flagship Asset

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Current Reserves & Resources Reserves Tonnes Grade Ounces Probable 3,332,000 4.6 492,200 Resources (inclusive of Reserves) Indicated 4,364,000 5.1 715,000 Inferred 2,939,000 5.5 516,000

Underground mine with two deposits – Timmins Deposit and Thunder Creek Deposit

Produced 107,100 oz in 2013 (747,600 tonnes @ 4.6 gpt)

Targeting approx. 2,500 tpd in 2014 - >130,000 oz(1)

o 33,900 oz in Q1/14 (215,900 tonnes @ 5.0 gpt)

Total production costs >$100/tonne

Site infrastructure: • Concrete shaft to depth of 710m with 5.5m diameter • Hoisting plant and infrastructure with 6,000 tpd capacity and

depth potential to 1,200m • Main ramp from surface to 300 Level and internal ramp system

to existing sub-levels

Timmins Deposit

Thunder Creek

270 Access Level

730 Access Level

260 Level

525 Level

650 Level

(1) Example of Forward Looking Information

18,700 24,200 22,600

41,600

33,900

05,000

10,00015,00020,00025,00030,00035,00040,00045,000

Q1/13 Q2/13 Q3/13 Q4/13 Q1/14

(Ounces) Quarterly Production

Bell Creek Mine Targeting >30,000 oz in 2014(1)

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Current Reserves & Resources Reserves Tonnes Grade Ounces Probable 707,000 4.7 106,600 Resources (inclusive of Reserves) Indicated 4,542,000 4.6 672,000 Inferred 5,935,000 4.6 872,000

Underground mine currently producing @ 22,000 oz/year

Produced 27,500 oz in 2013 (205,200 tonnes @ 4.4 gpt)

Increasing mining rate to 750 tpd in 2014, targeting >30,000 oz in 2014(1)

o 10,700 oz in Q1/14 (68,000 tonnes @ 5.1 gpt)

Reserves extend to 775 Level, majority of resources below existing reserves

Significant potential for growth

Existing infrastructure: • Primary access is via a ramp from surface to 650 Level • Existing 6.3m by 2.6m timbered shaft to 290m depth (currently

not in service and used as ventilation shaft)

Deep Zone

Potential shaft

extension

Shaft Bell Creek Mine

4,600

6,600 6,300

10,100 10,700

0

2,000

4,000

6,000

8,000

10,000

12,000

Q1/13 Q2/13 Q3/13 Q4/13 Q1/14

(Ounces) Quarterly Production

(1) Example of Forward Looking Information

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Conventional gold milling circuit consistently achieving recoveries +95%

Completed expansion in Q3 2013 to >3,000 tpd capacity

Targeting 3,200 – 3,300 tpd in 2014

Crushing/grinding circuit capable of 5,500 tpd currently

Estimated capex of $20 – $40 million to expand mill to 5,500 – 6,000 tpd

Bell Creek Mill Efficient with Excess Capacity

Longer-Term Outlook(1)

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Reserves and resources support 160,000 to 180,000 oz per year for 5 years

AISC(2)(3) below US$1,000/oz

Targeting significant free cash flow

Renewed commitment to exploration

Full pipeline of projects to support future growth

(1) Includes examples of Forward Looking Information (2) All-in sustaining costs (3) Example of non-GAAP Measure

Probable Reserves Tonnes Au Grade (g/t) Contained Ounces

Timmins West Mine 3,332,000 4.6 492,200

Bell Creek Mine 707,000 4.7 106,600

Total 4,039,000 4.6 598,800

Reserves & Resources (at March 2014)

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Measured & Indicated(1) Tonnes Au Grade (g/t) Contained Ounces


Gold River 690,000 5.3 117,000

Bell Creek Mine 4,542,000 4.6 672,000

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

Marlhill 395,000 4.5 57,000

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

Total 2,985,000

Inferred Tonnes Au Grade (g/t) Contained Ounces


Gold River 5,273,000 6.1 1,028,000

Bell Creek Mine 5,935,000 4.6 872,000

Vogel 1,459,000 3.60(3) 169,000

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

Total 3,335,000 (1) Resources are inclusive of reserves (2) Open-pit resources (3) Combination of underground and open-pit resources

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2014 Reserve Update

Probable Reserves March 2014

Timmins West Mine Reserve

Tonnes Grade

Contained Ounces

Probable 3,332,000 4.6 492,200

Bell Creek Mine

Tonnes Grade

Contained Ounces

Probable 707,000 4.7 106,600

TOTAL RESERVES Probable 4,039,000 4.6 598,800

Average price of US$1,100/oz versus US$1,400/oz in previous estimate

Commenced new growth phase Drill program to replenish resources and reserves launched in January 2014

Evaluating projects in close proximity to current operations

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775mL

565mL

925mL

655mL

685mL

Existing 2014 Drill Budget

New Drill Program

Bell Creek Mine New Drill Program

BC685-901

8.47/4.60

BC685-903

4.37/2.00

BC685-902

5.07/2.20

NA2

HW6

NA

NB2

NB

HW2

HW3 HW4

HW5

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Bell Creek Mine New High-Grade Structures Near Current Mining

High-grade intercepts reported in untested gap in North A Zone

High-grade structures identified within 100 m of current mining

Revised resource model based on multiple high-grade, S-W trending structures branching off North A Zone

(New Structure)

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Bell Creek Mine New High-Grade Structures Near Current Mining

Key Intercepts

Hole GPT Metres

610 865 14.12 10.2

610 911 8.41 12.0

610 863A 7.01 10.7

610 872 6.02 7.6

685 901 11.42 3.6

685 901 8.47 4.6

685 860A 7.76 8.7

685 861 5.96 6.5

685 902 6.38 6.0

BC610-866

5.39/2.10

8.00/2.70

BC610-866

5.08/2.50

BC610-863A

7.01/10.70

NA2 HW6 NA NB2

BC610-865

14.12/10.20

BC610-872

6.06/7.60

BC610-865

5.29/8.30

BC610-872

10.95/2.90

BC610-911

8.41/12.0

BC09-53H*

4.82/2.25

BC09-53H*

5.63/4.60

HW7

Timmins West Mine New Drill Program (790 L)

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Targets:

1. North & south limbs of main Timmins Deposit fold structure

2. Second, inner fold nose (S2 FN)

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Target:

Main sedimentary, ultramafic contact between Timmins and Thunder Creek deposits

Timmins West Mine Testing Key Contact

830 L Drill Drift

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2,000m Level

Timmins Deposit Thunder Creek 144

TC – 144 Trend

UM and FW structures extended to 2,400 m

6 kms

Timmins West Mine

Growth Opportunities Timmins West Complex

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Growth Opportunities Gold River

Highly prospective mineralized trend with 2.5 km strike length

Two deposits identified, both within 4 km of the Timmins West mine shaft

Over a million ounces in resource, majority within 400 m from surface

High-grade core in East Deposit includes 310,900 oz @ 9.81 gpt (between 400 and 800 m)

Excellent potential for resource expansion and new discoveries with additional drilling – open along strike and to depth

Project is natural extension of Timmins West Mine

Current Reserves & Resources

Resource Tonnes Grade Ounces

Indicated 690,000 5.3 117,000

Inferred 5,273,000 6.1 1,028,000

High-Grade Core Between 400 & 800 m levels 986,000 tonnes @ 9.81 gpt for

310,900 ozs Open in all directions

Gold River Trend – East

Timmins West Mine

Surface drill at Gold River

4 kms


Bell Creek Marlhill Vogel Deep Zone

Potential Vogel Open Pit

Majority of Bell Creek resources below 775 L (limit of existing reserve)

Initial resources at Marhill and Vogel

Studying open pit and underground options at Vogel

Resources

Tonnes Grade Contained Ounces

Indicated

Bell Creek Mine 4,541,700 4.6 672,000

Vogel – open pit 2,291,000 1.75 125,000

Marhill 395,000 4.5 57,000

Inferred

Bell Creek Mine 5,934,900 4.6 872,000

Vogel – underground 767,000 5.6 137,000

Vogel – open pit 692,000 1.43 32,000

Growth Opportunities Bell Creek Complex


Fenn-Gib – near surface resource with potential for ~200k oz/year of production(1)

Current resource has been evaluated as a potential open pit option

Potential small starter pit, early production with limited capital investment required

• Attractive geology with low potential strip ratio

• Mineralization extended 200 m to north, east and to depth with only limited drilling

• Multiple additional exploration targets identified

• Very low holding cost (approx. $50,000 per year)

Growth Opportunities Fenn-Gib

Current Reserves & Resources Resource Tonnes Grade Ounces Indicated 40,800,000 0.99 1,300,000 Inferred 24,500,000 0.95 750,000

Potential for >500,000 Ounces/Year(1)

26 (1) Examples of Forward Looking Information

0

100,000

200,000

300,000

400,000

500,000

600,000

Current Bell Creek Deep Gold River Fenn-Gib

Conceptual Annual Production Potential Ounces

180,000 160,000

Production

Range

Conceptual Production

Strong balance sheet with increasing financial flexibility

Building cash position

Repaying debt


Generating net free cash flow

160,000 – 180,000 oz. per year of production

Low-cost producer

LSG positioned for long-term success through quality operations & projects

Attractive growth opportunities to expand existing deposits and advance wholly owned projects

LSG – Progress Driving Value Creation(1)

April 2014 marketing presentation

Investor Relations

Transcript of April 2014 marketing presentation