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

Lake Shore Gold Corp. Announces Timmins West Exploration Agreement With Flying Post and Mattagami First Nations
Friday July 18, 12:18 pm ET

TORONTO, ONTARIO--(MARKET WIRE)--Jul 18, 2008 -- Lake Shore Gold Corp. (Toronto:LSG.TO - News) ("Lake Shore Gold", "the Company") 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.

Forward-looking Statements

Certain statements in this press release relating to Hochschild's investment in Lake Shore Gold, and the growth and development of the Company's projects and properties are "forward-looking statements" within the meaning of securities legislation. 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 demand for products develops as anticipated, that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts and supplies, labour disturbances, interruption in transportation or utilities, or adverse weather conditions, and that there are no material unanticipated variations in the cost of energy or supplies. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions.

Forward-looking statements include, but are not limited to, statements with respect to the future price of gold and other metals, the estimation of mineral resources, the realization of mineral resource estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, timing of completion of pre-feasibility studies, success of exploration and development activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of exploration operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, completion of acquisitions and their potential impact on the Company and its operations, limitations on insurance coverage and the timing and possible outcome of pending litigation. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". 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.

Such factors include, among others, risks related to the completion and integration of acquisitions and actual effects of the acquisitions; risks related to joint venture operations; actual results of current exploration activities; actual results of current reclamation activities; conclusions of future economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold and other metals; possible variations in ore resources, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors discussed in the section entitled "Risk Factors" in the Company's Annual Information Form filed with Canadian provincial securities regulatory authorities. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.