CEE Centamin Plc

Lake Shore Gold Corp. (TSX:LSG) ("Lake Shore Gold," "the Company" or "LSG")
today announced an agreement with Hochschild Mining Holdings Ltd.
("Hochschild"), a wholly owned subsidiary of Hochschild Mining plc (LSE:HOC), to
raise $85.0 million through a private placement transaction for 19.2 million
shares at a price of $4.43 per share. In addition, the Company announced a
non-brokered structured flow-through financing co-led by Wellington West Capital
Markets Inc. and Canaccord Capital Corporation for the issuance of 2.7 million
shares at an average price of $5.94 per share for net proceeds of $15.0 million.



Hochschild will, through the private placement, increase its interest in the
Company to approximately 36% of the common shares (on a fully diluted basis)
from the current level of approximately 32%. Under the terms of the Strategic
Alliance Agreement, entered into as part of a financing completed in February
2008, Hochschild's ownership in Lake Shore Gold is limited to 40% of the
outstanding common shares (on a fully diluted basis). The limitation under the
Strategic Alliance Agreement expires on November 22, 2010. 


Anthony (Tony) Makuch, President and CEO of Lake Shore Gold, commented:
"Hochschild's additional investment in Lake Shore Gold, at a premium to market,
is a strong endorsement of the quality of Lake Shore Gold's projects and the
progress we are making. We appreciate Hochschild's ongoing support, which
benefits all shareholders, and its continued commitment to the Strategic
Alliance Agreement we signed early last year. Together, the two transactions
announced today represent a blended 18% premium to yesterday's close. When
compared to the expected price and costs related to a marketed transaction, the
premium is approximately 30%. 


"The funds being received from these transactions will support our plans to move
all of our projects forward as aggressively as possible. We expect to produce
100,000 ounces of gold in 2010 and then to build production over the following
three years to upwards of 350,000 ounces annually. Over the next 12 months, we
will bring the Timmins Mine to commercial production, establish National
Instrument 43-101 resources at Thunder Creek and the Bell Creek Complex,
commence processing ore from the advanced exploration programs at Thunder Creek
and the Bell Creek Complex and complete the expansion of the Bell Creek Mill to
3,000 tonnes per day. We also plan to significantly increase our exploration
spending to $29 million with a focus on our Timmins West properties, including
the Timmins Mine, Thunder Creek and additional targets acquired through the
recently completed business combination with West Timmins Mining, as well as our
Bell Creek Complex properties, including a large land position we have agreed to
acquire from Goldcorp." 


In addition to the $29 million of exploration spending in 2010, Lake Shore Gold
also today announced that the Company is forecasting 2010 project spending of
$134 million (before proceeds from anticipated gold sales). Of the project
spending, new projects account for approximately $58 million, including $30
million for the expansion of the Bell Creek Mill in 2010 to 3,000 tonnes per day
and $28 million for an underground advanced exploration program at Thunder Creek
(see Figure 1.), which commenced earlier this month. The remaining $76 million
relates to continued progress at the Bell Creek Complex and work to advance the
Timmins Mine to commercial production, which the Company expects to achieve in
the fourth quarter of 2010.


Both transactions announced today are subject to final documentation as well as
to TSX and other customary regulatory approvals. The funds raised from the
issuance of the flow-through shares shall be used for general exploration
expenditures, which will constitute Canadian Exploration Expenditures ("CEE") as
defined in the Income Tax Act. Finder's fees will be payable to certain parties,
including Wellington West Capital Markets Inc. and Canaccord Capital
Corporation, in relation to the offering of flow-through shares.


About Lake Shore Gold 

Lake Shore Gold is a rapidly growing mining company with large land positions on
the west and east-sides of the Timmins gold mining camp. The Company is
currently carrying out an underground advanced exploration program at its
100%-owned Timmins Mine project, where it has both a shaft and a ramp, and is
commencing advanced exploration at the adjacent Thunder Creek property. The Bell
Creek Mill, located on the east side of Timmins, has been refurbished to a
capacity of 1,500 tonnes per day. The Company is also making progress with an
underground advanced exploration program at its Bell Creek Complex, including
the Bell Creek Mine, Schumacher and Vogel properties, which is moving forward to
become the Company's second mining operation in the Timmins Camp. The Company
continues to invest aggressively in exploration primarily in Timmins and in
select other areas of Northern Ontario and Quebec, and owns a large land
position in Mexico. The Company's common shares trade on the TSX under the
symbol LSG.


Forward-looking Statements

Certain statements in this press release relating to the Company's exploration
activities, project expenditures, business plans, financing initiatives and
financial and operating performance 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
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 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, 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 Lake Shore Gold's most recent Annual
Information Form and other regulatory filings which are posted on SEDAR at
www.sedar.com.


To view Figure 1. (Thunder Creek Underground Advanced Exploration Program)
please visit the following link:


http://media3.marketwire.com/docs/LAKESHORE.PDF

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