Lake Shore triples Timmins Gold resource (September 14, 2004)

Vancouver – Since Lake Shore Gold (LSG-V) acquired an option on the Timmins Gold project in northeastern Ontario just over one year ago, the company has accelerated its exploration of the property, primarily through an aggressive drill program.

As a result of extensive drilling and data, the latest resource calculation for the project shows a 200% increase over the 2002 figures, based on an uncut basis, and is up 170% using cut grades.

The latest, 2004 estimated indicated resource now stands at 1.4 million tonnes grading 11 grams gold per tonne using a 6 gram gold cutoff grade. There is also an inferred resource of 200,000 tonnes grading 8.7 grams gold with the same cutoff parameter. An additional inferred resource of one million tonnes of 4.1 grams gold has also been identified within mineralization grading between 3-6 grams gold.

Lake Shore has conducted over 31,000 metres of drilling, primarily directed at this resource expansion, but with some focused on near surface definition and on exploration.

Mineralization at the Timmins Gold project is typical for the area, and is located north of the Porcupine-Destor Fault zone at the western-end of the Timmins camp. Gold occurs in high-grade mineralized quartz veins and in disseminated sulphide zones in steeply dipping shoots associated with the fault. All mineralization discovered to date is within a 150-200 metre wide altered, deformation zone and has been identified from surface to a depth of 850 metres.

The increase in resource is largely contained in the wide Footwall and Ultramafic zones between the depths of 350 to 900 metres. Both of these zones and the newly discovered Deep zone, hosted in sediments below the Ultramafic zone, remain open westward and are currently being drill tested in a second phase resource expansion program.

In May 2003, Lake Shore entered into an option to earn a 50% interest in the project from Holmer Gold Mines (HGM-V) through incurring exploration expenditures of $2.5 million, cash payments of $250,000 and the issuance of 150,000 shares over three years. Another requirement of the option was confirming an indicated mineral resource of 500,000 ounces of gold on the property. The company has now fulfilled all the terms of the agreement and has vested its 50% interest.

Lake Shore is 38.6% owned by Aurora Platinum (ARP-V).

As of the latest figures, Lake Shore Gold reports 34.5 million shares outstanding. The market valued the results and resource increase by adding a dime, on the news, to the share price pushing it up to the 85 per share level on moderate volume.