Lake Shore Gold Corp. July 24, 2008

Transcription

1 CANADA S NEXT MID-TIER GOLD COMPANY Lake Shore Gold Corp. July 24, 2008 (TSX:LSG) 1

2 Disclaimer Re: Forward Looking Statements Where Lake Shore Gold expresses an expectation or belief as to future events or results, including management plans and objectives, and projections of exploration results, such expectation or belief is expressed in good faith and is believed to have a reasonable basis. While these statements represent our best current judgment, they are subject to risks and uncertainties that could cause actual results to vary,includingtheriskfactorslistedinlakeshoregoldcorp. s Annual Information Forms available on the SEDAR website Lake Shore Gold does not assume the obligation to update any forward-looking statement. This presentation includes certain exploration results and resource estimates. This information, and any related results and resource estimates for the Timmins West Gold Property (the Property ), uses certain definitions, including Mineral Resources, Indicated and Inferred Mineral Resources, from the CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by the Canadian Institute of Mining, Metallurgy and Petroleum ( CIM ) Council. Readers are referred to the Technical Report for the Timmins West Gold Property filed on SEDAR. The Qualified Person (as defined in National Instrument , "Standards of Disclosure for Mineral Projects") who has prepared or supervised the preparation of all disclosure of a scientific or technical nature concerning the Timmins West Gold Property is Jacques Samson, P. Geo. Lake Shore Gold s properties, typical of many exploration companies, are or may be subject to royalties.the resource estimates described in this presentation for the Vogel and Schumacher properties are historic, and the company is not treating the estimates as National Instrument defined resources. The company has not completed the work necessary to verify the classification of the resources and therefore such historic estimates should not be relied upon. On Slide 6 of this presentation, the measured and indicated resource estimates described for the Vogel and Schumacher properties are historic, and the Company is not treating the estimates as National Instrument defined resources. The Company has not completed the work necessary to verify the classification of the resources and therefore such historic estimates should not be relied upon. Lake Shore Gold s Qualified Person for the Vogel and Schumacher properties, as defined under National Instrument , is Richard Labine, P.Geo. As the Qualified Person he has prepared or supervised the preparation of the scientific or technical information for the properties. 2

3 Lake Shore Gold Corp. Canada s Next Mid-Tier Gold Company GOLD resources and reserves providing a strong foundation for success GOLD production that is near-term, low cost and poised for rapid growth GOLD exploration that includes two new discoveries and significant ifi upside potential ti 3

4 The Lake Shore Gold Advantage Integrated production from the 100%-owned Bell Creek Mill 4 When you own your mill, 4 You own your destiny

5 The Lake Shore Gold Advantage 5 Bell Creek Mill Permitted 1,500 tonnes per day capacity, to be expanded Amenable to LSG ores Conventional gold mill circuit Crushing, grinding, g, gravity Carbon-in-pulp (CIP) process Refinery Mill in good condition, refurbishing progressing well 5 Re-opening Targeted for Q4/08

6 Gold Resources: 1.6MM Ounces (M&I) Starting from a strong base Timmins West (NI Compliant) 3,268,000 tonnes g/t Au (uncut) Indicated 1,291,000 ounces 968,000 tonnes 5.79 g/t Au (uncut) Inferred 207,000 ounces Bell Creek (NI Compliant) 190,000 tonnes 8.25 g/t Au Indicated 50,641 ounces 346,000 tonnes g/t Au Inferred 85, ounces Vogel (1999 CIM Historic Resource) 642,000 t 12.2 g/t Au Measured/Indicated 261,200 ounces 933,800 t 12.2 g/t Au Inferred 379,800 ounces SCHUMACHER (1997 Historic Resource) 156,000 t 5.99 g/t Au (uncut) Measured/Indicated 30,043 ounces 6

7 Gold Reserves: 1.2MM Ounces to Date Starting from a strong base Probable Mineral Reserve Estimate August 2007 Timmins West (NI Compliant) 3,600,000 tonnes g/t Au (uncut) 1,200,000 ounces 3,400,000 tonnes 7.60 g/t Au (cut) 830,000 ounces LSG s Qualified Person ( QP ) for the Timmins West property, as defined by National Instrument , is Jacques Samson, P.Geo. As the QP he has prepared or supervised the preparation of the scientific or technical information for the property. On Slide 7, the measured and indicated resource estimates described in this presentation for the Vogel and Schumacher properties are historic, and the Company is not treating the estimates as National Instrument defined resources. The company has not completed the work necessary to verify the classification of the resources and therefore such historic estimates should not be relied upon. Lake Shore s Qualified Person ( QP ) for the Vogel and Schumacher properties, as defined under National Instrument , is Richard Labine, P.Geo. As the QP he has prepared or supervised the preparation of the scientific or technical information for the properties. 7

8 Conceptual Plan - Ore Flow To Bell Creek 1 Timmins West Ramp 3 High Grade Veins 11.0 gpt 10.0 gpt Vogal Ramp High-Grade Veins Timmins West UG Mine 2 Bulk Mining 4 Bell Creek Mill Bell Creek UG Mine High- Grade Veins Q1/ gpt 8 * Cut grade which may increase after bulk sample test Note: Example of Forward Looking Statement

9 Gold Production: Near Term, Rapid Growth 220, Four Year Conceptual Production Outlook Gold Ounces Produ uced 200, , , , , ,000 80,000 60,000 40,000 20, The information provided above is forward-looking information. Actual results may vary from those stated or implied in the forward-looking information based on a number of factors among them, but not limited to, the results of exploration activities, project execution and the relationship of cutting factors. Not all production in the above forward-looking information is based on mineral reserves. Production included in the outlook comes from the Company s 100%-owned Timmins West, Vogel and Bell Creek properties.

10 Four Properties to Feed Bell Creek Mill 10 10

11 11 Gold Production: Timmins West Moving Forward %-owned by Lake Shore Gold Pre-feasibility study released Oct. 07 Advanced exploration progressing Initial production from ramp - early 09

12 Timmins West: Early Production from TW Ramp Production: t/day Grade: 8 gpt (cut) 13.5 gpt (uncut) Recoveries: 95% 12 Example of forward looking statement

13 Timmins West: Proven Economics with Upside 13 Timmins West Shaft Surface Production: 1,000-1,500 t/day Grade: 7.6 gpt (cut) 10.4 gpt (uncut) Recoveries: 95% 1200 m 13 Example of forward looking statement

14 Timmins West: Proven Economics with Upside 2007 Pre-Feasibility Study Pre-feasibility study completed in 2007 to justify expenditures for advanced exploration program Conservative methods employed Cutting factors of 30 gpt (0.96 oz/t) and 50 gpt (1.6 oz/t) Production of 1,000 tpd assumed Capital cost, including sustaining, of $142 million Based on existing probable reserve only Conservative gold price of US$600/oz Based on assumptions used: Cash operating costs of $319/oz (cut), $234/oz (uncut) IRR of 38% 14

15 Timmins West: Proven Economics with Upside Potential to Improve Pre-feasibility Study 1. Increase production rate up to 1,500 tpd 2. Produce above 400m depth with surface ramp 3. Reduce operating costs 4. Higher head grades Re-evaluate cutting factors Reduced mining dilution Mining methods 5. Higher gold price than US$600 in study 6. Exploration potential ti Thunder Creek, New Zones 15

16 Gold Production: Low Operating Costs Timmins West Potential to improve 16

17 Gold Exploration Timmins West Open Open 17

18 18 Gold Exploration: Thunder Creek New Discovery TC g/t Au over 3.65 metres 5.43 g/t Au over 1.20 metres 27.6 g/t Au over 0.50 metres 9.77 g/t Au over 3.95 metres TC g/t Au over 7.00 metres TC g/t Au over 9.00 metres TC g/t Au over 0.90 metres DDH TC07-30, 36, 41, 43; TC08-47 TC g/t Au over 2.05 metres 18

19 Gold Exploration: Near Deep, Producing Deposits The measured and indicated resource estimates described in this presentation for the Vogel and Schumacher properties are historic, and the Company is not treating the estimates as National Instrument defined resources.

20 New Drilling Results- Ore Extensions Bell Creek Mine 20

21 Bell Creek New Discovered, Western Extension 21 21

22 Vogel Ramp Shallow, High-Grade Gold Vogel Ramp Vogel High-Grade Mineralization Internal study initiated for mining high-grade mineralization above the 320 metre level at Vogel property Ramp portal and culvert construction expected by mid

23 Gold Exploration Near Deep, Producing Deposits 23

24 Gold Exploration Approx. $12MM/Year Drill Rigs 2 Timmins West/Thunder Creek (currently at Timmins West) 3* Bell Creek Complex (currently at Bell Creek, *moving to Vogel) 2 TPK project 1* Casa Berardi/Blakelock *Drilling to resume later in 08 or early Drill rig fleet 24

25 Other LSG Advantages: Low Risk Profile Properties largely located in Timmins mining camp One of world s largest gold camps 75M ounces produced Mining infrastructure readily available Excellent access to workers, suppliers, education and training Stable political/regulatory regime, supportive of mining Proven processing history at Bell Creek Mill Capital requirements relatively low in an inflationary cost environment 25

26 LSG Advantage: Fully financed Cash position of approx. $140 million following second Hochschild transaction in June No debt Expenditure Program: $60MM (from March 31/08) $78.5MM Well funded through end of 2009 Re-open Bell Creek mill Production from Timmins West ramp Advance Vogel ramp Complete advanced exploration at Timmins West Complete evaluation of Bell Creek Mine 26 Initial Cash Flows in Early 2009

27 Other LSG Advantages: Experienced Management Anthony (Tony) Makuch, President & CEO P. Eng., former COO FNX Mining Company, V.P., Operations (Dynatec) Christopher h Stewart, t V.P., Operations Mining engineer, 15 years experience, recently V.P., TESC Mining Services Brian Hagan, V.P., Safety 30 years experience, former Chairman Ont. Mine Contractors Safety Ass. Merushe (Meri) Verli, V.P., Finance & Controller C.A., former senior manager with KPMG, Ph.D. in Economic Sciences Hannu Virtanen, V.P., Project Development >30 years as geological engineering with Inco Limited David Beilhartz, V.P., Exploration Geologist formerly with Watts Griffis McOuat Consulting and Inco Limited Mark Utting, V.P., Investor Relations CFA with > 20 years experience, former Director, IR, Dynatec 27

28 Lake Shore Gold Corp. Canada s Next Mid-Tier Gold Company GOLD resources and reserves providing a strong foundation for success GOLD production that is near-term, low cost and poised for rapid growth GOLD exploration that includes two new discoveries and significant ifi upside potential ti 28

29 Strong Gold Price Environment Expect gold price of well over US$900/oz. 29

30 Lake Shore Gold A SOLID INVESTMENT IN GOLD