LAKE SHORE GOLD CORP 6.25 PCT DEBS T.LSG.DB

some key points

[Trashenstein09]

• Production for the second quarter 2012 of 24,426 ounces recovered (183,215 tonnes processed at an average grade of 4.3 grams per tonne ("gpt") gold), near the top of the Company's target range of 20,000 - 25,000 ounces; a total of 24,298 ounces were poured during the quarter, with 24,915 ounces being sold at an average price of US$1,605 per ounce
  • Production from Timmins West Mine: 18,894 ounces (136,455 tonnes @ 4.44 gpt)
  • Production from Bell Creek Mine: 5,532 ounces (46,760 tonnes @ 3.83 gpt).
     
• Production for the first six months of 2012 of 41,106 ounces recovered (343,724 tonnes grading 3.87 gpt), 40,479 ounces were poured and 43,389 ounces were sold at an average price of US$1,641 per ounce. 
   
• Mill throughput during the quarter averaged 2,013 tonnes per day with an average recovery rate of 96.8%. 
   
• Cash operating costs⁽¹⁾ per ounce of gold sold during the second quarter of 2012 were US$916. (Based on ounces produced during the second quarter, cash operating costs⁽¹⁾ averaged US$849 per ounce.) 
   
• Cash operating costs⁽¹⁾ per ounce of gold sold during the first half of 2012 averaged US$963 per ounce (US$949 per ounce based on ounces produced). 
   
• Cash earnings from mine operations⁽¹⁾ for the second quarter of 2012 of $16.8 million, up significantly from $2.6 million for the second quarter of 2011 due to an increase in gold sales, a higher average gold price and lower cash operating costs⁽¹⁾. Cash earnings from mine operations⁽¹⁾ for the first six months of 2012 totaled $26.3 million, up from $14.0 million during the first half of 2011.