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

RE: Turning Cash Into Shareholder Value

[Timminsgold]

The deep holes at the Dr. Raman orebody cost about $125,000, all costs in. The shallow holes at Vogel maybe $75,000 each, all costs in. So unless something major requiring a huge cash influx was required, they appeared to be in funds for 2006. It is my belief that options exercised etc, had added to the cash available during the latter part of 2005.