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

RE: WDO vs LSG......... Rankat

[zagorsk]

I too own both WDO and LSG. Both have a market cap of about $200 million. WDO comes complete with existing mines and mills at Eagle River in Ontario and Val d'Or in Quebec. Both areas are in historically good locations. In 2007 WDO expects to produce 85,000 ounces, (35 from Eagle River and 50 from Kiena) In 2 or 3 years they will also bring into production the old Wesdome and Shawkey mines. This gives them substantial growth opportunities for the future. The drawback with WDO is their low amount of reserves. They have embarked on a substantial exploration and development program this year and good results from this program will assure the longer term success of these mines along with providing a substantial growth profile. LSG is exploring in the prolific Timmins area and they have just completed a fairly substantial drilling program which is expected to add subsantially to their ounce count. If the drilling program reveals an ounce count of 4 to 5 million ounces of 10+ gr/ton then we should get an immediate boost in the stock price and the outlook would be to establish a mine which in 3 years could be producing 300,000 ounces per year. There would be bluesky beyond that depending on future drilling programs. In comparing the two, the short term potential lies with LSG while we wait for the results of their drilling program due very soon. Longer term WDO has the key advantage of possesing existing mines and mills. As you know setting up a hardrock mine and mill is expensive and time consuming. WDO will be providing an update to its resources by the end of the year. Discoveries from its current drill program will be valued more highly than LSG's due to the fact that they already have the existing mines and mills and they are expecting to add to their already established resources. In summary I think both stocks have excellent potential in the current climate of increased gold prices. The results of their exploration programs will be key for both stocks. I would be interested in whatever opinions you have whether you wish to post them here or to my inbox.