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

Standstill Agreement....

[digger144]

The Standstill Agreement that was put in place to protect the interests of all involved between Hochschild Mining and Lake Shore Gold is set to expire on November 22, 2010.

What does this mean?

If this agreement is allowed to expire without any new terms put into place and a new agreement signed then it is game on....anything could happen.

In my opinion, taking into consideration the change of game plan by Hochschild, most important lack of participation in the last Bought Deal Offering the current Standstill Agreement will be allowed to expire and no new agreement will be signed.  In otherwords, Hochschild will be recognized as just a Major Shareholder and the next move(s) will be theirs to make.

Recently, we have witnessed some major changes in the Hochschild organization along with key Management changes and direction of the company.  In my opinion they are going to concentrate on organic growth of their current assets and take advantage of the current Gold & Silver Prices which will reflect accordingly on their share price, which is being supported at this time by the market place.  Their share price is on the move upward and it is clear to me that they will use this buying power sometime in the future.

Their strategy has been very aggressive since they went public in 2006 and if you study their progress they are beginning to get rewarded for their efforts.  It has been a well planned out game plan, with a few bumps along the way but that is common with any plan of attack...make changes as necessary but the general plan is in tact.   They have been very shrewd in their investments and it took a lot of nerve and foresight to make such business investments that put the company on the line...no doubt about that.  I have come to understand their vision and strategy and I like what I see...their plan is coming together and they will grow into the future.

What they do with their interest in Lake Shore Gold which now stands at about 34%, just enough to keep the "wolves at bay" is yet to be determined but you can bet on one thing they are basically only two major options....sell their stake in LSG outright or Merge with Lake Shore with the latter being the most likely.  This will create a company that will immediately begin to get recognized in the market place and will attract Major Market Players to invest in the combined company.

Remember this..."Build it and they will come"...Both Lake Shore and Hochschild are doing just that and a combination of the two will fast track their efforts which will be rewarded accordingly.  Hochschild will make an all share offer for Lake Shore or they will just agree on a percent split of the assets and the current shareholders will get a piece of the new company.  If this happens I will not sell my shares that I will receive of the new Company but rather hold onto them and let this new entity grow to it's true potential.   I have given a lot of thought to this and taking into consideration all the assets of the new entity which include both Gold & Silver Operations...all in friendly environments..the future will be bright indeed!

We will Prosper and Grow in one form or another...all good in my opinion!

What a story...What a ride...I love it and consider myself very fortunate to be involved from an early stage!

Digger144

P.S.  Even if we receive all Hochschild Shares for the new company...I will hold onto to them.

         If Robert McEwen can make a deal with them and settle a dispute out of court then they
         cannot be all that bad...right...they are as smart as him!