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

RE: worth a replay..the meat of the matter

[Trashenstein09]

The following are key share price drivers for our production forecast, growing earnings, cash flow and NAV per share estimates:

(1) NI 43-101 compliant resource definitions at the Bell Creek area mining properties. We believe the 2010 exploration program

should provide LSG with the information for the upgrade by year-end.

(2) Phase II expansion of the Bell Creek gold recovery plant to a 3,000 tpd production rate, and given that it is a conventional

CIP plant, we would expect this to be completed by the end of 2011 (Exhibit 5).

(3) Define new gold reserves at the Timmins Mine that would allow for increased mining rates as well as justify the construction

a new 3,000 tpd recovery plant. We would expect this to be possible by converting the Rusk Zone and Porphyry Zone

discoveries into mineable reserves in H2/2011.

(4) We expect ongoing exploration drilling results to be released at a number of the company’s exploration projects, including

Casa Berardi, the Thorne Property, and Bell Creek, as well as exploration projects in Mexico.