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

HOLDING US BACK

[bakersman]

HEY GUYS

I MADE A MISTAKE ON MY CASH FLOW ANALYSIS PER MY MAR.1 POST.

I MISSED SUBTRACTING FROM 2011 CASH INFLOWS OUR CAPITAL EXPENDITURES BUDGET OF $75 MILLION  FOR 2011. THEREFORE OUR CASH BALANCE AT DEC.31,2011 WILL PROBABLY ONLY BE ABOUT $132 MILLION.

I THINK WE WILL BE PRETTY TIGHT TO BUILD THE NEW MILL FOR WEST TIMMINS OUT OF OUR EXISTING CASH FLOW.

                                                                                                 LATER,

                                                                                                    THE BAKER