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

RE: 2500 tpd

[Timminsgold]

LSG has been consistently producing in excess of 5g/t for some time now. The days of processing development ore are over (I hope) They are approaching 5.5 g/t and are targeting 6 g/t by the end of the 3Q,

As more of the ore is milled from the Timmins mine, the grade should improve to over 6g/t, consistent if mine estimates.

RE HYGRADING: there are sections at the Timmins Mine, that are quite large; that experts who have been underground, visibly estimate to more than 1 ounce per ton. Now if and when they decide to process that ore thru the mill will, be considered HYGRADING. Always nice to know the ore is there and can be removed when deemed prudent, by management.