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

RE: RE: Tony Makuch Step Down

[TedOwens]

The bottom lines to the markets lack of confidence in LSG is the fact that they dont have the Capital Resrves in place in which to bring the full spectrum of deposit models in its posession to fruition. In order to acquire such financial reserves they would either have to finance heavyly in the open market (instutional investors are not behind this play) or the price of gold would have to skyrocket past $2000 over the coming 6 to 12 months. As it is highly unlikely that the two submitted scenarios are going to develop over the coming year, or maybe two, then investors will have to grin and bear the current situation and look for another play which has significant exploratory potentials in place. Producers like LSG who are utilizing all of thier production revenues just to stay afloat are being avoided like the plague by the market makers so unless they get lucky and hit another Hemlo in short order, the lack of signficant capital reserves being in place is the primary reason why the markets are downgrading their survivial statistics. As for Makuch, it would make sense that his departure would be an element which may just give LSG that much needed market confidence booster in the hopes that new blood may avert further declines.