newsLake Shore Gold Produces 95,600 Ounces in First Half of 2015, Company Announces Improved Full-Year Operating Outlook . Marketwired Lake Shore Gold Corp. 4 minutes ago . . .. . . TORONTO, ONTARIO--(Marketwired - Jul 8, 2015) - Lake Shore Gold Corp. (LSG)(NYSE MKT:LSG) - H1/15 production of 95,600 ounces, Q2/15 production of 42,600 ounces 2015 production guidance revised to at least 180,000 ounces from 170,000 to 180,000 ounces 2015 unit costs expected to beat guidance - Company now targeting full-year cash operating costs better than US$650 per ounce and all-in sustaining costs below US$950 per ounce Cash and bullion increased to approximately $82.0 million at July 7, 2015 Senior secured debt fully repaid during Q2/15 Continued exploration success with discovery of second gold zone at 144 Gap Lake Shore Gold Corp. ("Lake Shore Gold" or the "Company") today announced production in the first six months of 2015 ("H1/15") of 95,600 ounces, which compared to production of 96,900 ounces in the first half of 2014 ("H1/14"). Based on production in H1/15, the Company today revised its full-year 2015 production guidance to at least 180,000 ounces from 170,000 to 180,000 ounces. Mill throughput during H1/15 totaled 627,000 tonnes at an average grade of 4.9 grams per tonne ("gpt") and average recoveries of 96.7% versus 593,600 tonnes at an average grade of 5.3 gpt and average recoveries of 96.6% in H1/14. Gold poured in H1/15 totaled 96,400 ounces, while gold sales were 98,500 ounces at an average selling price of US$1,208 ($1,488) per ounce. The Company's cash and bullion(1) at July 7, 2015 totaled approximately $82.0 million. Production in the second quarter of 2015 ("Q2/15") totaled 42,600 ounces with total mill throughput of 327,100 tonnes, an average grade of 4.2 gpt and average recoveries of 96.8%. The average grade in Q2/15 followed a record quarterly grade of 5.7 gpt in the first quarter of 2015, with the distribution of grades over the two quarters largely related to mine sequencing. Grades over the balance of the year are expected to be similar to the Q2/15 level. Results for Q2/15 compare to total production of 52,300 ounces (309,800 tonnes at an average grade of 5.4 gpt and average recoveries of 96.6%) in the second quarter of 2014. Gold poured in Q2/15 totaled 44,400 ounces, while gold sales were 45,900 ounces at an average selling price of US$1,197 ($1,470) per ounce. Tony Makuch, President and CEO of Lake Shore Gold, commented: "We had a strong first half of 2015, which has resulted in a positive revision to our production guidance for the year. In addition, while we will not release our H1/15 and Q2/15 cost estimates for a few more days, we now expect to beat our unit cost guidance in 2015. We are now targeting cash operating costs of better than US$650 per ounce sold compared to our guidance of US$650 to US$700 per ounce. Our all-in sustaining costs(3) are expected to average below US$950 per ounce versus our guidance for the year of US$950 to US$1,000 per ounce. With solid production and low unit costs, we have been able to grow our cash and bullion by approximately $20 million in the first six months of 2015 with the increase coming entirely from internally generated cash flow. We have also continued to reduce debt. In late May, we made the final payment on our gold-linked note, which will save the Company over a million dollars a month in debt repayment and servicing costs going forward. "Turning to exploration, we continue to generate very encouraging drill results at 144, including the discovery of a second gold zone, our 144 Gap SW Zone, located 200 metres to the southwest of the 144 Gap Zone. Based on the success we have achieved, we recently announced plans to increase our exploration expenditures at 144 in 2015 by $7.0 million, with work to focus on both of our discoveries, as well as to begin assessing additional targets such as 144 North, 144 South and the area between 144 South and our Gold River Trend project. We remain on track to release a first resource at the 144 Gap Zone as part of our next resource update early next year." Three Months Ended Six Months Ended June 30, 2015 Mar. 31, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Tonnes milled 327,100 299,900 309,800 627,000 593,600 Recovery (%) 96.8 96.7 96.6 96.7 96.6 Grade (grams/tonne) 4.2 5.7 5.4 4.9 5.3 Gold Ounces Production 42,600 53,000 52,300 95,600 96,900 Poured 44,400 52,000 53,500 96,400 99,200 Sales 45,900 52,600 53,500 98,500 96,500 Gold price (US$/ounce) 1,197 1,219 1,289 1,208 1,291 Gold price ($/ounce) 1,470 1,504 1,404 1,488 1,416 Qualified Person Scientific and technical information contained in this press release related to mine engineering and production has been reviewed and approved by Natasha Vaz, P.Eng., Vice-President, Technical Services, who is an employee of Lake Shore Gold Corp., and a "qualified person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). Scientific and technical information related to resources, exploration drilling and all matters involving mine production geology contained in this press release, or source material for this press release, was reviewed and approved by Eric Kallio, P.Geo., Senior Vice-President, Exploration. Mr. Kallio is an employee of Lake Shore Gold Corp., and is a "qualified person" as defined by NI 43-101.