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

RE:RE:RE:RE:POG up, LSG share price, not so much

[Wolfin13]

EXS continued - makes real good sense for LSG to target EXS as a prime takeover at a very cheap price which is a fraction of its drilling and development costs.........IMHO

23.0 ADJACENT PROPERTIES

The TPW property is located on the west side of the prolific Timmins Porcupine Gold camp. The Hollinger-McIntyre Mine and Dome Mine are located approximately 15 km northeast of the TPW property. On its west boundary, the TPW property is contiguous with Lakeshore Gold Corp.s West Timmins Mine.

Figure 23.1 Adjacent Properties Map

Source: Explor Resources (2013)

Lakeshore Golds Timmins West Complex is located 18 kilometres west of Timmins and hosts the Timmins West Mine, an underground mining operation that produces ore using a 710 metre, 5.5 metre diameter shaft, with a 6,000 tonne per day total hoisting capacity. The ore is accessed using mobile equipment via internal ramps both from surface and the main shaft. Primary mining methods include longitudinal longhole mining at the Timmins Deposit, and transverse longhole mining at the Thunder Creek Deposit. Broken ore is removed from the stopes using remote controlled Load-Haul-Dump Loaders (“LHDs”), loaded onto trucks and hauled to the main shaft rockbreaker station prior to skipping to surface. The mine currently produces at approximately 2,000 tonnes per day, and its infrastructure and orebody will support a rate of 3,000 tonnes per day at full production (Lake Shore Gold Corp. Management Discussion and Analysis, for the period ended June 30, 2013).

Krick et al. (2012) describe the Timmins West Mine (“TWM”) area as including the Timmins Deposit and the Thunder Creek Deposit. The TWM area lies along the northeast trending contact

P&E Mining Consultants Inc. Page 62 of 103 Explor Resources Inc. Timmins Porcupine West Property, Report No. 274

zone between southeast facing mafic metavolcanic rocks of the Tisdale Assemblage (to the northwest) and unconformably overlaying, dominantly south-easterly facing metasedimentary rocks of the Porcupine Assemblage (to the south east). The contact dips steeply to the northwest, and is modified and locally deflected by folds and shear zones that are associated with gold mineralization. Along and within several hundred metres of the contact area, several intrusions intrude mainly the mafic metavolcanic sequence between the Timmins Deposit and the southwestern parts of the Thunder Creek property. These include: a metamorphosed intrusions comprised dominantly of pyroxenite which occur along the mafic–metasedimentary rock contact or intruding the mafic metavolcanic rocks adjacent to the contact and which are termed the “alkaline intrusive complex”; and finegrained, equigranular to locally Kfeldspar porphyritic intrusions which are dominantly monzonite but may range to syenite in composition. The latter include a lenticular, northeast trending, unexposed body in the Porphyry Zone adjacent to the maficsedimentary contact in the Rusk area, and a more irregularly shaped stock to the south which intrudes the Porcupine Assemblage here termed the “Thunder Creek Stock”.

Gold mineralization in the Timmins West Mine occurs in steep northnorthwest plunging mineralized zones which plunge parallel to the local orientations of the L4 lineation features including folds and elongate lithologies. Mineralization occurs within shear zones, or in favourable lithostructural settings adjacent to Shear Zones. Mineralization comprises multiple generations of quartzcarbonatetourmaline+/ albite veins, associated pyrite alteration envelopes and disseminated pyrite mineralization. Textural evidence suggests that veining formed progressively through D3 and D4 deformation. All phases of goldbearing veins cut and postdate alkali intrusive complex and syenitic to monzonitic intrusion, although mineralization is often spatially associated with these intrusions.

The Timmins West Mine Resource totals 5.83Mt at 5.99 g/t Au, amounting to 1,122,500 ounces of gold in the Indicated category and 4.27Mt at 5.76 g/t Au amounting to 791,500 ounces of gold in the Inferred category. The base case resources are estimated at a 1.5 g/t Au cutoff for the Timmins deposit and a 2.0 g/t Au cutoff for the Thunder Creek deposit (Krick et al. 2012).

The reader is cautioned that P&E has not verified the Timmins West Mine resource estimate. The tonnage and grade at the Timmins West Mine is not necessarily indicative of mineralization on the TPW Property.