News!!!Lake Shore Gold Reports Strong 2015 Operating Cost Performance - Preliminary cash operating cost(1) per ounce sold of US$580 in 2015 compared to target of better than US$650 - Preliminary all-in sustaining cost(2) ("AISC") per ounce sold of US$870 in 2015 versus target of below US$950 - Q4/15 cash operating cost and AISC per ounce sold estimated at US$610 and US$935, respectively - Preliminary total production costs in 2015 of approximately $135.0 million, $34.0 million in Q4/15 TORONTO, ONTARIO--(Marketwired - Jan. 19, 2016) - Lake Shore Gold Corp. (TSX:LSG)(NYSE MKT:LSG) ("Lake Shore Gold" or the "Company") today announced preliminary cash operating cost and AISC per ounce sold for the full year and fourth quarter ("Q4/15") of 2015. Final numbers for these measures will be available when the Company issues its 2015 and Q4/15 financial and operating results on February 24, 2016. Cash operating cost per ounce sold for 2015 is estimated at approximately US$580 (including US$25 per ounce for royalties) compared to the Company's guidance of better than US$650. AISC per ounce sold in 2015 is estimated at US$870 versus guidance for the year of below US$950. Total production costs in 2015 are estimated at approximately $135.0 million versus full-year 2015 guidance of $130 - $135 million. All financial numbers are in Canadian dollars unless otherwise indicated. For Q4/15, preliminary cost estimates include cash operating costs of US$610 per ounce sold (including US$24 per ounce for royalties) and AISC per ounce sold of US$935. Total production costs for Q4/15 are estimated at approximately $34.0 million. Tony Makuch, President and CEO of Lake Shore Gold, commented: "Our unit cost performance in 2015 was strong and compared favourably to guidance. Low-cost production is an important priority for our company and is a key driver of free cash flow. During 2015, we grew our cash position by over 60%, with cash and bullion(3) increasing from $61.5 million to approximately $100.0 million at December 31, 2015. Strong internally generated cash flow accounted for the majority of the increase during the year. Also during 2015 we completed the repayment of our senior secured debt and significantly increased our commitment to exploration. Looking ahead, we expect our low unit costs to remain an important competitive strength of our company, one that will contribute to solid financial performance well into the future. "In 2016, we are targeting total production of 170,000 to 180,000 ounces of gold, to include 160,000 to 170,000 ounces of commercial production and 10,000 to 15,000 ounces of non-commercial production from the 144 Gap Zone. Our unit costs in 2016, based on commercial ounces sold, are expected to be similar to levels in 2015, with our guidance for cash operating costs and AISC remaining unchanged at better than US$650 per ounce sold and below US$950 per ounce sold, respectively. Our unit cost guidance reflects estimated total production costs, including royalties, of $125.0 - $130.0 million." The Company will issue its full financial results for 2015 and Q4/15 on Wednesday, February 24, 2016 with a conference call and webcast to follow the release of the results. More information on the release of the Company's financial results and related conference call and webcast will be provided over the next few weeks. Three Months Ended Twelve Months Ended Dec. 31, 2015 Sept. 30, 2015 Dec. 31, 2014 Dec. 31, 2015 Dec. 31, 2014 Tonnes Milled 355,600 325,000 331,500 1,307,200 1,245,900 Grade (grams/tonne) 3.9 4.0 4.2 4.4 4.8 Recovery (%) 96.4 96.6 96.7 96.6 96.6 Production (oz.) Timmins West 31,400 32,600 31,200 139,000 142,200 Bell Creek 11,100 8,000 12,000 39,700 43,400 Total 42,500 40,600 43,200 178,700 185,600 Gold poured (oz.) 42,800 40,400 42,400 179,600 186,500 Gold sold (oz.) 42,000 42,800 41,200 183,300 183,300 Avg. price (US$/oz.) 1,100 1,122 1,200 1,164 1,269 Avg. price ($/oz.) 1,473 1,474 1,360 1,481 1,398 Costs (US$/oz. sold) Cash operating costs 610 604 597 580 592 All-in sustaining costs 935 924 915 870 872 Qualified Person