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

GgoldCorp

[JRaffles]

It has been suggested that G may not bid for LSG, since they would have an interest via their 25% shareholding in Tahoe.

However, with a paper bid for LSG, G's interest via Tahoe would be diluted to, say, 15%.

With a 25% shareholding in Tahoe, G may be in a position to add this % to theri earnings.  However, with an investment reduced to 15%, would probably mean that G would not be able to report earninss in their P&L.