Lake Shore Gold Intersects New Gold Zone and Extends Mineralization at Bell Creek

Lake Shore Gold Corp. (TSX: LSG) ("Lake Shore Gold" or the "Company") today announced encouraging results from the first five holes of its ongoing resource expansion drill program at the 100%-owned Bell Creek property (the "Property"), including the discovery of a new gold zone (the "South Zone"), and the extension of the known Bell Creek gold mineralization by approximately 350 metres below the existing Bell Creek resource and by approximately 175 metres to the west. The results highlight the potential to identify new sources of gold mineralization on the Property and to increase the known resource at the Bell Creek mine to depth. The current program represents the first time that exploration drilling has tested below the 500 metre level in the area of the existing Bell Creek resource and below the 300 metre level at other areas of the Property.

Highlights:
 New South Zone (BC-08-02)
                  356.00 - 362.05: 5.39 Au g/t over 6.05 metres
  Including       356.00 - 357.70: 11.70 Au g/t over 1.70 metres

 Extension of Bell Creek West horizon (BC-08-05)
                  279.00 - 287.10: 5.95 Au g/t over 8.10 metres
  Including       279.50 - 279.95: 8.65 Au g/t over 0.45 metres
  Including       281.00 - 281.70: 9.28 Au g/t over 0.70 metres
  Including       286.30 - 287.10: 33.26 Au g/t over 0.80 metres

The new South Zone is located approximately 450 metres to the south of the current Bell Creek resource. The South Zone is associated with a stockwork system of quartz carbonate veining in mafic volcanics and is similar to other mineralized systems along the "New Mine Trend" in Timmins which includes the Bell Creek and Owl Creek/Hoyle Pond mines.

Drilling to the west of the Bell Creek resource intersected new veins in an area where there has been no previous mining and that lies within 100 metres of two historic drill holes, which included intersections of 117.9 grams per tonne over 0.7 metres and 22.9 grams per tonne over 0.6 metres. In addition, drilling at depth has demonstrated that the existing Bell Creek gold structure extends well below the current resource. While high grades were not encountered from the very limited drilling completed to date, the widths at depth are significant and aggressive exploration work is planned in order to thoroughly explore this structure for high-grade sections.

Tony Makuch, President and CEO of Lake Shore Gold, commented: "From just a small number of widely spaced drill holes we have already seen encouraging results confirming our belief that there is excellent potential for expanding resources within the current gold system at Bell Creek and to find new sources of gold such as the South Zone. Four additional holes have been completed, all of which confirmed that the horizon hosting the veins system extends to depth (visible gold identified in three of these holes, assay results are pending). We are continuing our aggressive resource expansion drill program on the Bell Creek property, with two drill holes in progress, and will continue drilling with at least two rigs over the balance of the year."

Mr. Makuch added: "Bell Creek resource expansion drilling and exploration is just one component of our growth program where progress is being made. We remain on track with our 100%-owned Timmins West project, where ramp development and shaft sinking are expected to commence during the third quarter leading to initial production from shallow ore by early in 2009, and are advancing refurbishing work at the Bell Creek mill, with the mill's re-opening expected by the fourth quarter of this year. The mill is located on the Bell Creek minesite. Very importantly for Lake Shore Gold and its shareholders, we remain fully financed to complete both our current development projects as well as our ongoing exploration activities."