December 10, 2008 Lake Shore Gold Significantly Extends Bell Creek Mineralization - Key gold intercepts: 7.60 g/t over 6.30 metres ("m") (including 39.72 g/t (0.30 m), 8.66 g/t (3.80 m)); 8.62 g/t (2.00 m); 9.34 g/t (1.00 m); 17.31 g/t (1.00 m); 7.64 g/t (2.10 m) - Visible gold ("VG") noted in eastern gold extension (multiple occurrences) - Mineralization extended to 900 m level, and by 200 m both to east and west - 12 additional holes currently in progress (yet to be reported) TORONTO, ONTARIO--(Marketwire - Dec. 10, 2008) - Lake Shore Gold Corp. (TSX:LSG) ("Lake Shore Gold" or the "Company") today announced encouraging results from 10 holes (10,844 metres) of its ongoing resource expansion drill program at the 100%-owned Bell Creek property. Included in the results is the discovery of four new extension zones to the existing Bell Creek mineralization, one to the east, two to the west and one to depth of the existing mine workings. VG was noted in the "Bell Creek East" extension. The four extension zones are the latest evidence of significant new gold mineralization surrounding the historic Bell Creek mine. The discovery of the new "South" zone, located approximately 450 m south of the existing Bell Creek mine workings, was announced in July. The extension zones and South zone all have mineralization similar to other systems along the "New Mine Trend" in Timmins. These mineralized zones are often closely associated with altered volcanic rocks containing buff to dark grey alteration (Grey zones), quartz veining, increased pyrite and occasional VG. Highlights: New "Bell Creek East" Extension Zone (BC-08-09) 988.30 - 989.45: 7.76 Au g/t over 1.15 m 1,022.30 - 1,028.60: 7.60 Au g/t over 6.30 m Including 1,022.30 - 1,022.60: 39.72 Au g/t over 0.30 m Including 1,024.80 - 1,028.60: 8.66 Au g/t over 3.80 m 1,049.25 - 1,053.90: 6.06 Au g/t over 4.65 m New "Bell Creek West" Extension Zones (BC-08-08) North "A" trend (BC-08-08) 1,083.20 - 1,088.00: 5.01 Au g/t over 4.80 m Including 1,085.10 - 1,087.10: 8.62 Au g/t over 2.00 m Bell Creek West trend (BC-08-11) 182.65 - 183.65: 9.34 Au g/t over 1.00 m New "Bell Creek Depth" Extension Zone (BC-08-07B) 947.30 - 948.30: 17.31 Au g/t over 1.00 m 961.75 - 963.85: 7.64 Au g/t over 2.10 m Tony Makuch, President and CEO of Lake Shore Gold, commented: "Today's drill results confirm that the pattern of high-grade gold lenses outlined during previous mining at Bell Creek extend at least 600 metres below the existing mine workings (at 300 m level) and 200 metres to both the east and west. Based on these results, we are very encouraged about the opportunity to identify new sources of mineralization on the property and to establish new resources. We have an additional 12 holes in progress and yet to be reported. Lake Shore Gold is the first company to assemble the contiguous Bell Creek, Vogel and Schumacher properties (collectively known as the Bell Creek Complex). The Complex represents a potential second phase of production in the Timmins camp, with our first phase being the 100%-owned Timmins West project, which is on track to begin production early next year." ----------------------------------------------------------------------- HOLE From To Length Gold NUMBER(1) (m) (m) (m) (g/tonne) Comment ----------------------------------------------------------------------- BC-08-06 769.90 773.00 3.10 3.47 ----------------------------------------------------------------------- 780.20 781.30 1.10 6.46 ----------------------------------------------------------------------- 958.10 959.40 1.30 2.37 VG ----------------------------------------------------------------------- BC-08-07B(2) 947.30 948.30 1.00 17.31 ----------------------------------------------------------------------- 961.75 963.85 2.10 7.64 ----------------------------------------------------------------------- BC-08-08 1,037.60 1,038.55 0.95 4.87 ----------------------------------------------------------------------- 1,083.20 1,088.00 4.80 5.01 ----------------------------------------------------------------------- Incl 1,085.10 1,087.10 2.00 8.62 ----------------------------------------------------------------------- BC-08-09 988.30 989.45 1.15 7.76 ----------------------------------------------------------------------- 1,013.90 1,015.90 2.00 4.71 VG ----------------------------------------------------------------------- 1,022.30 1,028.60 6.30 7.60 ----------------------------------------------------------------------- Incl 1,022.30 1,022.60 0.30 39.72 VG ----------------------------------------------------------------------- Incl 1,024.80 1,028.60 3.80 8.66 ----------------------------------------------------------------------- 1,049.25 1,053.90 4.65 6.06 ----------------------------------------------------------------------- 1,058.30 1,059.30 1.00 2.45 ----------------------------------------------------------------------- 1,064.70 1,066.10 1.40 3.95 ----------------------------------------------------------------------- BC-08-09A 948.30 951.30 3.00 1.92 ----------------------------------------------------------------------- 954.80 961.45 6.65 3.31 VG ----------------------------------------------------------------------- 1,013.00 1,014.00 1.00 5.62 VG ----------------------------------------------------------------------- 1,013.00 1,016.00 3.00 2.02 ----------------------------------------------------------------------- 1,048.00 1,048.60 0.60 1.61 VG ----------------------------------------------------------------------- BC-08-09B 929.25 933.70 4.45 3.64 ----------------------------------------------------------------------- Incl 931.00 933.70 2.70 4.78 VG ----------------------------------------------------------------------- 1,010.80 1,012.45 1.65 5.80 VG ----------------------------------------------------------------------- 1,072.50 1,074.50 2.00 1.29 VG ----------------------------------------------------------------------- BC-08-10 954.80 955.50 0.70 2.02 ----------------------------------------------------------------------- BC-08-11 182.65 183.65 1.00 9.34 ----------------------------------------------------------------------- BC-08-12 429.70 430.50 0.80 3.57 ----------------------------------------------------------------------- BC-08-13, BC-08-14, BC-08-15 - No significant intersections ----------------------------------------------------------------------- Notes: 1) Due to uncertainties in zone orientations, true widths are not known at this time. 2) Holes BC-08-07 and BC-08-7A were abandoned due to excessive deviation. The drill holes being reported have partially explored a volume of 1,100 metre strike length, a height of 950 metres, and a stratigraphic thickness of 1,400 metres. The strike length which has been partially explored by the current drill program covers 28% of the four kilometre length of favourable gold mineralized horizons controlled by the Company. The drilling since July has been focusing on a one kilometre strike length of the Bell Creek mine property located between 5100E and 6100E. All of the holes were drilled from north to south in an attempt to cross cut the trend of known mineralization in the North "A" and Bell Creek West zones which is approximately east-west and moderate to steep south. Four main holes and two wedge holes (BC-08-07B, BC-08-09, BC-08-09A, BC-08-09B, BC-08-06 and BC-08-08) were designed to test for the downward extension of mineralization from the Bell Creek mine and all were successful. BC-08-07B was drilled in the central part of the property and tested an area up to 900 m below surface and intersected gold values of 17.31 g/t over 1.00 m (947.30 - 948.30 m) and 7.64 g/t over 2.10 m (961.75 - 963.85 m). BC-08-06 was collared 300 m to the west of hole BC-08-07B and intersected gold values of 3.47 g/t over 3.10 m (769.90 - 773.00 m) and 6.46 g/t over 1.10 m (780.20 - 781.30 m) in an area south of the North "A" horizon. BC-08-11 was collared 200 metres north of BC-08-06 and was designed to test for the westward extension of the previously reported gold value of 5.95 g/t over 8.10 m in hole BC-08-05 (July 2008 press release) and intersected a value of 9.34 g/t over 1.00 m (182.65 - 183.65). BC-08-09, plus wedge holes BC-08-09A and BC-08-09B, were drilled in the eastern portion of the property to a depth of 900 metres and along strike of the North "A" and Bell Creek West zones. Hole BC-08-09, which was the pilot hole, intersected up to 60 metre thickness of moderately ankeritic, strongly sericite altered mafic volcanic rock cut by quartz-carbonate stringer sets containing disseminated pyrite ranging up to 2% and multiple occurrences of VG. The best values in the hole included 7.76 g/t over 1.15 m (988.30 - 989.45 m), 4.71 g/t over 2.00 m (1,013.90 - 1,015.90 m), 7.60 g/t over 6.30 m (1,022.30 - 1,028.60 m) (including 39.72 g/t over 0.30 m and 8.66 g/t over 3.80 m), and 6.06 g/t over 4.65 m (1,049.25 - 1,053.90 m). Mr. Makuch concluded: "The results from Bell Creek are very positive and indicate that gold mineralization extends well beyond the limits of historic mining and is still open to depth and along strike. Future work will focus on definition of the size, shape and grade of the new near surface zones and further extension of the mineralized trend to depth. One of the main targets to be tested in the near future is the area surrounding the new intersection in BC-08-09 where two holes (BC-08-23 and BC-08-24) are in progress." Quality Control The Company's Qualified Person ("QP") for the Bell Creek property is Richard Labine, P.Geo. As QP, he has prepared or supervised the preparation of the scientific or technical information for the property and has verified the data disclosed in this press release. Lake Shore Gold has implemented a quality-control program to ensure best practice in the sampling and analysis of the drill core. Assays have been completed using a standard fire assay with a 30g aliquot. Any assays showing VG or with greater than five grams per tonne Au were re-analyzed using the pulp metallic method. NQ size drill core is saw cut and half the drill core is sampled in standard intervals. The remaining half of the core is stored in a secure location. The drill core is transported in security-sealed bags to Swastika Laboratories. About Lake Shore Gold Lake Shore Gold Corp. is a mineral development and exploration company that is rapidly moving towards gold production through its 100%-owned Timmins West property, which has a 1.2 million ounce reserve (uncut) and where the Company is sinking a shaft and driving a ramp to access shallow mineralization. Production from Timmins West is on track to commence during the first quarter of 2009. The Company also has completed the refurbishing of its wholly owned Bell Creek mill, which it acquired in December 2007, and has a number of prospective exploration properties in Northern Ontario and Quebec. Lake Shore Gold's common shares trade on the Toronto Stock Exchange under the symbol LSG. Forward-looking Statements Certain statements in this press release relating to the Company's exploration activities, project expenditures and business plans are "forward-looking statements" within the meaning of securities legislation. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable, including that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts, labour disturbances, interruption in transportation or utilities, or adverse weather conditions, that there are no material unanticipated variations in budgeted costs, that contractors will complete projects according to schedule, and that actual mineralization on properties will not be less than identified mineral reserves. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In particular, fluctuations in the price of gold or in currency markets could prevent the Company from achieving its targets. Readers should not place undue reliance on forward-looking statements. More information about risks and uncertainties affecting the Company and its business is available in Lake Shore Gold's most recent Annual Information Form and other regulatory filings which are posted on sedar at www.sedar.com. There is no guarantee that drill results reported in this news release will lead to the identification of a deposit that can be mined economically, and further work is required to identify a reserve or resource. To view Figure 1 (Plan View of Bell Creek Property), please visit the following link: http://media3.marketwire.com/docs/LSG1210fig1d.jpg To view Figure 2 (Cross section), please visit the following link: http://media3.marketwire.com/docs/LSG1210fig2a.pdf

CONTACT INFORMATION: Lake Shore Gold Corp. Tony Makuch President & CEO (416) 703-6298 Fax: (416) 703-7764 or Lake Shore Gold Corp. Mark Utting Vice-President, Investor Relations (416) 703-6298 Fax: (416) 703-7764 Email: info@lsgold.com Website: www.lsgold.com INDUSTRY: Manufacturing and Production - Mining and Metals