Lake Shore Gold Provides 2008/2009 Budget Plan

TORONTO, ONTARIO, May 20 (MARKET WIRE) --
Lake Shore Gold Corp. (TSX: LSG) ("Lake Shore Gold" or "the Company")
today provided a project update and outlook for 2008 and 2009, which
envisions initial deliveries of ore from its Timmins West property to the
Company's 100%-owned Bell Creek mill by early in 2009 and a steady ramp
up in production which could reach approximately 200,000 ounces of gold
by 2011.

Lake Shore Gold's Board of Directors has approved a project budget for
2008 totaling $75.0 million ($15.0 million incurred in the first quarter
of 2008) and gave preliminary approval for a 2009 budget totaling $78.5
million, excluding corporate costs. Through the expenditures planned to
the end of next year, and subject to favourable advanced exploration and
other results, specific milestones expected to be achieved include:

- Refurbishing of the Bell Creek mill by the fourth quarter of 2008, with
capacity of 800 tonnes per day, to be increased to 1,500 tonnes per day
as ore production increases;

- Developing a ramp at the Timmins West property with a goal of
delivering development ore to the Bell Creek mill by early in 2009;

- Carrying out an advanced exploration program, including sinking a shaft
to the deeper, primary deposit at Timmins West, which will be collared at
the 200 metre, 400 metre, 525 metre and 650 metre levels, with
development from the 650 metre level to intersect mineralized zones
planned for the second half of 2009;

- Commencing development of a surface ramp to the 100%-owned Vogel
property, with ramp portal and culvert construction to begin by mid-2009;

- Completing a study for the rehabilitation of the Bell Creek mine and,
pending favourable results, commencing advanced exploration work
including dewatering the mine and undertaking underground development and
diamond drilling; and,

- Continuing exploration programs at each of the Company's properties.

Anthony (Tony) Makuch, President and CEO of Lake Shore Gold, commented:
"Lake Shore Gold is on track with its goal to become Canada's next
intermediate gold producer at a time when the outlook for gold prices
remains highly favourable. We have an excellent portfolio of properties,
with 1.2 million ounces of probable reserves (uncut) already having been
identified at our Timmins West property, a 100%-owned mill at Bell Creek,
the refurbishing of which is being accomplished at a fraction of the cost
and time required to construct a greenfield mill, and very encouraging
prospects for identifying additional reserves both at Timmins West and at
a number of our other properties.

"While much work remains, we are targeting solid production growth,
starting with an estimated 30,000 ounces of gold in 2009 from Timmins
West. Production could then grow to just over 100,000 ounces in 2010 as
we increase output at Timmins West and begin producing from the Vogel
ramp. In 2011, the Company anticipates that production could reach up to
200,000 ounces reflecting increased production from Timmins West and the
Vogel ramp and initial output from the Bell Creek mine. Production growth
in subsequent years is expected to come from continued progress at these
and other properties."

To view the Four Year Conceptual Production Outlook graph, please visit
the following link: http://media3.marketwire.com/docs/lsggraph2.pdf.

Timmins West Ramp

Lake Shore Gold plans to commence an advanced exploration program during
the third quarter of 2008 involving the development of a ramp to access
mineral reserves at Timmins West above the 400 metre level. The ramp will
be driven from surface to facilitate development in the Veins and Main
zone, with mineralized material to be processed at the Bell Creek mill
and underground diamond drilling to be undertaken. A feasibility study
will be completed at the end of the program and, pending favourable
results, initial ore production will begin early in 2009, providing early
cash flows supporting the Company's growth plans. Total expenditures in
2008 for the Timmins West ramp project are estimated at approximately
$14.3 million, mainly related to advanced exploration work, with $9.1
million budgeted for 2009, largely related to the continued advancement
of the ramp, sustaining capital requirements and carrying costs.

Timmins West

A budget of $38.2 million has been approved for the Timmins West project
(excluding ramp) for 2008 to fund the advanced exploration program. All
surface infrastructure is nearing completion, with shaft sinking expected
to begin during the third quarter. Expenditures during 2009 are estimated
to total $23.6 million, and include the cost of completing the advanced
exploration program as well as costs for pre-production development work
late in the year.

Bell Creek Mill

Expenditures for the Bell Creek mill in 2008 are estimated at $10.0
million. Of this amount, $3.8 million relates to the refurbishing of the
mill, $2.0 million for a new surge pond and the remainder covering
carrying costs, mill improvements and a $1.2 million contingency.
Expenditures in 2009 are estimated at $1.2 million. The re-opening of the
mill is expected during the fourth quarter of 2008 with an operating
capacity of 800 tonnes per day. The mill's capacity will be increased to
1,500 tonnes per day as the volume of ore feed increases.

Vogel Ramp

Work is progressing on an internal study for mining of the Vogel mineral
resources above the 320 metre level by ramp access with a target to
present the results of the study to the Board during the second half of
2008. Pending board approval, construction of the ramp portal and culvert
would be undertaken by mid-2009 and be expected to intersect gold
mineralization by the end of the year. Total expenditures for the Vogel
ramp are estimated at $0.8 million in 2008 and, pending a favourable
development decision, are estimated at $20.1 million for 2009.

Bell Creek Mine

The Company plans to complete a study of the scope of work and cost for
de-watering and rehabilitating the Bell Creek mine. Pending favourable
results from this study, an advanced exploration program would commence
that would include dewatering the mine and undertaking underground
development and diamond drilling. This program would extend throughout
most of 2009. Total expenditures at the Bell Creek mine are budgeted at
$0.4 million for 2008 and are estimated at approximately $12.8 million in
2009.

Exploration Expenditures

The Company expects to incur expenditures of $11.4 million in 2008 and
$11.7 million in 2009 in support of its ongoing exploration program. Five
drills are currently active on the Company's properties, and it expects
to operate at least five to six drills on an ongoing basis. Management
currently anticipates having three to four drills at the Timmins West,
adjacent Thunder Creek and Bell Creek Complex properties, and two drills
at the Tipahaakaaning joint venture property (the operator of the joint
venture being Northern Superior Resources Inc.). An estimated 50,000
metres of diamond drilling is expected in both 2008 and 2009. Additional
diamond drilling and/or reverse circulation drilling is contemplated for
the Blakelock and Casa Berardi properties later this year and/or during
2009, either using existing drills or by adding additional drilling
capacity. The exact extent and location of future drilling will largely
depend on exploration results, with budgets subject to joint venture
partner approval in the case of Thunder Creek and Tipahaakaaning.

About Lake Shore Gold

Lake Shore Gold Corp. is a mineral development and exploration company
that is rapidly moving towards gold production through a portfolio which
includes an existing processing facility and a number of quality mineral
properties located in the Timmins gold mining district of northern
Ontario and Quebec. The Company has completed a pre-feasibility study and
is moving forward with an advanced exploration program at its Timmins
West property, has begun re-commissioning work at its 100%-owned Bell
Creek mill and is continuing drilling programs at a number of other
prospective properties. The Company'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 growth and
development of the Company's projects and properties and anticipated
future production levels and spending plans are "forward-looking
statements." 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 demand for products develops as anticipated, that
operating and capital plans will not be disrupted by issues such as
mechanical failure, unavailability of parts and supplies, labour
disturbances, interruption in transportation or utilities, or adverse
weather conditions, and that there are no material unanticipated
variations in the cost of energy or supplies. The Company makes no
representation that reasonable business people in possession of the same
information would reach the same conclusions.

Forward-looking statements include, but are not limited to, statements
with respect to the future price of gold and other metals, the estimation
of mineral resources, the realization of mineral resource estimates, the
timing and amount of estimated future production, costs of production,
capital expenditures, costs and timing of the development of new
deposits, timing of completion of pre-feasibility studies, success of
exploration and development activities, permitting time lines, currency
fluctuations, requirements for additional capital, government regulation
of exploration operations, environmental risks, unanticipated reclamation
expenses, title disputes or claims, completion of acquisitions and their
potential impact on the Company and its operations, limitations on
insurance coverage and the timing and possible outcome of pending
litigation. In certain cases, forward-looking statements can be
identified by the use of words such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes", or
variations of such words and phrases or statements that certain actions,
events or results "may", "could", "would", "might" or "will be taken",
"occur" or "be achieved". 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. Such factors include, among
others, risks related to the completion and integration of acquisitions
and actual effects of the acquisitions; risks related to joint venture
operations; actual results of current exploration activities; actual
results of current reclamation activities; conclusions of future economic
evaluations; changes in project parameters as plans continue to be
refined; future prices of gold and other metals; possible variations in
ore resources, grade or recovery rates; failure of plant, equipment or
processes to operate as anticipated; accidents, labour disputes and other
risks of the mining industry; delays in obtaining governmental approvals
or financing or in the completion of development or construction
activities; as well as those factors discussed in the section entitled
"Risk Factors" in the Company's Annual Information Form filed with
Canadian provincial securities regulatory authorities. Although the
Company has attempted to identify important factors that could cause
actual actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors that
cause actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements will
prove to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking statements.

Contacts:
Lake Shore Gold Corp.
Tony Makuch
President & CEO
(416) 703-6298
Email: info@lsgold.com

Lake Shore Gold Corp.
Mark Utting
Vice-President, Investor Relations
(416) 703-6298
Email: info@lsgold.com
Website: www.lsgold.com

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