Lake Shore Gold Discovers New Gold Zone at Casa Berardi

TORONTO, ONTARIO, Oct 23 (MARKET WIRE) --
Lake Shore Gold Corp. (TSX: LSG) ("Lake Shore Gold" or the "Company")
today announced encouraging results from Phase 1 of its 2008 drill
program at the Casa Berardi optioned property in north-western Quebec.
The results of the program, which involved a total of 12 diamond drill
holes, included the discovery of a new gold zone, with the best intercept
being 13.03 grams per tonne gold over 6.45 metres within a broader
intersection of 8.58 grams per tonne gold over 10.4 metres ("Hole
CE-08-03"). Hole CE-08-03 is the deepest mineralized intersection at a
vertical depth of 247 metres and is located approximately 90 metres below
a historic intercept of 11.11 grams per tonne gold over 2.24 metres. The
new intercept is open both at depth and laterally.

Highlights: (CE-08-03) 319.10 -- 329.50: 8.58 Au g/t over 10.4 metres
Including 321.90 -- 328.35: 13.03 Au g/t over 6.45 metres
Including 326.90 -- 327.55: 51.33 Au g/t over 0.65 metres

(CE-08-07) 253.60 -- 256.00: 8.64 Au g/t over 2.4 metres
Including 254.40 -- 255.45: 28.82 Au g/t over 0.65 metres

(CE-08-11) 297.15 -- 300.25: 6.84 Au g/t over 3.1 metres
Including 298.00 -- 298.30: 13.80 Au g/t over 0.3 metres

Lake Shore Gold is currently earning a 50% interest in the Casa
Berardi optioned property through a joint venture agreement, reached in
2007, with Aurizon Mines Ltd. ("Aurizon") by spending $5.0 million over
five years with a firm commitment of $600,000 in the first year. The
first year commitment was met during the first quarter of 2008. The
Company is the operator during the earn-in period. The optioned property
lies to the east and west of Aurizon's wholly owned Casa Berardi mining
operations, including the West Mining Complex and East Mine and Mill
Complex.

The new zone lies to the east of Aurizon's mining operations, and covers
a total strike length of more than 500 metres from west to east. Included
within the new zone are three high-potential sub-zones (G-S Zone, G-Mid
Zone and the G-N Zone), which trend approximately 260 degrees azimuth and
dip moderately south (i.e. 60-75 degrees). Better mineralization
displayed increased wall rock alteration and increased sulphides, with
some quartz and sulphide stringers at a shallow angle to the core axis,
an occurrence also noted at Aurizon's Casa Berardi mines.

Tony Makuch, President and CEO of Lake Shore Gold, commented: "We are
very encouraged by the results of the first 12 holes at Casa Berardi,
which indicate an extensive mineralized package, with several
sub-parallel gold-bearing vein and sulphide zones within the main area of
the drill program. We are preparing to launch a second phase of the drill
program as soon as the winter weather returns and winter roads can be
established as part of our ongoing exploration program."

----------------------------------------------------------------------------

HOLE Core Length Gold
NUMBER From (m) To (m) (m) (grams/ Zone
Tonne)
----------------------------------------------------------------------------
CE-08-01 197.30 198.85 1.55 3.35 G-S Zone with visible
gold in 2 of 3 samples
----------------------------------------------------------------------------

292.20 295.00 2.80 4.22 (G-N) stringers in fold
----------------------------------------------------------------------------
Incl 292.20 292.70 0.50 14.13 Increased stringers
----------------------------------------------------------------------------
CE-08-02 120.20 121.80 1.60 1.03 G-Mid related stringers
----------------------------------------------------------------------------
149.50 151.40 1.90 1.20 G-N Zone
----------------------------------------------------------------------------
153.50 155.40 2.10 1.64 G-N Zone
related stringers
----------------------------------------------------------------------------
383.00 384.75 1.75 1.30 Minor stringers
& pyrite
----------------------------------------------------------------------------
CE-08-03 319.10 329.50 10.40 8.58 G-N Zone
----------------------------------------------------------------------------
Incl 321.90 328.35 6.45 13.03 G-N Zone
----------------------------------------------------------------------------
Incl 326.90 327.55 0.65 51.33 Highest gold assay
----------------------------------------------------------------------------
CE-08-04 No material values
----------------------------------------------------------------------------
CE-08-05 107.00 108.80 1.80 1.44 G-Mid Zone
----------------------------------------------------------------------------
154.00 157.35 3.35 4.14 G-N Zone
----------------------------------------------------------------------------
Incl 155.65 157.35 1.70 6.79 G-N Zone
----------------------------------------------------------------------------
Incl 156.75 157.35 0.60 12.52
----------------------------------------------------------------------------
158.85 160.65 1.80 1.05
----------------------------------------------------------------------------
CE-08-06 No material values Approximately 2km
west of 2008 main
drill area
----------------------------------------------------------------------------
CE-08-07 253.60 256.00 2.40 8.64 G-N Zone
----------------------------------------------------------------------------
Incl 254.40 255.45 0.65 28.82
----------------------------------------------------------------------------
291.00 293.05 2.05 1.19 Breccia vein
(another G-N)
----------------------------------------------------------------------------
Incl 291.85 292.30 0.45 4.87
----------------------------------------------------------------------------
CE-08-08 196.95 198.70 1.75 1.84 G-Mid Zone
----------------------------------------------------------------------------
207.30 209.35 2.05 2.63 G-Mid Zone
----------------------------------------------------------------------------
Incl 207.30 208.10 0.80 5.90
----------------------------------------------------------------------------
CE-08-09 No material values Approximately 2km
west of 2008 main
drill area
----------------------------------------------------------------------------
CE-08-10 74.60 76.30 1.70 3.61 G-S Zone
----------------------------------------------------------------------------
Incl 74.60 75.00 0.40 13.85 Veining with heavy
pyrite
----------------------------------------------------------------------------
118.00 120.55 2.55 1.00 G-Mid Zone
----------------------------------------------------------------------------
150.85 152.50 1.65 4.58 G-N Zone
----------------------------------------------------------------------------
Incl 151.30 152.00 0.70 8.69
----------------------------------------------------------------------------
CE-08-11 290.35 292.10 1.75 1.55 G-Mid Zone
----------------------------------------------------------------------------
293.80 295.50 1.70 1.81 G-Mid Zone
----------------------------------------------------------------------------
297.15 300.25 3.10 6.84 G-Mid Zone
----------------------------------------------------------------------------
Incl 298.00 298.30 0.30 13.80 Increased pyrrhotite
----------------------------------------------------------------------------
316.90 320.60 3.70 1.97 G-N Zone
----------------------------------------------------------------------------
Based on the assumed azimuth of 260 degrees and south dip of 60-70 degrees,
the true thickness of the zones is estimated to be in the order of 75-85% of
intersection thickness.

The 12 diamond drill holes covered 4,470 metres and were directed at a
14.5 kilometer block of claims located contiguous to the east of
Aurizon's existing Casa Berardi mining operations. The program was
designed to investigate areas of interest detected by previous operators.
Lake Shore Gold also has under option from Aurizon a 15 kilometer length
block of claims located contiguous to the west of the Casa Berardi mining
operations. The western block is also contiguous with the Burntbush
property and along strike of the Blakelock property, both located in
Ontario and covering 60 kilometers of strike and 100%-owned by Lake Shore
Gold. The main area of drilling comprised ten holes centered 7.5
kilometers east north-east of Aurizon's Casa Berardi East Mine and Mill
Complex. Holes were drilled north along sections approximately 100-metres
apart with one to two holes per section. Two additional holes were
drilled two kilometers to the west of this area. In addition, 79 reverse
circulation ("RC") holes were simultaneously completed over the eastern
claim block.

Mineralization encountered by Lake Shore Gold occurs within sediments
located north of a mafic volcanic package. Gold is associated with
quartz-carbonate veining and sulphides. Better mineralization displays
sericite alteration and occasionally albitization and the presence of
increased sulphides including pyrite, pyrrhotite and especially
arsenopyrite.

The 79-hole RC drill program was designed to both define new targets by
testing new areas as well as following up on areas of interest detected
through the compilation of previous data. In addition, 173 bed rock
samples were collected during the RC program with samples analyzed for
gold by a FA-AA method and a trace multi-element ICP analytical method.

Two LSG interpreted gold dispersal trains were determined to occur near
the northern mafic volcanic-sediment contact east of the Theo River. The
first gold train comprises three holes and occurs south of the Company's
western diamond drill holes CE-08-06 and CE-08-09. The second gold train
occurs east of Lac Germain and 5.1 kilometers along trend and east of the
main 2008 diamond drill program conducted by Lake Shore Gold. Both gold
dispersal trains offer new drill targets near the northern
volcanic-sedimentary boundary.

Quality Control

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 an atomic absorption finish on
a 30 gram aliquot. Samples returning greater than one gram per tonne were
re-analyzed by a fire assay - gravimetric finish on a 50 gram aliquot.
Samples containing visible gold or returning greater than 5.00 grams per
tonne 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 Laboratoire Expert Inc,
Rouyn-Noranda, Quebec.

The Company has retained the services of William Waychison, P.Geo., as
the Qualified Person ("QP") for Lake Shore Gold's Casa Berardi optioned
property. As QP he has prepared or supervised the preparation of the
scientific or technical information for the property.

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 is moving forward with an advanced
exploration program at its 100%-owned Timmins West property, and is also
driving a ramp that is expected to lead to first gold production from
Timmins West by early in 2009; is progressing refurbishing 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 exploration work at
the Casa Berardi optioned property 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 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 materials 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 involve known and unknown risks, uncertainties
and other factors which may cause the Company's actual results,
performance or achievements to be materially different from any future
results, performance or achievements expressed or implied by the
forward-looking statements. 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 regulatory filings which are posted on sedar at
www.sedar.com.

To view a map of Figure 1 please visit the following link:

http://media3.marketwire.com/docs/Figure_1._Location_Map.jpg

To view a map of Figure 2 please visit the following link:

http://media3.marketwire.com/docs/Figure_2._Diamond_Drilling_Map.jpg

To view a map of Figure 3 please visit the following link:

http://media3.marketwire.com/docs/Figure_3._Diamond_Drilling_Main_Area_Map.jpg

To view a map of Figure 4 please visit the following link:

http://media3.marketwire.com/docs/Figure_4._Cross_Section.jpg

To view a map of Figure 5 please visit the following link:

http://media3.marketwire.com/docs/Figure_5._Long_Section.jpg

Contacts:
Lake Shore Gold Corp.
Tony Makuch
President & CEO
(416) 703-6298

Lake Shore Gold Corp.
Mark Utting
Vice-President, Investor Relations
(416) 703-6298
(416) 703-7764 (FAX)
Email: mutting@lsgold.com
Website: www.lsgold.com

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