Lake Shore Gold Corp. Initiates Second Phase 3,000 Metre Drilling Program, Thunder Creek Gold Property, Timmins, Ontario.

VANCOUVER, British Columbia -- Lake Shore Gold Corp. (TSX VENTURE:LSG) announced today that a second phase 3,000 metre diamond drill program has been initiated on the Thunder Creek Property, located in Bristol Township, Ontario. The 54 claim unit property is contiguous to the Company's Timmins Gold Property where a National Instrument 43-101 compliant resource study, conducted by Watts, Griffis & McOuat Ltd., is expected to be completed within the next few weeks.

The current drill program on the Thunder Creek Property will test several new targets discovered during the ongoing program of mapping, rock and soil sampling. Three main targets have been identified and all three will be tested in the current program. The targets include: an 80 to 100 metre wide east-west trending shear zone; an area of pyroxenite (ultramafic) and porphyry with anomalous gold values in soils; and the mineralized zone intersected in the first phase drilling (see News Release dated March 24, 2004).

The surface exploration work completed on the Thunder Creek Property has delineated a well developed east-west shear zone that offsets the main target ultramafic, that is the same ultramafic body that hosts the mineralization on the adjacent Timmins Gold Property. This strong shear structure carries anomalous gold in both rock and soil samples and has been defined by surface mapping and geophysics over a strike length of more than 1,000 metres. Mapping and soil sampling also identified a second area north of the shear structure underlain by this same ultramafic and by felsic porphyry with anomalous gold in soils and rock. Mineralization within these targets returned surface values from 1 to 73.0 grams per tonne gold. Limited drilling along a 250 metre strike length on the shear structure returned assays of 3.7 grams per tonne gold over 3.9 metres (including 9.0 grams per tonne gold over 0.8 metres).

The current drill program will test each of these targets at depth and along strike.

Quality Control

Lake Shore Gold has implemented a quality-control program to ensure best practice in the sampling and analysis of the drill core. NQ size drill core is saw cut and half the drill core is sampled in 1.0 metre intervals while core from the main mineralized horizons and core displaying visible gold is sampled in greater detail. The remaining half of the core is stored in a secure location. The drill core is transported in security-sealed bags for analysis at ALS  Chemex in Mississauga, Ontario. ALS Chemex is an ISO9001-2000 BSI  Registered laboratory. Drill core assaying is done using a 50 gram fire assay with pulp and metallics assaying for all samples within the main mineralized horizons and all those samples with visible gold.

The Thunder Creek exploration program, supervised by Jacques Samson (P.Geo), the Qualified Person for this Project, is under option from Band-Ore Resources Ltd. (see News Release dated November 12, 2003 for details).

Lake Shore Gold is exploring for gold and base metals in the Archean Superior Province of Ontario and Quebec.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.